(1) AMENDMENTS.—Section 4102A of such 
title, as amended by subsection (b), is further 
amended—
(A) in subsection (c)—
(i) by striking clause (ii) of paragraph 
(2)(B) and redesignating clause (iii) as 
clause (ii); and 
(ii) in paragraph (6)—
(I) by inserting ‘‘(29 U.S.C. 
2801 et seq.)’’ after ‘‘the Workforce 
Investment Act of 1998’’; and 
(II) by inserting ‘‘(29 U.S.C. 49 
et seq.)’’ after ‘‘the Wagner-Peyser 
Act’’; and 
(B) in subsection (f)—
(i) in paragraph (1), by striking ‘‘es-
tablish and’’; and 
(ii) by striking the heading and insert-
ing the following: ‘‘PERFORMANCE STAND-
ARDS AND OUTCOMES MEASURES.—’’. 
(2) EFFECTIVE DATE.—The amendment made 
by clause (i) of paragraph (1)(A) shall take effect on 
October 1, 2006.
SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DIS-
ABLED 
VETERANS’ 
OUTREACH 
PROGRAM 
SPECIALISTS AND LOCAL VETERANS’ EM-
PLOYMENT REPRESENTATIVES. 
(a) DISABLED VETERANS’ OUTREACH PROGRAM 
SPECIALISTS.—Section 4103A of title 38, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(c) PART-TIME EMPLOYEES.—A part-time disabled 
veterans’ outreach program specialist shall perform the 
functions of a disabled veterans’ outreach program spe-
cialist under this section on a half-time basis.’’.
(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTA-
TIVES.—Section 4104 of such title is amended by adding 
at the end the following new subsection: 
‘‘(e) PART-TIME EMPLOYEES.—A part-time local vet-
erans’ employment representative shall perform the func-
tions of a local veterans’ employment representative under 
this section on a half-time basis.’’.
(c) EFFECTIVE
DATE.—Sections 4103A(c) and 
4104(e) of title 38, United States Code, as added by sub-
sections (a) and (b), shall apply with respect to pay peri-
ods beginning after the date that is 180 days after the 
date of the enactment of this Act.
SEC. 303. STATE LICENSING AND CERTIFICATION PRO-
GRAMS FOR VETERANS. 
(a) REQUIREMENT AS A CONDITION OF VETS FUND-
ING.—Section 4102A(c) of title 38, United States Code, 
as amended by section 301, is further amended by adding 
at the end the following new paragraph: 
‘‘(8) As a condition of a grant or contract under 
which funds are made available to a State in order to carry 
out section 4103A or 4104 of this title, the Secretary shall 
require the State to provide a licensing and certification 
program under which a veteran may receive credit toward 
a license or certification based on training or experience 
the veteran acquired while serving in the Armed Forces.’’.
(b) EFFECTIVE DATE.—Section 4102A(c)(8) of title 
38, United States Code, as added by subsection (a), shall 
apply to a grant or contract under which funds are made 
available to a State in order to carry out section 4103A 
or 4104 of such title beginning with the second program 
year beginning after the date of the enactment of this Act. 
SEC. 304. TRAINING OF NEW DISABLED VETERANS’ OUT-
REACH PROGRAM SPECIALISTS AND LOCAL 
VETERANS’ 
EMPLOYMENT 
REPRESENTA-
TIVES BY NVTI REQUIRED. 
(a) TRAINING REQUIRED.—Section 4102A(c) of title 
38, United States Code, is further amended by adding
after paragraph (8), as added by section 303, the following 
new paragraph: 
‘‘(9)(A) As a condition of a grant or contract under 
which funds are made available to a State in order to carry 
out section 4103A or 4104 of this title, the Secretary shall 
require the State to require each employee hired by the 
State who is designated as disabled veterans’ outreach 
program specialist or a local veterans’ employment rep-
resentative under this chapter to satisfactorily complete 
training provided by the National Veterans’ Employment 
and Training Services Institute during the three-year pe-
riod that begins on the date on which the employee is so 
designated. 
‘‘(B) For any employee described in subparagraph 
(A) who does not complete such training during such pe-
riod, the Secretary may reduce by an appropriate amount 
the amount made available to the State employing that 
employee.’’.
(b) SUBMISSION OF EMPLOYEE TRAINING INFORMA-
TION REQUIRED.—Section 4102A(c)(2)(A) of such title is 
amended—
(1) by redesignating clause (iii) as clause (iv); 
and 
(2) by inserting after clause (ii) the following 
new clause (iii):
‘‘(iii) For each employee of the State who is 
designated as disabled veterans’ outreach program 
specialist or a local veterans’ employment represent-
ative under this chapter—
‘‘(I) the date on which the employee is so 
designated; and 
‘‘(II) whether the employee has satisfac-
torily completed training provided by the Na-
tional Veterans’ Employment and Training 
Services Institute.’’.
(c) APPLICABILITY.—
(1) APPLICABILITY
TO
NEW
EMPLOYEES.—
Paragraph (9) of section 4102A(c) of such title, as 
added by subsection (a), and clause (iii) of section 
4102A(c)(2)(A) of such title, as added by subsection 
(b), shall apply with respect to a State employee des-
ignated as a disabled veterans’ outreach program 
specialist or a local veterans’ employment represent-
ative under chapter 41 of such title who is so des-
ignated after the date of the enactment of this Act. 
(2) APPLICABILITY
TO
CERTAIN
EMPLOYEES 
HIRED BEFORE DATE OF ENACTMENT.—The Sec-
retary of Labor shall apply such paragraph to a 
State employee designated as a disabled veterans’ 
outreach program specialist or a local veterans’ em-
ployment representative under chapter 41 of such 
title who was so designated during the five-year pe-
riod before the date of the enactment of this Act by 
substituting ‘‘during the period beginning on the 
date on which the employee is so designated and 
ending on the date that is five years after the date 
of the enactment of the Veterans Small Business 
and Memorial Affairs Act of 2006’’ for ‘‘during the 
three-year period that begins on the date on which 
the employee is so designated’’. 
SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT 
ON VETS PROGRAM. 
Section 4107(c) of title 38, United States Code, is 
amended—
(1) by redesignating paragraphs (3) through 
(6) as paragraphs (10) through (13), respectively; 
and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) the number of veterans, disabled veterans, 
and special disabled veterans who requested training 
from the public employment service system; 
‘‘(4) the total number of eligible veterans par-
ticipating in each program for the provision of em-
ployment and training services designed to meet the
needs of eligible veterans and eligible persons and 
the number of such veterans as a percentage of the 
total number of participants in each such program; 
‘‘(5) for each State, the percentage of persons 
seeking employment in the State who are veterans; 
‘‘(6) for each State, the number of veterans re-
ferred to a small business development center in that 
State and the number of veterans referred to the 
National Veterans Business Development Corpora-
tion established under section 33 of the Small Busi-
ness Act (15 U.S.C. 657c); 
‘‘(7) the total number of such veterans and dis-
abled veterans who remain employed for at least 90 
days in such jobs; 
‘‘(8) the number of such veterans and disabled 
veterans who remain employed for at least 180 days 
in such jobs; 
‘‘(9) the average starting wage or salary paid to 
such veterans and disabled veterans and, if applica-
ble, the average wage or salary paid to such veterans 
and disabled veterans as of the 180th day of employ-
ment;’’.
SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING 
FOR PLACEMENT OF CERTAIN DISABLED 
VETERANS. 
(a) DEMONSTRATION PROJECT.—Section 4102A of 
title 38, United States Code, as amended by sections 301, 
303, and 304, is further amended by adding at the end 
the following new subsection: 
‘‘(h) DEMONSTRATION PROJECT ON CONTRACTING 
FOR PLACEMENT
OF VETERANS
IN HIGH-UNEMPLOY-
MENT AREAS.—(1) From unobligated funds made avail-
able for a fiscal year to carry out sections 4103A and 4104 
of this title, the Secretary of Labor, acting through the 
Assistant Secretary of Labor for Veterans’ Employment 
and Training, may enter into a contract with a nongovern-
mental entity to carry out job placement services for vet-
erans during that fiscal year in a locality where the unem-
ployment rate for veterans exceeds the national average 
unemployment rate. 
‘‘(2) In entering into a contract under paragraph (1), 
the Secretary of Labor may use procedures other than 
competitive procedures. 
‘‘(3) In entering into a contract under paragraph (1), 
the Secretary of Labor shall give priority to a small busi-
ness concern owned and controlled by veterans that is list-
ed in any small business database maintained by the Sec-
retary of Veterans Affairs.
‘‘(4) The total amount obligated under contracts en-
tered into under paragraph (1) for any fiscal year may 
not exceed $3,000,000. 
‘‘(5) The authority to enter into a contract under this 
subsection shall terminate on the date that is five years 
after the date of the enactment of the Veterans Small 
Business and Memorial Affairs Act of 2006.’’.
(b) GAO REPORT.—Not later than four years after 
the date of the enactment of this Act, the Comptroller 
General shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives a report 
on the demonstration project under subsection (h) of sec-
tion 4102A of title 38, United States Code, as added by 
subsection (a). 
SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EM-
PLOYMENT SERVICE OFFICES. 
(a) PROVISION
OF INCENTIVES
TO EMPLOYMENT 
SERVICE OFFICES.—Section 4112 of title 38, United 
States Code, is amended—
(1) in subsection (a)(1)(B), by inserting ‘‘and 
employment service offices’’ after ‘‘recognize eligible 
employees’’; 
(2) in subsection (c)—
(A) in paragraph (1), by striking ‘‘and’’ at 
the end;
(B) in paragraph (2)—
(i) by striking ‘‘is’’ and inserting ‘‘in 
the case of such an award made to an eli-
gible employee, shall be’’; and 
(ii) by striking the period at the end 
and inserting the following: ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) in the case of such an award made to an 
employment service office, may be used by that em-
ployment service office for any purpose.’’.
(b) CONFORMING AMENDMENT.—The heading for 
subsection (c) of such section is amended to read as fol-
lows: ‘‘ADMINISTRATION AND USE OF AWARDS.—’’. 
SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF 
PRIORITY OF SERVICE FOR VETERANS RE-
QUIREMENT. 
Not later than one year after the date of the enact-
ment of this Act, the Secretary of Labor shall prescribe 
regulations to implement section 4215 of title 38, United 
States Code.
SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING 
AND LICENSURE OF VETERANS. 
(a) 
ESTABLISHMENT
OF
DEMONSTRATION 
PROJECT.—Chapter 41 of title 38, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 4114. Demonstration project on credentialing and 
licensure of veterans 
‘‘(a) ESTABLISHMENT
AND
PURPOSE
OF
DEM-
ONSTRATION PROJECT.—The Assistant Secretary for Vet-
erans’ Employment and Training shall carry out a dem-
onstration project on credentialing in accordance with this 
section for the purpose of facilitating the seamless transi-
tion of members of the Armed Forces from service on ac-
tive duty to civilian employment. 
‘‘(b) CREDENTIALING
AND LICENSURE
OF VET-
ERANS.—(1) The Assistant Secretary shall select not less 
than ten military occupational specialties for purposes of 
the demonstration project. Each such speciality selected 
by the Assistant Secretary shall require a skill or set of 
skills that is required for civilian employment in an indus-
try with high growth or high worker demand. 
‘‘(2) The Assistant Secretary shall consult with ap-
propriate Federal, State, and industry officials to identify 
requirements for credentials, certifications, and licenses 
that require a skill or set of skills required by a military 
occupational specialty identified under paragraph (1).
‘‘(3) The Assistant Secretary shall analyze the re-
quirements identified under paragraph (2) to determine 
which requirements may be satisfied by the skills, training, 
or experience acquired by members of the Armed Forces 
with the military occupational specialties selected under 
paragraph (1). 
‘‘(c) ELIMINATION OF BARRIERS TO CREDENTIALING 
AND LICENSURE.—The Assistant Secretary shall cooper-
ate with appropriate Federal, State, and industry officials 
to reduce or eliminate any barriers to providing a creden-
tial, certification, or license to a veteran who acquired any 
skill, training, or experience while serving as a member 
of the Armed Forces with a military occupational specialty 
selected under subsection (b)(1) that satisfies the Federal 
and State requirements for the credential, certification, or 
license. 
‘‘(d) TASK FORCE.—The Assistant Secretary may es-
tablish a task force of individuals with appropriate exper-
tise to provide assistance to the Assistant Secretary in car-
rying out this section. 
‘‘(e) CONSULTATION.—In carrying out this section, 
the Assistant Secretary shall consult with the Secretary 
of Defense, the Secretary of Veterans Affairs, appropriate 
Federal and State officials, private-sector employers, labor 
organizations, and industry trade associations.
‘‘(f) CONTRACT AUTHORITY.—For purposes of car-
rying out any part of the demonstration project under this 
section, the Assistant Secretary may enter into a contract 
with a public or private entity with appropriate expertise. 
‘‘(g) PERIOD OF PROJECT.—The Assistant Secretary 
shall carry out the demonstration project under this sec-
tion during the period beginning on the date that is 60 
days after the date of the enactment of this section and 
ending on September 30, 2009. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Assistant Sec-
retary to carry out this section $1,000,000 for each of fis-
cal years 2007 through 2009.’’.
(b) MEMBERSHIP OF ADVISORY COMMITTEE ON VET-
ERANS EMPLOYMENT, TRAINING, AND EMPLOYER OUT-
REACH.—Section 4110(c)(1)(A) of such title is amend-
ed—
(1) by striking ‘‘Six’’ and inserting ‘‘Seven’’; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(vii) The National Governors Associa-
tion.’’.
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 41 of such title is amended 
by adding at the end the following new item:
‘‘4114. Demonstration project on credentialing and licensure of veterans.’’.
TITLE IV—EDUCATION 
SEC. 401. EXCEPTION FOR INSTITUTIONS OFFERING GOV-
ERNMENT-SPONSORED 
NONACCREDITED 
COURSES TO REQUIREMENT OF REFUNDING 
UNUSED TUITION. 
Section 3676(c)(13) of title 38, United States Code, 
is amended by striking ‘‘prior to completion’’ and all that 
follows and inserting the following: ‘‘before completion 
and—
‘‘(A) in the case of an institution other 
than (i) a Federal, State, or local Government 
institution or (ii) an institution described in 
subparagraph (B), such policy provides that the 
amount charged to the eligible person for tui-
tion, fees, and other charges for a portion of 
the course shall not exceed the approximate pro 
rata portion of the total charges for tuition, 
fees, and other charges that the length of the 
completed portion of the course bears to its 
total length; and 
‘‘(B) in the case of an institution that is 
a nonaccredited public educational institution,
the institution has and maintains a refund pol-
icy regarding the unused portion of tuition, 
fees, and other charges that is substantially the 
same as the refund policy followed by accredited 
public educational institutions located within 
the same State as such institution.’’.
SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE. 
Section 3485(a)(4) of title 38, United States Code, 
is amended by striking ‘‘December 27, 2006’’ each place 
it appears and inserting ‘‘June 30, 2007’’. 
SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION 
OF EDUCATIONAL ASSISTANCE BENEFITS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs shall 
submit to Congress a report on the administration of edu-
cation benefits under chapters 30, 31, 32, 34, 35, and 36 
of title 38, United States Code, and chapters 1606 and 
1607 of title 10, United States Code, that proposes meth-
ods to streamline the processes and procedures of admin-
istering such benefits.
SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDI-
VIDUALS 
WHO 
HAD 
TO 
DISCONTINUE 
A 
COURSE OF EDUCATION BECAUSE OF BEING 
ORDERED TO FULL-TIME NATIONAL GUARD 
DUTY. 
(a) 
RESTORATION
OF
ENTITLEMENT.—Section 
3511(a)(2)(B)(i) of title 38, United States Code, is 
amended by inserting after ‘‘title 10’’ the following: ‘‘or 
of being involuntarily ordered to full-time National Guard 
duty under section 502(f) of title 32’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to a payment of 
educational assistance allowance made after September 
11, 2001. 
SEC. 405. TECHNICAL AMENDMENTS. 
Section 3485 of title 38, United States Code, is 
amended—
(1) in subsection (a)(4)(E), by inserting ‘‘or 
1607’’ after ‘‘chapter 1606’’; 
(2) in subsection (b), by striking ‘‘chapter 106’’ 
and inserting ‘‘chapter 1606 or 1607’’; and 
(3) in subsection (e)(1)—
(A) by striking ‘‘services of the kind de-
scribed in clauses (A) through (E) of subsection 
(a)(1) of this section’’ and inserting ‘‘a quali-
fying work-study activity described in sub-
section (a)(4)’’; and 
(B) by striking ‘‘chapter 106’’ and insert-
ing ‘‘chapter 1606 or 1607’’.
Passed the House of Representatives July 24, 2006. 
Attest:
Clerk.