I
107TH CONGRESS
2D SESSION
H. R. 4879
To amend title 38, United States Code, to transfer from the Secretary
of Labor to the Secretary of Veterans Affairs certain responsibilities
relating to the provision of employment and other services to veterans
and other eligible persons; to require the establishment of a new competi-
tive grants program through which employment services shall be provided
to veterans, servicemembers, and other eligible persons, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 6, 2002
Mr. SMITH of New Jersey (by request) introduced the following bill; which was
referred to the Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to transfer from
the Secretary of Labor to the Secretary of Veterans
Affairs certain responsibilities relating to the provision
of employment and other services to veterans and other
eligible persons; to require the establishment of a new
competitive grants program through which employment
services shall be provided to veterans, servicemembers,
and other eligible persons, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,
UNITED STATES CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans’ Employment, Business Opportunity, and
Training Act of 2002’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of title
38, United States Code.
TITLE I—EMPLOYMENT
SERVICES
SEC. 101. DEFINITIONS.
As used in this title:
(1) The term ‘‘veteran’’ has the same meaning
as ‘‘eligible veteran’’ as defined in section 4211(4) of
title 38, United States Code.
(2) The term ‘‘eligible person’’ means—
(A) the spouse of any person who died of
a service-connected disability;
(B) the spouse of any member of the
Armed Forces serving on active duty who, at
the time of application for assistance under this
Act, is listed, pursuant to section 556 of title
37, United States Code, and regulations issued
thereunder, by the Secretary concerned in one
or more of the following categories and has
been so listed for a total of more than ninety
days—
(i) missing in action,
(ii) captured in line of duty by a hos-
tile force, or
(iii) forcibly detained or interned in
line of duty by a foreign government or
power; or
(C) the spouse of any person who has a
total disability permanent in nature resulting
from a service-connected disability or the
spouse of a veteran who died while a disability
so evaluated was in existence.
(3) The term ‘‘State’’ means each of the several
States of the United States, the District of Colum-
bia, and the Commonwealth of Puerto Rico, and
may include, to the extent determined necessary by
the Secretary of Veterans Affairs and feasible for all
purposes of this title, Guam, American Samoa, the
Virgin Islands, the Commonwealth of the Northern
Marianas Islands, and the Trust Territory of the
Pacific Islands.
(4) The term ‘‘servicemember’’ has the same
meaning as an individual who is a member of the
Armed Forces as defined in section 101(10) of title
38, United States Code, and who is being separated
from the Armed Forces within the time periods spec-
ified in section 1142(a)(3) of title 10, United States
Code.
SEC. 102. PURPOSE.
In furtherance of the Nation’s responsibility toward
alleviating unemployment and underemployment among
veterans, there shall be established a national perform-
ance-based job-search assistance program that—
(1) will provide high-quality, job-search service
to veterans, servicemembers, and other eligible per-
sons, focused on assisting such individuals in obtain-
ing and maintaining employment, as well as reduc-
ing the duration of individual’s unemployment;
(2) will assist employers in locating and hiring
qualified veterans, servicemembers, and other eligible
persons; and
(3) 
will 
be 
accessible 
to 
veterans,
servicemembers, and other eligible persons.
The Department of Veterans Affairs would continue to ag-
gressively use web-based technology to provide better serv-
ice to veterans around the world.
SEC. 103. ESTABLISHMENT OF NEW COMPETITIVE GRANTS
PROGRAM.
(a) ESTABLISHMENT OF NEW PROGRAM.—Notwith-
standing any other provision of law, the Secretary of Vet-
erans Affairs shall establish a competitive grants program
to be referred to as the ‘‘Veterans’ Employment, Business
Opportunity 
and 
Training 
Program’’ 
(‘‘VEBOT’’)
through which State Governors or other entities, as may
be appropriate, would receive grants for the purpose of
providing 
employment 
services 
to 
veterans,
servicemembers, and other eligible persons within each
State. The purpose of such program shall be to assist vet-
erans, servicemembers, and other eligible persons in ob-
taining employment by providing for access to optimal em-
ployment opportunities.
(b) IMPLEMENTATION OF NEW PROGRAM.—The Sec-
retary of Veterans Affairs shall prescribe such regulations
as the Secretary considers appropriate to implement the
VEBOT program required to be established under this
section. Such regulations shall address matters relating to
the development and implementation of the program,
including—
(1) the determination of eligibility criteria for
affected veterans, servicemembers, or other eligible
persons, for employment services and other related
services that shall be provided;
(2) the nature and type of services to be pro-
vided;
(3) the most appropriate and efficient means to
provide such services;
(4) the most appropriate means to monitor and
assess the performance of entities providing employ-
ment services;
(5) the manner in which the Department of
Veterans Affairs will cooperate with State employ-
ment agencies to ensure that veterans continue to
have access to the full range of workforce services
available through existing State and local one-stop
employment-service delivery systems;
(6) the manner in which the Department of
Veterans Affairs will coordinate with the Depart-
ment of Labor to ensure that veterans continue to
receive priority or other special consideration in the
provision of employment services through existing
State and local one-stop employment-service delivery
systems, as required by law or regulation; and
(7) the entity or organization within the De-
partment of Veterans Affairs that will administer
the program. In developing the regulations, the Sec-
retary shall take into consideration the recommenda-
tions of the task force required to be established
under subsection (c) of this section and shall consult
with the Secretary of Defense with respect to eligi-
bility criteria affecting servicemembers.
(c) TASK FORCE TO BE ESTABLISHED; CONSULTA-
TION WITH DESIGNATED PARTIES.—The Secretary of
Veterans Affairs shall establish a task force comprised of
at least eleven (but not more than fifteen) members which
shall, not later than 180 days from the date of its estab-
lishment, make recommendations to the Secretary regard-
ing the matters described in subsection (b) of this section.
The task force shall include representatives of veterans
service organizations, representatives of employers in pri-
vate industry or employer organizations, and representa-
tives of State Governors. The Secretary of Labor, the Sec-
retary of Defense, and the Secretary of Transportation
shall be ex officio members of the task force.
(d) GRANTS, PROGRAM
TO
BE
COMPETITIVE;
GRANTS TO INCLUDE PERFORMANCE REQUIREMENTS.—
The Secretary of Veterans Affairs shall ensure that all
services under the VEBOT program are provided through
grants awarded either directly or indirectly on a competi-
tive basis and that such grants include appropriate per-
formance requirements with clear outcome measures.
States or other entities may join in consortia to provide
services to veterans.
(e) PERFORMANCE MEASUREMENT.—
(1) Each Governor of a State or other entity re-
ceiving funds under a grant authorized by this sec-
tion shall achieve the performance requirements as
agreed in the established provisions for such grant.
If unanticipated circumstances arising in a State
would adversely affect a grantee’s ability to meet its
performance requirements, the grantee may request
that the Secretary adjust the agreed-to levels of per-
formance. If a grantee fails to meet the agreed-to
levels of performance, the Secretary of Veterans Af-
fairs may provide to the grantee assistance in such
form as the Secretary may consider appropriate, in-
cluding training, technical assistance, staff develop-
ment, and activities replicating those used by other
successful grants and projects with demonstrated ef-
fectiveness. In the event of continued non-perform-
ance, the Secretary may, pursuant to such regula-
tions as the Secretary may prescribe, remove the
funds from a grantee and directly or indirectly so-
licit through a competition a new grantee and serv-
ice provider.
(2) Consistent with State law, the Secretary of
Veterans Affairs and States and other entities iden-
tified to deliver services under the VEBOT program
may utilize wage record information for program
performance measurement as prescribed by the Sec-
retary of Veterans Affairs. The Secretary of Labor
shall provide assistance to the Secretary of Veterans
Affairs in gaining access to wage information for
this purpose.
(f) COST PRINCIPLES.—
(1)(A) Each Governor of a State or other entity
receiving funds under this section shall comply with
the applicable uniform-cost principles included in the
appropriate circulars or directives of the Office of
Management and Budget for the type of entity re-
ceiving the funds, as well as regulations prescribed
by the Secretary of Veterans Affairs. Each grantee
shall establish such fiscal controls and fund account-
ing procedures as may be necessary to assure the
proper disbursal of, and accounting for, Federal
funds allocated to any provider receiving funds
under this section and shall maintain appropriate
records in accordance with generally accepted ac-
counting principles applicable in each State. Each
grantee shall comply with the appropriate uniform
administrative requirements for grants, contracts
and agreements applicable for the type of entity re-
ceiving funds, as promulgated in circulars or direc-
tives of the Office of Management and Budget.
(B) If a grantee determines that a service pro-
vider acting under a contract or sub-grant is not in
compliance with the requirements of this Act, the
grantee shall take corrective action either to secure
the service provider’s prompt compliance or to re-
move the funds from the service provider for failure
to so comply. If the grantee fails to take such cor-
rective action, the Secretary may, pursuant to such
regulations as the Secretary may prescribe, remove
funds from the grantee and directly or indirectly so-
licit through a competition a new grantee and serv-
ice provider.
(2) Unless approved by the Secretary of Vet-
erans Affairs, not more than 15 percent of the funds
available under this section to each State Governor
or other entity may be expended by a service pro-
vider and State Governor for costs of administration.
The Secretary shall prescribe regulations governing
the expenditure of funds for costs of administration
under this paragraph.
(g) PILOT PROJECTS AUTHORIZED.—In connection
with the development and implementation of the VEBOT
program, the Secretary of Veterans Affairs, during each
fiscal year, may reserve up to 25 percent of the total avail-
able funding for grants to finance national-level primary
services and to create pilot programs and demonstration
projects to establish the effectiveness and viability of spe-
cific proposed innovative program designs and service de-
livery systems.
SEC. 104. TRANSFER OF RESPONSIBILITY FOR ADMINIS-
TRATION OF CERTAIN EMPLOYMENT SERV-
ICES TO SECRETARY OF VETERANS AFFAIRS.
Notwithstanding any other provision of law, during
the period beginning on October 1, 2002, and ending on
the later of September 30, 2003, or the date upon which
regulations prescribed by the Secretary of Veterans Af-
fairs under section 103(b) of this title become effective,
responsibilities assigned to the Secretary of Labor under
sections 4101 through 4102A (other than responsibilities
assigned under section 4102A regarding the purposes of
chapters 42 and 43 of title 38, United States Code), sec-
tions 4103 through 4108, and section 4110 of title 38,
United States Code, shall be assumed by the Secretary
of Veterans Affairs, and the function of the Assistant Sec-
retary of Labor for Veterans’ Employment and Training
in the Department of Labor, as well as such personnel
of the Department of Labor as may be deemed necessary
to carry out such function, shall be transferred from the
Department of Labor to the Department of Veterans Af-
fairs. During that period, the Secretary of Veterans Af-
fairs shall coordinate activities with the Secretary of
Labor to facilitate the transfer of functions associated
with the administration of employment services provided
under chapter 41 of title 38, United States Code, that are
conducted by disabled veterans’ outreach programs spe-
cialists and local veterans’ employment representatives.
SEC. 105. REPEAL OR AMENDMENT OF EXISTING AUTHORI-
TIES.
(a) REPEAL
OF AUTHORITIES.—Effective on the
later of September 30, 2003, or the date upon which regu-
lations prescribed by the Secretary of Veterans Affairs
under section 103(b) of this Act become effective, the fol-
lowing sections are repealed: 4100 through 4104A,
4105(b), 4106 through 4109, and 4110A.
(b) CONFORMING AMENDMENT TO CHAPTER 43 PRO-
VISION.—Section 4321 is amended by striking out
‘‘(through the Veterans’ Employment and Training Serv-
ice)’’.
(c) ADVISORY COMMITTEE.—Section 4110 is amend-
ed)—
(1) in subsection (a)(1), by striking out ‘‘De-
partment of Labor’’ and by inserting in lieu thereof
‘‘Department of Veterans Affairs’’;
(2) in subsection (a)(2), by inserting ‘‘Depart-
ment of Veterans Affairs and the’’ before ‘‘Depart-
ment of Labor’’;
(3) in subsection (b), by striking out ‘‘Secretary
of Labor’’ and inserting in lieu thereof ‘‘Secretary of
Veterans Affairs’’;
(4) in subsection (c), by striking out ‘‘Labor’’
each place it appears and inserting in lieu thereof
‘‘Veterans Affairs’’;
(5) in subsection (d)—
(A) by striking out ‘‘Secretary of Veterans
Affairs’’ each place it appears and inserting in
lieu thereof ‘‘Secretary of Labor’’;
(B) by striking out in paragraph (6) ‘‘The
Assistant Secretary of Labor for Veterans Em-
ployment and Training’’ and inserting in lieu
thereof ‘‘The official designated by the Sec-
retary of Veterans Affairs to administer the
Veterans’ Employment, Business Opportunity
and Training Program’’;
(C) by striking out in paragraph (11)
‘‘The Director of the United States Employ-
ment Service.’’ and inserting in lieu thereof ‘‘A
representative of State Governors.’’; and
(D) by striking out in paragraph (12)
‘‘Secretary of Labor’’ and inserting in lieu
thereof ‘‘Secretary of Veterans Affairs’’;
(6) in subsection (e)—
(A) by striking out ‘‘Secretary of Labor’’
each place it appears and inserting in lieu
thereof ‘‘Secretary of Veterans Affairs’’; and
(B) by striking out in paragraph (4)
‘‘through the Veterans Employment and Train-
ing Service’’;
(7) in subsection (f)—
(A) by striking out ‘‘Secretary of Labor’’
each place it appears and inserting in lieu
thereof ‘‘Secretary of Veterans Affairs’’; and
(B) by striking out ‘‘Department of
Labor’’ and inserting in lieu thereof ‘‘Depart-
ment of Veterans Affairs’’; and
(8) in subsection (g), by striking out ‘‘Secretary
of Labor’’ and inserting in lieu thereof ‘‘Secretary of
Veterans Affairs’’.
TITLE II—TRANSITION
ASSISTANCE
SEC. 201. TRANSFER OF RESPONSIBILITY FOR ADMINIS-
TRATION OF TRANSITION ASSISTANCE PRO-
GRAM TO THE SECRETARY OF VETERANS AF-
FAIRS.
Notwithstanding any other provision of law—
(1) references to the ‘‘Secretary of Labor’’ in
section 1144 of title 10, United States Code, shall
be deemed to be references to the Secretary of Vet-
erans Affairs;
(2) references to the ‘‘Secretary of Veterans Af-
fairs’’ in section 1144 of title 10, United States
Code, shall be deemed to be references to the Sec-
retary of Labor; and
(3) section 1144(d) of title 10, United States
Code, is amended by striking out paragraph (1) and
inserting in lieu thereof the following:
‘‘(1) provide, as the case may be, for the use of
personnel of grant recipients under section 103(b) of
the Veterans’ Employment, Business Opportunity,
and Training Act of 2002 or such other personnel
as the Secretary of Veterans Affairs may determine
to be appropriate, to the extent that the Secretary
determines that such use will not significantly inter-
fere with the provision of services or other benefits
to eligible veterans and other eligible recipients of
services or benefits under programs administered by
the Secretary.’’.
TITLE 
III—HOMELESS 
VET-
ERANS’ REINTEGRATION PRO-
GRAMS
SEC. 301. TRANSFER OF RESPONSIBILITY FOR ADMINIS-
TRATION 
OF 
HOMELESS 
VETERANS’ 
RE-
INTEGRATION PROGRAM TO THE SECRETARY
OF VETERANS AFFAIRS.
Section 2021 is amended—
(1) by striking out ‘‘Secretary of Labor’’ each
place it appears and inserting in lieu thereof ‘‘Sec-
retary of Veterans Affairs’’; and
(2) by striking out subsection (c) and redesig-
nating subsection (d) as subsection (c).
TITLE IV—EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
Except where provided otherwise, the provisions of
this Act shall become effective on October 1, 2002.
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