To amend title 38, United States Code, to require the Secretary of Veterans Affairs to carry out a program of training to provide eligible veterans with skills relevant to the job market, and for other purposes.

SECTION 1. MILITARY OCCUPATIONAL SPECIALTY TRANSITION (MOST) PROGRAM.

    (a) In General.--Subchapter II of chapter 36 of title 38, United 
States Code, is amended by inserting after section 3687 the following 
new section:
``Sec. 3687A. Military occupational specialty transition (MOST) program
    ``(a) Establishment; Eligibility.--(1) Subject to the availability 
of appropriations for such purpose, the Secretary shall carry out a 
program of training to provide eligible veterans with skills relevant 
to the job market.
    ``(2) For purposes of this section, the term `eligible veteran' 
means any veteran--
            ``(A) whose military occupational specialty at the time of 
        discharge is determined by the Secretary to have limited 
        transferability to the civilian job market;
            ``(B) who is not otherwise eligible for education or 
        training services under this title;
            ``(C) who has not acquired a marketable skill since leaving 
        military service;
            ``(D) who was discharged under conditions not less than 
        general under honorable conditions; and
            ``(E)(i) who has been unemployed for at least 90 days 
        during the 180-day period preceding the date of application for 
        the program established under this section; or
            ``(ii) the maximum hourly rate of pay of such veteran 
        during such 180-day period is not more than 150 percent of the 
        Federal minimum wage.
    ``(b) MOST Program.--The program established under this section 
shall provide for payments to employers who provide for eligible 
veterans a program of apprenticeship or on-the-job training if--
            ``(1) such program is approved as provided in paragraph (1) 
        or (2) of section 3687(a) of this title;
            ``(2) the rate of pay for veterans participating in the 
        program is not less than the rate of pay for nonveterans in 
        similar jobs; and
            ``(3) the Secretary reasonably expects that--
                    ``(A) the veteran will be qualified for employment 
                in that field upon completion of training; and
                    ``(B) the employer providing the program will hire 
                the veteran at the completion of training.
    ``(c) Payments to Employers.--(1) Subject to the availability of 
appropriations for such purpose, the Secretary shall enter into 
contracts with employers to provide programs of apprenticeship or on-
the-job training that meet the requirements of this section. Each such 
contract shall provide for the payment of the amounts described in 
subsection (b) to employers whose programs meet such requirements.
    ``(2) The amount paid under this section with respect to any 
eligible veteran for any period shall be 50 percent of the wages paid 
by the employer to such veteran for such period. Wages shall be 
calculated on an hourly basis.
    ``(3)(A) Except as provided in subparagraph (B)--
            ``(i) the amount paid under this section with respect to a 
        veteran participating in the program established under this 
        section may not exceed $20,000 in the aggregate and $1,666.67 
        per month; and
            ``(ii) such payments may only be made during the first 12 
        months of such veteran's participation in the program.
    ``(B) In the case of a veteran participating in the program on a 
less than full-time basis, the Secretary may extend the number of 
months of payments under subparagraph (A) and proportionally adjust the 
amount of such payments, but the maximum amount paid with respect to a 
veteran may not exceed the maximum amount of $20,000 and the maximum 
amount of such payments may not exceed 24 months.
    ``(4) Payments under this section shall be made on a quarterly 
basis.
    ``(5) Each employer providing a program of apprenticeship or on-
the-job training pursuant to this section shall submit to the Secretary 
on a quarterly basis a report certifying the wages paid to eligible 
veterans under such program (which shall be certified by the veteran as 
being correct) and containing such other information as the Secretary 
may specify. Such report shall be submitted in the form and manner 
required by the Secretary.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated $60,000,000 for each of fiscal years 2009 through 2018 to 
carry out this section.
    ``(e) Reporting.--The Secretary shall include a detailed 
description of activities carried out under this section in the annual 
report prepared by the Veterans Benefits Administration.
    ``(f) Separate Accounting.--The Department shall have a separate 
line item in budget proposals of the Department for funds to be 
appropriated to carry out this section.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 3687 the 
following new item:

``3687A. Military occupational specialty transition (MOST) program.''.
    (c) Conforming Amendments.--(1) Subsection (a)(1) of section 3034 
of such title is amended by striking ``and 3687'' and inserting ``3687, 
and 3687A''.
    (2) Subsections (a)(1) and (c) of section 3241 of such title are 
each amended by striking ``section 3687'' and inserting ``sections 3687 
and 3687A''.
    (3) Subsection (d)(1) of section 3672 of such title is amended by 
striking ``and 3687'' and inserting ``3687, and 3687A''.
    (4) Paragraph (3) of section 4102A(b) of such title is amended by 
striking ``section 3687'' and inserting ``section 3687 or 3687A''.

Summary: Directs the Secretary of Veterans Affairs to carry out a program of job training in skills relevant to the job market for discharged veterans who are either currently not paid at more than 150% of the federal minimum wage, or: (1) had a military occupational specialty of limited transferability to the civilian job market; (2) are not otherwise eligible for veterans' education or training services; (3) have not acquired a marketable skill since leaving military service; (4) were discharged under conditions not less than honorable; and (5) have been unemployed for at least 90 of the previous 180 days. Designates the program as the MOST (military occupational specialty transition) Program. Directs the Secretary to contract with employers to provide on-the-job training or apprenticeship programs for such veterans. Limits payments under the program to $20,000 per veteran and 24 months in duration.