To amend the Internal Revenue Code of 1986 to permit a 100 percent levy for payments to Federal vendors relating to property, to require a study on how to reduce the amount of Federal taxes owed but not paid by Federal contractors, and to make certain improvements in the laws relating to the employment and training of veterans.

SA 927. Mr. REID (for Mr. Tester, (for himself, Mrs. Murray, Mr.
Baucus, Ms. Stabenow, Mr. Brown of Ohio, Mr. Reid, Mr. Akaka, Ms.
Cantwell, Mr. Leahy, Mr. Casey, Mr. Coons, Mr. Menendez, Mr. Kerry, Mr.
Lautenberg, Mr. Merkley, Mr. Sanders, Mrs. Shaheen, Mr. Bennet, Mr.
Webb, Mr. Begich, Ms. Landrieu, Mr. Schumer, and Mr. Brown, of
Massachusetts)) proposed an amendment to the bill H.R. 674, to amend
the Internal Revenue Code of 1986 to repeal the imposition of 3 percent
withholding on certain payments made to vendors by government entities,
to modify the calculation of modified adjusted gross income for
purposes of determining eligibility for certain healthcare-related
programs, and for other purposes; as follows:

Strike title II and insert the following:

TITLE II--VOW TO HIRE HEROES

SEC. 201. SHORT TITLE.

This title may be cited as the ``VOW to Hire Heroes Act of
2011''.

Subtitle A--Retraining Veterans

SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM.

(a) Program Authorized.--
(1) In general.--Not later than July 1, 2012, the Secretary
of Veterans Affairs shall, in collaboration with the
Secretary of Labor, establish and commence a program of
retraining assistance for eligible veterans.
(2) Number of eligible veterans.--The number of unique
eligible veterans who participate in the program established
under paragraph (1) may not exceed--
(A) 45,000 during fiscal year 2012; and
(B) 54,000 during the period beginning October 1, 2012, and
ending March 31, 2014.
(b) Retraining Assistance.--Except as provided by
subsection (k), each veteran who participates in the program
established under subsection (a)(1) shall be entitled to up
to 12 months of retraining assistance provided by the
Secretary of Veterans Affairs. Such retraining assistance may
only be used by the veteran to pursue a program of education
(as such term is defined in section 3452(b) of title 38,
United States Code) for training, on a full-time basis,
that--
(1) is approved under chapter 36 of such title;
(2) is offered by a community college or technical school;
(3) leads to an associate degree or a certificate (or other
similar evidence of the completion of the program of
education or training);
(4) is designed to provide training for a high-demand
occupation, as determined by the Commissioner of Labor
Statistics; and
(5) begins on or after July 1, 2012.
(c) Monthly Certification.--Each veteran who participates
in the program established under subsection (a)(1) shall
certify to the Secretary of Veterans Affairs the enrollment
of the veteran in a program of education described in
subsection (b) for each month in which the veteran
participates in the program.
(d) Amount of Assistance.--The monthly amount of the
retraining assistance payable under this section is the
amount in effect under section 3015(a)(1) of title 38, United
States Code.
(e) Eligibility.--
(1) In general.--For purposes of this section, an eligible
veteran is a veteran who--
(A) as of the date of the submittal of the application for
assistance under this section, is at least 35 years of age
but not more than 60 years of age;
(B) was last discharged from active duty service in the
Armed Forces under conditions other than dishonorable;
(C) as of the date of the submittal of the application for
assistance under this section, is unemployed;
(D) as of the date of the submittal of the application for
assistance under this section, is not eligible to receive
educational assistance under chapter 30, 31, 32, 33, or 35 of
title 38, United States Code, or chapter 1606 or 1607 of
title 10, United States Code;
(E) is not in receipt of compensation for a service-
connected disability rated totally disabling by reason of
unemployability;
(F) was not and is not enrolled in any Federal or State job
training program at any time during the 180-day period ending
on the date of the submittal of the application for
assistance under this section; and
(G) by not later than October 1, 2013, submits to the
Secretary of Labor an application for assistance under this
section containing such information and assurances as that
Secretary may require.
(2) Determination of eligibility.--
(A) Determination by secretary of labor.--
(i) In general.--For each application for assistance under
this section received by the Secretary of Labor from an
applicant, the Secretary of Labor shall determine whether the
applicant is eligible for such assistance under subparagraphs
(A), (C), (F), and (G) of paragraph (1).
(ii) Referral to secretary of veterans affairs.--If the
Secretary of Labor determines under clause (i) that an
applicant is eligible for assistance under this section, the
Secretary of Labor shall forward the application of such
applicant to the Secretary of Veterans Affairs in accordance
with the terms of the agreement required by subsection (h).
(B) Determination by secretary of veterans affairs.--For
each application relating to an applicant received by the
Secretary of Veterans Affairs under subparagraph (A)(ii), the
Secretary of Veterans Affairs shall determine under
subparagraphs (B), (D), and (E) of paragraph (1) whether such
applicant is eligible for assistance under this section.
(f) Employment Assistance.--For each veteran who
participates in the program established under subsection
(a)(1), the Secretary of Labor shall contact such veteran not
later than 30 days after the date on which the veteran
completes, or terminates participation in, such program to
facilitate employment of such veteran and availability or
provision of employment placement services to such veteran.
(g) Charging of Assistance Against Other Entitlement.--
Assistance provided under this section shall be counted
against the aggregate period for which section 3695 of title
38, United States Code, limits the individual's receipt of
educational assistance under laws administered by the
Secretary of Veterans Affairs.
(h) Joint Agreement.--
(1) In general.--The Secretary of Veterans Affairs and the
Secretary of Labor shall enter into an agreement to carry out
this section.
(2) Appeals process.--The agreement required by paragraph
(1) shall include establishment of a process for resolving
disputes relating to and appeals of decisions of the
Secretaries under subsection (e)(2).
(i) Report.--
(1) In general.--Not later than July 1, 2014, the Secretary
of Veterans Affairs shall,

[[Page S7197]]

in collaboration with the Secretary of Labor, submit to the
appropriate committees of Congress a report on the retraining
assistance provided under this section.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) The total number of--
(i) eligible veterans who participated; and
(ii) associates degrees or certificates awarded (or other
similar evidence of the completion of the program of
education or training earned).
(B) Data related to the employment status of eligible
veterans who participated.
(j) Funding.--Payments under this section shall be made
from amounts appropriated to or otherwise made available to
the Department of Veterans Affairs for the payment of
readjustment benefits. Not more than $2,000,000 shall be made
available from such amounts for information technology
expenses (not including personnel costs) associated with the
administration of the program established under subsection
(a)(1).
(k) Termination of Authority.--The authority to make
payments under this section shall terminate on March 31,
2014.
(l) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committee on Veterans' Affairs and the Committee on
Health, Education, Labor, and Pension of the Senate; and
(2) the Committee on Veterans' Affairs and the Committee on
Education and the Workforce of the House of Representatives.

Subtitle B--Improving the Transition Assistance Program

SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED
FORCES IN THE TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.

(a) In General.--Subsection (c) of section 1144 of title
10, United States Code, is amended to read as follows:
``(c) Participation.--(1) Except as provided in paragraph
(2), the Secretary of Defense and the Secretary of Homeland
Security shall require the participation in the program
carried out under this section of the members eligible for
assistance under the program.
``(2) The Secretary of Defense and the Secretary of
Homeland Security may, under regulations such Secretaries
shall prescribe, waive the participation requirement of
paragraph (1) with respect to--
``(A) such groups or classifications of members as the
Secretaries determine, after consultation with the Secretary
of Labor and the Secretary of Veterans Affairs, for whom
participation is not and would not be of assistance to such
members based on the Secretaries' articulable justification
that there is extraordinarily high reason to believe the
exempted members are unlikely to face major readjustment,
health care, employment, or other challenges associated with
transition to civilian life; and
``(B) individual members possessing specialized skills who,
due to unavoidable circumstances, are needed to support a
unit's imminent deployment.''.
(b) Required Use of Employment Assistance, Job Training
Assistance, and Other Transitional Services in Preseparation
Counseling.--Section 1142(a)(2) of such title is amended by
striking ``may'' and inserting ``shall''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date that is 1 year after
the date of the enactment of this Act.

SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE ARMED
FORCES UNDER TRANSITION ASSISTANCE ON
EQUIVALENCE BETWEEN SKILLS DEVELOPED IN
MILITARY OCCUPATIONAL SPECIALTIES AND
QUALIFICATIONS REQUIRED FOR CIVILIAN EMPLOYMENT
WITH THE PRIVATE SECTOR.

(a) Study on Equivalence Required.--
(1) In general.--The Secretary of Labor shall, in
consultation with the Secretary of Defense and the Secretary
of Veterans Affairs, enter into a contract with a qualified
organization to conduct a study to identify any equivalences
between the skills developed by members of the Armed Forces
through various military occupational specialties (MOS),
successful completion of resident training courses, attaining
various military ranks or rates, or other military
experiences and the qualifications required for various
positions of civilian employment in the private sector.
(2) Cooperation of federal agencies.--The departments and
agencies of the Federal Government, including the Office of
Personnel Management, the General Services Administration,
the Government Accountability Office, the Department of
Education, and other appropriate departments and agencies,
shall cooperate with the contractor under paragraph (1) to
conduct the study required under that paragraph.
(3) Report.--Upon completion of the study conducted under
paragraph (1), the contractor under that paragraph shall
submit to the Secretary of Defense, the Secretary of Veterans
Affairs, and the Secretary of Labor a report setting forth
the results of the study. The report shall include such
information as the Secretaries shall specify in the contract
under paragraph (1) for purposes of this section.
(4) Transmittal to congress.--The Secretary of Labor shall
transmit to the appropriate committees of Congress the report
submitted under paragraph (3), together with such comments on
the report as the Secretary considers appropriate.
(5) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means--
(A) the Committee on Veterans' Affairs, the Committee on
Armed Services, and the Committee on Health, Education,
Labor, and Pension of the Senate; and
(B) the Committee on Veterans' Affairs, the Committee on
Armed Services, and the Committee on Education and the
Workforce of the House of Representatives.
(b) Publication.--The secretaries described in subsection
(a)(1) shall ensure that the equivalences identified under
subsection (a)(1) are--
(1) made publicly available on an Internet website; and
(2) regularly updated to reflect the most recent findings
of the secretaries with respect to such equivalences.
(c) Individualized Assessment of Civilian Positions
Available Through Military Experiences.--The Secretary of
Defense shall ensure that each member of the Armed Forces who
is participating in the Transition Assistance Program (TAP)
of the Department of Defense receives, as part of such
member's participation in that program, an individualized
assessment of the various positions of civilian employment in
the private sector for which such member may be qualified as
a result of the skills developed by such member through
various military occupational specialties (MOS), successful
completion of resident training courses, attaining various
military ranks or rates, or other military experiences. The
assessment shall be performed using the results of the study
conducted under subsection (a) and such other information as
the Secretary of Defense, in consultation with the Secretary
of Veterans Affairs and the Secretary of Labor, considers
appropriate for that purpose.
(d) Further Use in Employment-related Transition
Assistance.--
(1) Transmittal of assessment.--The Secretary of Defense
shall make the individualized assessment provided a member
under subsection (a) available electronically to the
Secretary of Veterans Affairs and the Secretary of Labor.
(2) Use in assistance.--The Secretary of Veterans Affairs
and the Secretary of Labor may use an individualized
assessment with respect to an individual under paragraph (1)
for employment-related assistance in the transition from
military service to civilian life provided the individual by
such Secretary and to otherwise facilitate and enhance the
transition of the individual from military service to
civilian life.
(e) Effective Date.--This section shall take effect on the
date that is one year after the date of the enactment of this
Act.

SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING.

(a) Transition Assistance Program Contracting.--
(1) In general.--Section 4113 of title 38, United States
Code, is amended to read as follows:

``Sec. 4113. Transition Assistance Program personnel

``(a) Requirement to Contract.--In accordance with section
1144 of title 10, the Secretary shall enter into a contract
with an appropriate private entity or entities to provide the
functions described in subsection (b) at all locations where
the program described in such section is carried out.
``(b) Functions.--Contractors under subsection (a) shall
provide to members of the Armed Forces who are being
separated from active duty (and the spouses of such members)
the services described in section 1144(a)(1) of title 10,
including the following:
``(1) Counseling.
``(2) Assistance in identifying employment and training
opportunities and help in obtaining such employment and
training.
``(3) Assessment of academic preparation for enrollment in
an institution of higher learning or occupational training.
``(4) Other related information and services under such
section.
``(5) Such other services as the Secretary considers
appropriate.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 41 of title 38, United States Code, is
amended by striking the item relating to section 4113 and
inserting the following new item:

``4113. Transition Assistance Program personnel.''.
(b) Deadline for Implementation.--The Secretary of Labor
shall enter into the contract required by section 4113 of
title 38, United States Code, as added by subsection (a), not
later than two years after the date of the enactment of this
Act.

SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN
CARRYING OUT TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.

Section 1144(d) of title 10, United States Code, is
amended--
(1) in paragraph (5), by striking ``public or private
entities; and'' and inserting ``public entities;'';
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5), the following new
paragraph (6):
``(6) enter into contracts with private entities,
particularly with qualified private entities that have
experience with instructing

[[Page S7198]]

members of the armed forces eligible for assistance under the
program carried out under this section on--
``(A) private sector culture, resume writing, career
networking, and training on job search technologies;
``(B) academic readiness and educational opportunities; or
``(C) other relevant topics; and''.

SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR
MEMBERS OF THE ARMED FORCES WHO ARE BEING
SEPARATED FROM ACTIVE DUTY OR RETIRED.

Section 1144 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(e) Participation in Apprenticeship Programs.--As part of
the program carried out under this section, the Secretary of
Defense and the Secretary of Homeland Security may permit a
member of the armed forces eligible for assistance under the
program to participate in an apprenticeship program
registered under the Act of August 16, 1937 (commonly known
as the `National Apprenticeship Act'; 50 Stat. 664, chapter
663; 29 U.S.C. 50 et seq.), or a pre-apprenticeship program
that provides credit toward a program registered under such
Act, that provides members of the armed forces with the
education, training, and services necessary to transition to
meaningful employment that leads to economic self-
sufficiency.''.

SEC. 226. COMPTROLLER GENERAL REVIEW.

Not later than two years after the date of the enactment of
this Act, the Comptroller General of the United States shall
conduct a review of the Transition Assistance Program (TAP)
and submit to Congress a report on the results of the review
and any recommendations of the Comptroller General for
improving the program.

Subtitle C--Improving the Transition of Veterans to Civilian Employment

SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF
VETERANS AFFAIRS TO PROVIDE REHABILITATION AND
VOCATIONAL BENEFITS TO MEMBERS OF THE ARMED
FORCES WITH SEVERE INJURIES OR ILLNESSES.

Section 1631(b)(2) of the Wounded Warrior Act (title XVI of
Public Law 110-181; 10 U.S.C. 1071 note) is amended by
striking ``December 31, 2012'' and inserting ``December 31,
2014''.

SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS
AFFAIRS TO PAY EMPLOYERS FOR PROVIDING ON-JOB
TRAINING TO VETERANS WHO HAVE NOT BEEN
REHABILITATED TO POINT OF EMPLOYABILITY.

Section 3116(b)(1) of title 38, United States Code, is
amended by striking ``who have been rehabilitated to the
point of employability''.

SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH
SERVICE-CONNECTED DISABILITIES WHO HAVE
EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS UNDER
STATE LAW.

(a) Entitlement to Additional Rehabilitation Programs.--
(1) In general.--Section 3102 of title 38, United States
Code, is amended--
(A) in the matter before paragraph (1), by striking ``A
person'' and inserting the following:
``(a) In General.--A person''; and
(B) by adding at the end the following new paragraph:
``(b) Additional Rehabilitation Programs for Persons Who
Have Exhausted Rights to Unemployment Benefits Under State
Law.--(1) Except as provided in paragraph (4), a person who
has completed a rehabilitation program under this chapter
shall be entitled to an additional rehabilitation program
under the terms and conditions of this chapter if--
``(A) the person is described by paragraph (1) or (2) of
subsection (a); and
``(B) the person--
``(i) has exhausted all rights to regular compensation
under the State law or under Federal law with respect to a
benefit year;
``(ii) has no rights to regular compensation with respect
to a week under such State or Federal law; and
``(iii) is not receiving compensation with respect to such
week under the unemployment compensation law of Canada; and
``(C) begins such additional rehabilitation program within
six months of the date of such exhaustion.
``(2) For purposes of paragraph (1)(B)(i), a person shall
be considered to have exhausted such person's rights to
regular compensation under a State law when--
``(A) no payments of regular compensation can be made under
such law because such person has received all regular
compensation available to such person based on employment or
wages during such person's base period; or
``(B) such person's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
``(3) In this subsection, the terms `compensation',
`regular compensation', `benefit year', `State', `State law',
and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``(4) No person shall be entitled to an additional
rehabilitation program under paragraph (1) from whom the
Secretary receives an application therefor after March 31,
2014.''.
(2) Duration of additional rehabilitation program.--Section
3105(b) of such title is amended--
(A) by striking ``Except as provided in subsection (c) of
this section,'' and inserting ``(1) Except as provided in
paragraph (2) and in subsection (c),''; and
(B) by adding at the end the following new paragraph:
``(2) The period of a vocational rehabilitation program
pursued by a veteran under section 3102(b) of this title
following a determination of the current reasonable
feasibility of achieving a vocational goal may not exceed 12
months.''.
(b) Extension of Period of Eligibility.--Section 3103 of
such title is amended--
(1) in subsection (a), by striking ``in subsection (b),
(c), or (d)'' and inserting ``in subsection (b), (c), (d), or
(e)'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection (e):
``(e)(1) The limitation in subsection (a) shall not apply
to a rehabilitation program described in paragraph (2).
``(2) A rehabilitation program described in this paragraph
is a rehabilitation program pursued by a veteran under
section 3102(b) of this title.''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on June 1, 2012, and shall apply
with respect to rehabilitation programs beginning after such
date.
(d) Comptroller General Review.--Not later than two years
after the date of the enactment of this Act, the Comptroller
General of the United States shall--
(1) conduct a review of the training and rehabilitation
under chapter 31 of title 38, United States Code; and
(2) submit to Congress a report on the findings of the
Comptroller General with respect to the review and any
recommendations of the Comptroller General for improving such
training and rehabilitation.

SEC. 234. COLLABORATIVE VETERANS' TRAINING, MENTORING, AND
PLACEMENT PROGRAM.

(a) In General.--Chapter 41 of title 38, United States
Code, is amended by inserting after section 4104 the
following new section:

``Sec. 4104A. Collaborative veterans' training, mentoring,
and placement program

``(a) Grants.--The Secretary shall award grants to eligible
nonprofit organizations to provide training and mentoring for
eligible veterans who seek employment. The Secretary shall
award the grants to not more than three organizations, for
periods of two years.
``(b) Collaboration and Facilitation.--The Secretary shall
ensure that the recipients of the grants--
``(1) collaborate with--
``(A) the appropriate disabled veterans' outreach
specialists (in carrying out the functions described in
section 4103A(a)) and the appropriate local veterans'
employment representatives (in carrying out the functions
described in section 4104); and
``(B) the appropriate State boards and local boards (as
such terms are defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)) for the areas to be
served by recipients of the grants; and
``(2) based on the collaboration, facilitate the placement
of the veterans that complete the training in meaningful
employment that leads to economic self-sufficiency.
``(c) Application.--To be eligible to receive a grant under
this section, a nonprofit organization shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
At a minimum, the information shall include--
``(1) information describing how the organization will--
``(A) collaborate with disabled veterans' outreach
specialists and local veterans' employment representatives
and the appropriate State boards and local boards (as such
terms are defined in section 101 of the Workforce Investment
Act of 1998 (29 U.S.C. 2801));
``(B) based on the collaboration, provide training that
facilitates the placement described in subsection (b)(2); and
``(C) make available, for each veteran receiving the
training, a mentor to provide career advice to the veteran
and assist the veteran in preparing a resume and developing
job interviewing skills; and
``(2) an assurance that the organization will provide the
information necessary for the Secretary to prepare the
reports described in subsection (d).
``(d) Reports.--(1) Not later than six months after the
date of the enactment of the VOW to Hire Heroes Act of 2011,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report that describes the process
for awarding grants under this section, the recipients of the
grants, and the collaboration described in subsections (b)
and (c).
``(2) Not later than 18 months after the date of enactment
of the VOW to Hire Heroes Act of 2011, the Secretary shall--
``(A) conduct an assessment of the performance of the grant
recipients, disabled veterans' outreach specialists, and
local veterans' employment representatives in carrying out
activities under this section, which assessment shall include
collecting information on the number of--
``(i) veterans who applied for training under this section;
``(ii) veterans who entered the training;
``(iii) veterans who completed the training;

[[Page S7199]]

``(iv) veterans who were placed in meaningful employment
under this section; and
``(v) veterans who remained in such employment as of the
date of the assessment; and
``(B) submit to the appropriate committees of Congress a
report that includes--
``(i) a description of how the grant recipients used the
funds made available under this section;
``(ii) the results of the assessment conducted under
subparagraph (A); and
``(iii) the recommendations of the Secretary as to whether
amounts should be appropriated to carry out this section for
fiscal years after 2013.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $4,500,000 for
the period consisting of fiscal years 2012 and 2013.
``(f) Definitions.--In this section--
``(1) the term `appropriate committees of Congress' means--
``(A) the Committee on Veterans' Affairs and the Committee
on Health, Education, Labor, and Pension of the Senate; and
``(B) the Committee on Veterans' Affairs and the Committee
on Education and Workforce of the House of Representatives;
and
``(2) the term `nonprofit organization' means an
organization that is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and that is exempt from
taxation under section 501(a) of such Code.''.
(b) Conforming Amendment.--Section 4103A(a) of title 38,
United States Code, is amended--
(1) in paragraph (1), by inserting ``and facilitate
placements'' after ``intensive services''; and
(2) by adding at the end the following:
``(3) In facilitating placement of a veteran under this
program, a disabled veterans' outreach program specialist
shall help to identify job opportunities that are appropriate
for the veteran's employment goals and assist that veteran in
developing a cover letter and resume that are targeted for
those particular jobs.''.
(c) Clerical Amendment.--The table of sections at the
beginning of chapter 41 of such title is amended by inserting
after the item relating to section 4104 the following new
item:

``4104A. Collaborative veterans' training, mentoring, and placement
program.''.

SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND
OTHER EMPLOYMENT ASSISTANCE.

(a) Appointments to Competitive Service Positions.--
(1) In general.--Chapter 21 of title 5, United States Code,
is amended by inserting after section 2108 the following:

``Sec. 2108a. Treatment of certain individuals as veterans,
disabled veterans, and preference eligibles

``(a) Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a veteran defined under
section 2108(1) for purposes of making an appointment in the
competitive service, if the individual--
``(A) meets the definition of a veteran under section
2108(1), except for the requirement that the individual has
been discharged or released from active duty in the armed
forces under honorable conditions; and
``(B) submits a certification described under paragraph (2)
to the Federal officer making the appointment.
``(2) Certification.--A certification referred to under
paragraph (1) is a certification that the individual is
expected to be discharged or released from active duty in the
armed forces under honorable conditions not later than 120
days after the date of the submission of the certification.
``(b) Disabled Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a disabled veteran defined
under section 2108(2) for purposes of making an appointment
in the competitive service, if the individual--
``(A) meets the definition of a disabled veteran under
section 2108(2), except for the requirement that the
individual has been separated from active duty in the armed
forces under honorable conditions; and
``(B) submits a certification described under paragraph (2)
to the Federal officer making the appointment.
``(2) Certification.--A certification referred to under
paragraph (1) is a certification that the individual is
expected to be separated from active duty in the armed forces
under honorable conditions not later than 120 days after the
date of the submission of the certification.
``(c) Preference Eligible.--Subsections (a) and (b) shall
apply with respect to determining whether an individual is a
preference eligible under section 2108(3) for purposes of
making an appointment in the competitive service.''.
(2) Technical and conforming amendments.--
(A) Definitions.--Section 2108 of title 5, United States
Code, is amended--
(i) in paragraph (1), in the matter following subparagraph
(D), by inserting ``, except as provided under section
2108a,'' before ``who has been'';
(ii) in paragraph (2), by inserting ``(except as provided
under section 2108a)'' before ``has been separated''; and
(iii) in paragraph (3), in the matter preceding
subparagraph (A), by inserting ``or section 2108a(c)'' after
``paragraph (4) of this section''.
(B) Table of sections.--The table of sections for chapter
21 of title 5, United States Code, is amended by adding after
the item relating to section 2108 the following:

``2108a. Treatment of certain individuals as veterans, disabled
veterans, and preference eligibles.''.
(b) Employment Assistance: Other Federal Agencies.--
(1) Definitions.--In this subsection--
(A) the term ``agency'' has the meaning given the term
``Executive agency'' in section 105 of title 5, United States
Code; and
(B) the term ``veteran'' has the meaning given that term in
section 101 of title 38, United States Code.
(2) Responsibilities of office of personnel management.--
The Director of the Office of Personnel Management shall--
(A) designate agencies that shall establish a program to
provide employment assistance to members of the Armed Forces
who are being separated from active duty in accordance with
paragraph (3); and
(B) ensure that the programs established under this
subsection are coordinated with the Transition Assistance
Program (TAP) of the Department of Defense.
(3) Elements of program.--The head of each agency
designated under paragraph (2)(A), in consultation with the
Director of the Office of Personnel Management, and acting
through the Veterans Employment Program Office of the agency
established under Executive Order 13518 (74 Fed. Reg. 58533;
relating to employment of veterans in the Federal
Government), or any successor thereto, shall--
(A) establish a program to provide employment assistance to
members of the Armed Forces who are being separated from
active duty, including assisting such members in seeking
employment with the agency;
(B) provide such members with information regarding the
program of the agency established under subparagraph (A); and
(C) promote the recruiting, hiring, training and
development, and retention of such members and veterans by
the agency.
(4) Other office.--If an agency designated under paragraph
(2)(A) does not have a Veterans Employment Program Office,
the head of the agency, in consultation with the Director of
the Office of Personnel Management, shall select an
appropriate office of the agency to carry out the
responsibilities of the agency under paragraph (3).

SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK
EXPERIENCE FOR MEMBERS OF THE ARMED FORCES ON
TERMINAL LEAVE.

(a) In General.--The Secretary of Defense may establish a
pilot program to assess the feasibility and advisability of
providing to members of the Armed Forces on terminal leave
work experience with civilian employees and contractors of
the Department of Defense to facilitate the transition of the
individuals from service in the Armed Forces to employment in
the civilian labor market.
(b) Duration.--The pilot program shall be carried out
during the two-year period beginning on the date of the
commencement of the pilot program.
(c) Report.--Not later than 540 days after the date of the
commencement of the pilot program, the Secretary shall submit
to the Committee on Armed Services and the Committee on
Veterans' Affairs of the Senate and the Committee on Armed
Services and the Committee on Veterans' Affairs of the House
of Representatives an interim report on the pilot program
that includes the findings of the Secretary with respect to
the feasibility and advisability of providing covered
individuals with work experience as described in subsection
(a).

SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON
CREDENTIALING AND LICENSING OF VETERANS.

(a) In General.--Section 4114 of title 38, United States
Code, is amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``Assistant Secretary shall'' and inserting
``Assistant Secretary for Veterans' Employment and Training
shall, in consultation with the Assistant Secretary for
Employment and Training,'';
(ii) by striking ``not less than 10 military'' and
inserting ``not more than five military''; and
(iii) by inserting ``for Veterans' Employment and
Training'' after ``selected by the Assistant Secretary''; and
(B) in paragraph (2), by striking ``consult with
appropriate Federal, State, and industry officials to'' and
inserting ``enter into a contract with an appropriate entity
representing a coalition of State governors to consult with
appropriate Federal, State, and industry officials and''; and
(3) by striking subsections (d) through (h) and inserting
the following:
``(d) Period of Project.--The period during which the
Assistant Secretary shall carry out the demonstration project
under this section shall be the two-year period beginning on
the date of the enactment of the VOW to Hire Heroes Act of
2011.''.
(b) Study Comparing Costs Incurred by Secretary of Defense
for Training for Military Occupational Specialties Without
Credentialing or Licensing With Costs Incurred by Secretary
of Veterans Affairs and Secretary of Labor in Providing
Employment-related Assistance.--
(1) In general.--Not later than 180 days after the
conclusion of the period described

[[Page S7200]]

in subsection (d) of section 4114 of title 38, United States
Code, as added by subsection (a), the Assistant Secretary of
Labor of Veterans' Employment and Training shall, in
consultation with the Secretary of Defense and the Secretary
of Veterans Affairs, complete a study comparing the costs
incurred by the Secretary of Defense in training members of
the Armed Forces for the military occupational specialties
selected by the Assistant Secretary of Labor of Veterans'
Employment and Training pursuant to the demonstration project
provided for in such section 4114, as amended by subsection
(a), with the costs incurred by the Secretary of Veterans
Affairs and the Secretary of Labor in providing employment-
related assistance to veterans who previously held such
military occupational specialties, including--
(A) providing educational assistance under laws
administered by the Secretary of Veterans Affairs to veterans
to obtain credentialing and licensing for civilian
occupations that are similar to such military occupational
specialties;
(B) providing assistance to unemployed veterans who, while
serving in the Armed Forces, were trained in a military
occupational specialty; and
(C) providing vocational training or counseling to veterans
described in subparagraph (B).
(2) Report.--
(A) In general.--Not later than 180 days after the
conclusion of the period described in subsection (d) of
section 4114 of title 38, United States Code, as added by
subsection (a), the Assistant Secretary of Labor of Veterans'
Employment and Training shall submit to Congress a report on
the study carried out under paragraph (1).
(B) Elements.--The report required by subparagraph (A)
shall include the following:
(i) The findings of the Assistant Secretary with respect to
the study required by paragraph (1).
(ii) A detailed description of the costs compared under the
study required by paragraph (1).

SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT
ON VETERAN JOB COUNSELING, TRAINING, AND
PLACEMENT PROGRAMS OF THE DEPARTMENT OF LABOR.

Section 4107(c) of title 38, United States Code, is
amended--
(1) in paragraph (2), by striking ``clause (1)'' and
inserting ``paragraph (1)'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period and inserting
``; and''; and
(4) by adding at the end the following new paragraph:
``(7) performance measures for the provision of assistance
under this chapter, including--
``(A) the percentage of participants in programs under this
chapter who find employment before the end of the first 90-
day period following their completion of the program;
``(B) the percentage of participants described in
subparagraph (A) who are employed during the first 180-day
period following the period described in such subparagraph;
``(C) the median earnings of participants described in
subparagraph (A) during the period described in such
subparagraph;
``(D) the median earnings of participants described in
subparagraph (B) during the period described in such
subparagraph; and
``(E) the percentage of participants in programs under this
chapter who obtain a certificate, degree, diploma, licensure,
or industry-recognized credential relating to the program in
which they participated under this chapter during the third
90-day period following their completion of the program.''.

SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS
IN DEPARTMENT OF LABOR JOB TRAINING PROGRAMS.

Section 4215 of title 38, United States Code, is amended--
(1) in subsection (a)(3), by adding at the end the
following: ``Such priority includes giving access to such
services to a covered person before a non-covered person or,
if resources are limited, giving access to such services to a
covered person instead of a non-covered person.''; and
(2) by amending subsection (d) to read as follows:
``(d) Addition to Annual Report.--(1) In the annual report
required under section 4107(c) of this title for the program
year beginning in 2003 and each subsequent program year, the
Secretary of Labor shall evaluate whether covered persons are
receiving priority of service and are being fully served by
qualified job training programs. Such evaluation shall
include--
``(A) an analysis of the implementation of providing such
priority at the local level;
``(B) whether the representation of veterans in such
programs is in proportion to the incidence of representation
of veterans in the labor market, including within groups that
the Secretary may designate for priority under such programs,
if any; and
``(C) performance measures, as determined by the Secretary,
to determine whether veterans are receiving priority of
service and are being fully served by qualified job training
programs.
``(2) The Secretary may not use the proportion of
representation of veterans described in subparagraph (B) of
paragraph (1) as the basis for determining under such
paragraph whether veterans are receiving priority of service
and are being fully served by qualified job training
programs.''.

SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE
NATIONAL VETERANS' EMPLOYMENT AND TRAINING
SERVICES INSTITUTE.

(a) In General.--Section 4109 of title 38, United States
Code, is amended by adding at the end the following new
subsection:
``(d)(1) The Secretary shall require that each disabled
veterans' outreach program specialist and local veterans'
employment representative who receives training provided by
the Institute, or its successor, is given a final examination
to evaluate the specialist's or representative's performance
in receiving such training.
``(2) The results of such final examination shall be
provided to the entity that sponsored the specialist or
representative who received the training.''.
(b) Effective Date.--Subsection (d) of section 4109 of
title 38, United States Code, as added by subsection (a),
shall apply with respect to training provided by the National
Veterans' Employment and Training Services Institute that
begins on or after the date that is 180 days after the date
of the enactment of this Act.

SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VETERANS'
OUTREACH PROGRAM SPECIALISTS AND LOCAL
VETERANS' EMPLOYMENT 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:
``(d) Additional Requirement for Full-time Employees.--(1)
A full-time disabled veterans' outreach program specialist
shall perform only duties related to meeting the employment
needs of eligible veterans, as described in subsection (a),
and shall not perform other non-veteran-related duties that
detract from the specialist's ability to perform the
specialist's duties related to meeting the employment needs
of eligible veterans.
``(2) The Secretary shall conduct regular audits to ensure
compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in
compliance with paragraph (1), the Secretary may reduce the
amount of a grant made to the State under section 4102A(b)(5)
of this title.''.
(b) Local Veterans' Employment Representatives.--Section
4104 of such title is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection (e):
``(e) Additional Requirements for Full-time Employees.--(1)
A full-time local veterans' employment representative shall
perform only duties related to the employment, training, and
placement services under this chapter, and shall not perform
other non-veteran-related duties that detract from the
representative's ability to perform the representative's
duties related to employment, training, and placement
services under this chapter.
``(2) The Secretary shall conduct regular audits to ensure
compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in
compliance with paragraph (1), the Secretary may reduce the
amount of a grant made to the State under section 4102A(b)(5)
of this title.''.
(c) Consolidation.--Section 4102A of such title is amended
by adding at the end the following new subsection:
``(h) Consolidation of Disabled Veterans' Outreach Program
Specialists and Veterans' Employment Representatives.--The
Secretary may allow the Governor of a State receiving funds
under subsection (b)(5) to support specialists and
representatives as described in such subsection to
consolidate the functions of such specialists and
representatives if--
``(1) the Governor determines, and the Secretary concurs,
that such consolidation--
``(A) promotes a more efficient administration of services
to veterans with a particular emphasis on services to
disabled veterans; and
``(B) does not hinder the provision of services to veterans
and employers; and
``(2) the Governor submits to the Secretary a proposal
therefor at such time, in such manner, and containing such
information as the Secretary may require.''.

Subtitle D--Improvements to Uniformed Services Employment and
Reemployment Rights

SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED
UNDER USERRA.

Section 4303(2) of title 38, United States Code, is amended
by inserting ``the terms, conditions, or privileges of
employment, including'' after ``means''.

Subtitle E--Other Matters

SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK
OPPORTUNITY TAX CREDITS.

(a) In General.--Paragraph (3) of section 51(b) of the
Internal Revenue Code of 1986 is amended by striking
``($12,000 per year in the case of any individual who is a
qualified veteran by reason of subsection (d)(3)(A)(ii))''
and inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(I), $14,000 per year in the case of any
individual who is a qualified veteran by reason of subsection

[[Page S7201]]

(d)(3)(A)(iv), and $24,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(II))''.
(b) Returning Heroes Tax Credits.--Subparagraph (A) of
section 51(d)(3) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``or'' at the end of clause (i),
(2) by striking the period at the end of clause (ii)(II),
and
(3) by adding at the end the following new clauses:
``(iii) having aggregate periods of unemployment during the
1-year period ending on the hiring date which equal or exceed
4 weeks (but less than 6 months), or
``(iv) having aggregate periods of unemployment during the
1-year period ending on the hiring date which equal or exceed
6 months.''.
(c) Simplified Certification.--Paragraph (13) of section
51(d) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(D) Credit for unemployed veterans.--
``(i) In general.--Notwithstanding subparagraph (A), for
purposes of paragraph (3)(A)--

``(I) a veteran will be treated as certified by the
designated local agency as having aggregate periods of
unemployment meeting the requirements of clause (ii)(II) or
(iv) of such paragraph (whichever is applicable) if such
veteran is certified by such agency as being in receipt of
unemployment compensation under State or Federal law for not
less than 6 months during the 1-year period ending on the
hiring date, and
``(II) a veteran will be treated as certified by the
designated local agency as having aggregate periods of
unemployment meeting the requirements of clause (iii) of such
paragraph if such veteran is certified by such agency as
being in receipt of unemployment compensation under State or
Federal law for not less than 4 weeks (but less than 6
months) during the 1-year period ending on the hiring date.

``(ii) Regulatory authority.--The Secretary may provide
alternative methods for certification of a veteran as a
qualified veteran described in clause (ii)(II), (iii), or
(iv) of paragraph (3)(A), at the Secretary's discretion.''.
(d) Extension of Credit.--Subparagraph (B) of section
51(c)(4) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(B) after--
``(i) December 31, 2012, in the case of a qualified
veteran, and
``(ii) December 31, 2011, in the case of any other
individual.''.
(e) Credit Made Available to Tax-exempt Employers in
Certain Circumstances.--
(1) In general.--Subsection (c) of section 52 of the
Internal Revenue Code of 1986 is amended--
(A) by inserting ``(1) In general.--'' before ``No
credit'', and
(B) by adding at the end the following new paragraph:
``(2) Credit Made Available to Qualified Tax-exempt
Employers Employing Qualified Veterans.--In the case of a
qualified tax-exempt employer (as defined in section
3111(e)(3)(A)), the credit otherwise allowed under this
section by reason of subsection (d)(3) shall be allowed under
section 3111(e) and not under this section.''.
(2) Credit allowable.--Section 3111 of such Code is amended
by adding at the end the following new subsection:
``(e) Credit for Employment of Qualified Veterans.--
``(1) In general.--If a qualified tax-exempt employer hires
a qualified veteran with respect to whom a credit would be
allowable under section 51 if the employer were not a
qualified tax-exempt employer, then there shall be allowed as
a credit against the tax imposed by subsection (a) on wages
paid with respect to employment of all employees of the
employer during the applicable period an amount equal to the
lesser of--
``(A) the credit which would be so allowable under section
51 with respect to wages paid to such qualified veteran
during such period, or
``(B) the amount of the tax imposed by subsection (a) on
wages paid with respect to employment of all employees of the
employer during such period.
``(2) Applicable period.--The term `applicable period'
means, with respect to any qualified veteran, the 1-year
period beginning with the day such qualified veteran begins
work for the employer.
``(3) Definitions.--For purposes of this subsection--
``(A) the term `qualified tax-exempt employer' means an
employer that is an organization described in section 501(c)
and exempt from taxation under section 501(a), and
``(B) the term `qualified veteran' has meaning given such
term by section 51(d)(3).
``(4) Limitation.--This subsection shall apply only with
respect to wages paid to a qualified veteran for services in
furtherance of the activities related to the purpose or
function constituting the basis of the employer's exemption
under section 501.''.
(3) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
amendments made by paragraphs (1) and (2). Amounts
appropriated by the preceding sentence shall be transferred
from the general fund at such times and in such manner as to
replicate to the extent possible the transfers which would
have occurred to such Trust Fund had such amendments not been
enacted.
(f) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the Treasury
shall pay to each possession of the United States with a
mirror code tax system amounts equal to the loss to that
possession by reason of the amendments made by this section.
Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of
the respective possession of the United States.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not
have a mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the aggregate
benefits that would have been provided to taxpayers of the
possession by reason of the amendments made by this section
if a mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession has a plan, which has been approved by the
Secretary of the Treasury, under which such possession will
promptly distribute such payments to the taxpayers of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United
States income taxes for any taxable year under the amendments
made by this section to section 51 or section 3111 of the
Internal Revenue Code of 1986 to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession of the United States by reason of the
amendments made by this section for such taxable year, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from the credit allowed under section 52(c)(2)
of the Internal Revenue Code of 1986 (as added by this
section).
(g) Effective Date.--The amendment made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act.

SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS
COVERED BY MEDICAID PLANS FOR SERVICES
FURNISHED BY NURSING FACILITIES.

Section 5503(d)(7) of title 38, United States Code, is
amended by striking ``May 31, 2015'' and inserting
``September 30, 2016''.

SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES.

Section 111(b)(3) of title 38, United States Code, is
amended by adding at the end the following new subparagraph:
``(C) In the case of transportation of a person under
subparagraph (B) by ambulance, the Secretary may pay the
provider of the transportation the lesser of the actual
charge for the transportation or the amount determined by the
fee schedule established under section 1834(l) of the Social
Security Act (42 U.S.C. 1395(l)) unless the Secretary has
entered into a contract for that transportation with the
provider.''.

SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS
AFFAIRS TO OBTAIN INFORMATION FROM SECRETARY OF
TREASURY AND COMMISSIONER OF SOCIAL SECURITY
FOR INCOME VERIFICATION PURPOSES.

Section 5317(g) of title 38, United States Code, is amended
by striking ``September 30, 2011'' and inserting ``September
30, 2016''.

SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN
SUBSEQUENT LOANS.

(a) In General.--Section 3729(b)(2) of title 38, United
States Code, is amended--
(1) in subparagraph (A)--
(A) in clause (iii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(B) in clause (iv), by striking ``November 18, 2011'' and
inserting ``October 1, 2016'';
(2) in subparagraph (B)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016'';
(B) by striking clauses (ii) and (iii);
(C) by redesignating clause (iv) as clause (ii); and
(D) in clause (ii), as redesignated by subparagraph (C), by
striking ``October 1, 2013'' and inserting ``October 1,
2016'';
(3) in subparagraph (C)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and

[[Page S7202]]

(B) in clause (ii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(4) in subparagraph (D)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(B) in clause (ii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the later of--
(1) November 18, 2011; or
(2) the date of the enactment of this Act.

TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL
VENDORS RELATING TO PROPERTY.

(a) In General.--Section 6331(h)(3) of the Internal Revenue
Code of 1986 is amended by striking ``goods or services'' and
inserting ``property, goods, or services''.
(b) Effective Date.--The amendment made by this section
shall apply to levies issued after the date of the enactment
of this Act.

SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE TAX
GAP OWED BY FEDERAL CONTRACTORS.

(a) Study.--
(1) In general.--The Secretary of the Treasury, or the
Secretary's delegate, in consultation with the Director of
the Office of Management and Budget and the heads of such
other Federal agencies as the Secretary determines
appropriate, shall conduct a study on ways to reduce the
amount of Federal tax owed but not paid by persons submitting
bids or proposals for the procurement of property or services
by the Federal government.
(2) Matters studied.--The study conducted under paragraph
(1) shall include the following matters:
(A) An estimate of the amount of delinquent taxes owed by
Federal contractors.
(B) The extent to which the requirement that persons
submitting bids or proposals certify whether such persons
have delinquent tax debts has--
(i) improved tax compliance; and
(ii) been a factor in Federal agency decisions not to enter
into or renew contracts with such contractors.
(C) In cases in which Federal agencies continue to contract
with persons who report having delinquent tax debt, the
factors taken into consideration in awarding such contracts.
(D) The degree of the success of the Federal lien and levy
system in recouping delinquent Federal taxes from Federal
contractors.
(E) The number of persons who have been suspended or
debarred because of a delinquent tax debt over the past 3
years.
(F) An estimate of the extent to which the subcontractors
under Federal contracts have delinquent tax debt.
(G) The Federal agencies which have most frequently awarded
contracts to persons notwithstanding any certification by
such person that the person has delinquent tax debt.
(H) Recommendations on ways to better identify Federal
contractors with delinquent tax debts.
(b) Report.--Not later than 12 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
submit to the Committee on Ways and Means of the House of
Representatives, the Committee on Finance of the Senate, the
Committee on Oversight and Government Reform of the House of
Representatives, and the Committee on Homeland Security and
Government Affairs of the Senate, a report on the study
conducted under subsection (a), together with any legislative
recommendations.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME
FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED
GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE
PROGRAM ELIGIBILITY.

(a) In General.--Subparagraph (B) of section 36B(d)(2) of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting ``, and'', and by adding
at the end the following new clause:
``(iii) an amount equal to the portion of the taxpayer's
social security benefits (as defined in section 86(d)) which
is not included in gross income under section 86 for the
taxable year.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
(c) No Impact on Social Security Trust Funds.--
(1) Estimate of secretary.--The Secretary of the Treasury,
or the Secretary's delegate, shall annually estimate the
impact that the amendments made by subsection (a) have on the
income and balances of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury or the Secretary's delegate
estimates that such amendments have a negative impact on the
income and balances of such trust funds, the Secretary shall
transfer, not less frequently than quarterly, from the
general fund an amount sufficient so as to ensure that the
income and balances of such trust funds are not reduced as a
result of such amendments.

TITLE V--BUDGETARY EFFECTS

SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010.

The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
______