[House Report 113-64]
[From the U.S. Government Publishing Office]
113th Congress Report
} HOUSE OF REPRESENTATIVES {
1st Session } { 113-64
======================================================================
IMPROVING JOB OPPORTUNITIES FOR VETERANS ACT
OF 2013
_______
May 17, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 1412]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 1412) to improve and increase the availability
of on-job training and apprenticeship programs carried out by
the Secretary of Veterans Affairs, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Subcommittee Consideration....................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 5
Statement of General Performance Goals and Objectives............ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Earmarks and Tax and Tariff Benefits............................. 5
Committee Cost Estimate.......................................... 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 8
Advisory Committee Statement..................................... 8
Constitutional Authority Statement............................... 8
Applicability to Legislative Branch.............................. 8
Duplication of Federal Programs.................................. 8
Disclosure of Directed Rulemaking................................ 9
Section-by-Section Analysis of the Legislation................... 9
Changes in Existing Law Made by the Bill as Reported............. 9
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Job Opportunities for
Veterans Act of 2013''.
SEC. 2. AUTHORITY TO INCREASE AVAILABILITY OF PRIVATE SECTOR ON-JOB
TRAINING PROGRAMS.
During the four-year period beginning on the date that is one year
after the date of the enactment of this Act, the Secretary of Veterans
Affairs shall carry out section 3677(b)(1)(A) of title 38, United
States Code, by substituting ``75 per centum'' for ``85 per centum''.
SEC. 3. ON-JOB TRAINING AT FEDERAL DEPARTMENTS AND AGENCIES.
Beginning on the date that is one year after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall enter
into agreements with the heads of other Federal departments and
agencies to operate programs of training on the job under section 3677
of title 38, United States Code, to train eligible veterans or persons
to perform skills necessary for employment by the department or agency
operating the program.
SEC. 4. 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 ``November 30, 2016'' and inserting ``December 31, 2016''.
Purpose and Summary
H.R. 1412, the Improving Job Opportunities for Veterans Act
of 2013, was introduced on April 9, 2013, by Representative
Mike Coffman of Colorado. H.R. 1412, as amended, would
temporarily reduce the percentage of full wages paid to
veterans participating in an employer's on-the-job-training
(OJT) program from the current 85 percent of full wages to 75
percent. As amended, the bill would also require the Department
of Veterans Affairs to conclude agreements with other Federal
agencies for those agencies to participate in the OJT program.
To meet PAYGO requirements, the bill would extend the current
limitation on the amount of non-service-connected pension paid
to veterans residing in Medicaid nursing homes.
Background and Need for Legislation
Section 1--Short title
The Improving Job Opportunities for Veterans Act of 2013
Section 2--Authority to increase availability of private sector on-the-
job training programs
The Department of Veterans Affairs (VA) offers for active
duty servicemembers, veterans, and certain dependents OJT
education and training under several GI Bill programs. During
the recent economic recession, a relatively high percentage of
veterans, especially those just leaving military service, found
it difficult to obtain employment, a problem that persists
today. In the past, one solution for some veterans was to use
their GI Bill benefits to help support them while undergoing
OJT. As structured, the GI Bill's OJT programs offer a monthly
payment while a veteran undergoes training and at the same
time, the employer is required to pay a percentage of the full
wage paid for the specific job for which the veteran is
receiving training. As training progressed, VA paid a smaller
monthly benefit and the employer's payment increased. Under
current law, under the Post-9/11 GI Bill the final training
salary paid by an employer is 85 percent of the full wage.
For example, under the Post-9/11 GI Bill, VA will pay 100
percent of the beneficiary's monthly living stipend while he or
she is engaged in training. That percentage would be reduced
every two months by 20 percent to a minimum of 20 percent of
the full stipend beginning on the 25th month of training. At
the same time, when training begins, the employer would start
paying a salary of at least 50 percent of the full salary with
incremental increases required until the final salary equals 85
percent of the full salary.
Representatives from State Approving Agencies relayed to
the Committee that employers were reluctant to offer OJT
programs because of the final 85 percent training wage
requirement and suggested that if the percentage was lowered
more employers would offer OJT opportunities for veterans.
This section would reduce the final training wage required
to be paid by employers to 75 percent for a four year period
beginning on the date that is one year after the date of
enactment. The Committee hopes that this temporary reduction
will encourage more employers to participate in the OJT program
and ultimately result in more veterans being hired.
Section 3--On-job training at Federal departments and agencies
The history of providing preferential hiring of veterans in
the Federal workforce dates back to the Civil War period.
Today, that preference continues as evidenced by the fact that
veterans currently comprise about 25 percent of the Federal
workforce. Currently under subsection (b) of section 3672 of
title 38, United States Code, there is existing legal authority
permitting veterans to use their GI Bill for OJT at Federal
agencies however it is uncertain if Federal agencies are using
this authority to its full extent.
To encourage Federal managers to utilize this authority and
continue to hire qualified veterans with job-specific skills,
H.R. 1412, as amended provides that beginning one year after
enactment, VA would be required to enter into agreements with
other Federal Agencies to operate OJT programs.
Section 4--Extension of reduced pension for certain Veterans covered by
Medicaid plans for services furnished by nursing facilities
Finally, H.R. 1412, as amended, would extend for an
additional month, to December 31, 2016, the VA's current
authority to reduce pensions for certain veterans covered by
Medicaid plans for services furnished in nursing facilities.
Hearings
On April 10, 2013, the Subcommittee on Economic Opportunity
conducted a legislative hearing on various bills introduced
during the 113th Congress, including H.R. 1412. The following
witnesses testified at the hearing:
Mr. Curtis Coy, Deputy Under Secretary for Economic
Opportunity, Veterans Benefits Administration, U.S.
Department of Veterans Affairs, who was accompanied by
Mr. Danny Pummill, Director, Veterans Benefits
Administration/Department of Defense Program Office,
U.S. Department of Veterans Affairs; Dr. Susan Kelly,
Deputy Director, Transition to Veterans Program Office,
U.S. Department of Defense; The Honorable Keith Kelly,
Assistant Secretary, Veterans' Employment and Training
Service, U.S. Department of Labor; Mr. Charles Huebner,
Chief of U.S. Paralympics, U.S. Olympic Committee; Dr.
Susan Aldridge, Senior Fellow, American Association of
State Colleges and Universities; Col. G. Michael
Denning (USMC) Ret., Director of Graduate Military
Programs, the University of Kansas, on behalf of the
Association of Public and Land Grant Universities;
LtGen Joseph F. Weber (USMC) Ret., Vice President for
Student Affairs, Texas A&M University; Mr. Alexander
Nicholson, Chief Policy Officer, Iraq and Afghanistan
Veterans of America; Mr. Ryan M. Gallucci, Deputy
Director, National Legislative Service, Veterans of
Foreign Wars of the United States; Mr. Steve L.
Gonzalez, Assistant Director, National Economic
Commission, The American Legion; and Mr. Michael
Dakduk, Executive Director, Student Veterans of
America. The following groups submitted statements for
the record: The National Coalition for Homeless
Veterans; VETSFirst; and Gold Star Wives of America,
Inc.
Subcommittee Consideration
On April 28, 2013, the Subcommittee on Economic Opportunity
met in an open markup session, a quorum being present, and
favorably forwarded to the full Committee H.R. 1412 by voice
vote.
Committee Consideration
On May 8, 2013, the Full Committee met in an open markup
session, a quorum being present, and ordered H. R. 1412, as
amended, reported favorably to the House of Representatives, by
voice vote. During consideration of the bill, the following
amendment was considered:
An amendment in the nature of a substitute by Mr.
Coffman of Colorado that made minor changes to the bill
by deleting Section 2 of the original bill that would
have required the Department of Veterans Affairs to
conduct an aggressive outreach and advertising program
to promote On-the-Job Training. The amendment also
extended for 4 years the period during which the
maximum final pay from an employer to an OJT
participant is at the 75 percent of the full salary
level. The amendment in the nature of a substitute was
agreed to by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list recorded votes
on motions to report legislation and amendments thereto. There
were no recorded votes taken on amendments or in connection
with ordering H.R. 1412, as amended, reported to the House. A
motion by Ranking Member Mike Michaud of Maine to report H.R.
1412, as amended, favorably to the House of Representatives was
agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 1412, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
1412, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 1412, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 16, 2013.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1412, the
Improving Job Opportunities for Veterans Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is William Ma.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.
H.R. 1412--Improving Job Opportunities for Veterans Act of 2013
Summary: H.R. 1412 would extend for one month an expiring
provision of law that limits pensions paid to certain veterans
who are receiving Medicaid coverage in Medicaid-approved
nursing homes. The bill also would modify the conditions for
veterans to receive education benefit payments from the
Department of Veterans Affairs (VA) for participating in on-
the-job training and require VA to enter into agreements with
other federal agencies to promote on-the-job training
opportunities for veterans.
If enacted, CBO estimates that, on net, the bill would
decrease direct spending by $14 million over the 2014-2018
period and by $12 million over the 2014-2023 period. Because
the bill would affect direct spending, pay-as-you-go procedures
apply. Enacting H.R. 1412 would not affect revenues. In
addition, implementing H.R. 1412 would have an insignificant
effect on discretionary spending.
H.R. 1412 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal government: The estimated
budgetary impact of H.R. 1412 is shown in the following table.
The costs of this legislation fall within budget functions 700
(veterans benefits and services) and 550 (health).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014-2018 2014-2023
--------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Pensions for Veterans in Medicaid-Approved Nursing
Homes:
Estimated Budget Authority....................... 0 0 0 -20 0 0 0 0 0 0 -20 -20
Estimated Outlays................................ 0 0 0 -20 0 0 0 0 0 0 -20 -20
Temporary Reduction to Wage Requirement for On-the-
Job Training Programs:
Estimated Budget Authority....................... 0 1 1 2 2 1 1 0 0 0 6 8
Estimated Outlays................................ 0 1 1 2 2 1 1 0 0 0 6 8
Total Changes:
Estimated Budget Authority....................... 0 1 1 -18 2 1 1 0 0 0 -14 -12
Estimated Outlays................................ 0 1 1 -18 2 1 1 0 0 0 -14 -12
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: For the purposes of this estimate, CBO
assumes that the legislation will be enacted near the start of
fiscal year 2014 and that outlays will follow historical
spending patterns for similar and existing programs.
Direct spending: H.R. 1412 would reduce direct spending for
veterans' pensions and increase direct spending for veterans'
education benefits. On net, enacting the bill would decrease
direct spending by $12 million over the 2014-2023 period, CBO
estimates.
Pensions for Veterans in Medicaid-Approved Nursing Homes.
Section 4 would extend for one month (from November 30, 2016,
to December 31, 2016) the expiration date of a provision of
current law that sets a $90 per month limit on pensions paid to
any veteran who does not have a spouse or child and who is
receiving Medicaid benefits in a Medicaid-approved nursing
home; that provision also applies to any survivor of a veteran
who is receiving such coverage. Using data provided by VA, CBO
estimates that about 15,000 veterans and 19,000 survivors would
be affected by this provision in fiscal year 2017 and that the
average monthly savings to VA in that year would be about
$1,800 per veteran and $1,200 per survivor. (Those projections
account for inflation, mortality rates, and new nursing home
patients.) On that basis, CBO estimates that enacting the
provision would reduce VA spending by $50 million.
Higher Medicaid payments to nursing homes would offset some
of those savings. We estimate that those costs would total
about $30 million in that month, resulting in a net reduction
in direct spending of $20 million in 2017 and over the 2014-
2023 period.
Temporary Reduction to Wage Requirement for On-the-Job
Training Programs. VA provides education benefits to certain
veterans participating in on-the-job training programs. Under
current law, for participants in such programs to be eligible,
the employer must pay trainees a starting wage equaling at
least 50 percent of the full-time wage for that position. That
amount must steadily increase to at least 85 percent of the
appropriate full-time wage by the last month of the program.
Section 2 would broaden participation by temporarily
reducing the requirement for final pay to no less than 75
percent of the appropriate wage for veterans who begin training
in fiscal years 2015 through 2018. CBO expects that such a
change would increase the number of on-the-job training
programs that VA would approve for use of education benefits;
thus, CBO estimates that an additional 150 veterans would
receive an average of $8,500 in benefits from VA annually from
2015 through 2020. In total, enacting section 2 would increase
direct spending by $8 million over the 2015-2023 period, CBO
estimates.
Spending subject to appropriation: Section 3 would require
VA to enter into agreements with other federal departments and
agencies to operate on-the-job training programs to provide
training opportunities for veterans. Based on information from
VA, CBO estimates that any costs to enter into those agreements
would be insignificant over the 2014-2018 period.
Pay-as-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1412 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON MAY 8, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-2018 2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact...................... 0 0 1 1 -18 2 1 1 0 0 0 -14 -12
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 1412
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: William Ma, Dwayne
Wright. Impact on State, Local, and Tribal Governments: Lisa
Ramirez-Branum. Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 1412, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
1412, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 1412, as amended,
``The Improving Job Opportunities for Veterans Act of 2013,''
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that H.R. 1412, as amended, does not
require any directed rule makings.
Section-by-Section Analysis of the Legislation
Section 1--Short title
This section provides the short title of H.R. 1412, as
amended, as the ``Improving Job Opportunities for Veterans Act
of 2013.''
Section 2--Authority to increase availability of private sector on-the-
job training programs
This section would amend 38 U.S.C. Sec. 3677(b)(1)(A) to
reduce the final OJT wage paid to veterans from the current 85
percent to 75 percent of the full wage paid for that job for a
three year period beginning one year following the date of
enactment.
Section 3--On-job training at Federal departments and agencies
This section would require the VA to enter into agreements
with other Federal agencies to establish OJT programs for
veterans in those agencies.
Sec. 4. Extension of reduced pension for certain Veterans covered by
Medicaid plans 5 for services furnished by nursing facilities
This section would extend the cap on non-service-connected
pension payments by amending 38 U.S.C. Sec. 5503(d)(7) by
striking ``November 30, 2016'' and inserting ``December 31,
2016''.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS
* * * * * * *
Sec. 5503. Hospitalized veterans and estates of incompetent
institutionalized veterans
(a) * * *
* * * * * * *
(d)(1) * * *
* * * * * * *
(7) This subsection expires on [November 30, 2016] December
31, 2016.
* * * * * * *