Regulation

PUBLIC LAW 112–56—NOV. 21, 2011

Public Law 112–56
112th Congress

125 STAT. 711

An Act

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.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.

The table of contents for this Act is as follows:
Sec. 1. Table of Contents.
TITLE I—THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION
ACT
Sec. 101. Short title.
Sec. 102. Repeal of imposition of 3 percent withholding on certain payments made
to vendors by government entities.
TITLE II—VOW TO HIRE HEROES
Sec. 201. Short title.
Subtitle A—Retraining Veterans
Sec. 211. Veterans retraining assistance program.
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.
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.
Sec. 223. Transition Assistance Program contracting.
Sec. 224. Contracts with private entities to assist in carrying out Transition Assistance Program of Department of Defense.
Sec. 225. Improved access to apprenticeship programs for members of the Armed
Forces who are being separated from active duty or retired.
Sec. 226. Comptroller General review.
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.
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.
Sec. 233. Training and rehabilitation for veterans with service-connected disabilities who have exhausted rights to unemployment benefits under State
law.
Sec. 234. Collaborative veterans’ training, mentoring, and placement program.
Sec. 235. Appointment of honorably discharged members and other employment assistance.
Sec. 236. Department of Defense pilot program on work experience for members of
the Armed Forces on terminal leave.

Nov. 21, 2011
[H.R. 674]

125 STAT. 712

PUBLIC LAW 112–56—NOV. 21, 2011

TITLE II—VOW TO HIRE HEROES
SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘VOW to Hire Heroes Act of
2011’’.

PUBLIC LAW 112–56—NOV. 21, 2011

125 STAT. 713

Subtitle A—Retraining Veterans
SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM.

38 USC 4100
note.

(a) PROGRAM AUTHORIZED.—
(1) IN GENERAL.—Not later than July 1, 2012, the Secretary Deadline.
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 Time periods.
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;

125 STAT. 714

Time period.

Deadline.

Deadline.

PUBLIC LAW 112–56—NOV. 21, 2011

(E) is not in receipt of compensation for a serviceconnected 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 180day 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, in collaboration with the Secretary
of Labor, submit to the appropriate committees of Congress

PUBLIC LAW 112–56—NOV. 21, 2011

125 STAT. 715

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 Regulations.
Security may, under regulations such Secretaries shall prescribe, Waiver authority.
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

125 STAT. 716

10 USC 1142
note.
10 USC 1144
note.

Contracts.

PUBLIC LAW 112–56—NOV. 21, 2011

‘‘(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.

PUBLIC LAW 112–56—NOV. 21, 2011

125 STAT. 717

(b) PUBLICATION.—The secretaries described in subsection (a)(1) Public
shall ensure that the equivalences identified under subsection (a)(1) information.
Web posting.
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:
‘‘§ 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.

125 STAT. 718

PUBLIC LAW 112–56—NOV. 21, 2011
‘‘(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.’’.
38 USC 4113
note.

(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 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.’’.

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125 STAT. 719

SEC. 226. COMPTROLLER GENERAL REVIEW.

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

of this Act, the
the Transition
results of the
improving the