CONSTRUCTION.

SEC. 1506. CONSTRUCTION. Section 114(b) of title 23, United States Code, is amended— (1) in subsection (b)— (A) by striking paragraph (1) and inserting the following: “(1) Limitation on convict labor. Convict labor shall not be used in construction of Federal-aid highways or portions of Federal-aid highways unless the labor is performed by convicts who are on parole, supervised release, or probation.” ; and (B) in paragraph (3) by inserting “in existence during that period” after “located on a Federal-aid system”; and (2) by adding at the end the following: “(d) Veterans Employment. - “(1) In general. Subject to paragraph (2), a recipient of Federal financial assistance under this chapter shall, to the extent practicable, encourage contractors working on a highway project funded using the assistance to make a best faith effort in the hiring or referral of laborers on any project for the construction of a highway to veterans (as defined in section 2108 of title 5) who have the requisite skills and abilities to perform the construction work required under the contract. “(2) Administration. This subsection shall not— “(A) apply to projects subject to section 140(d); or “(B) be administered or enforced in any manner that would require an employer to give a preference to any veteran over any equally qualified applicant who is a member of any racial or ethnic minority, a female, or any equally qualified former employee.” .