In the nature of a substitute.

SA 98. Mr. INOUYE (for himself and Mr. Baucus) submitted an amendment
intended to be proposed by him to the bill H.R. 1, making supplemental
appropriations for job preservation and creation, infrastructure
investment, energy efficiency and science, assistance to the
unemployed, and State and local fiscal stabilization, for fiscal year
ending September 30, 2009, and for other purpose; which was ordered to
lie on the table; as follows:

Strike out all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``American Recovery and
Reinvestment Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

DIVISION A--APPROPRIATIONS PROVISIONS

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED
AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED
AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION
TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY
INDEPENDENT ADVISORY PANEL
TITLE XVI--GENERAL PROVISIONS--THIS ACT

DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS

TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--HEALTH INSURANCE ASSISTANCE
TITLE IV--HEALTH INFORMATION TECHNOLOGY
TITLE V--STATE FISCAL RELIEF

SEC. 3. REFERENCES.

Except as expressly provided otherwise, any reference to
``this Act'' contained in any division of this Act shall be
treated as referring only to the provisions of that division.

DIVISION A--APPROPRIATIONS PROVISIONS

That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2009, and for other purposes, namely:

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES

DEPARTMENT OF AGRICULTURE

Office of the Secretary

(INCLUDING TRANSFERS OF FUNDS)

For an additional amount for the ``Office of the
Secretary'', $300,000,000, to remain available until
September 30, 2010: Provided, That the Secretary may transfer
these funds to agencies of the Department, other than the
Forest Service, for necessary replacement, modernization, or
upgrades of laboratories or other facilities to improve
workplace safety and mission-area efficiencies as deemed
appropriate by the Secretary: Provided further, that the
Secretary shall provide to the Committees on Appropriations
of the House and Senate a plan on the allocation of these
funds no later than 60 days after the date of enactment of
this Act.

OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Office of Inspector
General'', $5,000,000, to remain available until September
30, 2010, for oversight and audit of programs, grants, and
activities funded under this title.

Cooperative State Research, Education and Economic Service

RESEARCH AND EDUCATION ACTIVITIES

For an additional amount for competitive grants authorized
at 7 U.S.C. 450(i)(b), $100,000,000, to remain available
until September 30, 2010.

Farm Service Agency

SALARIES AND EXPENSES

For an additional amount for ``Farm Service Agency,
Salaries and Expenses'', $171,000,000, to remain available
until September 30, 2010.

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

For an additional amount for gross obligations for the
principal amount of direct and guaranteed farm ownership (7
U.S.C 1922 et seq.) and operating (7 U.S.C. 1941 et seq.)
loans, to be available from funds in the Agricultural Credit
Insurance Fund Program Account, as follows: farm ownership
loans, $400,000,000 of which $100,000,000 shall be for
unsubsidized guaranteed loans and $300,000,000 shall be for
direct loans; and operating loans, $250,000,000 of which
$50,000,000 shall be for unsubsidized guaranteed loans and
$200,000,000 shall be for direct loans.
For an additional amount for the cost of direct and
guaranteed loans, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of
1974, to remain available until September 30, 2010, as
follows: farm ownership loans, $17,530,000 of which $330,000
shall be for unsubsidized guaranteed loans and $17,200,000
shall be for direct loans; and operating loans, $24,900,000
of which $1,300,000 shall be for unsubsidized guaranteed
loans and $23,600,000 shall be for direct loans.
Funds appropriated by this Act to the Agricultural Credit
Insurance Fund Program Account for farm ownership, operating,
and emergency direct loans and unsubsidized guaranteed loans
may be transferred among these programs: Provided, That the
Committees on Appropriations of both Houses of Congress are
notified at least 15 days in advance of any transfer.

Natural Resources Conservation Service

WATERSHED AND FLOOD PREVENTION OPERATIONS

For an additional amount for ``Watershed and Flood
Prevention Operations'', $275,000,000, to remain available
until September 30, 2010.

WATERSHED REHABILITATION PROGRAM

For an additional amount for the ``Watershed Rehabilitation
Program'', $120,000,000, to remain available until September
30, 2010.

RURAL DEVELOPMENT SALARIES AND EXPENSES

For an additional amount for ``Rural Development, Salaries
and Expenses'', $110,000,000, to remain available until
September 30, 2010.

[[Page S1129]]

Rural Housing Service

RURAL HOUSING INSURANCE PROGRAM ACCOUNT

For an additional amount for gross obligations for the
principal amount of direct and guaranteed loans as authorized
by title V of the Housing Act of 1949, to be available from
funds in the Rural Housing Insurance Fund Program Account, as
follows: $1,000,000,000 for section 502 direct loans; and
$10,472,000,000 for section 502 unsubsidized guaranteed
loans.
For an additional amount for the cost of direct and
guaranteed loans, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of
1974, to remain available until September 30, 2010, as
follows: $67,000,000 for section 502 direct loans; and
$133,000,000 for section 502 unsubsidized guaranteed loans.

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

For an additional amount for the cost of direct loans, loan
guarantees, and grants for rural community facilities
programs as authorized by section 306 and described in
section 381E(d)(1) of the Consolidated Farm and Rural
Development Act, $127,000,000, to remain available until
September 30, 2010.

Rural Business--Cooperative Service

RURAL BUSINESS PROGRAM ACCOUNT

For an additional amount for the cost of guaranteed loans
and grants as authorized by sections 310B(a)(2)(A) and
310B(c) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932), $150,000,000, to remain available until
September 30, 2010.

BIOREFINERY ASSISTANCE

For the cost of loan guarantees and grants, as authorized
by section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103), $200,000,000, to remain available
until September 30, 2010.

RURAL ENERGY FOR AMERICA PROGRAM

For an additional amount for the cost of loan guarantees
and grants, as authorized by section 9007 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8107),
$50,000,000, to remain available until September 30, 2010:
Provided, That these funds may be used by tribes, local units
of government, and schools in rural areas, as defined in
section 343(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)).

Rural Utilities Service

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

For an additional amount for the cost of direct loans, loan
guarantees, and grants for the rural water, waste water,
waste disposal, and solid waste management programs
authorized by sections 306, 306A, 306C, 306D, and 310B and
described in sections 306C(a)(2), 306D, and 381E(d)(2) of the
Consolidated Farm and Rural Development Act, $1,375,000,000,
to remain available until September 30, 2010.

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM ACCOUNT

For an additional amount for direct loans and grants for
distance learning and telemedicine services in rural areas,
as authorized by 7 U.S.C. 950aaa, et seq., $200,000,000, to
remain available until September 30, 2010.

Food and Nutrition Service

CHILD NUTRITION PROGRAMS

For additional amount for the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et. seq.), except section
21, and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et.
seq.), except sections 17 and 21, $198,000,000, to remain
available until September 30, 2010, to carry out a grant
program for National School Lunch Program equipment
assistance: Provided, That such funds shall be provided to
States administering a school lunch program through a formula
based on the ratio that the total number of lunches served in
the Program during the second preceding fiscal year bears to
the total number of such lunches served in all States in such
second preceding fiscal year: Provided further, That of such
funds, the Secretary may approve the reserve by States of up
to $20,000,000 for necessary enhancements to the State
Distributing Agency's commodity ordering and management
system to achieve compatibility with the Department's web-
based supply chain management system: Provided further, That
of the funds remaining, the State shall provide competitive
grants to school food authorities based upon the need for
equipment assistance in participating schools with priority
given to schools in which not less than 50 percent of the
students are eligible for free or reduced price meals under
the Richard B. Russell National School Lunch Act and priority
given to schools purchasing equipment for the purpose of
offering more healthful foods and meals, in accordance with
standards established by the Secretary.

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN
(WIC)

For an additional amount for the special supplemental
nutrition program as authorized by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786), to remain available
until September 30, 2010, $500,000,000, of which $380,000,000
shall be placed in reserve to be allocated as the Secretary
deems necessary, notwithstanding section 17(i) of such Act,
to support participation should cost or participation exceed
budget estimates, and of which $120,000,000 shall be for the
purposes specified in section 17(h)(10)(B)(ii): Provided,
That up to one percent of the funding provided for the
purposes specified in section 17(h)(10)(B)(ii) may be
reserved by the Secretary for Federal administrative
activities in support of those purposes.

COMMODITY ASSISTANCE PROGRAM

For an additional amount for the ``Commodity Assistance
Program'', to remain available until September 30, 2010,
$150,000,000, which the Secretary shall use to purchase a
variety of commodities as authorized by the Commodity Credit
Corporation or under section 32 of the Act entitled ``An Act
to amend the Agricultural Adjustment Act, and for other
purposes'', approved August 24, 1935 (7 U.S.C. 612c):
Provided, That the Secretary shall distribute the commodities
to States for distribution in accordance with section 214 of
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7
U.S.C. 612c note): Provided further, That of the funds made
available, the Secretary may use up to $50,000,000 for costs
associated with the distribution of commodities.

GENERAL PROVISIONS--THIS TITLE

Sec. 101. Funds appropriated by this Act and made available
to the United States Department of Agriculture for broadband
direct loans and loan guarantees, as authorized under title
VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb)
and for grants, shall be available for broadband
infrastructure in any area of the United States
notwithstanding title VI of the Rural Electrification Act of
1936: Provided, That at least 75 percent of the area served
by the projects receiving funds from such grants, loans, or
loan guarantees is in a rural area without sufficient access
to high speed broadband service to facilitate rural economic
development, as determined by the Secretary: Provided
further, That priority for awarding funds made available
under this paragraph shall be given to projects that provide
service to the highest proportion of rural residents that do
not have sufficient access to broadband service: Provided
further, That priority for awarding such funds shall be given
to project applications that demonstrate that, if the
application is approved, all project elements will be fully
funded: Provided further, That priority for awarding such
funds shall be given to activities that can commence promptly
following approval: Provided further, That the Department
shall submit a report on planned spending and actual
obligations describing the use of these funds not later than
90 days after the date of enactment of this Act, and
quarterly thereafter until all funds are obligated, to the
Committees on Appropriations of the House of Representatives
and the Senate.
Sec. 102. Nutrition For Economic Recovery. (a) Maximum
Benefit Increases.--
(1) Economic recovery 1-month beginning stimulus payment.--
For the first month that begins not less than 25 days after
the date of enactment of this Act, the Secretary of
Agriculture (referred to in this section as the
``Secretary'') shall increase the cost of the thrifty food
plan for purposes of section 8(a) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2017(a)) by 85 percent.
(2) Remainder of fiscal year 2009.--Beginning with the
second month that begins not less than 25 days after the date
of enactment of this Act, and for each subsequent month
through the month ending September 30, 2009, the Secretary
shall increase the cost of the thrifty food plan for purposes
of section 8(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2017(a)) by 12 percent.
(3) Subsequent increase for fiscal year 2010.--Beginning on
October 1, 2009, and for each subsequent month through the
month ending September 30, 2010, the Secretary shall increase
the cost of the thrifty food plan for purposes of section
8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a))
by an amount equal to 12 percent, less the percentage by
which the Secretary determines the thrifty food plan would
otherwise be adjusted on October 1, 2009, as required under
section 3(u) of that Act (7 U.S.C. 2012(u)), if the
percentage is less than 12 percent.
(4) Subsequent increase for fiscal year 2011.--Beginning on
October 1, 2010, and for each subsequent month through the
month ending September 30, 2011, the Secretary shall increase
the cost of the thrifty food plan for purposes of section
8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a))
by an amount equal to 12 percent, less the sum of the
percentages by which the Secretary determines the thrifty
food plan would otherwise be adjusted on October 1, 2009 and
October 1, 2010, as required under section 3(u) of that Act
(7 U.S.C. 2012(u)), if the sum of such percentages is less
than 12 percent.
(5) Termination of effectiveness.--Effective beginning
October 1, 2011, the authority provided by this subsection
terminates and has no effect.
(b) Administration.--In carrying out this section, the
Secretary shall--
(1) consider the benefit increases described in subsection
(a) to be a mass change;
(2) require a simple process for States to notify
households of the changes in benefits;
(3) consider section 16(c)(3)(A) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors
in the implementation of this section, without regard to the
120-day limit described in section 16(c)(3)(A) of that Act;
(4) disregard the additional amount of benefits that a
household receives as a result of this section in determining
the amount of overissuances under section 13 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2022) and the hours of
participation in a program

[[Page S1130]]

under section 6(d), 20, or 26 of that Act (7 U.S.C. 2015(d),
2029, 2035); and
(5) set the tolerance level for excluding small errors for
the purposes of section 16(c) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025(c)) at $50 for the period that the
benefit increase under subsection (a) is in effect.
(c) Administrative Expenses.--
(1) In general.--For the costs of State administrative
expenses associated with carrying out this section and
administering the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.) (referred to in this section as the
``supplemental nutrition assistance program'') during a
period of rising program caseloads, and for the expenses of
the Secretary under paragraph (6), the Secretary shall make
available $150,000,000 for each of fiscal years 2009 and
2010, to remain available through September 30, 2010.
(2) Timing for fiscal year 2009.--Not later than 60 days
after the date of enactment of this Act, the Secretary shall
make available to States amounts for fiscal year 2009 under
paragraph (1).
(3) Allocation of funds.--Except as provided in paragraph
(6), funds described in paragraph (1) shall be made available
to States that meet the requirements of paragraph (5) as
grants to State agencies for each fiscal year as follows:
(A) 75 percent of the amounts available for each fiscal
year shall be allocated to States based on the share of each
State of households that participate in the supplemental
nutrition assistance program as reported to the Department of
Agriculture for the most recent 12-month period for which
data are available, adjusted by the Secretary (in the
discretion of the Secretary) for participation in disaster
programs under section 5(h) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(h)); and
(B) 25 percent of the amounts available for each fiscal
year shall be allocated to States based on the increase in
the number of households that participate in the supplemental
nutrition assistance program as reported to the Department of
Agriculture over the most recent 12-month period for which
data are available, adjusted by the Secretary (in the
discretion of the Secretary) for participation in disaster
programs under section 5(h) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(h)).
(4) Redistribution.--The Secretary shall determine an
appropriate procedure for redistribution of amounts allocated
to States that would otherwise be provided allocations under
paragraph (3) for a fiscal year but that do not meet the
requirements of paragraph (5).
(5) Maintenance of effort.--
(A) Definition of specified state administrative costs.--In
this paragraph:
(i) In general.--The term ``specified State administrative
costs'' includes all State administrative costs under the
supplemental nutrition assistance program.
(ii) Exclusions.--The term ``specified State administrative
costs'' does not include--

(I) the costs of employment and training programs under
section 6(d), 20, or 26 of the Food and Nutrition Act of 2008
(7 U.S.C. 2015(d), 2029, 2035);
(II) the costs of nutrition education under section 11(f)
of that Act (7 U.S.C. 2020(f)); and
(III) any other costs the Secretary determines should be
excluded.

(B) Requirement.--The Secretary shall make funds under this
subsection available only to States that, as determined by
the Secretary, maintain State expenditures on specified State
administrative costs.
(6) Monitoring and evaluation.--Of the amounts made
available under paragraph (1), the Secretary may retain up to
$5,000,000 for the costs incurred by the Secretary in
monitoring the integrity and evaluating the effects of the
payments made under this section.
(d) Food Distribution Program on Indian Reservations.--For
the costs of administrative expenses associated with the food
distribution program on Indian reservations established under
section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2013(b)), the Secretary shall make available $5,000,000, to
remain available until September 30, 2010.
(e) Consolidated Block Grants for Puerto Rico and American
Samoa.--
(1) Fiscal year 2009.--
(A) In general.--For fiscal year 2009, the Secretary shall
increase by 12 percent the amount available for nutrition
assistance for eligible households under the consolidated
block grants for the Commonwealth of Puerto Rico and American
Samoa under section 19 of the Food and Nutrition Act of 2008
(7 U.S.C. 2028).
(B) Availability of funds.--Funds made available under
subparagraph (A) shall remain available through September 30,
2010.
(2) Fiscal year 2010.--For fiscal year 2010, the Secretary
shall increase the amount available for nutrition assistance
for eligible households under the consolidated block grants
for the Commonwealth of Puerto Rico and American Samoa under
section 19 of the Food and Nutrition Act of 2008 (7 U.S.C.
2028) by 12 percent, less the percentage by which the
Secretary determines the consolidated block grants would
otherwise be adjusted on October 1, 2009, as required by
section 19(a)(2)(A)(ii) of that Act (7 U.S.C.
2028(a)(2)(A)(ii)), if the percentage is less than 12
percent.
(3) Fiscal year 2011.--For fiscal year 2011, the Secretary
shall increase the amount available for nutrition assistance
for eligible households under the consolidated block grants
for the Commonwealth of Puerto Rico and American Samoa under
section 19 of the Food and Nutrition Act of 2008 (7 U.S.C.
2028) by 12 percent, less the sum of the percentages by which
the Secretary determines the consolidated block grants would
otherwise be adjusted on October 1, 2009, and October 1,
2010, as required by section 19(a)(2)(A)(ii) of that Act (7
U.S.C. 2028(a)(2)(A)(ii)), if the sum of the percentages is
less than 12 percent.
(f) Treatment of Jobless Workers.--
(1) Remainder of fiscal year 2009 through fiscal year
2011.--Beginning with the first month that begins not less
than 25 days after the date of enactment of this Act and for
each subsequent month through September 30, 2011, eligibility
for supplemental nutrition assistance program benefits shall
not be limited under section 6(o)(2) of the Food and
Nutrition Act of 2008 unless an individual does not comply
with the requirements of a program offered by the State
agency that meets the standards of subparagraphs (B) or (C)
of that paragraph.
(2) Fiscal year 2012 and thereafter.--Beginning on October
1, 2011, for the purposes of section 6(o) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency
shall disregard any period during which an individual
received benefits under the supplemental nutrition assistance
program prior to October 1, 2011.
(g) Funding.--There are appropriated to the Secretary out
of funds of the Treasury not otherwise appropriated such sums
as are necessary to carry out this section.
Sec. 103. Agricultural Disaster Assistance Transition. (a)
Federal Crop Insurance Act.--Section 531(g) of the Federal
Crop Insurance Act (7 U.S.C. 1531(g)) is amended by adding at
the end the following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm described
in subparagraph (A) of paragraph (4) that failed to timely
pay the appropriate fee described in that subparagraph shall
be eligible for assistance under this section in accordance
with subparagraph (B) if the eligible producers on the farm--
``(i) pay the appropriate fee described in paragraph (4)(A)
not later than 90 days after the date of enactment of this
paragraph; and
``(ii)(I) in the case of each insurable commodity of the
eligible producers on the farm, excluding grazing land, agree
to obtain a policy or plan of insurance under subtitle A
(excluding a crop insurance pilot program under that
subtitle) for the next insurance year for which crop
insurance is available to the eligible producers on the farm
at a level of coverage equal to 70 percent or more of the
recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent
coverage; and
``(II) in the case of each noninsurable commodity of the
eligible producers on the farm, agree to file the required
paperwork, and pay the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program for the 2009 crop year.
``(B) Amount of assistance.--Eligible producers on a farm
that meet the requirements of subparagraph (A) shall be
eligible to receive assistance under this section as if the
eligible producers on the farm--
``(i) in the case of each insurable commodity of the
eligible producers on the farm, had obtained a policy or plan
of insurance for the 2008 crop year at a level of coverage
not to exceed 70 percent or more of the recorded or appraised
average yield indemnified at 100 percent of the expected
market price, or an equivalent coverage; and
``(ii) in the case of each noninsurable commodity of the
eligible producers on the farm, had filed the required
paperwork, and paid the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program for the 2008 crop year, except that in determining
yield under that program, the Secretary shall use a
percentage that is 70 percent.
``(C) Equitable relief.--Except as provided in subparagraph
(D), eligible producers on a farm that met the requirements
of paragraph (1) before the deadline described in paragraph
(4)(A) and received, or are eligible to receive, a disaster
assistance payment under this section for a production loss
during the 2008 crop year shall be eligible to receive an
additional amount equal to the greater of--
``(i) the amount that would have been calculated under
subparagraph (B) if the eligible producers on the farm had
paid the appropriate fee under that subparagraph; or
``(ii) the amount that would have been calculated under
subparagraph (A) of subsection (b)(3) if--

``(I) in clause (i) of that subparagraph, `120 percent' is
substituted for `115 percent'; and
``(II) in clause (ii) of that subparagraph, `125' is
substituted for `120 percent'.

``(D) Limitation.--For amounts made available under this
paragraph, the Secretary may make such adjustments as are
necessary to ensure that no producer receives a payment under
this paragraph for an amount in excess of the assistance
received by a similarly situated producer that had purchased
the same or higher level of crop insurance prior to the date
of enactment of this paragraph.

[[Page S1131]]

``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary considers
appropriate to provide equitable treatment for eligible
producers on a farm that suffered production losses in the
2008 crop year that result in multiyear production losses, as
determined by the Secretary.
``(F) Lack of access.--Notwithstanding any other provision
of this section, the Secretary may provide assistance under
this section to eligible producers on a farm that--
``(i) suffered a production loss due to a natural cause
during the 2008 crop year; and
``(ii) as determined by the Secretary--

``(I)(aa) except as provided in item (bb), lack access to a
policy or plan of insurance under subtitle A; or
``(bb) do not qualify for a written agreement because 1 or
more farming practices, which the Secretary has determined
are good farming practices, of the eligible producers on the
farm differ significantly from the farming practices used by
producers of the same crop in other regions of the United
States; and
``(II) are not eligible for the noninsured crop disaster
assistance program established by section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333).''.

(b) Trade Act of 1974.--Section 901(g) of the Trade Act of
1974 (19 U.S.C. 2497(g)) is amended by adding at the end the
following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm described
in subparagraph (A) of paragraph (4) that failed to timely
pay the appropriate fee described in that subparagraph shall
be eligible for assistance under this section in accordance
with subparagraph (B) if the eligible producers on the farm--
``(i) pay the appropriate fee described in paragraph (4)(A)
not later than 90 days after the date of enactment of this
paragraph; and
``(ii)(I) in the case of each insurable commodity of the
eligible producers on the farm, excluding grazing land, agree
to obtain a policy or plan of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop
insurance pilot program under that Act) for the next
insurance year for which crop insurance is available to the
eligible producers on the farm at a level of coverage equal
to 70 percent or more of the recorded or appraised average
yield indemnified at 100 percent of the expected market
price, or an equivalent coverage; and
``(II) in the case of each noninsurable commodity of the
eligible producers on the farm, agree to file the required
paperwork, and pay the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program for the 2009 crop year.
``(B) Amount of assistance.--Eligible producers on a farm
that meet the requirements of subparagraph (A) shall be
eligible to receive assistance under this section as if the
eligible producers on the farm--
``(i) in the case of each insurable commodity of the
eligible producers on the farm, had obtained a policy or plan
of insurance for the 2008 crop year at a level of coverage
not to exceed 70 percent or more of the recorded or appraised
average yield indemnified at 100 percent of the expected
market price, or an equivalent coverage; and
``(ii) in the case of each noninsurable commodity of the
eligible producers on the farm, had filed the required
paperwork, and paid the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program for the 2008 crop year, except that in determining
yield under that program, the Secretary shall use a
percentage that is 70 percent.
``(C) Equitable relief.--Except as provided in subparagraph
(D), eligible producers on a farm that met the requirements
of paragraph (1) before the deadline described in paragraph
(4)(A) and received, or are eligible to receive, a disaster
assistance payment under this section for a production loss
during the 2008 crop year shall be eligible to receive an
additional amount equal to the greater of--
``(i) the amount that would have been calculated under
subparagraph (B) if the eligible producers on the farm had
paid the appropriate fee under that subparagraph; or
``(ii) the amount that would have been calculated under
subparagraph (A) of subsection (b)(3) if--

``(I) in clause (i) of that subparagraph, `120 percent' is
substituted for `115 percent'; and
``(II) in clause (ii) of that subparagraph, `125' is
substituted for `120 percent'.

``(D) Limitation.--For amounts made available under this
paragraph, the Secretary may make such adjustments as are
necessary to ensure that no producer receives a payment under
this paragraph for an amount in excess of the assistance
received by a similarly situated producer that had purchased
the same or higher level of crop insurance prior to the date
of enactment of this paragraph.
``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary considers
appropriate to provide equitable treatment for eligible
producers on a farm that suffered production losses in the
2008 crop year that result in multiyear production losses, as
determined by the Secretary.
``(F) Lack of access.--Notwithstanding any other provision
of this section, the Secretary may provide assistance under
this section to eligible producers on a farm that--
``(i) suffered a production loss due to a natural cause
during the 2008 crop year; and
``(ii) as determined by the Secretary--

``(I)(aa) except as provided in item (bb), lack access to a
policy or plan of insurance under subtitle A; or
``(bb) do not qualify for a written agreement because 1 or
more farming practices, which the Secretary has determined
are good farming practices, of the eligible producers on the
farm differ significantly from the farming practices used by
producers of the same crop in other regions of the United
States; and
``(II) are not eligible for the noninsured crop disaster
assistance program established by section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333).''.

(c) Emergency Loans.--
(1) In general.--For the principal amount of direct
emergency loans under section 321 of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961), $200,000,000.
(2) Direct emergency loans.--For the cost of direct
emergency loans, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of
1974 (2 U.S.C. 661a), $28,440,000, to remain available until
September 30, 2010.
(d) 2008 Aquaculture Assistance.--
(1) Definitions.--In this subsection:
(A) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2008 calendar year, as determined by the
Secretary--
(i) produced an aquaculture species for which feed costs
represented a substantial percentage of the input costs of
the aquaculture operation; and
(ii) experienced a substantial price increase of feed costs
above the previous 5-year average.
(B) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(2) Grant program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$100,000,000, to remain available until September 30, 2010,
to carry out a program of grants to States to assist eligible
aquaculture producers for losses associated with high feed
input costs during the 2008 calendar year.
(B) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible aquaculture
producers, including such terms as determined by the
Secretary to be necessary for the equitable treatment of
eligible aquaculture producers.
(C) Provision of grants.--
(i) In general.--The Secretary shall make grants to States
under this subsection on a pro rata basis based on the amount
of aquaculture feed used in each State during the 2007
calendar year, as determined by the Secretary.
(ii) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(D) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(i) use grant funds to assist eligible aquaculture
producers;
(ii) provide assistance to eligible aquaculture producers
not later than 60 days after the date on which the State
receives grant funds; and
(iii) not later than 30 days after the date on which the
State provides assistance to eligible aquaculture producers,
submit to the Secretary a report that describes--

(I) the manner in which the State provided assistance;
(II) the amounts of assistance provided per species of
aquaculture; and
(III) the process by which the State determined the levels
of assistance to eligible aquaculture producers.

(3) Reduction in payments.--An eligible aquaculture
producer that receives assistance under this subsection shall
not be eligible to receive any other assistance under the
supplemental agricultural disaster assistance program
established under section 531 of the Federal Crop Insurance
Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974
(19 U.S.C. 2497) for any losses in 2008 relating to the same
species of aquaculture.
(4) Report to congress.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that--
(A) describes in detail the manner in which this subsection
has been carried out; and
(B) includes the information reported to the Secretary
under paragraph (2)(D)(iii).
Sec. 104. (a) Hereafter, in this section, the term
``nonambulatory disabled cattle'' means cattle, other than
cattle that are less than 5 months old or weigh less than 500
pounds, subject to inspection under section 3(b) of the
Federal Meat Inspection Act (21 U.S.C. 603(b)) that cannot
rise from a recumbent position or walk, including cattle with
a broken appendage, severed tendon or ligament, nerve
paralysis, fractured vertebral column, or a metabolic
condition.
(b) Hereafter, none of the funds made available under this
or any other Act may be used to pay the salaries or expenses
of any personnel of the Food Safety and Inspection Service to
pass through inspection any nonambulatory disabled cattle for
use as human food, regardless of the reason for the
nonambulatory status of the cattle or the time at which the
cattle became nonambulatory.

[[Page S1132]]

Sec. 105. State and Local Governments. Section
1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C.
1308(f)(6)(A)) is amended by inserting ``(other than the
conservation reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of this Act)'' before
the period at the end.
Sec. 106. Except for title I of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246), Commodity Credit
Corporation funds provided in that Act shall be available for
administrative expenses, including technical assistance,
without regard to the limitation in 15 U.S.C. 714i.

TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

OPERATIONS AND ADMINISTRATION

For an additional amount for ``Operations and
Administration'', $20,000,000, to remain available until
September 30, 2010.

Economic Development Administration

ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For an additional amount for ``Economic Development
Assistance Programs'', $150,000,000, to remain available
until September 30, 2010: Provided, That $50,000,000 shall be
for economic adjustment assistance as authorized by section
209 of the Public Works and Economic Development Act of 1965,
as amended (42 U.S.C. 3149): Provided further, That in
allocating the funds provided in the previous proviso, the
Secretary of Commerce shall give priority consideration to
areas of the Nation that have experienced sudden and severe
economic dislocation and job loss due to corporate
restructuring.

Bureau of the Census

PERIODIC CENSUSES AND PROGRAMS

For an additional amount for ``Periodic Censuses and
Programs'', $1,000,000,000, to remain available until
September 30, 2010.

National Telecommunications and Information Administration

BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

For an amount for ``Broadband Technology Opportunities
Program'', $9,000,000,000, to remain available until
September 30, 2010: Provided, That of the funds provided
under this heading, $8,650,000,000 shall be expended pursuant
to section 201 of this Act, of which: not less than
$200,000,000 shall be available for competitive grants for
expanding public computer center capacity, including at
community colleges and public libraries; not less than
$250,000,000 shall be available for competitive grants for
innovative programs to encourage sustainable adoption of
broadband service; and $10,000,000 shall be transferred to
``Department of Commerce, Office of Inspector General'' for
the purposes of audits and oversight of funds provided under
this heading and such funds shall remain available until
expended: Provided further, That 50 percent of the funds
provided in the previous proviso shall be used to support
projects in rural communities, which in part may be
transferred to the Department of Agriculture for
administration through the Rural Utilities Service if deemed
necessary and appropriate by the Secretary of Commerce, in
consultation with the Secretary of Agriculture, and only if
the Committees on Appropriations of the House and the Senate
are notified not less than 15 days in advance of the transfer
of such funds: Provided further, That of the funds provided
under this heading, up to $350,000,000 may be expended
pursuant to Public Law 110-385 (47 U.S.C. 1301 note) and for
the purposes of developing and maintaining a broadband
inventory map pursuant to section 201 of this Act: Provided
further, That of the funds provided under this heading,
amounts deemed necessary and appropriate by the Secretary of
Commerce, in consultation with the Federal Communications
Commission (FCC), may be transferred to the FCC for the
purposes of developing a national broadband plan or for
carrying out any other FCC responsibilities pursuant to
section 201 of this Act, and only if the Committees on
Appropriations of the House and the Senate are notified not
less than 15 days in advance of the transfer of such funds:
Provided further, That not more than 3 percent of funds
provided under this heading may be used for administrative
costs, and this limitation shall apply to funds which may be
transferred to the Department of Agriculture and the FCC.

DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

For an amount for ``Digital-to-Analog Converter Box
Program'', $650,000,000, for additional coupons and related
activities under the program implemented under section 3005
of the Digital Television Transition and Public Safety Act of
2005, to remain available until September 30, 2010: Provided,
That of the amounts provided under this heading, $90,000,000
may be for education and outreach, including grants to
organizations for programs to educate vulnerable populations,
including senior citizens, minority communities, people with
disabilities, low-income individuals, and people living in
rural areas, about the transition and to provide one-on-one
assistance to vulnerable populations, including help with
converter box installation: Provided further, That the
amounts provided in the previous proviso may be transferred
to the Federal Communications Commission (Commission) if
deemed necessary and appropriate by the Secretary of Commerce
in consultation with the Commission, and only if the
Committees on Appropriations of the House and the Senate are
notified not less than 5 days in advance of transfer of such
funds: Provided further, That $2,000,000 of funds provided
under this heading shall be transferred to ``Department of
Commerce, Office of Inspector General'' for audits and
oversight of funds provided under this heading.

National Institute of Standards and Technology

SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

For an additional amount for ``Scientific and Technical
Research and Services'', $218,000,000, to remain available
until September 30, 2010.

CONSTRUCTION OF RESEARCH FACILITIES

For an additional amount for ``Construction of Research
Facilities'', $357,000,000, to remain available until
September 30, 2010.

National Oceanic and Atmospheric Administration

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ``Operations, Research, and
Facilities'', $427,000,000, to remain available until
September 30, 2010.

PROCUREMENT, ACQUISITION AND CONSTRUCTION

For an additional amount for ``Procurement, Acquisition and
Construction'', $795,000,000, to remain available until
September 30, 2010.

Departmental Management

For an additional amount for ``Departmental Management'',
$34,000,000, to remain available until September 30, 2010.

Office of Inspector General

For an additional amount for ``Office of Inspector
General'', $6,000,000, to remain available until September
30, 2010.

DEPARTMENT OF JUSTICE

General Administration

TACTICAL LAW ENFORCEMENT WIRELESS COMMUNICATIONS

For an additional amount for ``Tactical Law Enforcement
Wireless Communications'', $200,000,000 for the costs of
developing and implementing a nationwide Integrated Wireless
network supporting Federal law enforcement, to remain
available until September 30, 2010.

Detention Trustee

For an additional amount for ``Detention Trustee'',
$150,000,000, to remain available until September 30, 2010.

Office of Inspector General

For an additional amount for ``Office of Inspector
General'', $2,000,000, to remain available until September
30, 2010.

United States Marshals Service

SALARIES AND EXPENSES

For an additional amount for ``Salaries and Expenses'',
$50,000,000, to remain available until September 30, 2010.

CONSTRUCTION

For an additional amount for ``Construction'',
$125,000,000, to remain available until September 30, 2010.

Federal Bureau of Investigation

SALARIES AND EXPENSES

For an additional amount for ``Salaries and Expenses'',
$75,000,000, to remain available until September 30, 2010.

CONSTRUCTION

For an additional amount for ``Construction'',
$400,000,000, to remain available until September 30, 2010.

Federal Prison System

BUILDINGS AND FACILITIES

For an additional amount for ``Federal Prison System,
Buildings and Facilities'', $1,000,000,000, to remain
available until September 30, 2010.

State and Local Law Enforcement Activities

Office on Violence Against Women

VIOLENCE AGAINST WOMEN PREVENTION AND PROSECUTION PROGRAMS

For an additional amount for ``Violence Against Women
Prevention and Prosecution Programs'', $300,000,000 for
grants to combat violence against women, as authorized by
part T of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3711 et seq.): Provided, That, $50,000,000
shall be transitional housing assistance grants for victims
of domestic violence, stalking or sexual assault as
authorized by section 40299 of the Violent Crime Control and
Law Enforcement Act of 1994 (Public Law 103-322).

Office of Justice Programs

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an additional amount for ``State and Local Law
Enforcement Assistance'', $1,500,000,000 for the Edward Byrne
Memorial Justice Assistance Grant program as authorized by
subpart 1 of part E of title I of the Omnibus Crime Control
and Safe Street Act of 1968 (``1968 Act''), (except that
section 1001(c), and the special rules for Puerto Rico under
section 505(g), of the 1968 Act, shall not apply for purposes
of this Act), to remain available until September 30, 2010.
For an additional amount for ``State and Local Law
Enforcement Assistance'', $440,000,000 for competitive grants
to improve the functioning of the criminal justice system, to
assist victims of crime (other than compensation), and youth
mentoring grants, to remain available until September 30,
2010.

[[Page S1133]]

For an additional amount for ``State and Local Law
Enforcement Assistance'', $100,000,000, to remain available
until September 30, 2010, for competitive grants to provide
assistance and equipment to local law enforcement along the
Southern border and in High-Intensity Drug Trafficking Areas
to combat criminal narcotics activity stemming from the
Southern border, of which $10,000,000 shall be transferred to
``Bureau of Alcohol, Tobacco, Firearms and Explosives,
Salaries and Expenses'' for the ATF Project Gunrunner.
For an additional amount for ``State and Local Law
Enforcement Assistance'', $300,000,000, to remain available
until September 30, 2010, for assistance to Indian tribes,
notwithstanding Public Law 108-199, division B, title I,
section 112(a)(1) (118 Stat. 62), of which--
(1) $250,000,000 shall be available for grants under
section 20109 of subtitle A of title II of the Violent Crime
Control and Law Enforcement Act of 1994 (Public Law 103-322);
(2) $25,000,000 shall be available for the Tribal Courts
Initiative; and
(3) $25,000,000 shall be available for tribal alcohol and
substance abuse drug reduction assistance grants.
For an additional amount for ``State and Local Law
Enforcement Assistance'', $100,000,000, to remain available
until September 30, 2010, to be distributed by the Office for
Victims of Crime in accordance with section 1402(d)(4) of the
Victims of Crime Act of 1984 (Public Law 98-473).
For an additional amount for ``State and Local Law
Enforcement Assistance'', $150,000,000, to remain available
until September 30, 2010, for assistance to law enforcement
in rural areas, to prevent and combat crime, especially drug-
related crime.
For an additional amount for ``State and Local Law
Enforcement Assistance'', $50,000,000, to remain available
until September 30, 2010, for Internet Crimes Against
Children (ICAC) initiatives.

Community Oriented Policing Services

For an additional amount for ``Community Oriented Policing
Services'', for grants under section 1701 of title I of the
1968 Omnibus Crime Control and Safe Streets Act (42 U.S.C.
3796dd) for hiring and rehiring of additional career law
enforcement officers under part Q of such title, and civilian
public safety personnel, notwithstanding subsection (i) of
such section and notwithstanding 42 U.S.C. 3796dd-3(c),
$1,000,000,000, to remain available until September 30, 2010.

Salaries and Expenses

For an additional amount, not elsewhere specified in this
title, for management and administration and oversight of
programs within the Office on Violence Against Women, the
Office of Justice Programs, and the Community Oriented
Policing Services Office, $10,000,000, to remain available
until September 30, 2010.

SCIENCE

National Aeronautics and Space Administration

SCIENCE

For an additional amount for ``Science'', $500,000,000, to
remain available until September 30, 2010.

AERONAUTICS

For an additional amount for ``Aeronautics'', $250,000,000,
to remain available until September 30, 2010.

EXPLORATION

For an additional amount for ``Exploration'', $500,000,000,
to remain available until September 30, 2010.

CROSS AGENCY SUPPORT

For an additional amount for ``Cross Agency Support'',
$250,000,000, to remain available until September 30, 2010.

OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Office of Inspector
General'', $2,000,000, to remain available until September
30, 2010.

National Science Foundation

RESEARCH AND RELATED ACTIVITIES

For an additional amount for ``Research and Related
Activities'', $1,200,000,000, to remain available until
September 30, 2010.

MAJOR RESEARCH EQUIPMENT AND FACILITIES CONSTRUCTION

For an additional amount for ``Major Research Equipment and
Facilities Construction'', $150,000,000, to remain available
until September 30, 2010.

EDUCATION AND HUMAN RESOURCES

For an additional amount for ``Education and Human
Resources'', $50,000,000, to remain available until September
30, 2010.

OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Office of Inspector
General'', $2,000,000, to remain available until September
30, 2010.

GENERAL PROVISIONS--THIS TITLE

Sec. 201. The Assistant Secretary of Commerce for
Communications and Information (Assistant Secretary), in
consultation with the Federal Communications Commission
(Commission) (and, with respect to rural areas, the Secretary
of Agriculture), shall establish a national broadband service
development and expansion program in conjunction with the
technology opportunities program, which shall be referred to
the Broadband Technology Opportunities Program. The Assistant
Secretary shall ensure that the program complements and
enhances and does not conflict with other Federal broadband
initiatives and programs.
(1) The purposes of the program are to--
(A) provide access to broadband service to citizens
residing in unserved areas of the United States;
(B) provide improved access to broadband service to
citizens residing in underserved areas of the United States;
(C) provide broadband education, awareness, training,
access, equipment, and support to--
(i) schools, libraries, medical and healthcare providers,
community colleges and other institutions of higher
education, and other community support organizations and
entities to facilitate greater use of broadband service by or
through these organizations;
(ii) organizations and agencies that provide outreach,
access, equipment, and support services to facilitate greater
use of broadband service by low-income, unemployed, aged, and
otherwise vulnerable populations; and
(iii) job-creating strategic facilities located within a
State-designated economic zone, Economic Development District
designated by the Department of Commerce, Renewal Community
or Empowerment Zone designated by the Department of Housing
and Urban Development, or Enterprise Community designated by
the Department of Agriculture.
(D) improve access to, and use of, broadband service by
public safety agencies; and
(E) stimulate the demand for broadband, economic growth,
and job creation.
(2) The Assistant Secretary may consult with the chief
executive officer of any State with respect to--
(A) the identification of areas described in subsection
(1)(A) or (B) located in that State; and
(B) the allocation of grant funds within that State for
projects in or affecting the State.
(3) The Assistant Secretary shall--
(A) establish and implement the grant program as
expeditiously as practicable;
(B) ensure that all awards are made before the end of
fiscal year 2010;
(C) seek such assurances as may be necessary or appropriate
from grantees under the program that they will substantially
complete projects supported by the program in accordance with
project timelines, not to exceed 2 years following an award;
and
(D) report on the status of the program to the Committees
on Appropriations of the House and the Senate, the Committee
on Energy and Commerce of the House, and the Committee on
Commerce, Science, and Transportation of the Senate, every 90
days.
(4) To be eligible for a grant under the program an
applicant shall--
(A) be a State or political subdivision thereof, a
nonprofit foundation, corporation, institution or
association, Indian tribe, Native Hawaiian organization, or
other non-governmental entity in partnership with a State or
political subdivision thereof, Indian tribe, or Native
Hawaiian organization if the Assistant Secretary determines
the partnership consistent with the purposes this section;
(B) submit an application, at such time, in such form, and
containing such information as the Assistant Secretary may
require;
(C) provide a detailed explanation of how any amount
received under the program will be used to carry out the
purposes of this section in an efficient and expeditious
manner, including a demonstration that the project would not
have been implemented during the grant period without Federal
grant assistance;
(D) demonstrate, to the satisfaction of the Assistant
Secretary, that it is capable of carrying out the project or
function to which the application relates in a competent
manner in compliance with all applicable Federal, State, and
local laws;
(E) demonstrate, to the satisfaction of the Assistant
Secretary, that it will appropriate (if the applicant is a
State or local government agency) or otherwise
unconditionally obligate, from non-Federal sources, funds
required to meet the requirements of paragraph (5);
(F) disclose to the Assistant Secretary the source and
amount of other Federal or State funding sources from which
the applicant receives, or has applied for, funding for
activities or projects to which the application relates; and
(G) provide such assurances and procedures as the Assistant
Secretary may require to ensure that grant funds are used and
accounted for in an appropriate manner.
(5) The Federal share of any project may not exceed 80
percent, except that the Assistant Secretary may increase the
Federal share of a project above 80 percent if--
(A) the applicant petitions the Assistant Secretary for a
waiver; and
(B) the Assistant Secretary determines that the petition
demonstrates financial need.
(6) The Assistant Secretary may make competitive grants
under the program to--
(A) acquire equipment, instrumentation, networking
capability, hardware and software, digital network
technology, and infrastructure for broadband services;
(B) construct and deploy broadband service related
infrastructure;
(C) ensure access to broadband service by community anchor
institutions;
(D) facilitate access to broadband service by low-income,
unemployed, aged, and otherwise vulnerable populations in
order to provide educational and employment opportunities to
members of such populations;

[[Page S1134]]

(E) construct and deploy broadband facilities that improve
public safety broadband communications services; and
(F) undertake such other projects and activities as the
Assistant Secretary finds to be consistent with the purposes
for which the program is established.
(7) The Assistant Secretary--
(A) shall require any entity receiving a grant pursuant to
this section to report quarterly, in a format specified by
the Assistant Secretary, on such entity's use of the
assistance and progress fulfilling the objectives for which
such funds were granted, and the Assistant Secretary shall
make these reports available to the public;
(B) may establish additional reporting and information
requirements for any recipient of any assistance made
available pursuant to this section;
(C) shall establish appropriate mechanisms to ensure
appropriate use and compliance with all terms of any use of
funds made available pursuant to this section;
(D) may, in addition to other authority under applicable
law, deobligate awards to grantees that demonstrate an
insufficient level of performance, or wasteful or fraudulent
spending, as defined in advance by the Assistant Secretary,
and award these funds competitively to new or existing
applicants consistent with this section; and
(E) shall create and maintain a fully searchable database,
accessible on the Internet at no cost to the public, that
contains at least the name of each entity receiving funds
made available pursuant to this section, the purpose for
which such entity is receiving such funds, each quarterly
report submitted by the entity pursuant to this section, and
such other information sufficient to allow the public to
understand and monitor grants awarded under the program.
(8) Concurrent with the issuance of the Request for
Proposal for grant applications pursuant to this section, the
Assistant Secretary shall, in coordination with the Federal
Communications Commission, publish the non-discrimination and
network interconnection obligations that shall be contractual
conditions of grants awarded under this section.
(9) Within 1 year after the date of enactment of this Act,
the Commission shall complete a rulemaking to develop a
national broadband plan. In developing the plan, the
Commission shall--
(A) consider the most effective and efficient national
strategy for ensuring that all Americans have access to, and
take advantage of, advanced broadband services;
(B) have access to data provided to other Government
agencies under the Broadband Data Improvement Act (47 U.S.C.
1301 note);
(C) evaluate the status of deployments of broadband
service, including the progress of projects supported by the
grants made pursuant to this section; and
(D) develop recommendations for achieving the goal of
nationally available broadband service for the United States
and for promoting broadband adoption nationwide.
(10) The Assistant Secretary shall develop and maintain a
comprehensive nationwide inventory map of existing broadband
service capability and availability in the United States that
entities and depicts the geographic extent to which broadband
service capability is deployed and available from a
commercial provider or public provider throughout each State:
Provided, That not later than 2 years after the date of the
enactment of the Act, the Assistant Secretary shall make the
broadband inventory map developed and maintained pursuant to
this section accessible to the public.
Sec. 202. The Assistant Secretary of Commerce for
Communications and Information may reissue any coupon issued
under section 3005(a) of the Digital Television Transition
and Public Safety Act of 2005 that has expired before use,
and shall cancel any unredeemed coupon reported as lost and
may issue a replacement coupon for the lost coupon.

TITLE III--DEPARTMENT OF DEFENSE

OPERATION AND MAINTENANCE

Operation and Maintenance, Army

For an additional amount for ``Operation and Maintenance,
Army'', $1,169,291,000, to remain available for obligation
until September 30, 2010.

Operation and Maintenance, Navy

For an additional amount for ``Operation and Maintenance,
Navy'', $571,843,000, to remain available for obligation
until September 30, 2010.

Operation and Maintenance, Marine Corps

For an additional amount for ``Operation and Maintenance,
Marine Corps'', $112,167,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Air Force

For an additional amount for ``Operation and Maintenance,
Air Force'', $927,113,000, to remain available for obligation
until September 30, 2010.

Operation and Maintenance, Army Reserve

For an additional amount for ``Operation and Maintenance,
Army Reserve'', $79,543,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Navy Reserve

For an additional amount for ``Operation and Maintenance,
Navy Reserve'', $44,586,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Marine Corps Reserve

For an additional amount for ``Operation and Maintenance,
Marine Corps Reserve'', $32,304,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Air Force Reserve

For an additional amount for ``Operation and Maintenance,
Air Force Reserve'', $10,674,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Army National Guard

For an additional amount for ``Operation and Maintenance,
Army National Guard'', $215,557,000, to remain available for
obligation until September 30, 2010.

Operation and Maintenance, Air National Guard

For an additional amount for ``Operation and Maintenance,
Air National Guard'', $20,922,000, to remain available for
obligation until September 30, 2010.

PROCUREMENT

Defense Production Act Purchases

For an additional amount for ``Defense Production Act
Purchases'', $100,000,000, to remain available for obligation
until September 30, 2010.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Research, Development, Test and Evaluation, Defense-Wide

For an additional amount for ``Research, Development, Test
and Evaluation, Defense-Wide'', $200,000,000, to remain
available for obligation until September 30, 2010.

OTHER DEPARTMENT OF DEFENSE PROGRAMS

Defense Health Program

For an additional amount for ``Defense Health Program'',
$250,000,000 for operation and maintenance, to remain
available for obligation until September 30, 2010.

Office of the Inspector General

For an additional amount for ``Office of the Inspector
General'', $12,000,000 for operation and maintenance, to
remain available for obligation until September 30, 2010.

TITLE IV--ENERGY AND WATER DEVELOPMENT

DEPARTMENT OF DEFENSE--CIVIL

Department of the Army

Corps of Engineers--Civil

Investigations

For an additional amount for ``Investigations'' for
expenses necessary where authorized by law for the collection
and study of basic information pertaining to river and
harbor, flood and storm damage reduction, shore protection,
aquatic ecosystem restoration, and related needs; for surveys
and detailed studies, and plans and specifications of
proposed river and harbor, flood and storm damage reduction,
shore protection, and aquatic ecosystem restoration projects
and related efforts prior to construction; for restudy of
authorized projects; and for miscellaneous investigations
and, when authorized by law, surveys and detailed studies,
and plans and specifications of projects prior to
construction, $25,000,000: Provided, That funds provided
under this heading in this title shall only be used for
programs, projects or activities that heretofore or hereafter
receive funds provided in Acts making appropriations
available for Energy and Water Development: Provided further,
That funds provided under this heading in this title shall be
used for programs, projects or activities or elements of
programs, projects or activities that can be completed within
the funds made available in that account and that will not
require new budget authority to complete: Provided further,
That for projects that are being completed with funds
appropriated in this Act that would otherwise be expired for
obligation, expired funds appropriated in this Act may be
used to pay the cost of associated supervision, inspection,
over engineering and design on those projects and on
subsequent claims, if any: Provided further, That the
Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.

Construction

For an additional amount for ``Construction'' for expenses
necessary for the construction of river and harbor, flood and
storm damage reduction, shore protection, aquatic ecosystem
restoration, and related projects authorized by law,
$2,000,000,000, of which such sums as are necessary to cover
the Federal share of construction costs for facilities under
the Dredged Material Disposal Facilities program shall be
derived from the Harbor Maintenance Trust Fund as authorized
by Public Law 104-303: Provided, That not less than
$200,000,000 of the funds provided shall be for water-related
environmental infrastructure assistance: Provided further,
That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall
not apply to funds provided in this title: Provided further,
That notwithstanding any other provision of law, no funds
shall be drawn from the Inland Waterways Trust Fund, as
authorized in Public Law 99-662: Provided further, That funds
provided under this heading in this title shall only be used
for programs, projects or activities that heretofore or
hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development:
Provided further, That funds provided under this heading in
this title shall be used for programs, projects or activities
or elements of programs, projects or activities

[[Page S1135]]

that can be completed within the funds made available in that
account and that will not require new budget authority to
complete: Provided further, That the limitation concerning
total project costs in section 902 of the Water Resources
Development Act of 1986, as amended (33 U.S.C. 2280), shall
not apply during fiscal year 2009 to any project that
received funds provided in this title: Provided further, That
funds appropriated under this heading may be used by the
Secretary of the Army, acting through the Chief of Engineers,
to undertake work authorized to be carried out in accordance
with section 14 of the Flood Control Act of 1946 (33 U.S.C.
701r); section 205 of the Flood Control Act of 1948 (33
U.S.C. 701s); section 206 of the Water Resources Development
Act of 1996 (33 U.S.C. 2330); or section 1135 of the Water
Resources Development Act of 1986 (33 U.S.C. 2309a),
notwithstanding the program cost limitations set forth in
those sections: Provided further, That for projects that are
being completed with funds appropriated in this Act that
would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of
associated supervision, inspection, over engineering and
design on those projects and on subsequent claims, if any:
Provided further, That the Secretary shall have unlimited
reprogramming authority for these funds provided under this
heading.

MISSISSIPPI RIVER AND TRIBUTARIES

For an additional amount for ``Mississippi River and
Tributaries'' for expenses necessary for flood damage
reduction projects and related efforts as authorized by law,
$500,000,000, of which such sums as are necessary to cover
the Federal share of operation and maintenance costs for
inland harbors shall be derived from the Harbor Maintenance
Trust Fund, pursuant to Public Law 99-662: Provided, That
funds provided under this heading in this title shall only be
used for programs, projects or activities that heretofore or
hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development:
Provided further, That funds provided under this heading in
this title shall be used for programs, projects or activities
or elements of programs, projects or activities that can be
completed within the funds made available in that account and
that will not require new budget authority to complete:
Provided further, That the limitation concerning total
project costs in section 902 of the Water Resources
Development Act of 1986, as amended (33 U.S.C. 2280), shall
not apply during fiscal year 2009 to any project that
received funds provided in this title: Provided further, That
for projects that are being completed with funds appropriated
in this Act that would otherwise be expired for obligation,
expired funds appropriated in this Act may be used to pay the
cost of associated supervision, inspection, over engineering
and design on those projects and on subsequent claims, if
any: Provided further, That the Secretary shall have
unlimited reprogramming authority for these funds provided
under this heading.

Operation and Maintenance

For an additional amount for ``Operation and Maintenance''
for expenses necessary for the operation, maintenance, and
care of existing river and harbor, flood and storm damage
reduction, aquatic ecosystem restoration, and related
projects authorized by law, and for surveys and charting of
northern and northwestern lakes and connecting waters,
clearing and straightening channels, and removal of
obstructions to navigation, $1,900,000,000, of which such
sums as are necessary to cover the Federal share of operation
and maintenance costs for coastal harbors and channels, and
inland harbors shall be derived from the Harbor Maintenance
Trust Fund, pursuant to Public Law 99-662; and of which such
sums as become available under section 217 of the Water
Resources Development Act of 1996, Public Law 104-303, shall
be used to cover the cost of operation and maintenance of the
dredged material disposal facilities for which fees have been
collected: Provided, That funds provided under this heading
in this title shall only be used for programs, projects or
activities that heretofore or hereafter receive funds
provided in Acts making appropriations available for Energy
and Water Development: Provided further, That funds provided
under this heading in this title shall be used for programs,
projects or activities or elements of programs, projects or
activities that can be completed within the funds made
available in that account and that will not require new
budget authority to complete: Provided further, That
$90,000,000 of the funds provided under this heading shall be
used for activities described in section 9004 of Public Law
110-114: Provided further, That section 9006 of Public Law
110-114 shall not apply to funds provided in this title:
Provided further, That for projects that are being completed
with funds appropriated in this Act that would otherwise be
expired for obligation, expired funds appropriated in this
Act may be used to pay the cost of associated supervision,
inspection, over engineering and design on those projects and
on subsequent claims, if any: Provided further, That the
Secretary shall have unlimited reprogramming authority for
these funds provided under this heading.

Regulatory Program

For an additional amount for ``Regulatory Program'' for
expenses necessary for administration of laws pertaining to
regulation of navigable waters and wetlands, $25,000,000 is
provided.

Formerly Utilized Sites Remedial Action Program

For an additional amount for ``Formerly Utilized Sites
Remedial Action Program'' for expenses necessary to clean up
contamination from sites in the United States resulting from
work performed as part of the Nation's early atomic energy
program, $100,000,000: Provided further, That funds provided
under this heading in this title shall be used for programs,
projects or activities or elements of programs, projects or
activities that can be completed within the funds made
available in that account and that will not require new
budget authority to complete: Provided further, That for
projects that are being completed with funds appropriated in
this Act that would otherwise be expired for obligation,
expired funds appropriated in this Act may be used to pay the
cost of associated supervision, inspection, over engineering
and design on those projects and on subsequent claims, if
any: Provided further, That the Secretary shall have
unlimited reprogramming authority for these funds provided
under this heading.

Flood Control and Coastal Emergencies

For an additional amount for ``Flood Control and Coastal
Emergencies'' for expenses necessary for pre-placement of
materials and equipment, advance measures and other
activities authorized by law, $50,000,000 is provided.

DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

WATER AND RELATED RESOURCES

For an additional amount for management, development, and
restoration of water and related natural resources and for
related activities, including the operation, maintenance, and
rehabilitation of reclamation and other facilities,
participation in fulfilling related Federal responsibilities
to Native Americans, and related grants to, and cooperative
and other agreements with, State and local governments,
federally recognized Indian tribes, and others,
$1,400,000,000; of which such amounts as may be necessary may
be advanced to the Colorado River Dam Fund: Provided, That of
the total appropriated, the amount for program activities
that can be financed by the Reclamation Fund or the Bureau of
Reclamation special fee account established by 16 U.S.C.
460l-6a(i) shall be derived from that Fund or account:
Provided further, That funds contributed under 43 U.S.C. 395
are available until expended for the purposes for which
contributed: Provided further, That funds advanced under 43
U.S.C. 397a shall be credited to this account and are
available until expended for the same purposes as the sums
appropriated under this heading: Provided further, That funds
provided under this heading in this title shall only be used
for programs, projects or activities that heretofore or
hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development:
Provided further, That funds provided in this Act shall be
used for elements of projects, programs or activities that
can be completed within these funding amounts and not create
budgetary obligations in future fiscal years: Provided
further, That $50,000,000 of the funds provided under this
heading may be transferred to the Department of the Interior
for programs, projects and activities authorized by the
Central Utah Project Completion Act (titles II-V of Public
Law 102-575): Provided further, That $50,000,000 of the funds
provided under this heading may be used for programs,
projects, and activities authorized by the California Bay-
Delta Restoration Act (Public Law 108-361): Provided further,
That not less than $60,000,000 of the funds provided under
this heading shall be used for rural water projects and shall
be expended primarily on water intake and treatment
facilities of such projects: Provided further, That not less
than $10,000,000 of the funds provided under this heading
shall be used for a bureau-wide inspection of canals program
in urbanized areas: Provided further, That not less than
$110,000,000 of the funds provided under this heading shall
be used for water reclamation and reuse projects (title 16 of
Public Law 102-575): Provided further, That the costs of
reimbursable activities, other than for maintenance and
rehabilitation, carried out with funds provided in this Act
shall be repaid pursuant to existing authorities and
agreements: Provided further, That the costs of maintenance
and rehabilitation activities carried out with funds provided
in this Act shall be repaid pursuant to existing authority,
except the length of repayment period shall be determined on
needs-based criteria to be established and adopted by the
Commissioner, but in no case shall the repayment period
exceed 25 years: Provided further, That for projects that are
being completed with funds appropriated in this Act that
would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of
associated supervision, inspection, over engineering and
design on those projects and on subsequent claims, if any:
Provided further, That the Secretary shall have unlimited
reprogramming authority for these funds provided under this
heading.

DEPARTMENT OF ENERGY

Energy Programs

Energy Efficiency and Renewable Energy

For an additional amount for ``Energy Efficiency and
Renewable Energy'',

[[Page S1136]]

$14,398,000,000, for necessary expenses, to remain available
until September 30, 2010: Provided, That $4,200,000,000 shall
be available for Energy Efficiency and Conservation Block
Grants for implementation of programs authorized under
subtitle E of title V of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17151 et seq.), of which
$2,100,000,000 is available through the formula in subtitle
E: Provided further, That the remaining $2,100,000,000 shall
be awarded on a competitive basis only to competitive grant
applicants from States in which the Governor certifies to the
Secretary of Energy that the applicable State regulatory
authority will implement the integrated resource planning and
rate design modifications standards required to be considered
under paragraphs (16) and (17) of section 111(d) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(d)(16) and (17)); and the Governor will take all actions
within his or her authority to ensure that the State, or the
applicable units of local government that have authority to
adopt building codes, will implement--
(A) building energy codes for residential buildings that
the Secretary determines are likely to meet or exceed the
2009 International Energy Conservation Code;
(B) building energy codes for commercial buildings that the
Secretary determines are likely to meet or exceed the ANSI/
ASHRAE/IESNA Standard 90.1-2007; and
(C) a plan for implementing and enforcing the building
energy codes described in subparagraphs (A) and (B) that is
likely to ensure that at least 90 percent of the new and
renovated residential and commercial building space will meet
the standards within 8 years after the date of enactment of
this Act:
Provided further, That $2,000,000,000 shall be available for
grants for the manufacturing of advanced batteries and
components and the Secretary shall provide facility funding
awards under this section to manufacturers of advanced
battery systems and vehicle batteries that are produced in
the United States, including advanced lithium ion batteries,
hybrid electrical systems, component manufacturers, and
software designers: Provided further, That notwithstanding
section 3304 of title 5, United States Code, and without
regard to the provisions of sections 3309 through 3318 of
such title 5, the Secretary of Energy, upon a determination
that there is a severe shortage of candidates or a critical
hiring need for particular positions, may from within the
funds provided, recruit and directly appoint highly qualified
individuals into the competitive service: Provided further,
That such authority shall not apply to positions in the
Excepted Service or the Senior Executive Service: Provided
further, That any action authorized herein shall be
consistent with the merit principles of section 2301 of such
title 5, and the Department shall comply with the public
notice requirements of section 3327 of such title 5.

Electricity Delivery and Energy Reliability

For an additional amount for ``Electricity Delivery and
Energy Reliability'', $4,500,000,000, for necessary expenses,
to remain available until September 30, 2010: Provided, That
$100,000,000 shall be available for worker training
activities: Provided further, That notwithstanding section
3304 of title 5, United States Code, and without regard to
the provisions of sections 3309 through 3318 of such title 5,
the Secretary of Energy, upon a determination that there is a
severe shortage of candidates or a critical hiring need for
particular positions, may from within the funds provided,
recruit and directly appoint highly qualified individuals
into the competitive service: Provided further, That such
authority shall not apply to positions in the Excepted
Service or the Senior Executive Service: Provided further,
That any action authorized herein shall be consistent with
the merit principles of section 2301 of such title 5, and the
Department shall comply with the public notice requirements
of section 3327 of such title 5: Provided, That for the
purpose of facilitating the development of regional
transmission plans, the Office of Electricity Delivery and
Energy Reliability within the Department of Energy is
provided $80,000,000 within the available funds to conduct a
resource assessment and an analysis of future demand and
transmission requirements: Provided further, That the Office
of Electricity Delivery and Energy Reliability will provide
technical assistance to the North American Electric
Reliability Corporation, the regional reliability entities,
the States, and other transmission owners and operators for
the formation of interconnection-based transmission plans for
the Eastern and Western Interconnections and ERCOT: Provided
further, That such assistance may include modeling, support
to regions and States for the development of coordinated
State electricity policies, programs, laws, and regulations:
Provided further, That $10,000,000 is provided to implement
section 1305 of Public Law 110-140.

Fossil Energy Research and Development

For an additional amount for ``Fossil Energy Research and
Development'', $4,600,000,000, to remain available until
September 30, 2010: Provided, That $2,000,000,000 is
available for one or more near zero emissions powerplant(s):
Provided further, $1,000,000,000 is available for selections
under the Department's Clean Coal Power Initiative Round III
Funding Opportunity Announcement; notwithstanding the
mandatory eligibility requirements of the Funding Opportunity
Announcement, the Department shall consider applications that
utilize petroleum coke for some or all of the project's fuel
input: Provided further, $1,520,000,000 is available for a
competitive solicitation pursuant to section 703 of Public
Law 110-140 for projects that demonstrate carbon capture from
industrial sources: Provided further, That awards for such
projects may include plant efficiency improvements for
integration with carbon capture technology.

Non-Defense Environmental Cleanup

For an additional amount for ``Non-Defense Environmental
Cleanup'', $483,000,000, to remain available until September
30, 2010.

Uranium Enrichment Decontamination and Decommissioning Fund

For an additional amount for ``Uranium Enrichment
Decontamination and Decommissioning Fund'', $390,000,000, to
remain available until September 30, 2010, of which
$70,000,000 shall be available in accordance with title X,
subtitle A of the Energy Policy Act of 1992.

Science

For an additional amount for ``Science'', $430,000,000, to
remain available until September 30, 2010.

Title 17--Innovative Technology Loan Guarantee Program

Subject to section 502 of the Congressional Budget Act of
1974, commitments to guarantee loans under section 1702(b)(2)
of the Energy Policy Act of 2005, shall not exceed a total
principal amount of $50,000,000,000 for eligible projects, to
remain available until committed: Provided, That these
amounts are in addition to any authority provided elsewhere
in this Act and this and previous fiscal years: Provided
further, That such sums as are derived from amounts received
from borrowers pursuant to section 1702(b)(2) of the Energy
Policy Act of 2005 under this heading in this and prior Acts,
shall be collected in accordance with section 502(7) of the
Congressional Budget Act of 1974: Provided further, That the
source of such payment received from borrowers is not a loan
or other debt obligation that is guaranteed by the Federal
Government: Provided further, That pursuant to section
1702(b)(2) of the Energy Policy Act of 2005, no
appropriations are available to pay the subsidy cost of such
guarantees: Provided further, That none of the loan guarantee
authority made available in this Act shall be available for
commitments to guarantee loans under section 1702(b)(2) of
the Energy Policy Act of 2005 for any projects where funds,
personnel, or property (tangible or intangible) of any
Federal agency, instrumentality, personnel or affiliated
entity are expected to be used (directly or indirectly)
through acquisitions, contracts, demonstrations, exchanges,
grants, incentives, leases, procurements, sales, other
transaction authority, or other arrangements, to support the
project or to obtain goods or services from the project:
Provided further, That none of the loan guarantee authority
made available in this Act shall be available under section
1702(b)(2) of the Energy Policy Act of 2005 for any project
unless the Director of the Office of Management and Budget
has certified in advance in writing that the loan guarantee
and the project comply with the provisions under this title:
Provided further, That for an additional amount for the cost
of guaranteed loans authorized by section 1702(b)(1) and
section 1705 of the Energy Policy Act of 2005,
$9,500,000,000, available until expended, to pay the costs of
guarantees made under this section: Provided further, That of
the amount provided for Title XVII, $15,000,000 shall be used
for administrative expenses in carrying out the guaranteed
loan program.

Office of the Inspector General

For necessary expenses of the Office of the Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $5,000,000, to remain
available until expended.

ATOMIC ENERGY DEFENSE ACTIVITIES

National Nuclear Security Administration

Weapons activities

For an additional amount for weapons activities,
$1,000,000,000, to remain available until September 30, 2010.

Environmental and Other Defense Activities

Defense Environmental Cleanup

For an additional amount for ``Defense Environmental
Cleanup'', $5,527,000,000, to remain available until
September 30, 2010.

Construction, Rehabilitation, Operation, and Maintenance, Western Area
Power Administration

For carrying out the functions authorized by title III,
section 302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C.
7152), and other related activities including conservation
and renewable resources programs as authorized, $10,000,000,
to remain available until expended: Provided, That the
Administrator shall establish such personnel staffing levels
as he deems necessary to economically and efficiently
complete the activities pursued under the authority granted
by section 402 of this Act: Provided further, That this
appropriation is non-reimbursable.

GENERAL PROVISIONS--THIS TITLE

Sec. 401. Bonneville Power Administration Borrowing
Authority. For the purposes of providing funds to assist in
financing the construction, acquisition, and replacement of
the transmission system of the

[[Page S1137]]

Bonneville Power Administration and to implement the
authority of the Administrator of the Bonneville Power
Administration under the Pacific Northwest Electric Power
Planning and Conservation Act (16 U.S.C. 839 et seq.), an
additional $3,250,000,000 in borrowing authority is made
available under the Federal Columbia River Transmission
System Act (16 U.S.C. 838 et seq.), to remain outstanding at
any time.
Sec. 402. Western Area Power Administration Borrowing
Authority. The Hoover Power Plant Act of 1984 (Public Law 98-
381) is amended by adding at the end the following:

``TITLE III--BORROWING AUTHORITY

``SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING
AUTHORITY.

``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Western Area Power Administration.
``(2) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(b) Authority.--
``(1) In general.--Notwithstanding any other provision of
law, subject to paragraphs (2) through (5)--
``(A) the Western Area Power Administration may borrow
funds from the Treasury; and
``(B) the Secretary shall, without further appropriation
and without fiscal year limitation, loan to the Western Area
Power Administration, on such terms as may be fixed by the
Administrator and the Secretary, such sums (not to exceed, in
the aggregate (including deferred interest), $3,250,000,000
in outstanding repayable balances at any one time) as, in the
judgment of the Administrator, are from time to time required
for the purpose of--
``(i) constructing, financing, facilitating, planning,
operating, maintaining, or studying construction of new or
upgraded electric power transmission lines and related
facilities with at least one terminus within the area served
by the Western Area Power Administration; and
``(ii) delivering or facilitating the delivery of power
generated by renewable energy resources constructed or
reasonably expected to be constructed after the date of
enactment of this section.
``(2) Interest.--The rate of interest to be charged in
connection with any loan made pursuant to this subsection
shall be fixed by the Secretary, taking into consideration
market yields on outstanding marketable obligations of the
United States of comparable maturities as of the date of the
loan.
``(3) Refinancing.--The Western Area Power Administration
may refinance loans taken pursuant to this section within the
Treasury.
``(4) Participation.--The Administrator may permit other
entities to participate in the financing, construction and
ownership projects financed under this section.
``(5) Congressional review of disbursement.--Effective upon
the date of enactment of this section, the Administrator
shall have the authority to have utilized $1,750,000,000 at
any one time. If the Administrator seeks to borrow funds
above $1,750,000,000, the funds will be disbursed unless
there is enacted, within 90 calendar days of the first such
request, a joint resolution that rescinds the remainder of
the balance of the borrowing authority provided in this
section.
``(c) Transmission Line and Related Facility Projects.--
``(1) In general.--For repayment purposes, each
transmission line and related facility project in which the
Western Area Power Administration participates pursuant to
this section shall be treated as separate and distinct from--
``(A) each other such project; and
``(B) all other Western Area Power Administration power and
transmission facilities.
``(2) Proceeds.--The Western Area Power Administration
shall apply the proceeds from the use of the transmission
capacity from an individual project under this section to the
repayment of the principal and interest of the loan from the
Treasury attributable to that project, after reserving such
funds as the Western Area Power Administration determines are
necessary--
``(A) to pay for any ancillary services that are provided;
and
``(B) to meet the costs of operating and maintaining the
new project from which the revenues are derived.
``(3) Source of revenue.--Revenue from the use of projects
under this section shall be the only source of revenue for--
``(A) repayment of the associated loan for the project; and
``(B) payment of expenses for ancillary services and
operation and maintenance.
``(4) Limitation on authority.--Nothing in this section
confers on the Administrator any additional authority or
obligation to provide ancillary services to users of
transmission facilities developed under this section.
``(5) Treatment of certain revenues.--Revenue from
ancillary services provided by existing Federal power systems
to users of transmission projects funded pursuant to this
section shall be treated as revenue to the existing power
system that provided the ancillary services.
``(d) Certification.--
``(1) In general.--For each project in which the Western
Area Power Administration participates pursuant to this
section, the Administrator shall certify, prior to committing
funds for any such project, that--
``(A) the project is in the public interest;
``(B) the project will not adversely impact system
reliability or operations, or other statutory obligations;
and
``(C) it is reasonable to expect that the proceeds from the
project shall be adequate to make repayment of the loan.
``(2) Forgiveness of balances.--
``(A) In general.--If, at the end of the useful life of a
project, there is a remaining balance owed to the Treasury
under this section, the balance shall be forgiven.
``(B) Unconstructed projects.--Funds expended to study
projects that are considered pursuant to this section but
that are not constructed shall be forgiven.
``(C) Notification.--The Administrator shall notify the
Secretary of such amounts as are to be forgiven under this
paragraph.
``(e) Public Processes.--
``(1) Policies and practices.--Prior to requesting any
loans under this section, the Administrator shall use a
public process to develop practices and policies that
implement the authority granted by this section.
``(2) Requests for interest.--In the course of selecting
potential projects to be funded under this section, the
Administrator shall seek Requests For Interest from entities
interested in identifying potential projects through one or
more notices published in the Federal Register.''
Sec. 403. Technical Corrections to the Energy Independence
and Security Act of 2007. Title XIII of the Energy
Independence and Security Act of 2007 (15 U.S.C. 17381 and
following) is amended as follows:
(1) By amending subparagraph (A) of section 1304(b)(3) to
read as follows:
``(A) In general.--In carrying out the initiative, the
Secretary shall provide financial support to smart grid
demonstration projects including those in rural areas and/or
areas where the majority of generation and transmission
assets are controlled by a tax-exempt entity.''.
(2) By amending subparagraph (C) of section 1304(b)(3) to
read as follows:
``(C) Federal share of cost of technology investments.--The
Secretary shall provide to an electric utility described in
subparagraph (B) or to other parties financial assistance for
use in paying an amount equal to not more than 50 percent of
the cost of qualifying advanced grid technology investments
made by the electric utility or other party to carry out a
demonstration project. ''.
(3) By inserting a new subparagraph (E) after 1304(b)(3)(D)
as follows:
``(E) Availability of Data.--The Secretary shall establish
and maintain a smart grid information clearinghouse in a
timely manner which will make data from smart grid
demonstration projects and other sources available to the
public. As a condition of receiving financial assistance
under this subsection, a utility or other participant in a
smart grid demonstration project shall provide such
information as the Secretary may require to become available
through the smart grid information clearinghouse in the form
and within the timeframes as directed by the Secretary. The
Secretary shall assure that business proprietary information
and individual customer information is not included in the
information made available through the clearinghouse.''.
(4) By amending paragraph (2) of section 1304(c) to read as
follows:
``(2) to carry out subsection (b), such sums as may be
necessary.''.
(5) By amending subsection (a) of section 1306 by striking
``reimbursement of one-fifth (20 percent)'' and inserting
``grants of up to one-half (50 percent)''.
(6) By striking the last sentence of subsection (b)(9) of
section 1306.
(7) By striking ``are eligible for'' in subsection (c)(1)
of section 1306 and inserting ``utilize''.
(8) By amending subsection (e) of section 1306 to read as
follows:
``(e) The Secretary shall--
``(1) establish within 60 days after the enactment of the
American Recovery and Reinvestment Act of 2009 procedures by
which applicants can obtain grants of not more than one-half
of their documented costs;
``(2) establish procedures to ensure that there is no
duplication or multiple payment for the same investment or
costs, that the grant goes to the party making the actual
expenditures for Qualifying Smart Grid Investments, and that
the grants made have significant effect in encouraging and
facilitating the development of a smart grid;
``(3) maintain public records of grants made, recipients,
and qualifying Smart Grid investments which have received
grants;
``(4) establish procedures to provide advance payment of
moneys up to the full amount of the grant award; and
``(5) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment of
the Secretary.''.
Sec. 404. Temporary Stimulus Loan Guarantee Program. (a)
Amendment.--Title XVII of the Energy Policy Act of 2005 (42
U.S.C. 16511 et seq.) is amended by adding the following at
the end:

``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF
RENEWABLE ENERGY AND ELECTRIC POWER
TRANSMISSION PROJECTS.

``(a) In general.--Notwithstanding section 1703, the
Secretary may make guarantees under this section only for
commercial technology projects under subsection (b) that will
reach financial close not later than September 30, 2012.

[[Page S1138]]

``(b) Categories.--Projects from only the following
categories shall be eligible for support under this section:
``(1) Renewable energy systems.
``(2) Electric power transmission systems.
``(c) Authorization limit.--There are authorized to be
appropriated $10,000,000,000 to the Secretary for fiscal
years 2009 through 2012 to provide the cost of guarantees
made under section.
``(d) Sunset.--The authority to enter into guarantees under
this section shall expire on September 30, 2012.''.
(b) Table of contents amendment.--The table of contents for
the Energy Policy Act of 2005 is amended by inserting after
the item relating to section 1704 the following new item:

``Sec. 1705. Temporary program for rapid deployment of renewable energy
and electric power transmission projects.''.
Sec. 405. Weatherization Program Amendments. (a) Income
Level.--Section 412(7) of the Energy Conservation and
Production Act (42 U.S.C. 6862(7)) is amended by striking
``150 percent'' both places it appears and inserting ``200
percent''.
(b) Assistance Level Per Dwelling Unit.--Section 415(c)(1)
of the Energy Conservation and Production Act (42 U.S.C.
6865(c)(1)) is amended by striking ``$2,500'' and inserting
``$5,000''.
(c) Training and Technical Assistance.--Section 416 of the
Energy Conservation and Production Act (42 U.S.C. 6866) is
amended by striking ``10 percent'' and inserting ``up to 20
percent''.
Sec. 406. Technical Corrections to Public Utility
Regulatory Policies Act of 1978. (a) Section 111(d) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(d)) is amended by redesignating paragraph (16) relating
to consideration of smart grid investments (added by section
1307(a) of Public Law 110-140) as paragraph (18) and by
redesignating paragraph (17) relating to smart grid
information (added by section 1308(a) of Public Law 110-140)
as paragraph (19).
(b) Subsections (b) and (d) of section 112 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) are
each amended by striking ``(17) through (18)'' in each place
it appears and inserting ``(16) through (19)''.

TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund Program Account

For an additional amount for ``Community Development
Financial Institutions Fund Program Account'', $250,000,000,
to remain available until September 30, 2010, for qualified
applicants under the fiscal year 2008 and 2009 funding rounds
of the Community Development Financial Institutions Program,
of which up to $20,000,000 may be for financial assistance,
technical assistance, training and outreach programs,
including up to $5,000 for subsistence expenses, designed to
benefit Native American, Native Hawaiian, and Alaskan Native
communities and provided primarily through qualified
community development lender organizations with experience
and expertise in community development banking and lending in
Indian country, Native American organizations, tribes and
tribal organizations and other suitable providers and up to
$5,000,000 may be used for administrative expenses: Provided,
That for purposes of the fiscal year 2008 and 2009 funding
rounds, the following statutory provisions are hereby waived:
12 U.S.C. 4707(e) and 12 U.S.C. 4707(d): Provided further,
That no awardee, together with its subsidiaries and
affiliates, may be awarded more than 15 percent of the
aggregate funds available during each of fiscal years 2008
and 2009 from the Community Development Financial
Institutions Program: Provided further, That no later than 60
days after the date of enactment of this Act, the Department
of the Treasury shall submit to the Committees on
Appropriations of the House of Representatives and the Senate
a detailed expenditure plan for funds provided under this
heading.

DISTRICT OF COLUMBIA

Federal Payments

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

For a Federal payment to the District of Columbia Water and
Sewer Authority, $125,000,000, to remain available until
September 30, 2010, to continue implementation of the
Combined Sewer Overflow Long-Term Control Plan: Provided,
That the District of Columbia Water and Sewer Authority
provide a 100 percent match for this payment: Provided
further, That no later than 60 days after the date of
enactment of this Act, the District of Columbia Water and
Sewer Authority shall submit to the Committees on
Appropriations of the House of Representatives and the Senate
a detailed expenditure plan for funds provided under this
heading: Provided further, That such expenditure plan shall
include a description of each specific project, how specific
projects will further the objectives of the Long-Term Control
Plan, and all funding sources for each project.

GENERAL SERVICES ADMINISTRATION

Real Property Activities

federal buildings fund

LIMITATIONS ON AVAILABILITY OF REVENUE

(including transfer of funds)

For an additional amount to be deposited in the Federal
Buildings Fund, $9,048,000,000, to carry out the purposes of
the Fund, of which not less than $1,400,000,000 shall be
available for Federal buildings and United States
courthouses, not less than $1,200,000,000 shall be available
for border stations, and not less than $6,000,000,000 shall
be available for measures necessary to convert GSA facilities
to High-Performance Green Buildings, as defined in section
401 of Public Law 110-140: Provided, That not to exceed
$108,000,000 of the amounts provided under this heading may
be expended for rental of space, related to leasing of
temporary space in connection with projects funded under this
heading: Provided further, That not to exceed $206,000,000 of
the amounts provided under this heading may be expended for
building operations, for the administrative costs of
completing projects funded under this heading: Provided
further, That (1) not less than $7,000,000,000 of the funds
provided under this heading shall be obligated by September
30, 2010, and (2) $1,600,000,000 shall be available until
September 30, 2011: Provided further, That the Administrator
of General Services is authorized to initiate design,
construction, repair, alteration, and other projects through
existing authorities of the Administrator: Provided further,
That the General Services Administration shall submit a
detailed plan, by project, regarding the use of funds made
available in this Act to the Committees on Appropriations of
the House of Representatives and the Senate within 60 days of
enactment of this Act: Provided further, That of the amounts
provided for converting GSA facilities to High-Performance
Green Buildings, $4,000,000 shall be transferred to and
merged with ``Government-Wide Policy'', for carrying out the
provisions of section 436 of the Energy Independence and
Security Act of 2007 (Public Law 110-140), establishing an
Office of Federal High-Performance Green Buildings, to remain
available until September 30, 2010: Provided further, That
within the overall amount to be deposited into the Fund,
$448,000,000 shall remain available until September 30, 2011,
for the development and construction of the headquarters for
the Department of Homeland Security, except that none of the
preceding provisos shall apply to amounts made available
under this proviso.

Energy-Efficient Federal Motor Vehicle Fleet Procurement

For capital expenditures and necessary expenses of
acquiring motor vehicles with higher fuel economy, including:
hybrid vehicles; neighborhood electric vehicles; electric
vehicles; and commercially-available, plug-in hybrid
vehicles, $600,000,000, to remain available until September
30, 2011.

Office of Inspector General

For an additional amount for the Office of the Inspector
General, to remain available until September 30, 2011,
$2,000,000.

RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

For necessary expenses of the Recovery Act Accountability
and Transparency Board to carry out the provisions of title
XV of this Act, $7,000,000, to remain available until
September 30, 2010.

SMALL BUSINESS ADMINISTRATION

Salaries and Expenses

For an additional amount, to remain available until
September 30, 2010, $84,000,000, of which $24,000,000 is for
marketing, management, and technical assistance under section
7(m) of the Small Business Act (15 U.S.C. 636(m)(4)) by
intermediaries that make microloans under the microloan
program, of which $15,000,000 is for lender oversight
activities as authorized in section 501(c) of this title, and
of which $20,000,000 is for improving, streamlining, and
automating information technology systems related to lender
processes and lender oversight: Provided, That no later than
60 days after the date of enactment of this Act, the Small
Business Administration shall submit to the Committees on
Appropriations of the House of Representatives and the Senate
a detailed expenditure plan for funds provided under the
heading ``Small Business Administration'' in this Act.

Office of Inspector General

For an additional amount for the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, $10,000,000, to remain available until
September 30, 2011.

Surety Bond Guarantees Revolving Fund

For additional capital for the Surety Bond Guarantees
Revolving Fund, authorized by the Small Business Investment
Act of 1958, $15,000,000, to remain available until expended.

Business Loans Program Account

For an additional amount for the cost of direct loans,
$6,000,000, to remain available until September 30, 2010, and
for an additional amount for the cost of guaranteed loans,
$615,000,000, to remain available until September 30, 2010:
Provided, That of the amount for the cost of guaranteed
loans, $515,000,000 shall be for loan subsidies and loan
modifications for loans to small business concerns authorized
in section 501(a) of this title; and $100,000,000 shall be
for loan subsidies and loan modifications for loans to small
business concerns authorized in section 501(b) of this title:
Provided further, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974.

Administrative Provisions--Small Business Administration

Sec. 501. Economic Stimulus for Small Business Concerns.
(a) Temporary Fee

[[Page S1139]]

Elimination for the 7(a) Loan Program.--Until September 30,
2010, and to the extent that the cost of such elimination of
fees is offset by appropriations, with respect to each loan
guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) for which the application is approved on or
after the date of enactment of this Act, the Administrator
shall--
(1) in lieu of the fee otherwise applicable under section
7(a)(23)(A) of the Small Business Act (15 U.S.C.
636(a)(23)(A)), collect no fee; and
(2) in lieu of the fee otherwise applicable under section
7(a)(18)(A) of the Small Business Act (15 U.S.C.
636(a)(18)(A)), collect no fee.
(b) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--Until September 30, 2010, and to the
extent the cost of such elimination in fees is offset by
appropriations, with respect to each project or loan
guaranteed by the Administrator under title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for
which an application is approved or pending approval on or
after the date of enactment of this Act--
(A) the Administrator shall, in lieu of the fee otherwise
applicable under section 503(d)(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
(B) a development company shall, in lieu of the processing
fee under section 120.971(a)(1) of title 13, Code of Federal
Regulations (relating to fees paid by borrowers), or any
successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of such
payments is offset by appropriations, the Administrator shall
reimburse each development company that does not collect a
processing fee pursuant to paragraph (1)(B).
(B) Amount.--The payment to a development company under
subparagraph (A) shall be in an amount equal to 1.5 percent
of the net debenture proceeds for which the development
company does not collect a processing fee pursuant to
paragraph (1)(B).
(c) Temporary Fee Elimination of Lender Oversight Fees.--
Until September 30, 2010, and to the extent the cost of such
elimination in fees is offset by appropriations, the
Administrator shall, in lieu of the fee otherwise applicable
under section 5(b)(14) of the Small Business Act (15 U.S.C.
634(b)(14)), collect no fee.
(d) Application of Fee Eliminations.--The Administrator
shall eliminate fees under subsections (a), (b), and (c)
until the amount provided for such purposes, as applicable,
under the headings ``Salaries and Expenses'' and ``Business
Loans Program Account'' under the heading ``Small Business
Administration'' under this Act are expended.
Sec. 502. Financial Assistance Program Improvements. (a)
7(a) Loan Maximum Amount.--Section 7(a)(3)(A) of the Small
Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking
``$1,500,000 (or if the gross loan amount would exceed
$2,000,000)'' and inserting ``$2,250,000 (or if the gross
loan amount would exceed $3,000,000)''.
(b) Small Business Investment Companies.--
(1) Maximum leverage.--Section 303(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)) is amended--
(A) in paragraph (2), by striking subparagraphs (A), (B),
and (C) and inserting the following:
``(A) In general.--The maximum amount of outstanding
leverage made available to any 1 company licensed under
section 301(c) may not exceed the lesser of--
``(i) 300 percent of the private capital of the company; or
``(ii) $150,000,000.
``(B) Multiple licenses under common control.--The maximum
amount of outstanding leverage made available to 2 or more
companies licensed under section 301(c) that are commonly
controlled (as determined by the Administrator) may not
exceed $225,000,000.
``(C) Investments in low-income geographic areas.--
``(i) In general.--The maximum amount of outstanding
leverage made available to--

``(I) any 1 company described in clause (ii) may not exceed
the lesser of--

``(aa) 300 percent of private capital of the company; or
``(bb) $175,000,000; and

``(II) 2 or more companies described in clause (ii) that
are commonly controlled (as determined by the Administrator)
may not exceed $250,000,000.

``(ii) Applicability.--A company described in this clause
is a company licensed under section 301(c) that certifies in
writing that not less than 50 percent of the dollar amount of
investments of that company shall be made in companies that
are located in a low-income geographic area (as that term is
defined in section 351).''; and
(B) by striking paragraph (4).
(2) Investments in smaller enterprises.--Section 303(d) of
the Small Business Investment Act of 1958 (15 U.S.C. 683(d))
is amended to read as follows:
``(d) Investments in Smaller Enterprises.--The
Administrator shall require each licensee, as a condition of
approval of an application for leverage, to certify in
writing that not less than 25 percent of the aggregate dollar
amount of financings of that licensee shall be provided to
smaller enterprises.''.
(3) Maximum investment in a company.--Section 306(a) of the
Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is
amended by striking ``20 per centum'' and inserting ``30
percent''.
(c) Maximum 504 Loan Size.--Section 502(2)(A) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is
amended--
(1) in clause (i), by striking ``$1,500,000'' and inserting
``$3,000,000'';
(2) in clause (ii), by striking ``$2,000,000'' and
inserting ``$3,500,000''; and
(3) in clause (iii), by striking ``$4,000,000'' and
inserting ``$5,500,000''.
Sec. 503. Low-Interest Refinancing.  Section 502 of the
Small Business Investment Act of 1958 (15 U.S.C. 696) is
amended by adding at the end the following:
``(7) Permissible debt financing.--A financing under this
title may include refinancing of existing indebtedness, in an
amount not to exceed 50 percent of the projected cost of the
project financed under this title, if--
``(A) the project financed under this title involves the
expansion of a small business concern;
``(B) the existing indebtedness is collateralized by fixed
assets;
``(C) the existing indebtedness was incurred for the
benefit of the small business concern;
``(D) the proceeds of the existing indebtedness were used
to acquire land (including a building situated thereon), to
construct or expand a building thereon, or to purchase
equipment;
``(E) the borrower has been current on all payments due on
the existing indebtedness for not less than 1 year preceding
the proposed date of refinancing;
``(F) the financing under this title will provide better
terms or a better rate of interest than exists on the
existing indebtedness on the proposed date of refinancing;
``(G) the financing under this title is not being used to
refinance any debt guaranteed by the Government; and
``(H) the financing under this title will be used only
for--
``(i) refinancing existing indebtedness; or
``(ii) costs relating to the project financed under this
title.''.
Sec. 504. Definitions. Under the heading ``Small Business
Administration'' in this title--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``development company'' has the meaning given
the term ``development companies'' in section 103 of the
Small Business Investment Act of 1958 (15 U.S.C. 662); and
(3) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632).

TITLE VI--DEPARTMENT OF HOMELAND SECURITY

DEPARTMENT OF HOMELAND SECURITY

Office of the Under Secretary for Management

For an additional amount for the ``Office of the Under
Secretary for Management'', $248,000,000, to remain available
until September 30, 2011, solely for planning, design, and
construction costs, including site security, information
technology infrastructure, furniture, fixtures, and related
costs to consolidate the Department of Homeland Security
headquarters: Provided, That no later than 60 days after the
date of enactment of this Act, the Secretary of Homeland
Security, in consultation with the Administrator of General
Services, shall submit to the Committees on Appropriations of
the Senate and the House of Representatives a plan for the
expenditure of these funds.

office of inspector general

For an additional amount for the ``Office of Inspector
General'', $5,000,000, to remain available until September
30, 2010, for oversight and audit of programs, grants, and
projects funded under this title.

U.S. Customs and Border Protection

SALARIES AND EXPENSES

For an additional amount for ``Salaries and Expenses'',
$198,000,000, to remain available until September 30, 2010,
of which $100,800,000 shall be for the procurement and
deployment of non-intrusive inspection systems to improve
port security; and of which $97,200,000 shall be for
procurement and deployment of tactical communications
equipment and radios: Provided, That no later than 45 days
after the date of enactment of this Act, the Secretary of
Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives
a plan for expenditure of these funds.

BORDER SECURITY FENCING, INFRASTRUCTURE, AND TECHNOLOGY

For an additional amount for ``Border Security Fencing,
Infrastructure, and Technology'', $200,000,000, to remain
available until September 30, 2010, for expedited development
and deployment of border security technology on the Southwest
border: Provided, That no later than 45 days after the date
of enactment of this Act, the Secretary of Homeland Security
shall submit to the Committees on Appropriations of the
Senate and the House of Representatives a plan for
expenditure of these funds.

CONSTRUCTION

For an additional amount for ``Construction'',
$800,000,000, to remain available until

[[Page S1140]]

expended, solely for planning, management, design,
alteration, and construction of U.S. Customs and Border
Protection owned land border ports of entry: Provided, That
no later than 45 days after the date of enactment of this
Act, the Secretary of Homeland Security shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives a plan for expenditure of these funds.

U.S. Immigration and Customs Enforcement

automation modernization

For an additional amount for ``Automation Modernization'',
$27,800,000, to remain available until September 30, 2010,
for the procurement and deployment of tactical communications
equipment and radios: Provided, That no later than 45 days
after the date of enactment of this Act, the Secretary of
Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives
a plan for expenditure of these funds.

Transportation Security Administration

Aviation Security

For an additional amount for ``Aviation Security'',
$1,200,000,000, to remain available until September 30, 2010,
for procurement and installation of checked baggage
explosives detection systems and checkpoint explosives
detection equipment: Provided, That no later than 45 days
after the date of enactment of this Act, the Secretary of
Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives
a plan for the expenditure of these funds.

Coast Guard

Acquisition, Construction, and Improvements

For an additional amount for ``Acquisition, Construction,
and Improvements'', $572,500,000, to remain available until
September 30, 2010, of which $255,000,000 shall be for
shortfalls in priority procurements due to materials and
labor cost increases; of which $195,000,000 shall be for
shore facilities and aids to navigation facilities; of which
$87,500,000 shall be for the design of a new polar icebreaker
or the renovation of an existing polar icebreaker, and major
repair and maintenance of existing polar icebreakers; and of
which $35,000,000 shall be for emergency maintenance of the
Coast Guard's high endurance cutters: Provided, That amounts
made available for the activities under this heading shall be
available for all necessary expenses related to the oversight
and management of such activities: Provided further, That no
later than 45 days after the date of enactment of this Act,
the Secretary of Homeland Security shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives a plan for the expenditure of these funds.

Alteration of Bridges

For an additional amount for ``Alteration of Bridges'',
$240,400,000, to remain available until September 30, 2010,
for alteration or removal of obstructive bridges, as
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C.
516): Provided, That no later than 45 days after the date of
enactment of this Act, the Secretary of Homeland Security
shall submit to the Committees on Appropriations of the
Senate and the House of Representatives a plan for the
expenditure of these funds.

Federal Emergency Management Agency

MANAGEMENT AND ADMINISTRATION

For an additional amount for ``Management and
Administration'', $6,000,000 for the acquisition of
communications response vehicles to be deployed in response
to a disaster or a national security event.

STATE AND LOCAL PROGRAMS

For an additional amount for grants, $950,000,000, to be
allocated as follows:
(1) $100,000,000, to remain available until September 30,
2010, for Public Transportation Security Assistance, Railroad
Security Assistance, and Systemwide Amtrak Security Upgrades
under sections 1406, 1513, and 1514 of the Implementing
Recommendations of the 9/11 Commission Act of 2007 (Public
Law 110-53; 6 U.S.C. 1135, 1163, and 1164).
(2) $100,000,000, to remain available until September 30,
2010, for Port Security Grants in accordance with 46 U.S.C.
70107, notwithstanding 46 U.S.C. 70107(c).
(3) $250,000,000, to remain available until September 30,
2010, for upgrading, modifying, or constructing emergency
operations centers under section 614 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act,
notwithstanding section 614(c) of that Act or for upgrading,
modifying, or constructing State and local fusion centers as
defined by section 210A(j)(1) of the Homeland Security Act of
2002 (6 U.S.C. 124h(j)(1)).
(4) $500,000,000 for construction to upgrade or modify
critical infrastructure, as defined in section 1016(e) of the
USA PATRIOT Act of 2001 (42 U.S.C. 5195c(e)), to mitigate
consequences related to potential damage from all-hazards:
Provided, That funds in this paragraph shall remain available
until September 30, 2011: Provided further, That 5 percent
shall be for program administration: Provided further, That
no later than 60 days after the date of enactment of this
Act, the Secretary of Homeland Security shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives a plan for expenditure of these funds.

FIREFIGHTER ASSISTANCE GRANTS

For an additional amount for competitive grants,
$500,000,000, to remain available until September 30, 2010,
for modifying, upgrading, or constructing State and local
fire stations: Provided, That up to 5 percent shall be for
program administration: Provided further, That no grant shall
exceed $15,000,000.

DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

Notwithstanding section 417(b) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, the amount of
any such loan issued pursuant to this section for major
disasters occurring in calendar year 2008 may exceed
$5,000,000, and may be equal to not more than 50 percent of
the annual operating budget of the local government in any
case in which that local government has suffered a loss of 25
percent or more in tax revenues: Provided, That the cost of
modifying such loans shall be as defined in section 502 of
the Congressional Budget Act of 1974 (2 U.S.C. 661a).

EMERGENCY FOOD AND SHELTER

For an additional amount to carry out the emergency food
and shelter program pursuant to title III of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11331 et seq.),
$100,000,000: Provided, That total administrative costs shall
not exceed 3.5 percent of the total amount made available
under this heading.

Federal Law Enforcement Training Center

Acquisition, Construction, Improvements, and Related Expenses

For an additional amount for ``Acquisition, Construction,
Improvements, and Related Expenses'', $15,000,000, to remain
available until September 30, 2010, for security systems and
law enforcement upgrades for all Federal Law Enforcement
Training Center facilities: Provided, That no later than 45
days after the date of enactment of this Act, the Secretary
of Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives
a plan for the expenditure of these funds.

Science and Technology

Research, Development, Acquisition, and Operations

For an additional amount for ``Research, Development,
Acquisition, and Operations'', $14,000,000, to remain
available until September 30, 2010, for cyber security
research: Provided, That no later than 45 days after the date
of enactment of this Act, the Secretary of Homeland Security
shall submit to the Committees on Appropriations of the
Senate and the House of Representatives a plan for the
expenditure of these funds.

GENERAL PROVISIONS--THIS TITLE

Sec. 601. Notwithstanding any other provision of law, the
President shall establish an arbitration panel under the
Federal Emergency Management Agency public assistance program
to expedite the recovery efforts from Hurricanes Katrina,
Rita, Gustav, and Ike within the Gulf Coast Region. The
arbitration panel shall have sufficient authority regarding
the award or denial of disputed public assistance
applications for covered hurricane damage under section 403,
406, or 407 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170b, 5172, or 5173) for
a project the total amount of which is more than $500,000.
Sec. 602. The Administrator of the Federal Emergency
Management Agency may not prohibit or restrict the use of
funds designated under the hazard mitigation grant program
for damage caused by Hurricanes Katrina and Rita if the
homeowner who is an applicant for assistance under such
program commenced work otherwise eligible for hazard
mitigation grant program assistance under section 404 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5170c) without approval in writing from the
Administrator.

TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

Management of Lands and Resources

For an additional amount for ``Management of Lands and
Resources'', $135,000,000, to remain available until
September 30, 2010.

Construction

For an additional amount for ``Construction'',
$180,000,000, to remain available until September 30, 2010.

Wildland Fire Management

For an additional amount for ``Wildland Fire Management'',
$15,000,000, to remain available until September 30, 2010.

United States Fish and Wildlife Service

Resource Management

For an additional amount for ``Resource Management'',
$190,000,000, to remain available until September 30, 2010.

Construction

For an additional amount for ``Construction'',
$110,000,000, to remain available until September 30, 2010.

National Park Service

Operation of the National Park System

For an additional amount for ``Operation of the National
Park System'', $158,000,000, to remain available until
September 30, 2010.

Historic Preservation Fund

For an additional amount for ``Historic Preservation
Fund'', $55,000,000, to remain available until September 30,
2010.

[[Page S1141]]

Construction

For an additional amount for ``Construction'',
$589,000,000, to remain available until September 30, 2010.

United States Geological Survey

Surveys, Investigations, and Research

For an additional amount for ``Surveys, Investigations, and
Research'', $135,000,000, to remain available until September
30, 2010.

Bureau of Indian Affairs

Operation of Indian Programs

For an additional amount for ``Operation of Indian
Programs'', $40,000,000, to remain available until September
30, 2010, of which $20,000,000 shall be for the housing
improvement program.

Construction

For an additional amount for ``Construction'',
$522,000,000, to remain available until September 30, 2010.

Indian Guaranteed Loan Program Account

For an additional amount for ``Indian Guaranteed Loan
Program Account'', $10,000,000, to remain available until
September 30, 2010.

DEPARTMENTAL OFFICES

Insular Affairs

Assistance to Territories

For an additional amount for ``Assistance to Territories'',
$62,000,000, to remain available until September 30, 2010.

Office of Inspector General

Salaries and Expenses

For an additional amount for ``Office of Inspector
General'', $7,600,000, to remain available until September
30, 2010.

Department-wide Programs

Central Hazardous Materials Fund

For an additional amount for ``Central Hazardous Materials
Fund'', $20,000,000, to remain available until September 30,
2010.

Working Capital Fund

For an additional amount for ``Working Capital Fund'',
$20,000,000, to remain available until September 30, 2010.

ENVIROMENTAL PROTECTION AGENCY

Hazardous Substance Superfund

(Including Transfers of Funds)

For an additional amount for ``Hazardous Substance
Superfund'', $800,000,000, to remain available until
September 30, 2010, as a payment from general revenues to the
Hazardous Substance Superfund, to carry out remedial actions:
Provided, That the Administrator may retain up to 2 percent
of the funds appropriated herein for Superfund remedial
actions for program oversight and support purposes, and may
transfer those funds to other accounts as needed.

Leaking Underground Storage Tank Trust Fund Program

For an additional amount for ``Leaking Underground Storage
Tank Trust Fund Program'', $200,000,0000, to remain available
until September 30, 2010, for cleanup activities: Provided,
That none of these funds shall be subject to cost share
requirements.

State and Tribal Assistance Grants

(Including Transfers of Funds)

For an additional amount for ``State and Tribal Assistance
Grants'', $6,400,000,000, to remain available until September
30, 2010, of which $4,000,000,000 shall be for making
capitalization grants for the Clean Water State Revolving
Funds under title VI of the Federal Water Pollution Control
Act, as amended; of which $2,000,000,000 shall be for making
capitalization grants for the Drinking Water State Revolving
Fund under section 1452 of the Safe Drinking Water Act, as
amended; of which $100,000,000 shall be available for
Brownfields remediation grants pursuant to section 104(k)(3)
of the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended; and of which $300,000,000
shall be for Diesel Emission Reduction Act grants pursuant to
title VII, subtitle G of the Energy Policy Act of 2005, as
amended: Provided, That notwithstanding the priority ranking
they would otherwise receive under each program, priority for
funds appropriated herein for the Clean Water State Revolving
Funds and Drinking Water State Revolving Funds (Revolving
Funds) shall be allocated to projects that are ready to
proceed to construction within 180 days of enactment of this
Act: Provided further, That the Administrator of the
Environmental Protection Agency (Administrator) may
reallocate funds appropriated herein for the Revolving Funds
that are not under binding commitments to proceed to
construction within 180 days of enactment of this Act:
Provided further, That notwithstanding any other provision of
law, financial assistance provided from funds appropriated
herein for the Revolving Funds may include additional
subsidization, including forgiveness of principal and
negative interest loans: Provided further, That not less than
15 percent of the funds appropriated herein for the Revolving
Funds shall be designated for green infrastructure, water
efficiency improvements or other environmentally innovative
projects: Provided further, That notwithstanding the
limitation on amounts specified in section 518(c) of the
Federal Water Pollution Control Act, up to a total of 1.5
percent of the funds appropriated herein for the Clean Water
State Revolving Funds may be reserved by the Administrator
for tribal grants under section 518(c) of such Act: Provided
further, That section 1452(k) of the Safe Drinking Water Act
shall not apply to amounts appropriated herein for the
Drinking Water State Revolving Funds: Provided further, That
the Administrator may exceed the 30 percent limitation on
State grants for funds appropriated herein for Diesel
Emission Reduction Act grants if the Administrator determines
such action will expedite allocation of funds: Provided
further, That none of the funds appropriated herein shall be
subject to cost share requirements: Provided further, That
the Administrator may retain up to 0.25 percent of the funds
appropriated herein for the Clean Water State Revolving Funds
and Drinking Water State Revolving Funds and up to 1.5
percent of the funds appropriated herein for the Diesel
Emission Reduction Act grants program for program oversight
and support purposes and may transfer those funds to other
accounts as needed.

DEPARTMENT OF AGRICULTURE

Forest Service

Capital Improvement and Maintenance

For an additional amount for ``Capital Improvement and
Maintenance'', $650,000,000, to remain available until
September 30, 2010, which shall include remediation of
abandoned mine sites and support costs necessary to carry out
this work.

Wildland Fire Management

For an additional amount for ``Wildland Fire Management'',
$650,000,000, to remain available until September 30, 2010,
for hazardous fuels reduction and hazard mitigation
activities in areas at high risk of catastrophic wildfire, of
which $350,000,000 is available for work on State and private
lands using all the authorities available to the Forest
Service: Provided, That of the funds provided for State and
private land fuels reduction activities, up to $50,000,000
may be used to make grants for the purpose of creating
incentives for increased use of biomass from national forest
lands.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Indian Health Service

Indian Health Services

For an additional amount for ``Indian Health Services'',
$135,000,000, to remain available until September 30, 2010,
of which $50,000,000 is for contract health services; and of
which $85,000,000 is for health information technology:
Provided, That the amount made available for health
information technology activities may be used for both
telehealth services development and related infrastructure
requirements that are typically funded through the ``Indian
Health Facilities'' account: Provided further, That
notwithstanding any other provision of law, health
information technology funds provided within this title shall
be allocated at the discretion of the Director of the Indian
Health Service.

Indian Health Facilities

For an additional amount for ``Indian Health Facilities'',
$410,000,000, to remain available until September 30, 2010:
Provided, That for the purposes of this Act, spending caps
included within the annual appropriation for ``Indian Health
Facilities'' for the purchase of medical equipment shall not
apply.

SMITHSONIAN INSTITUTION

Facilities Capital

For an additional amount for ``Facilities Capital'',
$150,000,000, to remain available until September 30, 2010.

GENERAL PROVISIONS--THIS TITLE

Sec. 701. (a) Within 30 days of enactment of this Act, each
agency receiving funds under this title shall submit a
general plan for the expenditure of such funds to the House
and Senate Committees on Appropriations.
(b) Within 90 days of enactment of this Act, each agency
receiving funds under this title shall submit to the
Committees a report containing detailed project level
information associated with the general plan submitted
pursuant to subsection (a).
Sec. 702. In carrying out the work for which funds in this
title are being made available, the Secretary of the Interior
and the Secretary of Agriculture may utilize the Public Lands
Corps, Youth Conservation Corps, Job Corps and other related
partnerships with Federal, State, local, tribal or non-profit
groups that serve young adults.

TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES

DEPARTMENT OF LABOR

Employment and Training Administration

Training and Employment Services

For an additional amount for ``Training and Employment
Services'' for activities authorized by the Workforce
Investment Act of 1998 (``WIA''), $3,250,000,000, which shall
be available on the date of enactment of this Act, as
follows:
(1) $500,000,000 for adult employment and training
activities, including supportive services and needs-related
payments described in section 134(e)(2) and (3) of the WIA:
Provided, That a priority use of these funds shall be
services to individuals described in 134(d)(4)(E) of the WIA;
(2) $1,200,000,000 for grants to the States for youth
activities, including summer employment for youth: Provided,
That no portion of such funds shall be reserved to carry out
section 127(b)(1)(A) of the WIA: Provided further, That for
purposes of section 127(b)(1)(C)(iv) of the WIA, funds
available for youth activities shall be allotted as if the
total amount available for youth activities in the fiscal
year

[[Page S1142]]

does not exceed $1,000,000,000: Provided further, That, with
respect to the youth activities provided with such funds,
section 101(13)(A) of the WIA shall be applied by
substituting ``age 24'' for ``age 21'': Provided further,
That the work readiness performance indicator described in
section 136(b)(2)(A)(ii)(I) of the WIA shall be the only
measure of performance used to assess the effectiveness of
youth activities provided with such funds;
(3) $1,000,000,000 for grants to the States for dislocated
worker employment and training activities;
(4) $200,000,000 for national emergency grants;
(5) $250,000,000 under the dislocated worker national
reserve for a program of competitive grants for worker
training in high growth and emerging industry sectors and
assistance under 132(b)(2)(A) of the WIA: Provided, That the
Secretary of Labor shall give priority when awarding such
grants to projects that prepare workers for careers in energy
efficiency and renewable energy as described in section
171(e)(1)(B) of the WIA and for careers in the health care
sector; and
(6) $100,000,000 for YouthBuild activities as described in
section 173A of the WIA: Provided, That for program years
2008 and 2009, the YouthBuild program may serve an individual
who has dropped out of high school and re-enrolled in an
alternative school, if that re-enrollment is part of a
sequential service strategy:
Provided, That funds made available in this paragraph shall
remain available through June 30, 2010: Provided further,
That a local board may award a contract to an institution of
higher education if the local board determines that it would
facilitate the training of multiple individuals in high-
demand occupations, if such contract does not limit customer
choice.

Community Service Employment for Older Americans

For an additional amount for ``Community Service Employment
for Older Americans'' for carrying out title V of the Older
Americans Act of 1965, $120,000,000, which shall be available
on the date of enactment of this Act and shall remain
available through June 30, 2010: Provided, That funds shall
be allotted within 30 days of such enactment to current
grantees in proportion to their allotment in program year
2008: Provided further, That funds made available under this
heading in this Act may, in accordance with section 517(c) of
the Older Americans Act of 1965, be recaptured and
reobligated.

STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE OPERATIONS

For an additional amount for ``State Unemployment Insurance
and Employment Service Operations'' for grants to States in
accordance with section 6 of the Wagner-Peyser Act,
$400,000,000, which may be expended from the Employment
Security Administration account in the Unemployment Trust
Fund: Provided, That such funds shall be available on the
date of enactment of this Act and remain available to the
States through September 30, 2010: Provided further, That
$250,000,000 of such funds shall be used by States for
reemployment services for unemployment insurance claimants
(including the integrated Employment Service and Unemployment
Insurance information technology required to identify and
serve the needs of such claimants): Provided further, That
the Secretary of Labor shall establish planning and reporting
procedures necessary to provide oversight of funds used for
reemployment services.

Departmental Management

Office of Job Corps

For an additional amount for ``Office of Job Corps'' for
construction, alteration and repairs of buildings and other
facilities, $160,000,000, which shall remain available
through June 30, 2010: Provided, That the Secretary of Labor
may transfer up to 15 percent of such funds to meet the
operational needs of Job Corps Centers, which may include
training for careers in the energy efficiency, renewable
energy, and environmental protection industries: Provided
further, That not later than 90 days after the date of
enactment of this Act, the Secretary shall provide to the
Committee on Appropriations of the House of Representatives
and the Senate an operating plan describing the planned uses
of funds available in this paragraph.

Office of Inspector General

For an additional amount for the ``Office of Inspector
General'', $3,000,000, which shall remain available through
September 30, 2010, for salaries and expenses necessary for
oversight and audit of programs, grants, and projects funded
in this Act and administered by the Department of Labor.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration

HEALTH RESOURCES AND SERVICES

For an additional amount for ``Health Resources and
Services'', $1,088,000,000, which shall remain available
through September 30, 2010, of which $88,000,000 shall be for
necessary expenses related to leasing and renovating a
headquarters building for Public Health Service agencies and
other components of the Department of Health and Human
Services, including renovation and fit-out costs, and of
which $1,000,000,000 shall be for grants for construction,
renovation and equipment for health centers receiving
operating grants under section 330 of the Public Health
Service Act, notwithstanding the limitation in section
330(e)(3).

Centers for Disease Control and Prevention

DISEASE CONTROL, RESEARCH, AND TRAINING

For an additional amount for ``Disease Control, Research,
and Training'' for acquisition of real property, equipment,
construction, and renovation of facilities, including
necessary repairs and improvements to leased laboratories,
$412,000,000, which shall remain available through September
30, 2010: Provided, That notwithstanding any other provision
of law, the Centers for Disease Control and Prevention may
award a single contract or related contracts for development
and construction of facilities that collectively include the
full scope of the project: Provided further, That the
solicitation and contract shall contain the clause
``availability of funds'' found at 48 CFR 52.232-18.

National Institutes of Health

National Center for Research Resources

For an additional amount for ``National Center for Research
Resources'', $300,000,000, which shall be available through
September 30, 2010, for shared instrumentation and other
capital research equipment.

Office of the Director

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Office of the Director'',
$2,700,000,000, which shall be available through September
30, 2010: Provided, That $1,350,000,000 shall be transferred
to the Institutes and Centers of the National Institutes of
Health and to the Common Fund established under section
402A(c)(1) of the Public Health Service Act in proportion to
the appropriations otherwise made to such Institutes,
Centers, and Common Fund for fiscal year 2009: Provided
further, That these funds shall be used to support additional
scientific research and shall be merged with and be available
for the same purposes as the appropriation or fund to which
transferred: Provided further, That this transfer authority
is in addition to any other transfer authority available to
the National Institutes of Health: Provided further, That
none of these funds may be transferred to ``National
Institutes of Health--Buildings and Facilities'', the Center
for Scientific Review, the Center for Information Technology,
the Clinical Center, the Global Fund for HIV/AIDS,
Tuberculosis and Malaria, or the Office of the Director
(except for the transfer to the Common Fund).

Buildings and Facilities

For an additional amount for ``Buildings and Facilities'',
$500,000,000, which shall be available through September 30,
2010, to fund high-priority repair, construction and
improvement projects for National Institutes of Health
facilities on the Bethesda, Maryland campus and other agency
locations.

Agency for Healthcare Research and Quality

HEALTHCARE RESEARCH AND QUALITY

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Healthcare Research and
Quality'' to carry out titles III and IX of the Public Health
Service Act, part A of title XI of the Social Security Act,
and section 1013 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003, $700,000,000 for
comparative clinical effectiveness research, which shall
remain available through September 30, 2010: Provided, That
of the amount appropriated in this paragraph, $400,000,000
shall be transferred to the Office of the Director of the
National Institutes of Health (``Office of the Director'') to
conduct or support comparative clinical effectiveness
research under section 301 and title IV of the Public Health
Service Act: Provided further, That funds transferred to the
Office of the Director may be transferred to the Institutes
and Centers of the National Institutes of Health and to the
Common Fund established under section 402A(c)(1) of the
Public Health Service Act: Provided further, That this
transfer authority is in addition to any other transfer
authority available to the National Institutes of Health:
Provided further, That within the amount available in this
paragraph for the Agency for Healthcare Research and Quality,
not more than 1 percent shall be made available for
additional full-time equivalents.
In addition, $400,000,000 shall be available for
comparative clinical effectiveness research to be allocated
at the discretion of the Secretary of Health and Human
Services (``Secretary'') and shall remain available through
September 30, 2010: Provided, That the funding appropriated
in this paragraph shall be used to accelerate the development
and dissemination of research assessing the comparative
clinical effectiveness of health care treatments and
strategies, including through efforts that: (1) conduct,
support, or synthesize research that compares the clinical
outcomes, effectiveness, and appropriateness of items,
services, and procedures that are used to prevent, diagnose,
or treat diseases, disorders, and other health conditions and
(2) encourage the development and use of clinical registries,
clinical data networks, and other forms of electronic health
data that can be used to generate or obtain outcomes data:
Provided further, That the Secretary shall enter into a
contract with the Institute of Medicine, for which no more

[[Page S1143]]

than $1,500,000 shall be made available from funds provided
in this paragraph, to produce and submit a report to the
Congress and the Secretary by not later than June 30, 2009
that includes recommendations on the national priorities for
comparative clinical effectiveness research to be conducted
or supported with the funds provided in this paragraph and
that considers input from stakeholders: Provided further,
That the Secretary shall consider any recommendations of the
Federal Coordinating Council for Comparative Clinical
Effectiveness Research established by section 802 of this Act
and any recommendations included in the Institute of Medicine
report pursuant to the preceding proviso in designating
activities to receive funds provided in this paragraph and
may make grants and contracts with appropriate entities,
which may include agencies within the Department of Health
and Human Services and other governmental agencies, as well
as private sector entities, that have demonstrated experience
and capacity to achieve the goals of comparative clinical
effectiveness research: Provided further, That the Secretary
shall publish information on grants and contracts awarded
with the funds provided under this heading within a
reasonable time of the obligation of funds for such grants
and contracts and shall disseminate research findings from
such grants and contracts to clinicians, patients, and the
general public, as appropriate: Provided further, That, to
the extent feasible, the Secretary shall ensure that the
recipients of the funds provided by this paragraph offer an
opportunity for public comment on the research: Provided
further, That the Secretary shall provide the Committees on
Appropriations of the House of Representatives and the
Senate, the Committee on Energy and Commerce and the
Committee on Ways and Means of the House of Representatives,
and the Committee on Health, Education, Labor, and Pensions
and the Committee on Finance of the Senate with an annual
report on the research conducted or supported through the
funds provided under this heading.

Administration for Children and Families

PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT BLOCK GRANT

For an additional amount for ``Payments to States for the
Child Care and Development Block Grant'' for carrying out the
Child Care and Development Block Grant Act of 1990,
$2,000,000,000, which shall remain available through
September 30, 2010: Provided, That funds provided under this
heading shall be used to supplement, not supplant State
general revenue funds for child care assistance for low-
income families: Provided further, That, in addition to the
amounts required to be reserved by the States under section
658G of such Act, $255,186,000 shall be reserved by the
States for activities authorized under section 658G, of which
$93,587,000 shall be for activities that improve the quality
of infant and toddler care.

SOCIAL SERVICES BLOCK GRANT

For an additional amount for ``Social Services Block
Grant,'' $400,000,000: Provided, That notwithstanding section
2003 of the Social Security Act, funds shall be allocated to
States on the basis of unemployment: Provided further, That
these funds shall be obligated to States within 60 calendar
days from the date they become available for obligation.

CHILDREN AND FAMILIES SERVICES PROGRAMS

For an additional amount for ``Children and Families
Services Programs'' for carrying out activities under the
Head Start Act, $1,000,000,000, which shall remain available
through September 30, 2010. In addition, $1,100,000,000,
which shall remain available through September 30, 2010, is
hereby appropriated for expansion of Early Head Start
programs, as described in section 645A of such Act: Provided,
That of the funds provided in this sentence, up to 10 percent
shall be available for the provision of training and
technical assistance to such programs consistent with section
645A(g)(2) of such Act, and up to 3 percent shall be
available for monitoring the operation of such programs
consistent with section 641A of such Act.
For an additional amount for ``Children and Families
Services Programs'' for carrying out activities under
sections 674 through 679 of the Community Services Block
Grant Act, $200,000,000, which shall remain available through
September 30, 2010: Provided, That of the funds provided
under this paragraph, no part shall be subject to paragraph
(3) of section 674(b) of such Act: Provided further, That not
less than 5 percent of the funds allotted to a State from the
appropriation under this paragraph shall be used under
section 675C(b)(1) for benefits enrollment coordination
activities relating to the identification and enrollment of
eligible individuals and families in Federal, State and local
benefit programs.

Administration on Aging

AGING SERVICES PROGRAMS

For an additional amount for ``Aging Services Programs,''
$100,000,000, of which $67,000,000 shall be for Congregate
Nutrition Services and $33,000,000 shall be for Home-
Delivered Nutrition Services: Provided, That these funds
shall remain available through September 30, 2010.

Office of the Secretary

office of the national coordinator for health information technology

(including transfer of funds)

For an additional amount for ``Office of the National
Coordinator for Health Information Technology'',
$5,000,000,000, to carry out title XIII of this Act which
shall be available until expended: Provided, That of this
amount, the Secretary of Health and Human Services shall
transfer $20,000,000 to the Director of the National
Institute of Standards and Technology in the Department of
Commerce for continued work on advancing health care
information enterprise integration through activities such as
technical standards analysis and establishment of conformance
testing infrastructure so long as such activities are
coordinated with the Office of the National Coordinator for
Health Information Technology: Provided further, That funds
available under this heading shall become available for
obligation only upon submission of an annual operating plan
by the Secretary to the Committees on Appropriations of the
House of Representatives and the Senate: Provided further,
That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate
a report on the actual obligations, expenditures, and
unobligated balances for each major set of activities not
later than November 1, 2009 and every 6 months thereafter as
long as funding under this heading is available for
obligation or expenditure.

OFFICE OF THE INSPECTOR GENERAL

For an additional amount for the Office of the Inspector
General, $4,000,000 which shall remain available until
September 30, 2011.

Public Health and Social Services Emergency Fund

(Including Transfer of Funds)

For an additional amount for the ``Public Health and Social
Services Emergency Fund'' to carry out a program of grants,
contracts, and cooperative agreements to fund projects and
activities to reduce the incidence or severity of preventable
disabilities, diseases and conditions and to invest in health
workforce training, $5,800,000,000, to remain available
through September 30, 2011: Provided, That the amount made
available in this paragraph may be transferred to another
appropriation account of the Department of Health and Human
Services (``HHS''), as determined by the Secretary of Health
and Human Services to be appropriate and upon notification of
the Committees on Appropriations of the House of
Representatives and the Senate, to be used for the purposes
specified in this paragraph, and the provisos of this
paragraph shall apply to any funds so transferred: Provided
further, That of the amount provided in this paragraph, not
less than $1,000,000,000 shall be transferred to the Centers
for Disease Control and Prevention (``CDC'') as an additional
amount for screening activities related to preventable
disabilities and chronic diseases and conditions, including
counseling to prevent and mitigate the precursors of those
disorders: Provided further, That of the amount provided in
this paragraph, not less than $750,000,000 shall be
transferred to the CDC as an additional amount to carry out
the immunization program authorized by section 317(a), (j),
and (k)(1) of the Public Health Service Act (``PHS Act''):
Provided further, That of the amount provided in this
paragraph, not less than $600,000,000 shall be transferred to
the Health Resources and Services Administration as an
additional amount to address health professions workforce
shortages through scholarships, loan repayment, grants to
training programs for equipment and activities to foster
cross-state licensure agreements, authorized under sections
330 through 338, 737, 738, and 846 of the PHS Act, of which
$200,000,000 shall be available until expended for extending
service contracts and the recapture and reallocation of funds
in the event that a participant fails to fulfill their term
of service: Provided further, That of the amount provided in
this paragraph, $400,000,000 shall be transferred to the CDC
as an additional amount for the Healthy Communities program,
which shall be used for multi-year awards: Provided further,
That of the amount provided in this paragraph, not less than
$60,000,000 shall be made available for additional research,
data collection and surveys relating to prevention science
and the current state of health, including equipment:
Provided further, That of the amount provided in this
paragraph, $40,000,000 shall be transferred to the CDC for
information technology improvements to vital statistics
record systems, including grants to State health departments
for equipment: Provided further, That of the amount provided
in this paragraph, $15,000,000 shall be made available for
grants to States for equipment and maintenance related to
newborn screening: Provided further, That not less than 1
percent of the amount provided in this paragraph shall be
available for evaluation of the activities supported by the
amounts provided in this paragraph: Provided further, That up
to 1 percent of amounts made available in this paragraph may
be used for administrative expenses in the office or division
of HHS administering the funds: Provided further, That the
transfers required by this paragraph shall be completed
within 30 days of enactment of this Act: Provided further,
That the Secretary shall submit reports to the Committees on
Appropriations of the House of Representatives and the Senate
detailing the following information on the amounts
appropriated in this paragraph: (1) an operating plan
detailing activities to be supported and timelines for
expenditure, to be submitted no later than 120 days after the
enactment of this Act; (2) 15 day prior notification of any
funds

[[Page S1144]]

to be obligated prior to the submission of the operating
plan; (3) an obligation and expenditure report to be
submitted quarterly until all funds are fully expended; (4) a
briefing 15 days prior to any new grant solicitation; (5) an
evaluation plan that details the manner in which the
Secretary intends to evaluate the outcomes of activities
supported, to be submitted 120 days after enactment of this
Act; (6) an outcomes report on all activities supported, to
be submitted 1 year after enactment and every 6 months
thereafter until all funds have been expended; and (7) a
report on best practices to be submitted 18 months after
enactment and every 6 months thereafter until all funds have
been expended.
For an additional amount for the ``Public Health and Social
Services Emergency Fund'' to prepare for and respond to an
influenza pandemic, $870,000,000, for activities including
the development and purchase of vaccine, antivirals,
necessary medical supplies, diagnostics, and other
surveillance tools which shall be available until expended:
Provided, That products purchased with these funds may, at
the discretion of the Secretary, be deposited in the
Strategic National Stockpile: Provided further, That
notwithstanding section 496(b) of the Public Health Service
Act, funds may be used for the construction or renovation of
privately owned facilities for the production of pandemic
influenza vaccines and other biologics, where the Secretary
finds such a contract necessary to secure sufficient supplies
of such vaccines or biologics: Provided further, That funds
appropriated herein may be transferred to other appropriation
accounts of the Department of Health and Human Services, as
determined by the Secretary to be appropriate, to be used for
the purposes specified in this sentence.

DEPARTMENT OF EDUCATION

Education for the Disadvantaged

For an additional amount for carrying out title I of the
Elementary and Secondary Education Act of 1965,
$13,000,000,000, which shall be available through September
30, 2010: Provided, That $5,500,000,000 shall be for targeted
grants under section 1125, $5,500,000,000 shall be for
education finance incentive grants under section 1125A, and
$2,000,000,000 shall be for school improvement grants under
section 1003(g): Provided further, That each local
educational agency receiving funds available under this
paragraph for sections 1125 and 1125A shall use not less than
15 percent of such funds for activities serving children who
are eligible pursuant to section 1115(b)(1)(A)(ii) and
programs in section 1112(b)(1)(K): Provided further, That
each local educational agency receiving funds available under
this paragraph shall be required to file with the State
educational agency, no later than December 1, 2009, a school-
by-school listing of per-pupil educational expenditures from
State and local sources during the 2008-2009 academic year.

School Improvement Programs

For an additional amount for ``School Improvement
Programs,'' $17,070,000,000, which shall be available through
September 30, 2010, for carrying out activities authorized by
part D of title II of the Elementary and Secondary Education
Act of 1965, subtitle B of title VII of the McKinney-Vento
Homeless Assistance Act (``McKinney-Vento''), and section 804
of this Act: Provided, That the Secretary shall allot
$70,000,000 for grants under McKinney-Vento to each State in
proportion to the number of homeless students identified by
the State during the 2007-2008 school year relative to the
number of such children identified nationally during that
school year: Provided further, That State educational
agencies shall subgrant the McKinney-Vento funds to local
educational agencies on a competitive basis or according to a
formula based on the number of homeless students identified
by the local educational agencies in the State: Provided
further, That the Secretary shall distribute the McKinney-
Vento funds to the States not later than 60 days after the
date of the enactment of this Act: Provided further, That
each State shall subgrant the McKinney-Vento funds to local
educational agencies not later than 120 days after receiving
its grant from the Secretary.

Special Education

For an additional amount for ``Special Education'' for
carrying out parts B and C of the Individuals with
Disabilities Education Act (``IDEA''), $13,500,000,000, which
shall remain available through September 30, 2010: Provided,
That if every State, as defined by section 602(31) of the
IDEA, reaches its maximum allocation under section
611(d)(3)(B)(iii) of the IDEA, and there are remaining funds,
such funds shall be proportionally allocated to each State
subject to the maximum amounts contained in section 611(a)(2)
of the IDEA: Provided further, That by July 1, 2009, the
Secretary of Education shall reserve the amount needed for
grants under section 643(e) of the IDEA, with any remaining
funds to be allocated in accordance with section 643(c) of
the IDEA: Provided further, That the amount for section
611(b)(2) of the IDEA shall be equal to the lesser of the
amount available for that activity during fiscal year 2008,
increased by the amount of inflation as specified in section
619(d)(2)(B), or the percentage increase in the funds
appropriated under section 611(i): Provided further, That
each local educational agency receiving funds available under
this paragraph for part B shall use not less than 15 percent
for special education and related services to children
described in section 619(a) of the IDEA.

Rehabilitation Services and Disability Research

For an additional amount for ``Rehabilitation Services and
Disability Research'' for providing grants to States to carry
out the Vocational Rehabilitation Services program under part
B of title I and parts B and C of chapter 1 and chapter 2 of
title VII of the Rehabilitation Act of 1973, $610,000,000,
which shall remain available through September 30, 2010:
Provided, That $500,000,000 shall be available for part B of
title I of the Rehabilitation Act: Provided further, That
funds provided herein shall not be considered in determining
the amount required to be appropriated under section
100(b)(1) of the Rehabilitation Act of 1973 in any fiscal
year: Provided further, That, notwithstanding section
7(14)(A), the Federal share of the costs of vocational
rehabilitation services provided with the funds provided
herein shall be 100 percent.

Student Financial Assistance

For an additional amount for ``Student Financial
Assistance'' to carry out subpart 1 of part A of title IV of
the Higher Education Act of 1965, $13,869,000,000: Provided,
That such funds shall be used to increase the maximum Pell
Grant by $281 for award year 2009-2010, to increase the
maximum Pell Grant by $400 for the award year 2010-2011, and
to reduce or eliminate the Pell Grant shortfall: Provided
further, That these funds shall remain available through
September 30, 2011.
For an additional amount for ``Student Financial
Assistance'' to carry out part E of title IV of the Higher
Education Act of 1965, $61,000,000: Provided, That these
funds shall remain available through September 30, 2010.

Higher Education

For an additional amount for ``Higher Education'' for
carrying out activities under part A of title II of the
Higher Education Act of 1965, $100,000,000: Provided, That
these funds shall remain available through September 30,
2010.

Higher Education Facilities

For carrying out activities authorized under section 803 of
this Act, $3,500,000,000: Provided, That these funds shall
remain available through September 30, 2010.

Departmental Management

Office of the Inspector General

For an additional amount for the ``Office of the Inspector
General'', $4,000,000, which shall remain available through
September 30, 2012, for salaries and expenses necessary for
oversight and audit of programs, grants, and projects funded
in this Act and administered by the Department of Education.

RELATED AGENCIES

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

Operating Expenses

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Operating Expenses'' to
carry out the Domestic Volunteer Service Act of 1973 (``1973
Act'') and the National and Community Service Act of 1990
(``1990 Act''), $160,000,000, to remain available through
September 30, 2010: Provided, That funds made available in
this paragraph may be used to provide adjustments to awards
under subtitle C of title I of the 1990 Act made prior to
September 30, 2010 for which the Chief Executive Officer of
the Corporation for National and Community Service (``CEO'')
determines that a waiver of the Federal share limitation is
warranted under section 2521.70 of title 45 of the Code of
Federal Regulations: Provided further, That of the amount
made available in this paragraph, not less than $6,000,000
shall be transferred to ``Salaries and Expenses'' for
necessary expenses relating to information technology
upgrades: Provided further, That of the amount provided in
this paragraph, $10,000,000 shall be available for additional
members in the Civilian Community Corps authorized under
subtitle E of title I of the 1990 Act: Provided further, That
of the amount provided in this paragraph, $1,000,000 shall be
made available for a one-time supplement grant to State
commissions on national and community service under section
126(a) of the 1990 Act without regard to the limitation on
Federal share under section 126(a)(2) of the 1990 Act:
Provided further, That of the amount made available in this
paragraph, not less than $13,000,000 shall be for research
activities authorized under subtitle H of title I of the 1990
Act: Provided further, That of the amount made available in
this paragraph, not less than $65,000,000 shall be for
programs under title I, part A of the 1973 Act: Provided
further, That funds provided in the previous proviso shall
not be made available in connection with cost-share
agreements authorized under section 192A(g)(10) of the 1990
Act: Provided further, That of the funds available under this
heading, up to 20 percent of funds allocated to grants
authorized under section 124(b) of title I, subtitle C of the
1990 Act may be used to administer, reimburse, or support any
national service program under section 129(d)(2) of the 1990
Act: Provided further, That, except as provided herein and in
addition to requirements identified herein, funds provided in
this paragraph shall be subject to the terms and conditions
under which funds were appropriated in fiscal year 2008:
Provided further, That the CEO shall provide the Committees
on Appropriations of the House of Representatives and the
Senate a fiscal year 2009 operating plan for the funds
appropriated in this paragraph prior to making

[[Page S1145]]

any Federal obligations of such funds in fiscal year 2009,
but not later than 90 days after the date of enactment of
this Act, and a fiscal year 2010 operating plan for such
funds prior to making any Federal obligations of such funds
in fiscal year 2010, but not later than November 1, 2009,
that detail the allocation of resources and the increased
number of members supported by the AmeriCorps programs:
Provided further, That the CEO shall provide to the
Committees on Appropriations of the House of Representatives
and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity
funded under this heading not later than November 1, 2009,
and every 6 months thereafter as long as funding provided
under this heading is available for obligation or
expenditure.

National Service Trust

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``National Service Trust''
established under subtitle D of title I of the National and
Community Service Act of 1990 (``1990 Act''), $40,000,000,
which shall remain available until expended: Provided, That
the Corporation for National and Community Service may
transfer additional funds from the amount provided within
``Operating Expenses'' for grants made under subtitle C of
title I of the 1990 Act to this appropriation upon
determination that such transfer is necessary to support the
activities of national service participants and after notice
is transmitted to the Committees on Appropriations of the
House of Representatives and the Senate: Provided further,
That the amount appropriated for or transferred to the
National Service Trust may be invested under section 145(b)
of the 1990 Act without regard to the requirement to
apportion funds under 31 U.S.C. 1513(b).

SOCIAL SECURITY ADMINISTRATION

Limitation on Administrative Expenses

(Including Transfer of Funds)

For an additional amount for ``Limitation on Administrative
Expenses'', $890,000,000 shall be available as follows:
(1) $750,000,000 shall remain available until expended for
necessary expenses of the replacement of the National
Computer Center and the information technology costs
associated with such Center: Provided, That the Commissioner
of Social Security shall notify the Committees on
Appropriations of the House of Representatives and the Senate
not later than 10 days prior to each public notice soliciting
bids related to site selection and construction: Provided
further, That unobligated balances of funds not needed for
this purpose may be used as described in subparagraph (2);
and
(2) $140,000,000 shall be available through September 30,
2010 for information technology acquisitions and research,
which may include research and activities to facilitate the
adoption of electronic medical records in disability claims
and the transfer of funds to ``Supplemental Security Income''
to carry out activities under section 1110 of the Social
Security Act: Provided further, That not later than 10 days
prior to the obligation of such funds, the Commissioner shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate an operating plan describing
the planned uses of such funds.

Office of Inspector General

For an additional amount for the ``Office of Inspector
General'', $3,000,000, which shall remain available through
September 30, 2012, for salaries and expenses necessary for
oversight and audit of programs, projects, and activities
funded in this Act and administered by the Social Security
Administration.

GENERAL PROVISIONS--THIS TITLE

Sec. 801. Report on the Impact of Past and Future Minimum
Wage Increases. (a) In General.--Section 8104 of the U.S.
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007 (Public Law 110-28;
121 Stat. 189) is amended to read as follows:

``SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM
WAGE INCREASES.

``(a) Study.--Beginning on the date that is 60 days after
the date of enactment of this Act, and every year thereafter
until the minimum wage in the respective territory is $7.25
per hour, the Government Accountability Office shall conduct
a study to--
``(1) assess the impact of the minimum wage increases that
occurred in American Samoa and the Commonwealth of the
Northern Mariana Islands in 2007 and 2008, as required under
Public Law 110-28, on the rates of employment and the living
standards of workers, with full consideration of the other
factors that impact rates of employment and the living
standards of workers such as inflation in the cost of food,
energy, and other commodities; and
``(2) estimate the impact of any further wage increases on
rates of employment and the living standards of workers in
American Samoa and the Commonwealth of the Northern Mariana
Islands, with full consideration of the other factors that
may impact the rates of employment and the living standards
of workers, including assessing how the profitability of
major private sector firms may be impacted by wage increases
in comparison to other factors such as energy costs and the
value of tax benefits.
``(b) Report.--No earlier than March 15, 2009, and not
later than April 15, 2009, the Government Accountability
Office shall transmit its first report to Congress concerning
the findings of the study required under subsection (a). The
Government Accountability Office shall transmit any
subsequent reports to Congress concerning the findings of a
study required by subsection (a) between March 15 and April
15 of each year.
``(c) Economic Information.--To provide sufficient economic
data for the conduct of the study under subsection (a)--
``(1) the Department of Labor shall include and separately
report on American Samoa and the Commonwealth of the Northern
Mariana Islands in its household surveys and establishment
surveys;
``(2) the Bureau of Economic Analysis of the Department of
Commerce shall include and separately report on American
Samoa and the Commonwealth of the Northern Mariana Islands in
its gross domestic product data; and
``(3) the Bureau of the Census of the Department of
Commerce shall include and separately report on American
Samoa and the Commonwealth of the Northern Mariana Islands in
its population estimates and demographic profiles from the
American Community Survey,

with the same regularity and to the same extent as the
Department or each Bureau collects and reports such data for
the 50 States. In the event that the inclusion of American
Samoa and the Commonwealth of the Northern Mariana Islands in
such surveys and data compilations requires time to structure
and implement, the Department of Labor, the Bureau of
Economic Analysis, and the Bureau of the Census (as the case
may be) shall in the interim annually report the best
available data that can feasibly be secured with respect to
such territories. Such interim reports shall describe the
steps the Department or the respective Bureau will take to
improve future data collection in the territories to achieve
comparability with the data collected in the United States.
The Department of Labor, the Bureau of Economic Analysis, and
the Bureau of the Census, together with the Department of the
Interior, shall coordinate their efforts to achieve such
improvements.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of enactment of this Act.
Sec. 802. Federal Coordinating Council for Comparative
Clinical Effectiveness Research. (a) Establishment.--There is
hereby established a Federal Coordinating Council for
Comparative Clinical Effectiveness Research (in this section
referred to as the ``Council'').
(b) Purpose; Duties.--The Council shall--
(1) assist the offices and agencies of the Federal
Government, including the Departments of Health and Human
Services, Veterans Affairs, and Defense, and other Federal
departments or agencies, to coordinate the conduct or support
of comparative clinical effectiveness and related health
services research; and
(2) advise the President and Congress on--
(A) strategies with respect to the infrastructure needs of
comparative clinical effectiveness research within the
Federal Government;
(B) appropriate organizational expenditures for comparative
clinical effectiveness research by relevant Federal
departments and agencies; and
(C) opportunities to assure optimum coordination of
comparative clinical effectiveness and related health
services research conducted or supported by relevant Federal
departments and agencies, with the goal of reducing
duplicative efforts and encouraging coordinated and
complementary use of resources.
(c) Membership.--
(1) Number and appointment.--The Council shall be composed
of not more than 15 members, all of whom are senior Federal
officers or employees with responsibility for health-related
programs, appointed by the President, acting through the
Secretary of Health and Human Services (in this section
referred to as the ``Secretary''). Members shall first be
appointed to the Council not later than 30 days after the
date of the enactment of this Act.
(2) Members.--
(A) In general.--The members of the Council shall include
one senior officer or employee from each of the following
agencies:
(i) The Agency for Healthcare Research and Quality.
(ii) The Centers for Medicare and Medicaid Services.
(iii) The National Institutes of Health.
(iv) The Office of the National Coordinator for Health
Information Technology.
(v) The Food and Drug Administration.
(vi) The Veterans Health Administration within the
Department of Veterans Affairs.
(vii) The office within the Department of Defense
responsible for management of the Department of Defense
Military Health Care System.
(B) Qualifications.--At least half of the members of the
Council shall be physicians or other experts with clinical
expertise.
(3) Chairman; vice chairman.--The Secretary shall serve as
Chairman of the Council and shall designate a member to serve
as Vice Chairman.
(d) Reports.--
(1) Initial report.--Not later than June 30, 2009, the
Council shall submit to the President and the Congress a
report containing information describing Federal activities
on comparative clinical effectiveness

[[Page S1146]]

research and recommendations for additional investments in
such research conducted or supported from funds made
available for allotment by the Secretary for comparative
clinical effectiveness research in this Act.
(2) Annual report.--The Council shall submit to the
President and Congress an annual report regarding its
activities and recommendations concerning the infrastructure
needs, appropriate organizational expenditures and
opportunities for better coordination of comparative clinical
effectiveness research by relevant Federal departments and
agencies.
(e) Staffing; Support.--From funds made available for
allotment by the Secretary for comparative clinical
effectiveness research in this Act, the Secretary shall make
available not more than 1 percent to the Council for staff
and administrative support.
Sec. 803. Higher Education Modernization, Renovation, and
Repair. (a) Purpose.--Grants awarded under this section shall
be for the purpose of modernizing, renovating, and repairing
institution of higher education facilities that are primarily
used for instruction and research.
Funds may also be used for leasing, purchasing or upgrading
equipment, designed to strengthen and support academic and
technical skill achievement.
(b) Grants to State Higher Education Agencies.--
(1) Formula.--From the amounts appropriated to carry out
this section, the Secretary of Education shall allocate funds
to State higher education agencies based on the number of
students attending institutions of higher education, with the
State higher education agency in each State receiving an
amount that is in proportion to the number of full-time
equivalent undergraduate students attending institutions of
higher education in such State for the most recent fiscal
year for which there are data available, relative to the
total number of full-time equivalent undergraduate students
attending institutions of higher education in all States for
such fiscal year.
(2) Application.--To be eligible to receive an allocation
from the Secretary under paragraph (1), a State higher
education agency shall submit an application to the Secretary
at such time and in such manner as the Secretary may
reasonably require.
(3) Reallocation.--Amounts allocated to a State higher
education agency under this section that are not obligated by
such agency within 12 months of the date the agency receives
such amounts shall be returned to the Secretary, and the
Secretary shall reallocate such amounts to State higher
education agencies in other States on the same basis as the
original allocations under paragraph (1).
(4) Administration and oversight expenses.--From the
amounts appropriated to carry out this section, not more than
$3,000,000 shall be available to the Secretary for
administrative and oversight expenses related to carrying out
this section.
(c) Use of Grants by State Higher Education Agencies.--
(1) Subgrants to institutions of higher education.--
(A) In general.--Except as provided in paragraph (2), each
State higher education agency receiving an allocation under
subsection (b)(1) shall use the amount allocated to award
subgrants to institutions of higher education within the
State to carry out projects in accordance with subsection
(d)(1).
(B) Subgrant award allocation.--A State higher education
agency shall award subgrants to institutions of higher
education under this section based on the demonstrated need
of each institution for facility modernization, renovation,
repair, and equipment.
(C) Community colleges.--Notwithstanding, subparagraph (B),
the percentage of funds allocated to community colleges in
each State shall be no less than the percentage of full-time
equivalent students attending community colleges relative to
the total number of full-time equivalent undergraduate
students attending public institutions of higher education in
the State.
(D) Priority considerations.--In awarding subgrants under
this section, each State higher education agency shall give
priority consideration to institutions of higher education
with any of the following characteristics:
(i) The institution is eligible for Federal assistance
under title III or title V of the Higher Education Act of
1965.
(ii) The institution was impacted by a major disaster or
emergency declared by the President (as defined in section
102(2) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122(2))), including an
institution affected by a Gulf hurricane disaster, as such
term is defined in section 824(g)(1) of the Higher Education
Act of 1965 (20 U.S.C. 11611-3(g)(1)).
(iii) The institution demonstrates that the proposed
project or projects to be carried out with a subgrant under
this section will increase the energy efficiency of the
institution's facilities and comply with the LEED Green
Building Rating System.
(2) Administrative and oversight expenses.--Of the
allocation amount received under subsection (b)(1), a State
higher education agency may reserve not more than 5 percent
of such amount, or $500,000, whichever is less, for
administrative and oversight expenses related to carrying out
this section.
(d) Use of Subgrants by Institutions of Higher Education.--
(1) Permissible uses of funds.--An institution of higher
education receiving a subgrant under this section shall use
such subgrant to modernize, renovate, or repair facilities of
the institution that are primarily used for instruction,
research, or student housing, which may include any of the
following:
(A) Repair, replacement, or installation of roofs,
electrical wiring, plumbing systems, sewage systems, or
lighting systems.
(B) Repair, replacement, or installation of heating,
ventilation, or air conditioning systems (including
insulation).
(C) Compliance with fire and safety codes, including--
(i) professional installation of fire or life safety
alarms; and
(ii) modernizations, renovations, and repairs that ensure
that the institution's facilities are prepared for
emergencies, such as improving building infrastructure to
accommodate security measures.
(D) Retrofitting necessary to increase the energy
efficiency of the institution's facilities.
(E) Renovations to the institution's facilities necessary
to comply with accessibility requirements in the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794).
(F) Abatement or removal of asbestos from the institution's
facilities.
(G) Modernization, renovation, and repair relating to
improving science and engineering laboratories, libraries,
and instructional facilities.
(H) Upgrading or installation of educational technology
infrastructure.
(I) Installation or upgrading of renewable energy
generation and heating systems, including solar,
photovoltaic, wind, biomass (including wood pellet), or
geothermal systems, or components of such systems.
(J) Other modernization, renovation, or repair projects or
purchase of equipment that are primarily for instruction or
research.
(2) Prohibited uses of funds.--No funds awarded under this
section may be used for--
(A) the maintenance of systems, equipment, or facilities,
including maintenance associated with any permissible uses of
funds described in paragraph (1);
(B) modernization, renovation, or repair of stadiums or
other facilities primarily used for athletic contests or
exhibitions or other events for which admission is charged to
the general public;
(C) modernization, renovation, or repair of facilities--
(i) used for sectarian instruction, religious worship, or a
school or department of divinity; or
(ii) in which a substantial portion of the functions of the
facilities are subsumed in a religious mission; or
(D) construction of new facilities.
(e) Application of GEPA.--The grant program authorized in
this section is an applicable program (as that term is
defined in section 400 of the General Education Provisions
Act (20 U.S.C. 1221)) subject to section 439 of such Act (20
U.S.C. 1232b). The Secretary shall, notwithstanding section
437 of such Act (20 U.S.C. 1232) and section 553 of title 5,
United States Code, establish such program rules as may be
necessary to implement such grant program by notice in the
Federal Register.
(f) Reporting.--
(1) Reports by institutions.--Not later than September 30,
2011, each institution of higher education receiving a
subgrant under this section shall submit to the State higher
education agency awarding such subgrant a report describing
the projects for which such subgrant was received,
including--
(A) a description of each project carried out, or planned
to be carried out, with such subgrant, including the types of
modernization, renovation, and repair to be completed by each
such project;
(B) the total amount of funds received by the institution
under this section and the amount of such funds expended, as
of the date of the report, on the such projects;
(C) the actual or planned cost of each such project and any
demonstrable or expected academic, energy, or environmental
benefits resulting from such project; and
(D) the total number of contracts, and amount of funding
for such contracts, awarded by the institution to carry out
such projects, as of the date of such report, including the
number of contracts, and amount of funding for such
contracts, awarded to local, small, minority-owned, women-
owned, and veteran-owned businesses, as such terms are
defined by the Small Business Act.
(2) Reports by states.--Not later than December 31, 2011,
each State higher education agency receiving a grant under
this section shall submit to the Secretary a report
containing a compilation of all of the reports under
paragraph (1) submitted to the agency by institutions of
higher education.
(3) Reports by the secretary.--Not later than March 31,
2012, the Secretary shall submit to the Committee on
Education and Labor in the House of Representatives and the
Committee on Health, Education, Labor, and Pensions in the
Senate and Committees on Appropriations of the House of
Representatives and the Senate a report on grants and
subgrants made under this section, including the information
described in paragraph (1).
(g) Definitions.--In this section:
(1) Institution of higher education.--The term
``institution of higher education'' has

[[Page S1147]]

the meaning given such term in section 101 of the Higher
Education Act of 1965.
(2) LEED green building rating system.--The term ``LEED
Green Building Rating System'' means the United States Green
Building Council Leadership in Energy and Environmental
Design green building rating standard referred to as the LEED
Green Building Rating System.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(4) State.--The term ``State'' has the meaning given such
term in section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003).
(5) State higher education agency.--The term ``State higher
education agency'' has the meaning given such term in section
103 of the Higher Education Act of 1965 (20 U.S.C. 1003).
(6) Community college.--The term ``Community College''
means a public non-profit institution of higher education as
defined in section 101(a) of the Higher Education Act, whose
highest degree offered is predominantly the associate degree.
Sec. 804. Grants for School Renovation, Repair, and
Construction. (a) Allocation of Funds.--
(1) Reservations.--
(A) Outlying areas and bureau of indian education.--From
the funds appropriated to carry out this section, the
Secretary shall reserve 1 percent to provide assistance under
this section to the outlying areas and for payments to the
Secretary of the Interior to provide assistance consistent
with this section to schools funded by the Bureau of Indian
Education. Funds reserved under this subparagraph shall be
distributed by the Secretary among the outlying areas and the
Secretary of the Interior on the basis of relative need, as
determined by the Secretary, in accordance with the purposes
of this section.
(B) Impact aid schools.--
(i) In general.--From the funds appropriated to carry out
this section, the Secretary shall reserve 2 percent to make
payments and award grants to local educational agencies under
section 8007 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7707).
(ii) Construction payments authorized.--

(I) In general.--From 40 percent of the amount reserved
under clause (i), the Secretary shall make payments in
accordance with section 8007(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7707(a)), except
that the amount of such payments shall be determined in
accordance with subclause (II).
(II) Amount of payments.--The Secretary shall make a
payment to each local educational agency eligible for a
payment under section 8007(a) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7707(a)) in an amount that
bears the same relationship to the funds made available under
subclause (I) as the number of children determined under
subparagraphs (B), (C), and (D)(i) of section 8003(a)(1) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(a)(1)(B), (C), and (D)(i)) who were in average daily
attendance in the local educational agency for the most
recent year for which such information is available bears to
the number of such children in all the local educational
agencies eligible for a payment under section 8007(a) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7707(a)).

(iii) School facility emergency and modernization grants
authorized.--

(I) In general.--From 60 percent of the amount reserved
under clause (i), the Secretary--

(aa) shall award emergency grants in accordance with
section 8007(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7703(b)) to eligible local educational
agencies to enable the agencies to carry out emergency
repairs of school facilities; and
(bb) may award modernization grants in accordance with
section 8007(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7703(b)) to eligible local educational
agencies to enable the agencies to carry out the
modernization of school facilities.

(II) Provisions not to apply.--Paragraphs (2), (3), (4),
(5)(A)(i), and (5)(A)(vi) of section 8007(b) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2), (3), (4), (5)(A)(i), and (5)(A)(vi)) shall not
apply to grants made under this clause.
(III) Eligibility.--A local educational agency is eligible
to receive a grant under this clause if the local educational
agency--

(aa) is eligible to receive a payment under section 8002 or
8003 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7702 and 7703) for fiscal year 2008; and
(bb) has--
(AA) a total taxable assessed value of real property that
may be taxed for school purposes of less than $100,000,000;
or
(BB) an assessed value of real property per student that
may be taxed for school purposes that is less than the
average of the assessed value of real property per student
that may be taxed for school purposes in the State in which
the local educational agency is located.

(IV) Criteria for grants.--In awarding grants under this
clause, the Secretary shall consider the following criteria:

(aa) Whether the facility poses a health or safety threat
to students and school personnel, including noncompliance
with building codes and inaccessibility for persons with
disabilities, or whether the existing building capacity meets
the needs of the current enrollment and supports the
provision of comprehensive educational services to meet
current standards in the State in which the local educational
agency is located.
(bb) The extent to which the new design and proposed
construction utilize energy efficient and recyclable
materials.
(cc) The extent to which the new design and proposed
construction utilizes non-traditional or alternative building
methods to expedite construction and project completion and
maximize cost efficiency.
(dd) The feasibility of project completion within 24 months
from award.
(ee) The availability of other resources for the proposed
project.
(C) Administration and oversight.--The Secretary may, in
addition, reserve up to $5,000,000 of the amount appropriated
to carry out this section for administration and oversight of
this section.
(2) Allocation to state educational agencies.--
(A) In general.--Except as provided in subparagraph (B),
after making the reservations described in paragraph (1),
from the remainder of the appropriated funds described in
paragraph (1), the Secretary shall allocate to each State
educational agency serving a State an amount that bears the
same relation to the remainder as the amount the State
received under part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for
fiscal year 2008 bears to the amount all States received
under such part for fiscal year 2008.
(B) Minimum amount.--No State educational agency shall
receive less than 0.5 percent of the amount allocated under
this paragraph.
(3) Special rule.--The Secretary shall make and distribute
the reservations and allocations described in paragraphs (1)
and (2) not later than 60 days after the date of enactment of
this Act.
(b) Within-State Allotments.--
(1) Administrative costs.--
(A) State educational agency administration.--Except as
provided in subparagraph (C), each State educational agency
may reserve not more than 1 percent of its allocation under
subsection (a)(2) or $2,000,000, whichever is less, for the
purpose of administering the distribution of grants under
this subsection.
(B) Required uses.--Each State educational agency shall use
a portion of the reserved funds under subparagraph (A) to
establish or support a State-level database of public school
facility inventory, condition, design, and utilization.
(C) State entity administration.--If a State educational
agency transfers funds to a State entity described in
paragraph (3)(A)(ii), the State educational agency shall
transfer to such entity 0.75 percent of the amount reserved
under subparagraph (A) for the purpose of administering the
distribution of grants under this subsection.
(2) Allotments to the local educational agencies with the
most poor children.--
(A) In general.--
(i) Eligible local educational agency.--In this
subparagraph, the term ``eligible local educational agency''
means a local educational agency that is 1 of the 100 local
educational agencies in the United States that serve the most
students who are poor children.
(ii) Allotment.--Not later than 60 days after the date a
State educational agency receives an allocation from the
Secretary under this section, the State educational agency
shall allot to each eligible local educational agency in the
State an amount determined under clause (iii) to be used
consistent with subsection (c) for school repair, renovation,
and construction.
(iii) Determination of amount.--An allotment under this
subparagraph to an eligible local educational agency shall be
in an amount that bears the same relation to the amount
allocated to the State under this section and not reserved
under paragraph (1), as the amount of funds under part A of
title I of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.) that the eligible local educational
agency received from the State for the most recent fiscal
year for which data is available bears to the total amount of
such funds received by all local educational agencies in the
State under such part for the most recent fiscal year for
which data is available.
(B) No eligibility for competitive grants.--No local
educational agency receiving funding under subparagraph (A)
shall be eligible for funding under paragraph (3).
(C) Priority in funding green projects.--A local
educational agency that receives funding under subparagraph
(A) shall give priority to funding school repair, renovation,
or construction projects that are certified, verified, or
consistent with any applicable provisions of--
(i) the LEED Green Building Rating System;
(ii) Energy Star;
(iii) the CHPS Criteria;
(iv) Green Globes; or
(v) an equivalent program adopted by the State or another
jurisdiction with authority over the local educational
agency.
(3) Reservation for competitive school renovation, repair,
and construction grants to local educational agencies.--
(A) In general.--After making the reservation described in
paragraph (1), from the remainder of the funds allocated to a
State

[[Page S1148]]

educational agency under this section, the State educational
agency shall--
(i) award grants to local educational agencies to be used,
consistent with subsection (c), for school renovation,
repair, and construction; or
(ii) if such State educational agency is not responsible
for the financing of education facilities, transfer such
funds to the State entity responsible for the financing of
education facilities (referred to in this section as the
``State entity'') to award grants to local educational
agencies to be used as described in clause (i).
(B) Competitive grants to local educational agencies.--The
State educational agency or State entity shall carry out a
program awarding grants, on a competitive basis, to local
educational agencies for the purpose described in
subparagraph (A). Of the total amount allocated to the State
under this section and not reserved under paragraph (1), the
State educational agency or State entity, shall carry out the
following:
(i) Award to high-need local educational agencies, in the
aggregate, not less than an amount which bears the same
relationship to such total amount as the aggregate amount
such high-need local educational agencies received under part
A of title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311 et seq.) for fiscal year 2008 bears to
the aggregate amount received for such fiscal year under such
part by all local educational agencies in the State, reduced
by the total amount the State educational agency has allotted
under paragraph (2).
(ii) Award to rural local educational agencies, in the
aggregate, not less than an amount which bears the same
relationship to such total amount as the aggregate amount
such rural local educational agencies received under such
part for fiscal year 2008 bears to the aggregate amount
received for such fiscal year under such part by all local
educational agencies in the State.
(iii) Award the remaining funds to local educational
agencies not receiving an award under clause (i) or (ii),
including high-need local educational agencies and rural
local educational agencies that did not receive such an
award.
(C) Criteria for awarding competitive grants.--In awarding
competitive grants under this paragraph, a State educational
agency or State entity shall take into account the following
criteria:
(i) Percentage of poor children.--The percentage of poor
children in a local educational agency.
(ii) Need for school renovation, repair, and
construction.--The need of a local educational agency for
school renovation, repair, and construction, as demonstrated
by the condition of the public school facilities of the local
educational agency.
(iii) Green schools.--The extent to which the local
educational agency will make use of green practices that are
certified, verified, or consistent with any applicable
provisions of--

(I) the LEED Green Building Rating System;
(II) Energy Star;
(III) the CHPS Criteria;
(IV) Green Globes; or
(V) an equivalent program adopted by the State or another
jurisdiction with authority over the local educational
agency.

(iv) Capability to implement projects expeditiously.--The
capability of the local educational agency to implement
school renovation, repair, or construction projects
expeditiously.
(v) Fiscal capacity.--The fiscal capacity of a local
educational agency to meet the needs of the local educational
agency for renovation, repair, and construction of public
school facilities without assistance under this section,
including the ability of the local educational agency to
raise funds through the use of local bonding capacity and
otherwise.
(vi) Likelihood of maintaining the facility.--The
likelihood that the local educational agency will maintain,
in good condition, any facility whose renovation, repair, or
construction is assisted under this section.
(vii) Charter school access to funding.--In the case of a
local educational agency that proposes to fund a renovation,
repair, or construction project for a charter school, the
extent to which the school has access to funding for the
project through the financing methods available to other
public schools or local educational agencies in the State.
(D) Possible matching requirement.--
(i) In general.--A State educational agency or State entity
may require local educational agencies to match competitive
grant funds awarded under this section.
(ii) Match amount.--The amount of a match described in
clause (i) may be established by using a sliding scale that
takes into account the relative poverty of the population
served by the local educational agency.
(c) Rules Applicable to School Renovation, Repair, and
Construction.--With respect to funds made available under
this section that are used for school renovation, repair, and
construction, the following rules shall apply:
(1) Permissible uses of funds.--School renovation, repair,
and construction shall be limited to 1 or more of the
following:
(A) Upgrade, repair, construct, or replace existing or
planned public school building systems and components to
improve the quality of education and ensure the health and
safety of students and staff, including--
(i) repairing, replacing, or constructing early learning
facilities (including renovation of existing facilities to
serve children under 5 years of age);
(ii) repairing, replacing, or installing roofs, windows,
doors, electrical wiring, plumbing systems, or sewage
systems;
(iii) repairing, replacing, or installing heating,
ventilation, or air conditioning systems (including
insulation); and
(iv) bringing public schools into compliance with fire and
safety codes.
(B) Modifications necessary to reduce the consumption of
electricity, natural gas, oil, water, coal, or land.
(C) Modifications necessary to make public school
facilities accessible to comply with the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794).
(D) Improve environmental conditions of school sites,
including asbestos abatement or removal, and the reduction or
elimination of human exposure to lead-based paint, mold, or
mildew.
(E) Upgrade or install educational technology
infrastructure to ensure that students have access to up-to-
date educational technology.
(F) Broaden or improve the use of school buildings and
grounds to the community to improve educational outcomes.
(2) Impermissible uses of funds.--No funds received under
this section may be used for--
(A) payment of maintenance costs in connection with any
projects constructed in whole or part with Federal funds
provided under this section;
(B) purchase or upgrade of vehicles;
(C) stadiums or other facilities primarily used for
athletic contests or exhibitions or other events for which
admission is charged to the general public;
(D) improvement or construction of stand-alone facilities
whose purpose is not the education of children, including
central office administration or operations or logistical
support facilities; or
(E) purchase of information technology hardware, including
computers, monitors, or printers.
(3) Supplement, not supplant.--
(A) In general.--Except as provided in subparagraph (B) and
excluding the uses described in paragraph (1)(C), a local
educational agency shall use Federal funds received under
this section only to supplement the amount of funds that
would, in the absence of such Federal funds, be made
available from non-Federal sources for school renovation,
repair, and construction.
(B) Exception.--A local educational agency that is located
in a State that is under a court order to finance school
facilities shall not be subject to the requirement under
subparagraph (A).
(d) Qualified Bidders; Competition.--Each local educational
agency that receives funds under this section shall ensure
that, if the local educational agency carries out renovation,
repair, or construction through a contract, any such contract
process ensures the maximum number of qualified bidders,
including small, minority, and women-owned businesses,
through full and open competition.
(e) Reporting.--
(1) Local reporting.--Each local educational agency
receiving funds made available under this section shall
submit a report to the State educational agency, at such time
as the State educational agency may require describing the
use of such funds for school renovation, repair, and
construction, including the following:
(A) Type and description of work completed.
(B) The source of any non-federal funds used to complete
the project.
(C) Person hours needed at various wage levels to complete
the project.
(D) Anticipated energy or natural resource savings.
(2) State reporting.--Each State educational agency
receiving funds made available under this section shall
submit to the Secretary, not later than December 31, 2010, a
report on the use of funds received under subsection (a)(2)
and made available to local educational agencies for school
renovation, repair, and construction.
(f) Administrative Costs.--Each local educational agency
that receives funds under this section may reserve not more
than 1 percent of the funds or $750,000, whichever amount is
less, for the purpose of--
(1) administering school renovation, repair, and
construction projects; and
(2) reporting under subsection (e).
(g) Reallocation.--If a State educational agency does not
apply for an allocation of funds under subsection (a)(2), or
does not use its entire allocation, then the Secretary may
reallocate the amount of the State educational agency's
allocation (or the remainder thereof, as the case may be) to
the remaining State educational agencies in accordance with
subsection (a)(2).
(h) Application of GEPA.--The grant program under this
section is an applicable program (as that term is defined in
section 400 of the General Education Provisions Act (20
U.S.C. 1221)) subject to section 439 of such Act (20 U.S.C.
1232b).
(i) Definitions.--In this section:
(1) In general.--The terms ``local educational agency'',
``Secretary'', and ``State educational agency'' have the
meanings

[[Page S1149]]

given the terms in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Charter school.--The term ``charter school'' has the
meaning given the term in section 5210 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7221i).
(3) CHPS criteria.--The term ``CHPS Criteria'' means the
green building rating program developed by the Collaborative
for High Performance Schools.
(4) Energy star.--The term ``Energy Star'' means the Energy
Star program of the Department of Energy and the
Environmental Protection Agency.
(5) Green globes.--The term ``Green Globes'' means the
Green Building Initiative environmental design and rating
system.
(6) High-need local educational agency.--The term ``high-
need local educational agency'' has the meaning given the
term in section 2102(3)(A) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6602(3)(A)).
(7) Leed green building rating system.--The term ``LEED
Green Building Rating System'' means the United States Green
Building Council Leadership in Energy and Environmental
Design green building rating standard.
(8) Outlying area.--The term ``outlying area'' has the
meaning given the term in section 1121(c) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6331(c)).
(9) Poor children.--The term ``poor children'' refers to
children 5 to 17 years of age, inclusive, who are from
families with incomes below the poverty line (as defined by
the Office of Management and Budget and revised annually in
accordance with section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2)) applicable to a family of
the size involved for the most recent fiscal year for which
data satisfactory to the Secretary are available.
(10) Rural local educational agency.--The term ``rural
local educational agency'' means a local educational agency
that the State determines is located in a rural area using
objective data and a commonly employed definition of the term
``rural''.
(11) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.

(Transfer of Funds)

Sec. 805. (a) Not more than 1 percent of the funds made
available to the Department of Labor in this title may be
transferred by the Secretary of Labor to ``Employment and
Training Administration--Program Administration'',
``Employment Standards Administration--Salaries and
Expenses'', ``Occupational Safety and Health Administration--
Salaries and Expenses'' and ``Departmental Management--
Salaries and Expenses'' for expenses necessary to administer
and coordinate funds made available to the Department of
Labor in this title; oversee and evaluate the use of such
funds; and enforce applicable laws and regulations governing
worker rights and protections associated with the funds made
available in this Act.
(b) Not later than 10 days prior to obligating any funds
proposed to be transferred under subsection (a), the
Secretary shall provide to the Committees on Appropriations
of the House of Representatives and the Senate an operating
plan describing the planned uses of each amount proposed to
be transferred.
(c) Funds transferred under this section may be available
for obligation through September 30, 2010.
Sec. 806. Eligible Employees in the Recreational Marine
Industry. Section 2(3)(F) of the Longshore and Harbor
Workers' Compensation Act (33 U.S.C. 902(3)(F)) is amended--
(1) by striking ``, repair or dismantle''; and
(2) by striking the semicolon and inserting ``, or
individuals employed to repair any recreational vessel, or to
dismantle any part of a recreational vessel in connection
with the repair of such vessel;''.

TITLE IX--LEGISLATIVE BRANCH

GOVERNMENT ACCOUNTABLIITY OFFICE

Salaries and Expenses

For an additional amount for ``Salaries and Expenses'' of
the Government Accountability Office, $20,000,000, to remain
available until September 30, 2010.

GENERAL PROVISIONS--THIS TITLE

Sec. 901. Government Accountability Office Reviews and
Reports. (a) Reviews and Reports.--
(1) In general.--The Comptroller General shall conduct
bimonthly reviews and prepare reports on such reviews on the
use by selected State and localities of funds made available
in this Act. Such reports, along with any audits conducted by
the Comptroller General of such funds, shall be posted on the
Internet and linked to the website established under this Act
by the Recovery Accountability and Transparency Board.
(2) Redactions.--Any portion of a report or audit under
this subsection may be redacted when made publicly available,
if that portion would disclose information that is not
subject to disclosure under section 552 of title 5, United
States Code (commonly known as the Freedom of Information
Act).
(b) Examination of Records.--The Comptroller General may
examine any records related to obligations of funds made
available in this Act.
Sec. 902. Access of Government Accountability Office. Each
contract awarded using funds made available in this Act shall
provide that the Comptroller General and his representatives
are authorized--
(1) to examine any records of the contractor or any of its
subcontractors, or any State or local agency administering
such contract, that directly pertain to, and involve
transactions relating to, the contract or subcontract; and
(2) to interview any current employee regarding such
transactions.

TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED
AGENCIES

DEPARTMENT OF DEFENSE

Military Construction, Army

For an additional amount for ``Military Construction,
Army'', $637,875,000, to remain available until September 30,
2013, of which $84,100,000 shall be for child development
centers; $481,000,000 shall be for warrior transition
complexes; and $42,400,000 shall be for health and dental
clinics (including acquisition, construction, installation,
and equipment): Provided, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction
projects in the United States not otherwise authorized by
law: Provided further, That of the funds provided under this
heading, not to exceed $30,375,000 shall be available for
study, planning, design, and architect and engineer services:
Provided further, That within 30 days of enactment of this
Act the Secretary of the Army shall submit to the Committees
on Appropriations of both Houses of Congress an expenditure
plan for funds provided under this heading prior to
obligation.

Military Construction, Navy and Marine Corps

For an additional amount for ``Military Construction, Navy
and Marine Corps'', $990,092,000, to remain available until
September 30, 2013, of which $172,820,000 shall be for child
development centers; $174,304,000 shall be for barracks;
$125,000,000 shall be for health clinic replacement, and
$494,362,000 shall be for energy conservation and alternative
energy projects (including acquisition, construction,
installation, and equipment): Provided, That notwithstanding
any other provision of law, such funds may be obligated and
expended to carry out planning and design and military
construction projects in the United States not otherwise
authorized by law: Provided further, That of the funds
provided under this heading, not to exceed $23,606,000 shall
be available for study, planning, design, and architect and
engineer services: Provided further, That within 30 days of
enactment of this Act the Secretary of the Navy shall submit
to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this
heading prior to obligation.

Military Construction, Air Force

For an additional amount for ``Military Construction, Air
Force'', $871,332,000, to remain available until September
30, 2013, of which $80,100,000 shall be for child development
centers; $612,246,000 shall be for dormitories; and
$138,100,000 shall be for health clinics (including
acquisition, construction, installation, and equipment):
Provided, That notwithstanding any other provision of law,
such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: Provided
further, That of the funds provided under this heading, not
to exceed $40,886,000 shall be available for study, planning,
design, and architect and engineer services: Provided
further, That within 30 days of enactment of this Act the
Secretary of the Air Force shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan
for funds provided under this heading prior to obligation.

Military Construction, Defense-Wide

For an additional amount for ``Military Construction,
Defense-Wide'', $118,560,000 for the Energy Conservation
Investment Program, to remain available until September 30,
2010: Provided, That notwithstanding any other provision of
law, such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: Provided
further, That within 30 days of enactment of this Act the
Secretary of Defense shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan
for funds provided under this heading prior to obligation.

Military Construction, Army National Guard

For an additional amount for ``Military Construction, Army
National Guard'', $150,000,000 for readiness centers
(including construction, acquisition, expansion,
rehabilitation, and conversion), to remain available until
September 30, 2013: Provided, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction
projects in the United States not otherwise authorized by
law: Provided further, That within 30 days of enactment of
this Act the Director of the Army National Guard shall submit
to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this
heading prior to obligation.

Military Construction, Air National Guard

For an additional amount for ``Military Construction, Air
National Guard'',

[[Page S1150]]

$110,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law,
such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: Provided
further, That within 30 days of enactment of this Act the
Director of the Air National Guard shall submit to the
Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this heading prior
to obligation.

Family Housing Construction, Army

For an additional amount for ``Family Housing Construction,
Army'', $34,570,000, to remain available until September 30,
2013: Provided, That notwithstanding any other provision of
law, such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: Provided
further, That within 30 days of enactment of this Act the
Secretary of the Army shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan
for funds provided under this heading prior to obligation.

Family Housing Operation and Maintenance, Army

For an additional amount for ``Family Housing Operation and
Maintenance, Army'', $3,932,000: Provided, That
notwithstanding any other provision of law, such funds may be
obligated and expended for operation and maintenance and
minor construction projects in the United States not
otherwise authorized by law.

Family Housing Construction, Air Force

For an additional amount for ``Family Housing Construction,
Air Force'', $80,100,000, to remain available until September
30, 2013: Provided, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: Provided
further, That within 30 days of enactment of this Act the
Secretary of the Air Force shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan
for funds provided under this heading prior to obligation.

Family Housing Operation and Maintenance, Air Force

For an additional amount for ``Family Housing Operation and
Maintenance, Air Force'', $16,461,000: Provided, That
notwithstanding any other provision of law, such funds may be
obligated and expended for operation and maintenance and
minor construction projects in the United States not
otherwise authorized by law.

Homeowners Assistance Fund

For an additional amount for ``Homeowners Assistance
Fund'', established by section 1013 of the Demonstration
Cities and Metropolitan Development Act of 1966, as amended
(42 U.S.C. 3374), $410,973,000, to remain available until
expended.

Administrative Provision

Sec. 1001. (a) Temporary Expansion of Homeowners Assistance
Plan to Respond to Mortgage Foreclosure and Credit Crisis.--
Section 1013 of the Demonstration Cities and Metropolitan
Development Act of 1966 (42 U.S.C. 3374) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3) as
clauses (i), (ii), and (iii), respectively, and indenting
such subparagraphs, as so redesignated, 6 ems from the left
margin;
(B) by striking ``Notwithstanding any other provision of
law'' and inserting the following:
``(1) Acquisition of property at or near military
installations that have been ordered to be closed.--
Notwithstanding any other provision of law'';
(C) by striking ``if he determines'' and inserting ``if--
``(A) the Secretary determines--'';
(D) in clause (iii), as redesignated by subparagraph (A),
by striking the period at the end and inserting ``; or''; and
(E) by adding at the end the following:
``(B) the Secretary determines--
``(i) that the conditions in clauses (i) and (ii) of
subparagraph (A) have been met;
``(ii) that the closing or realignment of the base or
installation resulted from a realignment or closure carried
out under the 2005 round of defense base closure and
realignment under the Defense Base Closure and Realignment
Act of 1990 (part XXIX of Public Law 101-510; 10 U.S.C. 2687
note);
``(iii) that the property was purchased by the owner before
July 1, 2006;
``(iv) that the property was sold by the owner between July
1, 2006, and September 30, 2012, or an earlier end date
designated by the Secretary;
``(v) that the property is the primary residence of the
owner; and
``(vi) that the owner has not previously received benefit
payments authorized under this subsection.
``(2) Homeowner assistance for wounded members of the armed
forces, department of defense and united states coast guard
civilian employees, and their spouses.--Notwithstanding any
other provision of law, the Secretary of Defense is
authorized to acquire title to, hold, manage, and dispose of,
or, in lieu thereof, to reimburse for certain losses upon
private sale of, or foreclosure against, any property
improved with a one- or two-family dwelling which was at the
time of the relevant wound, injury, or illness, the primary
residence of--
``(A) any member of the Armed Forces in medical transition
who--
``(i) incurred a wound, injury, or illness in the line of
duty during a deployment in support of the Armed Forces;
``(ii) is disabled to a degree of 30 percent or more as a
result of such wound, injury, or illness, as determined by
the Secretary of Defense or the Secretary of Veterans
Affairs; and
``(iii) is reassigned in furtherance of medical treatment
or rehabilitation, or due to medical retirement in connection
with such disability;
``(B) any civilian employee of the Department of Defense or
the United States Coast Guard who--
``(i) was wounded, injured, or became ill in the line of
duty during a forward deployment in support of the Armed
Forces; and
``(ii) is reassigned in furtherance of medical treatment,
rehabilitation, or due to medical retirement resulting from
the sustained disability; or
``(C) the spouse of a member of the Armed Forces or a
civilian employee of the Department of Defense or the United
States Coast Guard if--
``(i) the member or employee was killed in the line of duty
during a deployment in support of the Armed Forces or died
from a wound, injury, or illness incurred in the line of duty
during such a deployment; and
``(ii) the spouse relocates from such residence within 2
years after the death of such member or employee.
``(3) Temporary homeowner assistance for members of the
armed forces permanently reassigned during specified mortgage
crisis.--Notwithstanding any other provision of law, the
Secretary of Defense is authorized to acquire title to, hold,
manage, and dispose of, or, in lieu thereof, to reimburse for
certain losses upon private sale of, or foreclosure against,
any property improved with a one- or two-family dwelling
situated at or near a military base or installation, if the
Secretary determines--
``(A) that the owner is a member of the Armed Forces
serving on permanent assignment;
``(B) that the owner is permanently reassigned by order of
the United States Government to a duty station or home port
outside a 50-mile radius of the base or installation;
``(C) that the reassignment was ordered between February 1,
2006, and September 30, 2012, or an earlier end date
designated by the Secretary;
``(D) that the property was purchased by the owner before
July 1, 2006;
``(E) that the property was sold by the owner between July
1, 2006, and September 30, 2012, or an earlier end date
designated by the Secretary;
``(F) that the property is the primary residence of the
owner; and
``(G) that the owner has not previously received benefit
payments authorized under this subsection.'';
(2) in subsection (b), by striking ``this section'' each
place it appears and inserting ``subsection (a)(1)'';
(3) in subsection (c)--
(A) by striking ``Such persons'' and inserting the
following:
``(1) Homeowner assistance related to closed military
installations.--
``(A) In general.--Such persons'';
(B) by striking ``set forth above shall elect either (1) to
receive'' and inserting the following: ``set forth in
subsection (a)(1) shall elect either--
``(i) to receive'';
(C) by striking ``difference between (A) 95 per centum''
and all that follows through ``(B) the fair market value''
and inserting the following: ``difference between--

``(I) 95 per centum of the fair market value of their
property (as such value is determined by the Secretary of
Defense) prior to public announcement of intention to close
all or part of the military base or installation; and
``(II) the fair market value'';

(D) by striking ``time of the sale, or (2) to receive'' and
inserting the following: ``time of the sale; or
``(ii) to receive'';
(E) by striking ``outstanding mortgages. The Secretary may
also pay a person who elects to receive a cash payment under
clause (1) of the preceding sentence an amount'' and
inserting ``outstanding mortgages.
``(B) Reimbursement of expenses.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount''; and
(F) by striking ``best interest of the Federal Government.
Cash payment'' and inserting the following: ``best interest
of the United States.
``(2) Homeowner assistance for wounded individuals and
their spouses.--
``(A) In general.--Persons eligible under the criteria set
forth in subsection (a)(2) may elect either--
``(i) to receive a cash payment as compensation for losses
which may be or have been sustained in a private sale, in an
amount not to exceed the difference between--

``(I) 95 per centum of prior fair market value of their
property (as such value is determined by the Secretary of
Defense); and
``(II) the fair market value of such property (as such
value is so determined) at the time of the wound, injury, or
illness qualifying the individual for benefits under
subsection (a)(2); or

[[Page S1151]]

``(ii) to receive, as purchase price for their property an
amount not to exceed 90 per centum of prior fair market value
as such value is determined by the Secretary of Defense, or
the amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount that the Secretary determines
appropriate to reimburse the person for the costs incurred by
the person in the sale of the property if the Secretary
determines that such payment will benefit the person and is
in the best interest of the United States.
``(3) Homeowner assistance for permanently reassigned
individuals.--
``(A) In general.--Persons eligible under the criteria set
forth in subsection (a)(3) may elect either--
``(i) to receive a cash payment as compensation for losses
which may be or have been sustained in a private sale, in an
amount not to exceed the difference between--

``(I) 95 per centum of prior fair market value of their
property (as such value is determined by the Secretary of
Defense); and
``(II) the fair market value of such property (as such
value is so determined) at the time the person received
change of permanent station orders; or

``(ii) to receive, as purchase price for their property an
amount not to exceed 90 per centum of prior fair market value
as such value is determined by the Secretary of Defense, or
the amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount that the Secretary determines
appropriate to reimburse the person for the costs incurred by
the person in the sale of the property if the Secretary
determines that such payment will benefit the person and is
in the best interest of the United States.
``(4) Compensation and limitations related to foreclosures
and encumbrances.--Cash payment'';
(4) by striking subsection (g);
(5) in subsection (l), by striking ``(a)(2)'' and inserting
``(a)(1)(A)(ii)'';
(6) in subsection (m), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(7) in subsection (n)--
(A) in paragraph (1), by striking ``this section'' and
inserting ``subsection (a)(1)''; and
(B) in paragraph (2), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(8) in subsection (o)--
(A) in paragraph (1), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(B) in paragraph (2), by striking ``this section'' and
inserting ``subsection (a)(1)''; and
(C) by striking paragraph (4); and
(9) by adding at the end the following new subsection:
``(p) Definitions.--In this section:
``(1) the term `Armed Forces' has the meaning given the
term `armed forces' in section 101(a) of title 10, United
States Code;
``(2) the term `civilian employee' has the meaning given
the term `employee' in section 2105(a) of title 5, United
States Code;
``(3) the term `medical transition', in the case of a
member of the Armed Forces, means a member who--
``(A) is in Medical Holdover status;
``(B) is in Active Duty Medical Extension status;
``(C) is in Medical Hold status;
``(D) is in a status pending an evaluation by a medical
evaluation board;
``(E) has a complex medical need requiring six or more
months of medical treatment; or
``(F) is assigned or attached to an Army Warrior Transition
Unit, an Air Force Patient Squadron, a Navy Patient
Multidisciplinary Care Team, or a Marine Patient Affairs
Team/Wounded Warrior Regiment; and
``(4) the term `nonappropriated fund instrumentality
employee' means a civilian employee who--
``(A) is a citizen of the United States; and
``(B) is paid from nonappropriated funds of Army and Air
Force Exchange Service, Navy Resale and Services Support
Office, Marine Corps exchanges, or any other instrumentality
of the United States under the jurisdiction of the Armed
Forces which is conducted for the comfort, pleasure,
contentment, or physical or mental improvement of members of
the Armed Forces.''.
(b) Clerical Amendment.--Such section is further amended in
the section heading by inserting ``and certain property owned
by members of the armed forces, department of defense and
united states coast guard civilian employees, and surviving
spouses'' after ``ordered to be closed''.
(c) Authority to Use Appropriated Funds.--Notwithstanding
subsection (i) of such section, amounts appropriated or
otherwise made available by this title under the heading
``Homeowners Assistance Fund'' may be used for the Homeowners
Assistance Fund established under such section.

DEPARTMENT OF VETERANS AFFAIRS

Veterans Health Administration

MEDICAL SUPPORT AND COMPLIANCE

For an additional amount for ``Medical Support and
Compliance'', $5,000,000, to remain available until September
30, 2010, to support contract administration and energy
initiative execution at the Veterans Health Administration.

MEDICAL FACILITIES

For an additional amount for ``Medical Facilities'',
$1,370,459,000, to remain available until September 30, 2010,
of which $1,047,313,000 shall be for facility condition
assessment deficiencies and non-recurring maintenance at
existing medical facilities; and $323,146,000 shall be for
energy efficiency initiatives.

National Cemetery Administration

For an additional amount for ``National Cemetery
Administration'', $64,961,000, to remain available until
September 30, 2010, of which $59,476,000 shall be for capital
infrastructure and memorial and monument repairs; and
$5,485,000 shall be for energy efficiency initiatives.

Departmental Administration

GENERAL OPERATING EXPENSES

For an additional amount for ``General Operating
Expenses'', $1,125,000, to remain available until September
30, 2010, for additional Full Time Equivalent salary and
expenses for major construction project administration and
execution and energy initiative execution.

INFORMATION TECHNOLOGY SYSTEMS

For an additional amount for ``Information Technology
Systems'', $195,000,000, to remain available until September
30, 2010, of which $145,000,000 shall be for the Veterans
Benefits Administration's development of paperless claims
processing; and $50,000,000 shall be for the development of
systems required to implement chapter 33 of title 38, United
States Code.

OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Office of Inspector
General'', $4,400,000, to remain available until September
30, 2010, for oversight and audit of programs, grants and
projects funded under this title.

CONSTRUCTION, MAJOR PROJECTS

For an additional amount for ``Construction, Major
Projects'', $1,105,333,000, to remain available until
September 30, 2013, which shall be for acceleration and
construction of ongoing and planned construction, including
physical security construction, of major medical facilities
and National Cemeteries consistent with the Department of
Veterans Affairs' Five Year Capital Plan: Provided, That
notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and
major medical facility construction not otherwise authorized
by law: Provided further, That within 30 days of enactment of
this Act the Secretary of Veterans Affairs shall submit to
the Committees on Appropriations of both Houses of Congress
an expenditure plan for funds provided under this heading
prior to obligation.

CONSTRUCTION, MINOR PROJECTS

For an additional amount for ``Construction, Minor
Projects'', $939,836,000, to remain available until September
30, 2010, of which $860,742,000 shall be for Veterans Health
Administration minor construction; $20,300,000 shall be for
Veterans Benefits Administration minor construction,
including $300,000 for energy efficiency initiatives; and
$29,012,000 shall be for National Cemetery Administration
minor construction.

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

For an additional amount for ``Grants for Construction of
State Extended Care Facilities'', $257,986,000, to remain
available until September 30, 2010, for grants to assist
States to acquire or construct State nursing home and
domiciliary facilities and to remodel, modify, or alter
existing hospital, nursing home, and domiciliary facilities
in State homes, for furnishing care to veterans as authorized
by sections 8131 through 8137 of title 38, United States
Code.

Administrative Provision

Sec. 1002. Payments to Eligible Persons who Served in the
United States Armed Forces in the Far East During World War
II. (a) Findings.--Congress makes the following findings:
(1) The Philippine islands became a United States
possession in 1898 when they were ceded from Spain following
the Spanish-American War.
(2) During World War II, Filipinos served in a variety of
units, some of which came under the direct control of the
United States Armed Forces.
(3) The regular Philippine Scouts, the new Philippine
Scouts, the Guerilla Services, and more than 100,000 members
of the Philippine Commonwealth Army were called into the
service of the United States Armed Forces of the Far East on
July 26, 1941, by an executive order of President Franklin D.
Roosevelt.
(4) Even after hostilities had ceased, wartime service of
the new Philippine Scouts continued as a matter of law until
the end of 1946, and the force gradually disbanded and was
disestablished in 1950.
(5) Filipino veterans who were granted benefits prior to
the enactment of the so-called Rescissions Acts of 1946
(Public Laws 79-301 and 79-391) currently receive full
benefits under laws administered by the Secretary of Veterans
Affairs, but under section 107 of title 38, United States
Code, the service of certain other Filipino veterans is
deemed not to be active service for purposes of such laws.
(6) These other Filipino veterans only receive certain
benefits under title 38, United States Code, and, depending
on where they legally reside, are paid such benefit amounts
at reduced rates.
(7) The benefits such veterans receive include service-
connected compensation benefits paid under chapter 11 of
title 38, United

[[Page S1152]]

States Code, dependency indemnity compensation survivor
benefits paid under chapter 13 of title 38, United States
Code, and burial benefits under chapters 23 and 24 of title
38, United States Code, and such benefits are paid to
beneficiaries at the rate of $0.50 per dollar authorized,
unless they lawfully reside in the United States.
(8) Dependents' educational assistance under chapter 35 of
title 38, United States Code, is also payable for the
dependents of such veterans at the rate of $0.50 per dollar
authorized, regardless of the veterans' residency.
(b) Compensation Fund.--
(1) In general.--There is in the general fund of the
Treasury a fund to be known as the ``Filipino Veterans Equity
Compensation Fund'' (in this section referred to as the
``compensation fund'').
(2) Availability of funds.--Subject to the availability of
appropriations for such purpose, amounts in the fund shall be
available to the Secretary of Veterans Affairs without fiscal
year limitation to make payments to eligible persons in
accordance with this section.
(c) Payments.--
(1) In general.--The Secretary may make a payment from the
compensation fund to an eligible person who, during the one-
year period beginning on the date of the enactment of this
Act, submits to the Secretary a claim for benefits under this
section. The application for the claim shall contain such
information and evidence as the Secretary may require.
(2) Payment to surviving spouse.--If an eligible person who
has filed a claim for benefits under this section dies before
payment is made under this section, the payment under this
section shall be made instead to the surviving spouse, if
any, of the eligible person.
(d) Eligible Persons.--An eligible person is any person
who--
(1) served--
(A) before July 1, 1946, in the organized military forces
of the Government of the Commonwealth of the Philippines,
while such forces were in the service of the Armed Forces of
the United States pursuant to the military order of the
President dated July 26, 1941, including among such military
forces organized guerrilla forces under commanders appointed,
designated, or subsequently recognized by the Commander in
Chief, Southwest Pacific Area, or other competent authority
in the Army of the United States; or
(B) in the Philippine Scouts under section 14 of the Armed
Forces Voluntary Recruitment Act of 1945 (59 Stat. 538); and
(2) was discharged or released from service described in
paragraph (1) under conditions other than dishonorable.
(e) Payment Amounts.--Each payment under this section shall
be--
(1) in the case of an eligible person who is not a citizen
of the United States, in the amount of $9,000; and
(2) in the case of an eligible person who is a citizen of
the United States, in the amount of $15,000.
(f) Limitation.--The Secretary may not make more than one
payment under this section for each eligible person described
in subsection (d).
(g) Clarification of Treatment of Payments Under Certain
Laws.--Amounts paid to a person under this section--
(1) shall be treated for purposes of the internal revenue
laws of the United States as damages for human suffering; and
(2) shall not be included in income or resources for
purposes of determining--
(A) eligibility of an individual to receive benefits
described in section 3803(c)(2)(C) of title 31, United States
Code, or the amount of such benefits;
(B) eligibility of an individual to receive benefits under
title VIII of the Social Security Act, or the amount of such
benefits; or
(C) eligibility of an individual for, or the amount of
benefits under, any other Federal or federally assisted
program.
(h) Release.--
(1) In general.--Except as provided in paragraph (2), the
acceptance by an eligible person or surviving spouse, as
applicable, of a payment under this section shall be final,
and shall constitute a complete release of any claim against
the United States by reason of any service described in
subsection (d).
(2) Payment of prior eligibility status.--Nothing in this
section shall prohibit a person from receiving any benefit
(including health care, survivor, or burial benefits) which
the person would have been eligible to receive based on laws
in effect as of the day before the date of the enactment of
this Act.
(i) Recognition of Service.--The service of a person as
described in subsection (d) is hereby recognized as active
military service in the Armed Forces for purposes of, and to
the extent provided in, this section.
(j) Administration.--
(1) The Secretary shall promptly issue application forms
and instructions to ensure the prompt and efficient
administration of the provisions of this section.
(2) The Secretary shall administer the provisions of this
section in a manner consistent with applicable provisions of
title 38, United States Code, and other provisions of law,
and shall apply the definitions in section 101 of such title
in the administration of such provisions, except to the
extent otherwise provided in this section.
(k) Reports.--The Secretary shall include, in documents
submitted to Congress by the Secretary in support of the
President's budget for each fiscal year, detailed information
on the operation of the compensation fund, including the
number of applicants, the number of eligible persons
receiving benefits, the amounts paid out of the compensation
fund, and the administration of the compensation fund for the
most recent fiscal year for which such data is available.
(l) Authorization of Appropriation.--There is authorized to
be appropriated to the compensation fund $198,000,000, to
remain available until expended, to make payments under this
section.

RELATED AGENCY

DEPARTMENT OF DEFENSE--CIVIL

Cemeterial Expenses, Army

SALARY AND EXPENSES

For an additional amount for ``Cemeterial Expenses, Army'',
$60,300,000, to remain available until September 30, 2010,
for land development, columbarium construction, and
relocation of utilities at Arlington National Cemetery.

TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS

DEPARTMENT OF STATE

Administration of Foreign Affairs

DIPLOMATIC AND CONSULAR PROGRAMS

For an additional amount for ``Diplomatic and Consular
Programs'' for urgent domestic facilities requirements,
$180,500,000, to remain available until September 30, 2010,
of which up to $45,000,000 shall be available for passport
and visa facilities and systems, and up to $75,000,000 shall
be available for a consolidated security training facility in
the United States: Provided, That the Secretary of State
shall submit to the Committees on Appropriations within 90
days of enactment of this Act a detailed spending plan for
funds appropriated under this heading: Provided further, That
with respect to the funds made available for passport
facilities and systems, such plan shall be developed in
consultation with the Department of Homeland Security and the
General Services Administration and shall coordinate and co-
locate, to the extent feasible, the construction of passport
agencies with other Federal facilities.

CAPITAL INVESTMENT FUND

For an additional amount for ``Capital Investment Fund'',
$524,000,000, to remain available until September 30, 2010,
of which up to $120,000,000 shall be available for the design
and construction of a backup information management facility
in the United States to support continuity of critical
mission operations and programs, and up to $98,527,000 shall
be available to carry out the Department of State's
responsibilities under the Comprehensive National
Cybersecurity Initiative: Provided, That the Secretary of
State and the Administrator of the United States Agency for
International Development shall coordinate information
technology systems, where appropriate, to increase
efficiencies and eliminate redundancies, to include co-
location of backup information management facilities:
Provided further, That the Secretary of State shall submit to
the Committees on Appropriations within 90 days of enactment
of this Act a detailed spending plan for funds appropriated
under this heading.

OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Office of Inspector
General'' for oversight requirements, $2,000,000, to remain
available until September 30, 2010.

INTERNATIONAL COMMISSIONS

International Boundary and Water Commission, United States and Mexico

CONSTRUCTION

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Construction'' for the water
quantity program to meet immediate repair and rehabilitation
requirements, $224,000,000, to remain available until
September 30, 2010: Provided, That up to $2,000,000 may be
transferred to, and merged with, funds available under the
heading ``International Boundary and Water Commission, United
States and Mexico--Salaries and Expenses'': Provided, That
the Secretary of State shall submit to the Committees on
Appropriations within 90 days of enactment of this Act a
detailed spending plan for funds appropriated under this
heading.

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

Funds Appropriated to the President

Capital INVESTMENT FUND

For an additional amount for ``Capital Investment Fund'',
$100,000,000, to remain available until September 30, 2010,
of which $34,000,000 shall be available for information
technology modernization programs and of which up to
$35,000,000 shall be available for implementation of the
Global Acquisition System: Provided, That the Administrator
of the United States Agency for International Development
shall submit to the Committees on Appropriations within 90
days of enactment of this Act a detailed spending plan for
funds appropriated under this heading.

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For an additional amount for ``Operating Expenses of the
United States Agency for International Development Office of
Inspector General'' for oversight requirements, $500,000, to
remain available until September 30, 2010.

[[Page S1153]]

TITLE XII--TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND
RELATED AGENCIES

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

SUPPLEMENTAL DISCRETIONARY GRANTS FOR A NATIONAL Surface TRANSPORTATION
SYSTEM

For an additional amount for capital investments in surface
transportation infrastructure, $5,500,000,000, to remain
available until September 30, 2011: Provided, That the
Secretary of Transportation shall distribute funds provided
under this heading as discretionary grants to be awarded to
State and local governments on a competitive basis for
projects that will have a significant impact on the Nation, a
metropolitan area, or a region: Provided further, That
projects eligible for funding provided under this heading
shall include, but not be limited to, highway or bridge
projects eligible under title 23, United States Code,
including interstate rehabilitation, improvements to the
rural collector road system, the reconstruction of overpasses
and interchanges, bridge replacements, seismic retrofit
projects for bridges, and road realignments; public
transportation projects eligible under chapter 53 of title
49, United States Code, including investments in projects
participating in the New Starts or Small Starts programs that
will expedite the completion of those projects and their
entry into revenue service; passenger and freight rail
transportation projects; and port infrastructure investments,
including projects that connect ports to other modes of
transportation and improve the efficiency of freight
movement: Provided further, That of the amount made available
under this paragraph, the Secretary may use an amount not to
exceed $200,000,000 for the purpose of paying the subsidy
costs of projects eligible for federal credit assistance
under chapter 6 of title 23, United States Code, if the
Secretary finds that such use of the funds would advance the
purposes of this paragraph: Provided further, That in
distributing funds provided under this heading, the Secretary
shall take such measures so as to ensure an equitable
geographic distribution of funds and an appropriate balance
in addressing the needs of urban and rural communities:
Provided further, That a grant funded under this heading
shall be not less than $20,000,000 and not greater than
$500,000,000: Provided further, That the Federal share of the
costs for which an expenditure is made under this heading may
be up to 100 percent: Provided further, That the Secretary
shall give priority to projects that require an additional
share of Federal funds in order to complete an overall
financing package, and to projects that are expected to be
completed within 3 years of enactment of this Act: Provided
further, That the Secretary shall publish criteria on which
to base the competition for any grants awarded under this
heading not later than 75 days after enactment of this Act:
Provided further, That the Secretary shall require
applications for funding provided under this heading to be
submitted not later than 180 days after enactment of this
Act, and announce all projects selected to be funded from
such funds not later than 1 year after enactment of this Act:
Provided further, That the Secretary shall require all
additional applications to be submitted not later than 1 year
after enactment of this Act, and announce not later than 180
days following such 1-year period all additional projects
selected to be funded with funds withdrawn from States and
grantees and transferred from ``Supplemental Grants for
Highway Investments'' and ``Supplemental Grants for Public
Transit Investment'': Provided further, That projects
conducted using funds provided under this heading must comply
with the requirements of subchapter IV of chapter 31 of title
40, United States Code: Provided further, That the Secretary
may retain up to $5,000,000 of the funds provided under this
heading, and may transfer portions of those funds to the
Administrators of the Federal Highway Administration, the
Federal Transit Administration, the Federal Railroad
Administration and the Maritime Administration, to fund the
award and oversight of grants made under this heading.

Federal Aviation Administration

SUPPLEMENTAL FUNDING FOR FACILITIES AND EQUIPMENT

For an additional amount for necessary investments in
Federal Aviation Administration infrastructure, $200,000,000:
Provided, That funding provided under this heading shall be
used to make improvements to power systems, air route traffic
control centers, air traffic control towers, terminal radar
approach control facilities, and navigation and landing
equipment: Provided further, That priority be given to such
projects or activities that will be completed within 2 years
of enactment of this Act: Provided further, That amounts made
available under this heading may be provided through grants
in addition to the other instruments authorized under section
106(l)(6) of title 49, United States Code: Provided further,
That the Federal share of the costs for which an expenditure
is made under this heading shall be 100 percent: Provided
further, That amounts provided under this heading may be used
for expenses the agency incurs in administering this program:
Provided further, That not more than 60 days after enactment
of this Act, the Administrator shall establish a process for
applying, reviewing and awarding grants and cooperative and
other transaction agreements, including the form and content
of an application, and requirements for the maintenance of
records that are necessary to facilitate an effective audit
of the use of the funding provided: Provided further, That
section 50101 of title 49, United States Code, shall apply to
funds provided under this heading.

SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT INVESTMENT

For an additional amount for capital expenditures
authorized under sections 47102(3) and 47504(c) of title 49,
United States Code, and for the procurement, installation and
commissioning of runway incursion prevention devices and
systems at airports of such title, $1,100,000,000: Provided,
That the Secretary of Transportation shall distribute funds
provided under this heading as discretionary grants to
airports, with priority given to those projects that
demonstrate to his or her satisfaction their ability to be
completed within 2 years of enactment of this Act, and serve
to supplement and not supplant planned expenditures from
airport-generated revenues or from other State and local
sources on such activities: Provided further, That the
Federal share payable of the costs for which a grant is made
under this heading shall be 100 percent: Provided further,
That the amount made available under this heading shall not
be subject to any limitation on obligations for the Grants-
in-Aid for Airports program set forth in any Act: Provided
further, That section 50101 of title 49, United States Code,
shall apply to funds provided under this heading: Provided
further, That projects conducted using funds provided under
this heading must comply with the requirements of subchapter
IV of chapter 31 of title 40, United States Code: Provided
further, That the Administrator of the Federal Aviation
Administration may retain and transfer to ``Federal Aviation
Administration, Operations'' up to one-quarter of 1 percent
of the funds provided under this heading to fund the award
and oversight by the Administrator of grants made under this
heading.

Federal Highway Administration

SUPPLEMENTAL GRANTS FOR HIGHWAY INVESTMENT

For an additional amount for restoration, repair,
construction and other activities eligible under paragraph
(b) of section 133 of title 23, United States Code,
$27,060,000,000: Provided, That funds provided under this
heading shall be apportioned to States using the formula set
forth in section 104(b)(3) of such title: Provided further,
That 180 days following the date of such apportionment, the
Secretary of Transportation shall withdraw from each State an
amount equal to 50 percent of the funds awarded to that
grantee less the amount of funding obligated, and the
Secretary shall redistribute such amounts to other States
that have had no funds withdrawn under this proviso in the
manner described in section 120(c) of division K of Public
Law 110-161: Provided further, That 1 year following the date
of such apportionment, the Secretary shall withdraw from each
recipient of funds apportioned under this heading any
unobligated funds and transfer such funds to ``Supplemental
Discretionary Grants for a National Surface Transportation
System'': Provided further, That at the request of a State,
the Secretary of Transportation may provide an extension of
such 1-year period only to the extent that he or she feels
satisfied that the State has encountered extreme conditions
that create an unworkable bidding environment or other
extenuating circumstances: Provided further, That before
granting a such an extension, the Secretary shall send a
letter to the House and Senate Committees on Appropriations
that provides a thorough justification for the extension:
Provided further, That the provisions of subsections
133(d)(3) and 133(d)(4) of title 23, United States Code,
shall apply to funds apportioned under this heading, except
that the percentage of funds to be allocated to local
jurisdictions shall be 40 percent and such allocation,
notwithstanding any other provision of law, shall be
conducted in all states within the United States: Provided
further, That funds allocated to such urbanized areas and
other areas shall not be subject to the redistribution of
amounts required 180 days following the date of apportionment
of funds provided under this heading: Provided further, That
funds apportioned under this heading may be used for, but not
be limited to, projects that address stormwater runoff,
investments in passenger and freight rail transportation, and
investments in port infrastructure: Provided further, that
each State shall use not less than 5 percent of funds
apportioned to it for activities eligible under subsections
149(b) and (c) of title 23, United States Code: Provided
further, That of the funds provided under this heading,
$60,000,000 shall be for capital expenditures eligible under
section 147 of title 23, United States Code: Provided
further, That the Secretary of Transportation shall
distribute such $60,000,000 as competitive discretionary
grants to States, with priority given to those projects that
demonstrate to his or her satisfaction their ability to be
completed within 2 years of enactment of this Act: Provided
further, That of the funds provided under this heading,
$500,000,000 shall be for investments in transportation at
Indian reservations and Federal lands, and administered in
accordance with chapter 2 of title 23, United States Code:
Provided further, That of the funds identified in the
preceding proviso, $320,000,000 shall be for the Indian
Reservation Roads program, $100,000,000 shall be for the Park
Roads and

[[Page S1154]]

Parkways program, $70,000,000 shall be for the Forest Highway
Program, and $10,000,000 shall be for the Refuge Roads
program: Provided further, That for investments at Indian
reservations and Federal lands, priority shall be given to
capital investments, and to projects and activities that can
be completed within 2 years of enactment of this Act:
Provided further, That 1 year following the enactment of this
Act, to ensure the prompt use of the $500,000,000 provided
for investments at Indian reservations and Federal lands, the
Secretary shall have the authority to redistribute
unobligated funds within the respective program for which the
funds were appropriated: Provided further, That up to 4
percent of the funding provided for Indian Reservation Roads
may be used by the Secretary of the Interior for program
management and oversight and project-related administrative
expenses: Provided further, That section 134(f)(3)(C)(ii)(II)
of title 23, United States Code, shall not apply to funds
provided under this heading: Provided further, That the
Federal share payable on account of any project or activity
carried out with funds made available under this heading
shall be at the option of the recipient, and may be up to 100
percent of the total cost thereof: Provided further, That
funding provided under this heading shall be in addition to
any and all funds provided for fiscal years 2008 and 2009 in
any other Act for ``Federal-aid Highways'' and shall not
affect the distribution of funds provided for ``Federal-aid
Highways'' in any other Act: Provided further, That the
amount made available under this heading shall not be subject
to any limitation on obligations for Federal-aid highways or
highway safety construction programs set forth in any Act:
Provided further, That projects conducted using funds
provided under this heading must comply with the requirements
of subchapter IV of chapter 31 of title 40, United States
Code: Provided further, That section 313 of title 23, United
States Code, shall apply to funds provided under this
heading: Provided further, That section 1101(b) of Public Law
109-59 shall apply to funds apportioned under this heading:
Provided further, That for the purposes of the definition of
States for this paragraph, sections 101(a)(32) of title 23,
United States Code, shall apply: Provided further, That the
Administrator of the Federal Highway Administration may
retain up to $12,000,000 of the funds provided under this
heading to carry out the function of the ``Federal Highway
Administration, Limitation on Administrative Expenses'' and
to fund the oversight by the Administrator of projects and
activities carried out with funds made available to the
Federal Highway Administration in this Act.

Federal Railroad Administration

SUPPLEMENTAL GRANTS TO STATES FOR INTERCITY PASSENGER RAIL SERVICE

For an additional amount for discretionary grants to States
to pay for the cost of projects described in paragraphs
(2)(A) and (2)(B) of section 24401 of title 49, United States
Code, and subsection (b) of section 24105 of such title,
$250,000,000: Provided, That to be eligible for assistance
under this paragraph, the specific project must be on a
Statewide Transportation Improvement Plan at the time of the
application to qualify: Provided further, That the Secretary
of Transportation shall give priority to projects that
demonstrate an ability to be completed within 2 years of
enactment of this Act, and to projects that improve the
safety and reliability of intercity passenger trains:
Provided further, That the Federal share payable of the costs
for which a grant is made under this heading shall be 100
percent: Provided further, That projects conducted using
funds provided under this heading must comply with the
requirements of subchapter IV of chapter 31 of title 40,
United States Code: Provided further, That section 24405(a)
of title 49, United States Code, shall apply to funds
provided under this heading: Provided further, That the
Administrator of the Federal Railroad Administration may
retain and transfer to ``Federal Railroad Administration,
Safety and Operations'' up to one-quarter of 1 percent of the
funds provided under this heading to fund the award and
oversight by the Administrator of grants made under this
heading.

SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL RAILROAD PASSENGER
CORPORATION

For an additional amount for the immediate investment in
capital projects necessary to maintain and improve national
intercity passenger rail service, including the
rehabilitation of rolling stock, $850,000,000: Provided, That
funds made available under this heading shall be allocated
directly to the National Railroad Passenger Corporation:
Provided further, That the Board of Directors of the
corporation shall take measures to ensure that priority is
given to capital projects that expand passenger rail
capacity: Provided further, That the Board of Directors shall
take measures to ensure that projects funded under this
heading shall be completed within 2 years of enactment of
this Act, and shall serve to supplement and not supplant
planned expenditures for such activities from other Federal,
State, local and corporate sources: Provided further, That
said Board of Directors shall certify to the House and Senate
Committees on Appropriations in writing their compliance with
the preceding proviso: Provided further, That section
24305(f) of title 49, United States Code, shall apply to
funds provided under this heading: Provided further, That not
more than 50 percent of the funds provided under this heading
may be used for capital projects along the Northeast
Corridor.

High-Speed Rail Corridor Program

To make grants for high-speed rail projects under the
provisions of section 26106 of title 49, United States Code,
$2,000,000,000, to remain available until September 30, 2011:
Provided, That the Federal share payable of the costs for
which a grant is made under this heading shall be 100
percent: Provided further, That the Administrator of the
Federal Railroad Administration may retain and transfer to
``Federal Railroad Administration, Safety and Operations'' up
to one-quarter of 1 percent of the funds provided under this
heading to fund the award and oversight by the Administrator
of grants made under this paragraph.

Federal Transit Administration

SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT INVESTMENT

For an additional amount for capital expenditures
authorized under section 5302(a)(1) of title 49, United
States Code, $8,400,000,000: Provided, That the Secretary of
Transportation shall apportion 71 percent of the funds
apportioned under this heading using the formula set forth in
subsections (a) through (c) of section 5336 of title 49,
United States Code, 19 percent of the funds apportioned under
this heading using the formula set forth in section 5340 of
such title, and 10 percent of the funding apportioned under
this heading using the formula set forth in subsection
5311(c) of such title: Provided further, That 180 days
following the date of such apportionment, the Secretary shall
withdraw from each grantee an amount equal to 50 percent of
the funds awarded to that grantee less the amount of funding
obligated, and the Secretary shall redistribute such amounts
to other grantees that have had no funds withdrawn under this
proviso utilizing whatever method he or she deems appropriate
to ensure that all funds provided under this paragraph shall
be utilized promptly: Provided further, That 1 year following
the date of such apportionment, the Secretary shall withdraw
from each grantee any unobligated funds and transfer such
funds to ``Supplemental Discretionary Grants for a National
Surface Transportation System'': Provided further, That at
the request of a grantee, the Secretary of Transportation may
provide an extension of such 1-year periods if he or she
feels satisfied that the grantee has encountered an
unworkable bidding environment or other extenuating
circumstances: Provided further, That before granting such an
extension, the Secretary shall send a letter to the House and
Senate Committees on Appropriations that provides a thorough
justification for the extension: Provided further, That of
the funds apportioned using the formula set forth in
subsection 5311(c) of title 49, United States Code, 2 percent
shall be made available for section 5311(c)(1): Provided
further, That of the funding provided under this heading,
$200,000,000 shall be distributed as discretionary grants to
public transit agencies for capital investments that will
assist in reducing the energy consumption or greenhouse gas
emissions of their public transportation systems: Provided
further, That for such grants on energy-related investments,
priority shall be given to projects based on the total energy
savings that are projected to result from the investment, and
projected energy savings as a percentage of the total energy
usage of the public transit agency: Provided further, That
the Federal share of the costs for which any grant is made
under this heading shall be at the option of the recipient,
and may be up to 100 percent: Provided further, That the
amount made available under this heading shall not be subject
to any limitation on obligations for transit programs set
forth in any Act: Provided further, That section 1101(b) of
Public Law 109-59 shall apply to funds apportioned under this
heading: Provided further, That the funds appropriated under
this heading shall be subject to subsection 5323(j) and
section 5333 of title 49, United States Code as well as
sections 5304 and 5305 of said title, as appropriate, but
shall not be comingled with funds available under the Formula
and Bus Grants account: Provided further, That the
Administrator of the Federal Transit Administration may
retain up to $3,000,000 of the funds provided under this
heading to carry out the function of ``Federal Transit
Administration, Administrative Expenses'' and to fund the
oversight of grants made under this heading by the
Administrator.

Maritime Administration

SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL SHIPYARDS

To make grants to qualified shipyards as authorized under
section 3506 of Public Law 109-163 or section 54101 of title
46, United States Code, $100,000,000: Provided, That the
Secretary of Transportation shall institute measures to
ensure that funds provided under this heading shall be
obligated within 180 days of the date of their distribution:
Provided further, That the Maritime Administrator may retain
and transfer to ``Maritime Administration, Operations and
Training'' up to 2 percent of the funds provided under this
heading to fund the award and oversight by the Administrator
of grants made under this heading.

Office of Inspector General

SALARIES AND EXPENSES

For an additional amount for necessary expenses of the
Office of Inspector General to carry out the provisions of
the Inspector

[[Page S1155]]

General Act of 1978, as amended, $7,750,000, to remain
available until September 30, 2011: Provided, That the
funding made available under this heading shall be used for
conducting audits and investigations of projects and
activities carried out with funds made available in this Act
to the Department of Transportation and to the National
Railroad Passenger Corporation: Provided further, That the
Inspector General shall have all necessary authority, in
carrying out the duties specified in the Inspector General
Act, as amended (5 U.S.C. App. 3), to investigate allegations
of fraud, including false statements to the Government (18
U.S.C. 1001), by any person or entity that is subject to
regulation by the Department.

GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION

Sec. 1201. Section 5309(g)(4)(A) of title 49, United States
Code, is amended by striking ``or an amount equivalent to the
last 3 fiscal years of funding allocated under subsections
(m)(1)(A) and (m)(2)(A)(ii)'' and inserting ``or the sum of
the funds available for the next 3 fiscal years beyond the
current fiscal year, assuming an annual growth of the program
of 10 percent''.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Native American Housing Block Grants

For an additional amount for ``Native American Housing
Block Grants'', as authorized under title I of the Native
American Housing Assistance and Self-Determination Act of
1996 (``NAHASDA'') (25 U.S.C. 4111 et seq.), $510,000,000, to
remain available until September 30, 2011: Provided, That
$255,000,000 of the amount provided under this heading shall
be distributed according to the same funding formula used in
fiscal year 2008: Provided further, That in selecting
projects to be funded, recipients shall give priority to
projects that can award contracts based on bids within 180
days from the date that funds are available to recipients:
Provided further, That the Secretary shall obligate
$255,000,000 of the amount provided under this heading for
competitive grants to eligible entities that apply for funds
authorized under NAHASDA: Provided further, That in awarding
competitive funds, the Secretary shall give priority to
projects that will spur construction and rehabilitation and
will create employment opportunities for low-income and
unemployed persons: Provided further, That recipients of
funds under this heading shall obligate 100 percent of such
funds within 1 year of the date of enactment of this Act,
expend at least 50 percent of such funds within 2 years of
the date on which funds become available to such
jurisdictions for obligation, and expend 100 percent of such
funds within 3 years of such date: Provided further, That if
a recipient fails to comply with either the 1-year obligation
requirement or the 2-year expenditure requirement, the
Secretary shall recapture all remaining funds awarded to the
recipient and reallocate such funds to recipients that are in
compliance with those requirements: Provided further, That if
a recipient fails to comply with the 3-year expenditure
requirement, the Secretary shall recapture the balance of the
funds awarded to the recipient: Provided further, That,
notwithstanding any other provision of this paragraph, the
Secretary may institute measures to ensure participation in
the formula and competitive allocation of funds provided
under this paragraph by any housing entity eligible to
receive funding under title VIII of NAHASDA (25 U.S.C. 4221
et seq.): Provided further, That in administering funds
provided in this heading, the Secretary may waive any
provision of any statute or regulation that the Secretary
administers in connection with the obligation by the
Secretary or the use by the recipient of these funds except
for requirements imposed by this heading and requirements
related to fair housing, nondiscrimination, labor standards,
and the environment, upon a finding that such waiver is
required to facilitate the timely use of such funds and would
not be inconsistent with the overall purpose of the statute
or regulation: Provided further, That, of the funds made
available under this heading, up to 1 percent shall be
available for staffing, training, technical assistance,
technology, monitoring, research and evaluation activities:
Provided further, That any funds made available under this
heading used by the Secretary for personnel expenses shall be
transferred to and merged with funding provided to
``Personnel Compensation and Benefits, Office of Public and
Indian Housing'': Provided further, That any funds made
available under this heading used by the Secretary for
training or other administrative expenses shall be
transferred to and merged with funding provided to
``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funds made available
under this heading used by the Secretary for technology shall
be transferred to and merged with the funding provided to
``Working Capital Fund''.

Public Housing Capital Fund

For an additional amount for the ``Public Housing Capital
Fund'' to carry out capital and management activities for
public housing agencies, as authorized under section 9 of the
United States Housing Act of 1937 (42 U.S.C. 1437g) (the
``Act''), $5,000,000,000, to remain available until September
30, 2011: Provided, That the Secretary of Housing and Urban
Development shall allocate $3,000,000,000 of this amount by
the formula authorized under section 9(d)(2) of the Act,
except that the Secretary may determine not to allocate
funding to public housing agencies currently designated as
troubled or to public housing agencies that elect not to
accept such funding: Provided further, That the Secretary
shall make available $2,000,000,000 by competition for
priority investments, including investments that leverage
private sector funding or financing for renovations and
energy conservation retrofit investments: Provided further,
That public housing agencies shall prioritize capital
projects that are already underway or included in the 5-year
capital fund plans required by the Act (42 U.S.C. 1437c-
1(a)): Provided further, That in allocating competitive
grants under this heading, the Secretary shall give priority
consideration to the rehabilitation of vacant rental units:
Provided further, That notwithstanding any other provision of
law, (1) funding provided herein may not be used for
operating or rental assistance activities, and (2) any
restriction of funding to replacement housing uses shall be
inapplicable: Provided further, That notwithstanding any
other provision of law, the Secretary shall institute
measures to ensure that funds provided under this heading
shall serve to supplement and not supplant expenditures from
other Federal, State, or local sources or funds independently
generated by the grantee: Provided further, That
notwithstanding section 9(j), public housing agencies shall
obligate 100 percent of the funds within 1 year of the date
of enactment of this Act, shall expend at least 60 percent of
funds within 2 years of the date on which funds become
available to the agency for obligation, and shall expend 100
percent of the funds within 3 years of such date: Provided
further, That if a public housing agency fails to comply with
either the 1-year obligation requirement or the 2-year
expenditure requirement, the Secretary shall recapture all
remaining funds awarded to the public housing agency and
reallocate such funds to agencies that are in compliance with
those requirements: Provided further, That if a public
housing agency fails to comply with the 3-year expenditure
requirement, the Secretary shall recapture the balance of the
funds awarded to the public housing agency: Provided further,
That in administering funds provided in this heading, the
Secretary may waive any provision of any statute or
regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by the recipient
of these funds except for requirements imposed by this
heading and requirements related to conditions on use of
funds for development and modernization, fair housing, non-
discrimination, labor standards, and the environment, upon a
finding that such waiver is required to facilitate the timely
use of such funds and would not be inconsistent with the
overall purpose of the statute or regulation: Provided
further, That of the funds made available under this heading,
up to 1 percent shall be available for staffing, training,
technical assistance, technology, monitoring, research and
evaluation activities: Provided further, That any funds made
available under this heading used by the Secretary for
personnel expenses shall be transferred to and merged with
funding provided to ``Personnel Compensation and Benefits,
Office of Public and Indian Housing'': Provided further, That
any funds made available under this heading used by the
Secretary for training or other administrative expenses shall
be transferred to and merged with funding provided to
``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funds made available
under this heading used by the Secretary for technology shall
be transferred to and merged with the funding provided to
``Working Capital Fund''.

Neighborhood Stabilization Program

For the provision of emergency assistance for the
redevelopment of abandoned and foreclosed homes, as
authorized by title III of division B of the Housing and
Economic Recovery Act of 2008 (the ``Act'') (42 U.S.C. 5301
note), $2,250,000,000, to remain available until September
30, 2011: Provided, That funding shall be allocated by a
competition for which eligible entities shall be States,
units of general local government, and nonprofit entities or
consortia of nonprofit entities, which may submit proposals
in partnership with for-profit entities: Provided further,
That in selecting grantees the Secretary shall ensure that
the grantee can expend funding within the period allowed
under this heading: Provided further, That additional award
criteria for such competition shall include demonstrated
grantee capacity to execute projects, leveraging potential,
targeted impact of foreclosure prevention, neighborhood
stabilization, and any additional factors determined by the
Secretary of Housing and Urban Development: Provided further,
That the Secretary may establish a minimum grant size:
Provided further, That the Secretary shall publish criteria
on which to base the competition for any grants awarded under
this heading not later than 75 days after the enactment of
this Act and applications shall be due not later than 180
days after the enactment of this Act: Provided further, That
the Secretary shall award all funding within 1 year of
enactment of this Act: Provided further, That grantees shall
expend at least 75 percent of allocated funds within 2 years
of the date funds become available to the grantees for
obligation and

[[Page S1156]]

100 percent of such funds within 3 years of such date:
Provided further, That funding used for section 2301(c)(3)(E)
of the Act shall be available only for the redevelopment of
demolished or vacant properties as housing: Provided further,
That in addition to the eligible uses in section 2301, the
Secretary may also use up to 10 percent of the funds provided
under this heading for grantees for the provision of capacity
building of and support for local communities receiving
funding under section 2301 of the Act or under this heading:
Provided further, That the construction or rehabilitation of
early childhood and development centers serving households
that qualify as low income shall also be an eligible use of
funding: Provided further, That in addition to the allowable
uses of revenues provided in section 2301 of the Act, any
revenues generated in the first 5 years using the funds
provided under this heading may be used by the State or
applicable unit of general local government for maintenance
associated with property acquisition and holding and with
land banking activities: Provided further, That of the funds
provided under this heading, up to 1.5 percent shall be
available for staffing, training, technical assistance,
technology, monitoring, research and evaluation activities:
Provided further, That any funds made available under this
heading used by the Secretary for personnel expense shall be
transferred to and merged with funding provided to
``Community Planning and Development Personnel Compensation
and Benefits'': Provided further, That any funds made
available under this heading used by the Secretary for
training or other administrative expenses shall be
transferred to and merged with funding provided to
``Administration, Operations, and Management'' for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funding made
available under this heading used by the Secretary for
technology shall be transferred to and merged with the
funding provided to ``Working Capital Fund.''

Home Investment Partnerships Program

For an additional amount for the ``HOME Investment
Partnerships Program'' as authorized under title II of the
Cranston-Gonzalez National Affordable Housing Act (the
``Act''), $2,250,000,000, to remain available until September
30, 2011: Provided, That except as specifically provided
herein, funds provided under this heading shall be
distributed pursuant to the formula authorized by section 217
of the Act: Provided further, That the Secretary may
establish a minimum grant size: Provided further, That
participating jurisdictions shall obligate 100 percent of the
funds within 1 year of the date of enactment of this Act,
shall expend at least 60 percent of funds within 2 years of
the date on which funds become available to the participating
jurisdiction for obligation and shall expend 100 percent of
the funds within 3 years of such date: Provided further, That
if a participating jurisdiction fails to comply with either
the 1-year obligation requirement or the 2-year expenditure
requirement, the Secretary shall recapture all remaining
funds awarded to the participating jurisdiction and
reallocate such funds to participating jurisdictions that are
in compliance with those requirements: Provided further, That
if a participating jurisdiction fails to comply with the 3-
year expenditure requirement, the Secretary shall recapture
the balance of the funds awarded to the participating
jurisdiction: Provided further, That in administering funds
under this heading, the Secretary may waive any provision of
any statute or regulation that the Secretary administers in
connection with the obligation by the Secretary or the use by
the recipient of these funds except for requirements imposed
by this heading and requirements related to fair housing,
non-discrimination, labor standards and the environment, upon
a finding that such waiver is required to facilitate the
timely use of such funds and would not be inconsistent with
the overall purpose of the statute or regulation: Provided
further, That the Secretary may use funds provided under this
heading to provide incentives to grantees to use funding for
investments in energy efficiency and green building
technology: Provided further, That such incentives may
include allocation of up to 20 percent of funds made
available under this heading other than pursuant to the
formula authorized by section 217 of the Act: Provided
further, That, of the funds made available under this
heading, up to 1 percent shall be available for staffing,
training, technical assistance, technology, monitoring,
research and evaluation activities: Provided further, That
any funds made available under this heading used by the
Secretary for personnel expenses shall be transferred to and
merged with funding provided to ``Personnel Compensation and
Benefits, Office of Community Planning and Development'':
Provided further, That any funds made available under this
heading used by the Secretary for training or other
administrative expenses shall be transferred to and merged
with funding provided to ``Administration, Operations, and
Management'', for non-personnel expenses of the Department of
Housing and Urban Development: Provided further, That any
funds made available under this heading used by the Secretary
for technology shall be transferred to and merged with the
funding provided to ``Working Capital Fund''.

Homelessness Prevention Fund

For homelessness prevention activities, $1,500,000,000, to
remain available until September 30, 2011: Provided, That
funds provided under this heading shall be used for the
provision of short-term or medium-term rental assistance;
housing relocation and stabilization services including
housing search, mediation or outreach to property owners,
credit repair, security or utility deposits, utility
payments, rental assistance for a final month at a location,
and moving cost assistance; or other appropriate homelessness
prevention activities: Provided further, That grantees
receiving such assistance shall collect data on the use of
the funds awarded and persons served with this assistance in
the Homeless Management Information System (HMIS) or other
comparable database: Provided further, That grantees may use
up to 5 percent of any grant for administrative costs:
Provided further, That funding made available under this
heading shall be allocated to eligible grantees (as defined
and designated in sections 411 and 412 of subtitle B of title
IV of the McKinney-Vento Homeless Assistance Act, (the
``Act'')) pursuant to the formula authorized by section 413
of the Act: Provided further, That the Secretary may
establish a minimum grant size: Provided further, That
grantees shall expend at least 75 percent of funds within 2
years of the date that funds became available to them for
obligation, and 100 percent of funds within 3 years of such
date, and the Secretary may recapture unexpended funds in
violation of the 2-year expenditure requirement and
reallocate such funds to grantees in compliance with that
requirement: Provided further, That the Secretary may waive
statutory or regulatory provisions (except provisions for
fair housing, nondiscrimination, labor standards, and the
environment) necessary to facilitate the timely expenditure
of funds: Provided further, That the Secretary shall publish
a notice to establish such requirements as may be necessary
to carry out the provisions of this section within 30 days of
enactment of the Act and that this notice shall take effect
upon issuance: Provided further, That of the funds provided
under this heading, up to 1.5 percent shall be available for
staffing, training, technical assistance, technology,
monitoring, research and evaluation activities: Provided
further, That any funds made available under this heading
used by the Secretary for personnel expense shall be
transferred to and merged with funding provided to
``Community Planning and Development Personnel Compensation
and Benefits'': Provided further, That any funds made
available under this heading used by the Secretary for
training or other administrative expenses shall be
transferred to and merged with funding provided to
``Administration, Operations, and Management'' for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funding made
available under this heading used by the Secretary for
technology shall be transferred to and merged with the
funding provided to ``Working Capital Fund.''

Assisted Housing Stability and Energy and Green Retrofit Investments

For assistance to owners of properties receiving project-
based assistance pursuant to section 202 of the Housing Act
of 1959 (12 U.S.C. 17012), section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013), or
section 8 of the United States Housing Act of 1937 as amended
(42 U.S.C. 1437f), $3,500,000,000, of which $2,132,000,000
shall be for an additional amount for paragraph (1) under the
heading ``Project-Based Rental Assistance'' in Public Law
110-161 for payments to owners for 12-month periods, and of
which $1,368,000,000 shall be for grants or loans for energy
retrofit and green investments in such assisted housing:
Provided, That projects funded with grants or loans provided
under this heading must comply with the requirements of
subchapter IV of chapter 31 of title 40, United States Code:
Provided further, That such grants or loans shall be provided
through the existing policies, procedures, contracts, and
transactional infrastructure of the authorized programs
administered by the Office of Affordable Housing Preservation
of the Department of Housing and Urban Development, on such
terms and conditions as the Secretary of Housing and Urban
Development deems appropriate to ensure the maintenance and
preservation of the property, the continued operation and
maintenance of energy efficiency technologies, and the timely
expenditure of funds: Provided further, That the Secretary
may provide incentives to owners to undertake energy or green
retrofits as a part of such grant or loan terms, including,
but not limited to, investment fees to cover oversight and
implementation costs incurred by said owner, or to encourage
job creation for low-income or very low-income individuals:
Provided further, That the grants or loans shall include a
financial assessment and physical inspection of such
property: Provided further, That eligible owners must have at
least a satisfactory management review rating, be in
substantial compliance with applicable performance standards
and legal requirements, and commit to an additional period of
affordability determined by the Secretary, but of not fewer
than 15 years: Provided further, That the Secretary shall
undertake appropriate underwriting and oversight with respect
to grant and loan transactions and may set aside up to 5
percent of the funds made available under this heading for
grants or loans for such purpose: Provided further, That the
Secretary shall take steps necessary to ensure that owners
receiving funding for energy and green retrofit investments
under

[[Page S1157]]

this heading shall expend such funding within 2 years of the
date they received the funding: Provided further, That the
Secretary may waive or modify statutory or regulatory
requirements with respect to any existing grant, loan, or
insurance mechanism authorized to be used by the Secretary to
enable or facilitate the accomplishment of investments
supported with funds made available under this heading for
grants or loans: Provided further, That of the funds provided
under this heading, up to 1.5 percent shall be available for
staffing, training, technical assistance, technology,
monitoring, research and evaluation activities: Provided
further, That funding made available under this heading and
used by the Secretary for personnel expenses shall be
transferred to and merged with funding provided to ``Housing
Compensation and Benefits'': Provided further, That any
funding made available under this heading used by the
Secretary for training and other administrative expenses
shall be transferred to and merged with funding provided to
``Administration, Operations and Management'' for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funding made
available under this heading used by the Secretary for
technology shall be transferred to and merged with funding
provided to ``Working Capital Fund.''

Office of Healthy Homes and Lead Hazard Control

For an additional amount for the ``Lead Hazard Reduction'',
as authorized by section 1011 of the Residential Lead-Based
Paint Hazard Reduction Act of 1992, $100,000,000, to remain
available until September 30, 2011: Provided, That funds
shall be awarded first to applicant jurisdictions which had
applied under the Lead-Based Paint Hazard Control Grant
Program Notice of Funding Availability for fiscal year 2008,
and were found in the application review to be qualified for
award, but were not awarded because of funding limitations,
and that any funds which remain after reservation of funds
for such grants shall be added to the amount of funds to be
awarded under the Lead-Based Paint Hazard Control Grant
Program Notice of Funding Availability for fiscal year 2009:
Provided further, That each applicant jurisdiction for the
Lead-Based Paint Hazard control Grant Program Notice of
Funding Availability for fiscal year 2009 shall submit a
detailed plan and strategy that demonstrates adequate
capacity that is acceptable to the Secretary to carry out the
proposed use of funds: Provided further, That recipients of
funds under this heading shall obligate 100 percent of such
funds within 1 year of the date of enactment of this Act,
expend at least 75 percent of such funds within 2 years of
the date on which funds become available to such
jurisdictions for obligation, and expend 100 percent of such
funds within 3 years of such date: Provided further, That if
a recipient fails to comply with either the 1-year obligation
requirement or the 2-year expenditure requirement, the
Secretary shall recapture all remaining funds awarded to the
recipient and reallocate such funds to recipients that are in
compliance with those requirements: Provided further, That if
a recipient fails to comply with the 3-year expenditure
requirement, the Secretary shall recapture the balance of the
funds awarded to the recipient: Provided further, That in
administering funds provided in this heading, the Secretary
may waive any provision of any statute or regulation that the
Secretary administers in connection with the obligation by
the Secretary or the use by the recipient of these funds
except for requirements imposed by this heading and
requirements related to fair housing, nondiscrimination,
labor standards, and the environment, upon a finding that
such waiver is required to facilitate the timely use of such
funds and would not be inconsistent with the overall purpose
of the statute or regulation: Provided further, That, of the
funds made available under this heading, up to 1 percent
shall be available for staffing, training, technical
assistance, technology, monitoring, research and evaluation
activities: Provided further, That any funds made available
under this heading used by the Secretary for personnel
expenses shall be transferred to and merged with funding
provided to ``Personnel Compensation and Benefits, Office of
Healthy Homes and Lead Hazard Control'': Provided further,
That any funds made available under this heading used by the
Secretary for training or other administrative expenses shall
be transferred to and merged with funding provided to
``Administration, Operations, and Management'', for non-
personnel expenses of the Department of Housing and Urban
Development: Provided further, That any funds made available
under this heading used by the Secretary for technology shall
be transferred to and merged with the funding provided to
``Working Capital Fund''.

Office of Inspector General

For an additional amount for the necessary salaries and
expenses of the Office of Inspector General in carrying out
the Inspector General Act of 1978, as amended, $2,750,000, to
remain available until September 30, 2011: Provided, That the
Inspector General shall have independent authority over all
personnel issues within this office.

TITLE XIII--HEALTH INFORMATION TECHNOLOGY

SEC. 1301. SHORT TITLE.

This title may be cited as the ``Health Information
Technology for Economic and Clinical Health Act'' or the
``HITECH Act''.

Subtitle A--Promotion of Health Information Technology

PART I--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY

SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

The Public Health Service Act (42 U.S.C. 201 et seq.) is
amended by adding at the end the following:

``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

``SEC. 3000. DEFINITIONS.

``In this title:
``(1) Certified ehr technology.--The term `certified EHR
technology' means a qualified electronic health record and
that is certified pursuant to section 3001(c)(5) as meeting
standards adopted under section 3004 that are applicable to
the type of record involved (as determined by the Secretary,
such as an ambulatory electronic health record for office-
based physicians or an inpatient hospital electronic health
record for hospitals).
``(2) Enterprise integration.--The term `enterprise
integration' means the electronic linkage of health care
providers, health plans, the government, and other interested
parties, to enable the electronic exchange and use of health
information among all the components in the health care
infrastructure in accordance with applicable law, and such
term includes related application protocols and other related
standards.
``(3) Health care provider.--The term `health care
provider' means a hospital, skilled nursing facility, nursing
facility, home health entity, or other long-term care
facility, health care clinic, emergency medical services
provider, Federally qualified health center, group practice
(as defined in section 1877(h)(4) of the Social Security
Act), a pharmacist, a pharmacy, a laboratory, a physician (as
defined in section 1861(r) of the Social Security Act), a
practitioner (as described in section 1842(b)(18)(C) of the
Social Security Act), a provider operated by, or under
contract with, the Indian Health Service or by an Indian
tribe (as defined in the Indian Self-Determination and
Education Assistance Act), tribal organization, or urban
Indian organization (as defined in section 4 of the Indian
Health Care Improvement Act), a rural health clinic, a
covered entity under section 340B, and any other category of
facility or clinician determined appropriate by the
Secretary.
``(4) Health information.--The term `health information'
has the meaning given such term in section 1171(4) of the
Social Security Act.
``(5) Health information technology.--The term `health
information technology' means hardware, software, integrated
technologies and related licenses, intellectual property,
upgrades, and packaged solutions sold as services for use by
health care entities for the electronic creation,
maintenance, or exchange of health information.
``(6) Health plan.--The term `health plan' has the meaning
given such term in section 1171(5) of the Social Security
Act.
``(7) HIT policy committee.--The term `HIT Policy
Committee' means such Committee established under section
3002(a).
``(8) HIT standards committee.--The term `HIT Standards
Committee' means such Committee established under section
3003(a).
``(9) Individually identifiable health information.--The
term `individually identifiable health information' has the
meaning given such term in section 1171(6) of the Social
Security Act.
``(10) Laboratory.--The term `laboratory' has the meaning
given such term in section 353(a).
``(11) National coordinator.--The term `National
Coordinator' means the head of the Office of the National
Coordinator for Health Information Technology established
under section 3001(a).
``(12) Pharmacist.--The term `pharmacist' has the meaning
given such term in section 804(2) of the Federal Food, Drug,
and Cosmetic Act.
``(13) Qualified electronic health record.--The term
`qualified electronic health record' means an electronic
record of health-related information on an individual that--
``(A) includes patient demographic and clinical health
information, such as medical history and problem lists; and
``(B) has the capacity--
``(i) to provide clinical decision support;
``(ii) to support physician order entry;
``(iii) to capture and query information relevant to health
care quality; and
``(iv) to exchange electronic health information with, and
integrate such information from other sources.
``(14) State.--The term `State' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana
Islands.

``Subtitle A--Promotion of Health Information Technology

``SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH
INFORMATION TECHNOLOGY.

``(a) Establishment.--There is established within the
Department of Health and Human Services an Office of the
National Coordinator for Health Information Technology
(referred to in this section as the `Office'). The Office
shall be headed by a National Coordinator who shall be
appointed by the Secretary and shall report directly to the
Secretary.

[[Page S1158]]

``(b) Purpose.--The National Coordinator shall perform the
duties under subsection (c) in a manner consistent with the
development of a nationwide health information technology
infrastructure that allows for the electronic use and
exchange of information and that--
``(1) ensures that each patient's health information is
secure and protected, in accordance with applicable law;
``(2) improves health care quality, reduces medical errors,
and advances the delivery of patient-centered medical care;
``(3) reduces health care costs resulting from
inefficiency, medical errors, inappropriate care, duplicative
care, and incomplete information;
``(4) provides appropriate information to help guide
medical decisions at the time and place of care;
``(5) ensures the inclusion of meaningful public input in
such development of such infrastructure;
``(6) improves the coordination of care and information
among hospitals, laboratories, physician offices, and other
entities through an effective infrastructure for the secure
and authorized exchange of health care information;
``(7) improves public health activities and facilitates the
early identification and rapid response to public health
threats and emergencies, including bioterror events and
infectious disease outbreaks;
``(8) facilitates health and clinical research and health
care quality;
``(9) promotes early detection, prevention, and management
of chronic diseases;
``(10) promotes a more effective marketplace, greater
competition, greater systems analysis, increased consumer
choice, and improved outcomes in health care services; and
``(11) improves efforts to reduce health disparities.
``(c) Duties of the National Coordinator.--
``(1) Standards.--The National Coordinator shall review and
determine whether to endorse each standard, implementation
specification, and certification criterion for the electronic
exchange and use of health information that is recommended by
the HIT Standards Committee under section 3003 for purposes
of adoption under section 3004. The Coordinator shall make
such determination, and report to the Secretary such
determination, not later than 45 days after the date the
recommendation is received by the Coordinator.
``(2) HIT policy coordination.--
``(A) In general.--The National Coordinator shall
coordinate health information technology policy and programs
of the Department with those of other relevant executive
branch agencies with a goal of avoiding duplication of
efforts and of helping to ensure that each agency undertakes
health information technology activities primarily within the
areas of its greatest expertise and technical capability and
in a manner towards a coordinated national goal.
``(B) HIT policy and standards committees.--The National
Coordinator shall be a leading member in the establishment
and operations of the HIT Policy Committee and the HIT
Standards Committee and shall serve as a liaison among those
two Committees and the Federal Government.
``(3) Strategic plan.--
``(A) In general.--The National Coordinator shall, in
consultation with other appropriate Federal agencies
(including the National Institute of Standards and
Technology), update the Federal Health IT Strategic Plan
(developed as of June 3, 2008) to include specific
objectives, milestones, and metrics with respect to the
following:
``(i) The electronic exchange and use of health information
and the enterprise integration of such information.
``(ii) The utilization of an electronic health record for
each person in the United States by 2014.
``(iii) The incorporation of privacy and security
protections for the electronic exchange of an individual's
individually identifiable health information.
``(iv) Ensuring security methods to ensure appropriate
authorization and electronic authentication of health
information and specifying technologies or methodologies for
rendering health information unusable, unreadable, or
indecipherable.
``(v) Specifying a framework for coordination and flow of
recommendations and policies under this subtitle among the
Secretary, the National Coordinator, the HIT Policy
Committee, the HIT Standards Committee, and other health
information exchanges and other relevant entities.
``(vi) Methods to foster the public understanding of health
information technology.
``(vii) Strategies to enhance the use of health information
technology in improving the quality of health care, reducing
medical errors, reducing health disparities, improving public
health, increasing prevention and coordination with community
resources, and improving the continuity of care among health
care settings.
``(viii) Specific plans for ensuring that populations with
unique needs, such as children, are appropriately addressed
in the technology design, as appropriate, which may include
technology that automates enrollment and retention for
eligible individuals.
``(B) Collaboration.--The strategic plan shall be updated
through collaboration of public and private entities.
``(C) Measurable outcome goals.--The strategic plan update
shall include measurable outcome goals.
``(D) Publication.--The National Coordinator shall
republish the strategic plan, including all updates.
``(4) Website.--The National Coordinator shall maintain and
frequently update an Internet website on which there is
posted information on the work, schedules, reports,
recommendations, and other information to ensure transparency
in promotion of a nationwide health information technology
infrastructure.
``(5) Certification.--
``(A) In general.--The National Coordinator, in
consultation with the Director of the National Institute of
Standards and Technology, shall develop a program (either
directly or by contract) for the voluntary certification of
health information technology as being in compliance with
applicable certification criteria adopted under this
subtitle. Such program shall include testing of the
technology in accordance with section 14201(b) of the Health
Information Technology for Economic and Clinical Health Act.
``(B) Certification criteria described.--In this title, the
term `certification criteria' means, with respect to
standards and implementation specifications for health
information technology, criteria to establish that the
technology meets such standards and implementation
specifications.
``(6) Reports and publications.--
``(A) Report on additional funding or authority needed.--
Not later than 12 months after the date of the enactment of
this title, the National Coordinator shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and the Senate a report on any additional
funding or authority the Coordinator or the HIT Policy
Committee or HIT Standards Committee requires to evaluate and
develop standards, implementation specifications, and
certification criteria, or to achieve full participation of
stakeholders in the adoption of a nationwide health
information technology infrastructure that allows for the
electronic use and exchange of health information.
``(B) Implementation report.--The National Coordinator
shall prepare a report that identifies lessons learned from
major public and private health care systems in their
implementation of health information technology, including
information on whether the technologies and practices
developed by such systems may be applicable to and usable in
whole or in part by other health care providers.
``(C) Assessment of impact of hit on communities with
health disparities and uninsured, underinsured, and medically
underserved areas.--The National Coordinator shall assess and
publish the impact of health information technology in
communities with health disparities and in areas with a high
proportion of individuals who are uninsured, underinsured,
and medically underserved individuals (including urban and
rural areas) and identify practices to increase the adoption
of such technology by health care providers in such
communities, and the use of health information technology to
reduce and better manage chronic diseases.
``(D) Evaluation of benefits and costs of the electronic
use and exchange of health information.--The National
Coordinator shall evaluate and publish evidence on the
benefits and costs of the electronic use and exchange of
health information and assess to whom these benefits and
costs accrue.
``(E) Resource requirements.--The National Coordinator
shall estimate and publish resources required annually to
reach the goal of utilization of an electronic health record
for each person in the United States by 2014, including the
required level of Federal funding, expectations for regional,
State, and private investment, and the expected contributions
by volunteers to activities for the utilization of such
records.
``(7) Assistance.--The National Coordinator may provide
financial assistance to consumer advocacy groups and not-for-
profit entities that work in the public interest for purposes
of defraying the cost to such groups and entities to
participate under, whether in whole or in part, the National
Technology Transfer Act of 1995 (15 U.S.C. 272 note).
``(8) Governance for Nationwide Health Information
Network.--The National Coordinator shall establish a
governance mechanism for the nationwide health information
network.
``(d) Detail of Federal Employees.--
``(1) In general.--Upon the request of the National
Coordinator, the head of any Federal agency is authorized to
detail, with or without reimbursement from the Office, any of
the personnel of such agency to the Office to assist it in
carrying out its duties under this section.
``(2) Effect of detail.--Any detail of personnel under
paragraph (1) shall--
``(A) not interrupt or otherwise affect the civil service
status or privileges of the Federal employee; and
``(B) be in addition to any other staff of the Department
employed by the National Coordinator.
``(3) Acceptance of detailees.--Notwithstanding any other
provision of law, the Office may accept detailed personnel
from other Federal agencies without regard to whether the
agency described under paragraph (1) is reimbursed.
``(e) Chief Privacy Officer of the Office of the National
Coordinator.--Not later

[[Page S1159]]

than 12 months after the date of the enactment of this title,
the Secretary shall appoint a Chief Privacy Officer of the
Office of the National Coordinator, whose duty it shall be to
advise the National Coordinator on privacy, security, and
data stewardship of electronic health information and to
coordinate with other Federal agencies (and similar privacy
officers in such agencies), with State and regional efforts,
and with foreign countries with regard to the privacy,
security, and data stewardship of electronic individually
identifiable health information.

``SEC. 3002. HIT POLICY COMMITTEE.

``(a) Establishment.--There is established a HIT Policy
Committee to make policy recommendations to the National
Coordinator relating to the implementation of a nationwide
health information technology infrastructure, including
implementation of the strategic plan described in section
3001(c)(3).
``(b) Duties.--
``(1) Recommendations on health information technology
infrastructure.--The HIT Policy Committee shall recommend a
policy framework for the development and adoption of a
nationwide health information technology infrastructure that
permits the electronic exchange and use of health information
as is consistent with the strategic plan under section
3001(c)(3) and that includes the recommendations under
paragraph (2). The Committee shall update such
recommendations and make new recommendations as appropriate.
``(2) Specific areas of standard development.--
``(A) In general.--The HIT Policy Committee shall recommend
the areas in which standards, implementation specifications,
and certification criteria are needed for the electronic
exchange and use of health information for purposes of
adoption under section 3004 and shall recommend an order of
priority for the development, harmonization, and recognition
of such standards, specifications, and certification criteria
among the areas so recommended. Such standards and
implementation specifications shall include named standards,
architectures, and software schemes for the authentication
and security of individually identifiable health information
and other information as needed to ensure the reproducible
development of common solutions across disparate entities.
``(B) Areas required for consideration.--For purposes of
subparagraph (A), the HIT Policy Committee shall make
recommendations for at least the following areas:
``(i) Technologies that protect the privacy of health
information and promote security in a qualified electronic
health record, including for the segmentation and protection
from disclosure of specific and sensitive individually
identifiable health information with the goal of minimizing
the reluctance of patients to seek care (or disclose
information about a condition) because of privacy concerns,
in accordance with applicable law, and for the use and
disclosure of limited data sets of such information.
``(ii) A nationwide health information technology
infrastructure that allows for the electronic use and
accurate exchange of health information.
``(iii) The utilization of a certified electronic health
record for each person in the United States by 2014.
``(iv) Technologies that as a part of a qualified
electronic health record allow for an accounting of
disclosures made by a covered entity (as defined for purposes
of regulations promulgated under section 264(c) of the Health
Insurance Portability and Accountability Act of 1996) for
purposes of treatment, payment, and health care operations
(as such terms are defined for purposes of such regulations).
``(v) The use of certified electronic health records to
improve the quality of health care, such as by promoting the
coordination of health care and improving continuity of
health care among health care providers, by reducing medical
errors, by improving population health, reducing chronic
disease, and by advancing research and education.
``(C) Other areas for consideration.--In making
recommendations under subparagraph (A), the HIT Policy
Committee may consider the following additional areas:
``(i) The appropriate uses of a nationwide health
information infrastructure, including for purposes of--

``(I) the collection of quality data and public reporting;
``(II) biosurveillance and public health;
``(III) medical and clinical research; and
``(IV) drug safety.

``(ii) Self-service technologies that facilitate the use
and exchange of patient information and reduce wait times.
``(iii) Telemedicine technologies, in order to reduce
travel requirements for patients in remote areas.
``(iv) Technologies that facilitate home health care and
the monitoring of patients recuperating at home.
``(v) Technologies that help reduce medical errors.
``(vi) Technologies that facilitate the continuity of care
among health settings.
``(vii) Technologies that meet the needs of diverse
populations.
``(viii) Technologies and design features that address the
needs of children and other vulnerable populations.
``(ix) Any other technology that the HIT Policy Committee
finds to be among the technologies with the greatest
potential to improve the quality and efficiency of health
care.
``(3) Forum.--The HIT Policy Committee shall serve as a
forum for broad stakeholder input with specific expertise in
policies relating to the matters described in paragraphs (1)
and (2).
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall provide
leadership in the establishment and operations of the HIT
Policy Committee.
``(2) Membership.--The membership of the HIT Policy
Committee shall at least reflect providers, ancillary
healthcare workers, consumers, purchasers, health plans,
technology vendors, researchers, relevant Federal agencies,
and individuals with technical expertise on health care
quality, privacy and security, and on the electronic exchange
and use of health information.
``(3) Consideration.--The National Coordinator shall ensure
that the relevant recommendations and comments from the
National Committee on Vital and Health Statistics are
considered in the development of policies.
``(d) Application of FACA.--The Federal Advisory Committee
Act (5 U.S.C. App.), other than section 14 of such Act, shall
apply to the HIT Policy Committee.
``(e) Publication.--The Secretary shall provide for
publication in the Federal Register and the posting on the
Internet website of the Office of the National Coordinator
for Health Information Technology of all policy
recommendations made by the HIT Policy Committee under this
section.

``SEC. 3003. HIT STANDARDS COMMITTEE.

``(a) Establishment.--There is established a committee to
be known as the HIT Standards Committee to recommend to the
National Coordinator standards, implementation
specifications, and certification criteria for the electronic
exchange and use of health information for purposes of
adoption under section 3004, consistent with the
implementation of the strategic plan described in section
3001(c)(3) and beginning with the areas listed in section
3002(b)(2)(B) in accordance with policies developed by the
HIT Policy Committee.
``(b) Duties.--
``(1) Standard development.--
``(A) In general.--The HIT Standards Committee shall
recommend to the National Coordinator standards,
implementation specifications, and certification criteria
described in subsection (a) that have been developed,
harmonized, or recognized by the HIT Standards Committee. The
HIT Standards Committee shall update such recommendations and
make new recommendations as appropriate, including in
response to a notification sent under section 3004(b)(2).
Such recommendations shall be consistent with the latest
recommendations made by the HIT Policy Committee.
``(B) Pilot testing of standards and implementation
specifications.--In the development, harmonization, or
recognition of standards and implementation specifications,
the HIT Standards Committee shall, as appropriate, provide
for the testing of such standards and specifications by the
National Institute for Standards and Technology under section
14201 of the Health Information Technology for Economic and
Clinical Health Act.
``(C) Consistency.--The standards, implementation
specifications, and certification criteria recommended under
this subsection shall be consistent with the standards for
information transactions and data elements adopted pursuant
to section 1173 of the Social Security Act.
``(2) Forum.--The HIT Standards Committee shall serve as a
forum for the participation of a broad range of stakeholders
to provide input on the development, harmonization, and
recognition of standards, implementation specifications, and
certification criteria necessary for the development and
adoption of a nationwide health information technology
infrastructure that allows for the electronic use and
exchange of health information.
``(3) Schedule.--Not later than 90 days after the date of
the enactment of this title, the HIT Standards Committee
shall develop a schedule for the assessment of policy
recommendations developed by the HIT Policy Committee under
section 3002. The HIT Standards Committee shall update such
schedule annually. The Secretary shall publish such schedule
in the Federal Register.
``(4) Public input.--The HIT Standards Committee shall
conduct open public meetings and develop a process to allow
for public comment on the schedule described in paragraph (3)
and recommendations described in this subsection. Under such
process comments shall be submitted in a timely manner after
the date of publication of a recommendation under this
subsection.
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall provide
leadership in the establishment and operations of the HIT
Standards Committee.
``(2) Membership.--The membership of the HIT Standards
Committee shall at least reflect providers, ancillary
healthcare workers, consumers, purchasers, health plans,
technology vendors, researchers, relevant Federal agencies,
and individuals with technical expertise on health care
quality, privacy and security, and on the electronic exchange
and use of health information.

[[Page S1160]]

``(3) Consideration.--The National Coordinator shall ensure
that the relevant recommendations and comments from the
National Committee on Vital and Health Statistics are
considered in the development of standards.
``(4) Assistance.--For the purposes of carrying out this
section, the Secretary may provide or ensure that financial
assistance is provided by the HIT Standards Committee to
defray in whole or in part any membership fees or dues
charged by such Committee to those consumer advocacy groups
and not for profit entities that work in the public interest
as a part of their mission.
``(d) Application of FACA.--The Federal Advisory Committee
Act (5 U.S.C. App.), other than section 14, shall apply to
the HIT Standards Committee.
``(e) Publication.--The Secretary shall provide for
publication in the Federal Register and the posting on the
Internet website of the Office of the National Coordinator
for Health Information Technology of all recommendations made
by the HIT Standards Committee under this section.

``SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED
RECOMMENDATIONS; ADOPTION OF INITIAL SET OF
STANDARDS, IMPLEMENTATION SPECIFICATIONS, AND
CERTIFICATION CRITERIA.

``(a) Process for Adoption of Endorsed Recommendations.--
``(1) Review of endorsed standards, implementation
specifications, and certification criteria.--Not later than
90 days after the date of receipt of standards,
implementation specifications, or certification criteria
endorsed under section 3001(c), the Secretary, in
consultation with representatives of other relevant Federal
agencies, shall jointly review such standards, implementation
specifications, or certification criteria and shall determine
whether or not to propose adoption of such standards,
implementation specifications, or certification criteria.
``(2) Determination to adopt standards, implementation
specifications, and certification criteria.--If the Secretary
determines--
``(A) to propose adoption of any grouping of such
standards, implementation specifications, or certification
criteria, the Secretary shall, by regulation, determine
whether or not to adopt such grouping of standards,
implementation specifications, or certification criteria; or
``(B) not to propose adoption of any grouping of standards,
implementation specifications, or certification criteria, the
Secretary shall notify the National Coordinator and the HIT
Standards Committee in writing of such determination and the
reasons for not proposing the adoption of such
recommendation.
``(3) Publication.--The Secretary shall provide for
publication in the Federal Register of all determinations
made by the Secretary under paragraph (1).
``(b) Adoption of Initial Set of Standards, Implementation
Specifications, and Certification Criteria.--
``(1) In general.--Not later than December 31, 2009, the
Secretary shall, through the rulemaking process described in
section 3003, adopt an initial set of standards,
implementation specifications, and certification criteria for
the areas required for consideration under section
3002(b)(2)(B).
``(2) Application of current standards, implementation
specifications, and certification criteria.--The standards,
implementation specifications, and certification criteria
adopted before the date of the enactment of this title
through the process existing through the Office of the
National Coordinator for Health Information Technology may be
applied towards meeting the requirement of paragraph (1).

``SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND
IMPLEMENTATION SPECIFICATIONS BY FEDERAL
AGENCIES.

``For requirements relating to the application and use by
Federal agencies of the standards and implementation
specifications adopted under section 3004, see section 13111
of the Health Information Technology for Economic and
Clinical Health Act.

``SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED
STANDARDS AND IMPLEMENTATION SPECIFICATIONS BY
PRIVATE ENTITIES.

``(a) In General.--Except as provided under section 13112
of the Health Information Technology for Economic and
Clinical Health Act, any standard or implementation
specification adopted under section 3004 shall be voluntary
with respect to private entities.
``(b) Rule of Construction.--Nothing in this subtitle shall
be construed to require that a private entity that enters
into a contract with the Federal Government apply or use the
standards and implementation specifications adopted under
section 3004 with respect to activities not related to the
contract.

``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

``(a) In General.--The National Coordinator shall support
the development, routine updating and provision of qualified
EHR technology (as defined in section 3000) consistent with
subsections (b) and (c) unless the Secretary determines that
the needs and demands of providers are being substantially
and adequately met through the marketplace.
``(b) Certification.--In making such EHR technology
publicly available, the National Coordinator shall ensure
that the qualified EHR technology described in subsection (a)
is certified under the program developed under section
3001(c)(3) to be in compliance with applicable standards
adopted under section 3003(a).
``(c) Authorization to Charge a Nominal Fee.--The National
Coordinator may impose a nominal fee for the adoption by a
health care provider of the health information technology
system developed or approved under subsection (a) and (b).
Such fee shall take into account the financial circumstances
of smaller providers, low income providers, and providers
located in rural or other medically underserved areas.
``(d) Rule of Construction.--Nothing in this section shall
be construed to require that a private or government entity
adopt or use the technology provided under this section.

``SEC. 3008. TRANSITIONS.

``(a) ONCHIT.--To the extent consistent with section 3001,
all functions, personnel, assets, liabilities, and
administrative actions applicable to the National Coordinator
for Health Information Technology appointed under Executive
Order 13335 or the Office of such National Coordinator on the
date before the date of the enactment of this title shall be
transferred to the National Coordinator appointed under
section 3001(a) and the Office of such National Coordinator
as of the date of the enactment of this title.
``(b) AHIC.--
``(1) To the extent consistent with sections 3002 and 3003,
all functions, personnel, assets, and liabilities applicable
to the AHIC Successor, Inc. doing business as the National
eHealth Collaborative as of the day before the date of the
enactment of this title shall be transferred to the HIT
Policy Committee or the HIT Standards Committee, established
under section 3002(a) or 3003(a), as appropriate, as of the
date of the enactment of this title.
``(2) In carrying out section 3003(b)(1)(A), until
recommendations are made by the HIT Policy Committee,
recommendations of the HIT Standards Committee shall be
consistent with the most recent recommendations made by such
AHIC Successor, Inc.
``(c) Rules of Construction.--
``(1) ONCHIT.--Nothing in section 3001 or subsection (a)
shall be construed as requiring the creation of a new entity
to the extent that the Office of the National Coordinator for
Health Information Technology established pursuant to
Executive Order 13335 is consistent with the provisions of
section 3001.
``(2) AHIC.--Nothing in sections 3002 or 3003 or subsection
(b) shall be construed as prohibiting the AHIC Successor,
Inc. doing business as the National eHealth Collaborative
from modifying its charter, duties, membership, and any other
structure or function required to be consistent with section
3002 and 3003 in a manner that would permit the Secretary to
choose to recognize such AHIC Successor, Inc. as the HIT
Policy Committee or the HIT Standards Committee.

``SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.

``(a) In General.--With respect to the relation of this
title to HIPAA privacy and security law:
``(1) This title may not be construed as having any effect
on the authorities of the Secretary under HIPAA privacy and
security law.
``(2) The purposes of this title include ensuring that the
health information technology standards and implementation
specifications adopted under section 3004 take into account
the requirements of HIPAA privacy and security law.
``(b) Definition.--For purposes of this section, the term
`HIPAA privacy and security law' means--
``(1) the provisions of part C of title XI of the Social
Security Act, section 264 of the Health Insurance Portability
and Accountability Act of 1996, and subtitle D of the Health
Information Technology for Economic and Clinical Health Act;
and
``(2) regulations under such provisions.''.

SEC. 13102. TECHNICAL AMENDMENT.

Section 1171(5) of the Social Security Act (42 U.S.C.
1320d) is amended by striking ``or C'' and inserting ``C, or
D''.

PART II--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY
STANDARDS; REPORTS

SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED
STANDARDS AND IMPLEMENTATION SPECIFICATIONS.

(a) Spending on Health Information Technology Systems.--As
each agency (as defined in the Executive Order issued on
August 22, 2006, relating to promoting quality and efficient
health care in Federal government administered or sponsored
health care programs) implements, acquires, or upgrades
health information technology systems used for the direct
exchange of individually identifiable health information
between agencies and with non-Federal entities, it shall
utilize, where available, health information technology
systems and products that meet standards and implementation
specifications adopted under section 3004(b) of the Public
Health Service Act, as added by section 13101.
(b) Federal Information Collection Activities.--With
respect to a standard or implementation specification adopted
under section 3004(b) of the Public Health Service Act, as
added by section 13101, the President shall take measures to
ensure that Federal

[[Page S1161]]

activities involving the broad collection and submission of
health information are consistent with such standard or
implementation specification, respectively, within three
years after the date of such adoption.
(c) Application of Definitions.--The definitions contained
in section 3000 of the Public Health Service Act, as added by
section 13101, shall apply for purposes of this part.

SEC. 13112. APPLICATION TO PRIVATE ENTITIES.

Each agency (as defined in such Executive Order issued on
August 22, 2006, relating to promoting quality and efficient
health care in Federal government administered or sponsored
health care programs) shall require in contracts or
agreements with health care providers, health plans, or
health insurance issuers that as each provider, plan, or
issuer implements, acquires, or upgrades health information
technology systems, it shall utilize, where available, health
information technology systems and products that meet
standards and implementation specifications adopted under
section 3004(b) of the Public Health Service Act, as added by
section 13101.

SEC. 13113. STUDY AND REPORTS.

(a) Report on Adoption of Nationwide System.--Not later
than 2 years after the date of the enactment of this Act and
annually thereafter, the Secretary of Health and Human
Services shall submit to the appropriate committees of
jurisdiction of the House of Representatives and the Senate a
report that--
(1) describes the specific actions that have been taken by
the Federal Government and private entities to facilitate the
adoption of a nationwide system for the electronic use and
exchange of health information;
(2) describes barriers to the adoption of such a nationwide
system; and
(3) contains recommendations to achieve full implementation
of such a nationwide system.
(b) Reimbursement Incentive Study and Report.--
(1) Study.--The Secretary of Health and Human Services
shall carry out, or contract with a private entity to carry
out, a study that examines methods to create efficient
reimbursement incentives for improving health care quality in
Federally qualified health centers, rural health clinics, and
free clinics.
(2) Report.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to the appropriate committees of
jurisdiction of the House of Representatives and the Senate a
report on the study carried out under paragraph (1).
(c) Aging Services Technology Study and Report.--
(1) In general.--The Secretary of Health and Human Services
shall carry out, or contract with a private entity to carry
out, a study of matters relating to the potential use of new
aging services technology to assist seniors, individuals with
disabilities, and their caregivers throughout the aging
process.
(2) Matters to be studied.--The study under paragraph (1)
shall include--
(A) an evaluation of--
(i) methods for identifying current, emerging, and future
health technology that can be used to meet the needs of
seniors and individuals with disabilities and their
caregivers across all aging services settings, as specified
by the Secretary;
(ii) methods for fostering scientific innovation with
respect to aging services technology within the business and
academic communities; and
(iii) developments in aging services technology in other
countries that may be applied in the United States; and
(B) identification of--
(i) barriers to innovation in aging services technology and
devising strategies for removing such barriers; and
(ii) barriers to the adoption of aging services technology
by health care providers and consumers and devising
strategies to removing such barriers.
(3) Report.--Not later than 24 months after the date of the
enactment of this Act, the Secretary shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and of the Senate a report on the study
carried out under paragraph (1).
(4) Definitions.--For purposes of this subsection:
(A) Aging services technology.--The term ``aging services
technology'' means health technology that meets the health
care needs of seniors, individuals with disabilities, and the
caregivers of such seniors and individuals.
(B) Senior.--The term ``senior'' has such meaning as
specified by the Secretary.

Subtitle B--Testing of Health Information Technology

SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY
TESTING.

(a) Pilot Testing of Standards and Implementation
Specifications.--In coordination with the HIT Standards
Committee established under section 3003 of the Public Health
Service Act, as added by section 13101, with respect to the
development of standards and implementation specifications
under such section, the Director of the National Institute
for Standards and Technology shall test such standards and
implementation specifications, as appropriate, in order to
assure the efficient implementation and use of such standards
and implementation specifications.
(b) Voluntary Testing Program.--In coordination with the
HIT Standards Committee established under section 3003 of the
Public Health Service Act, as added by section 13101, with
respect to the development of standards and implementation
specifications under such section, the Director of the
National Institute of Standards and Technology shall support
the establishment of a conformance testing infrastructure,
including the development of technical test beds. The
development of this conformance testing infrastructure may
include a program to accredit independent, non-Federal
laboratories to perform testing.

SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

(a) Health Care Information Enterprise Integration Research
Centers.--
(1) In general.--The Director of the National Institute of
Standards and Technology, in consultation with the Director
of the National Science Foundation and other appropriate
Federal agencies, shall establish a program of assistance to
institutions of higher education (or consortia thereof which
may include nonprofit entities and Federal Government
laboratories) to establish multidisciplinary Centers for
Health Care Information Enterprise Integration.
(2) Review; competition.--Grants shall be awarded under
this subsection on a merit-reviewed, competitive basis.
(3) Purpose.--The purposes of the Centers described in
paragraph (1) shall be--
(A) to generate innovative approaches to health care
information enterprise integration by conducting cutting-
edge, multidisciplinary research on the systems challenges to
health care delivery; and
(B) the development and use of health information
technologies and other complementary fields.
(4) Research areas.--Research areas may include--
(A) interfaces between human information and communications
technology systems;
(B) voice-recognition systems;
(C) software that improves interoperability and
connectivity among health information systems;
(D) software dependability in systems critical to health
care delivery;
(E) measurement of the impact of information technologies
on the quality and productivity of health care;
(F) health information enterprise management;
(G) health information technology security and integrity;
and
(H) relevant health information technology to reduce
medical errors.
(5) Applications.--An institution of higher education (or a
consortium thereof) seeking funding under this subsection
shall submit an application to the Director of the National
Institute of Standards and Technology at such time, in such
manner, and containing such information as the Director may
require. The application shall include, at a minimum, a
description of--
(A) the research projects that will be undertaken by the
Center established pursuant to assistance under paragraph (1)
and the respective contributions of the participating
entities;
(B) how the Center will promote active collaboration among
scientists and engineers from different disciplines, such as
information technology, biologic sciences, management, social
sciences, and other appropriate disciplines;
(C) technology transfer activities to demonstrate and
diffuse the research results, technologies, and knowledge;
and
(D) how the Center will contribute to the education and
training of researchers and other professionals in fields
relevant to health information enterprise integration.
(b) National Information Technology Research and
Development Program.--The National High-Performance Computing
Program established by section 101 of the High-Performance
Computing Act of 1991 (15 U.S.C. 5511) shall coordinate
Federal research and development programs related to the
development and deployment of health information technology,
including activities related to--
(1) computer infrastructure;
(2) data security;
(3) development of large-scale, distributed, reliable
computing systems;
(4) wired, wireless, and hybrid high-speed networking;
(5) development of software and software-intensive systems;
(6) human-computer interaction and information management
technologies; and
(7) the social and economic implications of information
technology.

Subtitle C--Incentives for the Use of Health Information Technology

PART I--GRANTS AND LOANS FUNDING

SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

Title XXX of the Public Health Service Act, as added by
section 13101, is amended by adding at the end the following
new subtitle:

``Subtitle B--Incentives for the Use of Health Information Technology

``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH
INFORMATION TECHNOLOGY INFRASTRUCTURE.

``(a) In General.--The Secretary of Health and Human
Services shall, using amounts appropriated under section
3018, invest in the infrastructure necessary to allow for and
promote the electronic exchange and use of health information
for each individual in the United States consistent with the
goals outlined in the strategic plan developed by the

[[Page S1162]]

National Coordinator (and, as available) under section 3001.
To the greatest extent practicable, the Secretary shall
ensure that any funds so appropriated shall be used for the
acquisition of health information technology that meets
standards and certification criteria adopted before the date
of the enactment of this title until such date as the
standards are adopted under section 3004. The Secretary shall
invest funds through the different agencies with expertise in
such goals, such as the Office of the National Coordinator
for Health Information Technology, the Health Resources and
Services Administration, the Agency for Healthcare Research
and Quality, the Centers of Medicare & Medicaid Services, the
Centers for Disease Control and Prevention, and the Indian
Health Service to support the following:
``(1) Health information technology architecture that will
support the nationwide electronic exchange and use of health
information in a secure, private, and accurate manner,
including connecting health information exchanges, and which
may include updating and implementing the infrastructure
necessary within different agencies of the Department of
Health and Human Services to support the electronic use and
exchange of health information.
``(2) Development and adoption of appropriate certified
electronic health records for categories of providers not
eligible for support under title XVIII or XIX of the Social
Security Act for the adoption of such records.
``(3) Training on and dissemination of information on best
practices to integrate health information technology,
including electronic health records, into a provider's
delivery of care, consistent with best practices learned from
the Health Information Technology Research Center developed
under section 3012, including community health centers
receiving assistance under section 330 of the Public Health
Service Act, covered entities under section 340B of such Act,
and providers participating in one or more of the programs
under titles XVIII, XIX, and XXI of the Social Security Act
(relating to Medicare, Medicaid, and the State Children's
Health Insurance Program).
``(4) Infrastructure and tools for the promotion of
telemedicine, including coordination among Federal agencies
in the promotion of telemedicine.
``(5) Promotion of the interoperability of clinical data
repositories or registries.
``(6) Promotion of technologies and best practices that
enhance the protection of health information by all holders
of individually identifiable health information.
``(7) Improve and expand the use of health information
technology by public health departments.
``(8) Provide $300,000,000 to support regional or sub-
national efforts towards health information exchange.
``(b) Coordination.--The Secretary shall ensure funds under
this section are used in a coordinated manner with other
health information promotion activities.
``(c) Additional Use of Funds.--In addition to using funds
as provided in subsection (a), the Secretary may use amounts
appropriated under section 3018 to carry out activities that
are provided for under laws in effect on the date of
enactment of this title.

``SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION
ASSISTANCE.

``(a) Health Information Technology Extension Program.--To
assist health care providers to adopt, implement, and
effectively use certified EHR technology that allows for the
electronic exchange and use of health information, the
Secretary, acting through the Office of the National
Coordinator, shall establish a health information technology
extension program to provide health information technology
assistance services to be carried out through the Department
of Health and Human Services. The National Coordinator shall
consult with other Federal agencies with demonstrated
experience and expertise in information technology services,
such as the National Institute of Standards and Technology,
in developing and implementing this program.
``(b) Health Information Technology Research Center.--
``(1) In general.--The Secretary shall create a Health
Information Technology Research Center (in this section
referred to as the `Center') to provide technical assistance
and develop or recognize best practices to support and
accelerate efforts to adopt, implement, and effectively
utilize health information technology that allows for the
electronic exchange and use of information in compliance with
standards, implementation specifications, and certification
criteria adopted under section 3004(b).
``(2) Input.--The Center shall incorporate input from--
``(A) other Federal agencies with demonstrated experience
and expertise in information technology services such as the
National Institute of Standards and Technology;
``(B) users of health information technology, such as
providers and their support and clerical staff and others
involved in the care and care coordination of patients, from
the health care and health information technology industry;
and
``(C) others as appropriate.
``(3) Purposes.--The purposes of the Center are to--
``(A) provide a forum for the exchange of knowledge and
experience;
``(B) accelerate the transfer of lessons learned from
existing public and private sector initiatives, including
those currently receiving Federal financial support;
``(C) assemble, analyze, and widely disseminate evidence
and experience related to the adoption, implementation, and
effective use of health information technology that allows
for the electronic exchange and use of information including
through the regional centers described in subsection (c);
``(D) provide technical assistance for the establishment
and evaluation of regional and local health information
networks to facilitate the electronic exchange of information
across health care settings and improve the quality of health
care;
``(E) provide technical assistance for the development and
dissemination of solutions to barriers to the exchange of
electronic health information; and
``(F) learn about effective strategies to adopt and utilize
health information technology in medically underserved
communities.
``(c) Health Information Technology Regional Extension
Centers.--
``(1) In general.--The Secretary shall provide assistance
for the creation and support of regional centers (in this
subsection referred to as `regional centers') to provide
technical assistance and disseminate best practices and other
information learned from the Center to support and accelerate
efforts to adopt, implement, and effectively utilize health
information technology that allows for the electronic
exchange and use of information in compliance with standards,
implementation specifications, and certification criteria
adopted under section 3004. Activities conducted under this
subsection shall be consistent with the strategic plan
developed by the National Coordinator (and, as available)
under section 3001.
``(2) Affiliation.--Regional centers shall be affiliated
with any United States-based nonprofit institution or
organization, or group thereof, that applies and is awarded
financial assistance under this section. Individual awards
shall be decided on the basis of merit.
``(3) Objective.--The objective of the regional centers is
to enhance and promote the adoption of health information
technology through--
``(A) assistance with the implementation, effective use,
upgrading, and ongoing maintenance of health information
technology, including electronic health records, to
healthcare providers nationwide;
``(B) broad participation of individuals from industry,
universities, and State governments;
``(C) active dissemination of best practices and research
on the implementation, effective use, upgrading, and ongoing
maintenance of health information technology, including
electronic health records, to health care providers in order
to improve the quality of healthcare and protect the privacy
and security of health information;
``(D) participation, to the extent practicable, in health
information exchanges;
``(E) utilization, when appropriate, of the expertise and
capability that exists in federal agencies other than the
Department; and
``(F) integration of health information technology,
including electronic health records, into the initial and
ongoing training of health professionals and others in the
healthcare industry that would be instrumental to improving
the quality of healthcare through the smooth and accurate
electronic use and exchange of health information.
``(4) Regional assistance.--Each regional center shall aim
to provide assistance and education to all providers in a
region, but shall prioritize any direct assistance first to
the following:
``(A) Public or not-for-profit hospitals or critical access
hospitals.
``(B) Federally qualified health centers (as defined in
section 1861(aa)(4) of the Social Security Act).
``(C) Entities that are located in rural and other areas
that serve uninsured, underinsured, and medically underserved
individuals (regardless of whether such area is urban or
rural).
``(D) Individual or small group practices (or a consortium
thereof) that are primarily focused on primary care.
``(5) Financial support.--The Secretary may provide
financial support to any regional center created under this
subsection for a period not to exceed four years. The
Secretary may not provide more than 50 percent of the capital
and annual operating and maintenance funds required to create
and maintain such a center, except in an instance of national
economic conditions which would render this cost-share
requirement detrimental to the program and upon notification
to Congress as to the justification to waive the cost-share
requirement.
``(6) Notice of program description and availability of
funds.--The Secretary shall publish in the Federal Register,
not later than 90 days after the date of the enactment of
this Act, a draft description of the program for establishing
regional centers under this subsection. Such description
shall include the following:
``(A) A detailed explanation of the program and the
programs goals.
``(B) Procedures to be followed by the applicants.
``(C) Criteria for determining qualified applicants.
``(D) Maximum support levels expected to be available to
centers under the program.

[[Page S1163]]

``(7) Application review.--The Secretary shall subject each
application under this subsection to merit review. In making
a decision whether to approve such application and provide
financial support, the Secretary shall consider at a minimum
the merits of the application, including those portions of
the application regarding--
``(A) the ability of the applicant to provide assistance
under this subsection and utilization of health information
technology appropriate to the needs of particular categories
of health care providers;
``(B) the types of service to be provided to health care
providers;
``(C) geographical diversity and extent of service area;
and
``(D) the percentage of funding and amount of in-kind
commitment from other sources.
``(8) Biennial evaluation.--Each regional center which
receives financial assistance under this subsection shall be
evaluated biennially by an evaluation panel appointed by the
Secretary. Each evaluation panel shall be composed of private
experts, none of whom shall be connected with the center
involved, and of Federal officials. Each evaluation panel
shall measure the involved center's performance against the
objective specified in paragraph (3). The Secretary shall not
continue to provide funding to a regional center unless its
evaluation is overall positive.
``(9) Continuing support.--After the second year of
assistance under this subsection a regional center may
receive additional support under this subsection if it has
received positive evaluations and a finding by the Secretary
that continuation of Federal funding to the center was in the
best interest of provision of health information technology
extension services.

``SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION
TECHNOLOGY.

``(a) In General.--The Secretary, acting through the
National Coordinator, shall establish a program in accordance
with this section to facilitate and expand the electronic
movement and use of health information among organizations
according to nationally recognized standards.
``(b) Planning Grants.--The Secretary may award a grant to
a State or qualified State-designated entity (as described in
subsection (d)) that submits an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary may specify, for the purpose of planning
activities described in subsection (b).
``(c) Implementation Grants.--The Secretary may award a
grant to a State or qualified State designated entity that--
``(1) has submitted, and the Secretary has approved, a plan
described in subsection (c) (regardless of whether such plan
was prepared using amounts awarded under paragraph (1)); and
``(2) submits an application at such time, in such manner,
and containing such information as the Secretary may specify.
``(d) Use of Funds.--Amounts received under a grant under
subsection (a)(3) shall be used to conduct activities to
facilitate and expand the electronic movement and use of
health information among organizations according to
nationally recognized standards through activities that
include--
``(1) enhancing broad and varied participation in the
authorized and secure nationwide electronic use and exchange
of health information;
``(2) identifying State or local resources available
towards a nationwide effort to promote health information
technology;
``(3) complementing other Federal grants, programs, and
efforts towards the promotion of health information
technology;
``(4) providing technical assistance for the development
and dissemination of solutions to barriers to the exchange of
electronic health information;
``(5) promoting effective strategies to adopt and utilize
health information technology in medically underserved
communities;
``(6) assisting patients in utilizing health information
technology;
``(7) encouraging clinicians to work with Health
Information Technology Regional Extension Centers as
described in section 3012, to the extent they are available
and valuable;
``(8) supporting public health agencies' authorized use of
and access to electronic health information;
``(9) promoting the use of electronic health records for
quality improvement including through quality measures
reporting; and
``(10) such other activities as the Secretary may specify.
``(e) Plan.--
``(1) In general.--A plan described in this subsection is a
plan that describes the activities to be carried out by a
State or by the qualified State-designated entity within such
State to facilitate and expand the electronic movement and
use of health information among organizations according to
nationally recognized standards and implementation
specifications.
``(2) Required elements.--A plan described in paragraph (1)
shall--
``(A) be pursued in the public interest;
``(B) be consistent with the strategic plan developed by
the National Coordinator (and, as available) under section
3001;
``(C) include a description of the ways the State or
qualified State-designated entity will carry out the
activities described in subsection (b); and
``(D) contain such elements as the Secretary may require.
``(f) Qualified State-Designated Entity.--For purposes of
this section, to be a qualified State-designated entity, with
respect to a State, an entity shall--
``(1) be designated by the State as eligible to receive
awards under this section;
``(2) be a not-for-profit entity with broad stakeholder
representation on its governing board;
``(3) demonstrate that one of its principal goals is to use
information technology to improve health care quality and
efficiency through the authorized and secure electronic
exchange and use of health information;
``(4) adopt nondiscrimination and conflict of interest
policies that demonstrate a commitment to open, fair, and
nondiscriminatory participation by stakeholders; and
``(5) conform to such other requirements as the Secretary
may establish.
``(g) Required Consultation.--In carrying out activities
described in subsections (a)(2) and (a)(3), a State or
qualified State-designated entity shall consult with and
consider the recommendations of--
``(1) health care providers (including providers that
provide services to low income and underserved populations);
``(2) health plans;
``(3) patient or consumer organizations that represent the
population to be served;
``(4) health information technology vendors;
``(5) health care purchasers and employers;
``(6) public health agencies;
``(7) health professions schools, universities and
colleges;
``(8) clinical researchers;
``(9) other users of health information technology such as
the support and clerical staff of providers and others
involved in the care and care coordination of patients; and
``(10) such other entities, as may be determined
appropriate by the Secretary.
``(h) Continuous Improvement.--The Secretary shall annually
evaluate the activities conducted under this section and
shall, in awarding grants under this section, implement the
lessons learned from such evaluation in a manner so that
awards made subsequent to each such evaluation are made in a
manner that, in the determination of the Secretary, will lead
towards the greatest improvement in quality of care, decrease
in costs, and the most effective authorized and secure
electronic exchange of health information.
``(i) Required Match.--
``(1) In general.--For a fiscal year (beginning with fiscal
year 2011), the Secretary may not make a grant under
subsection (a) to a State unless the State agrees to make
available non-Federal contributions (which may include in-
kind contributions) toward the costs of a grant awarded under
subsection (a)(3) in an amount equal to--
``(A) for fiscal year 2011, not less than $1 for each $10
of Federal funds provided under the grant;
``(B) for fiscal year 2012, not less than $1 for each $7 of
Federal funds provided under the grant; and
``(C) for fiscal year 2013 and each subsequent fiscal year,
not less than $1 for each $3 of Federal funds provided under
the grant.
``(2) Authority to require state match for fiscal years
before fiscal year 2011.--For any fiscal year during the
grant program under this section before fiscal year 2011, the
Secretary may determine the extent to which there shall be
required a non-Federal contribution from a State receiving a
grant under this section.

``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES
FOR THE DEVELOPMENT OF LOAN PROGRAMS TO
FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED
EHR TECHNOLOGY.

``(a) In General.--The National Coordinator may award
competitive grants to eligible entities for the establishment
of programs for loans to health care providers to conduct the
activities described in subsection (e).
``(b) Eligible Entity Defined.--For purposes of this
subsection, the term `eligible entity' means a State or
Indian tribe (as defined in the Indian Self-Determination and
Education Assistance Act) that--
``(1) submits to the National Coordinator an application at
such time, in such manner, and containing such information as
the National Coordinator may require;
``(2) submits to the National Coordinator a strategic plan
in accordance with subsection (d) and provides to the
National Coordinator assurances that the entity will update
such plan annually in accordance with such subsection;
``(3) provides assurances to the National Coordinator that
the entity will establish a Loan Fund in accordance with
subsection (c);
``(4) provides assurances to the National Coordinator that
the entity will not provide a loan from the Loan Fund to a
health care provider unless the provider agrees to--
``(A) submit reports on quality measures adopted by the
Federal Government (by not later than 90 days after the date
on which such measures are adopted), to--
``(i) the Director of the Centers for Medicare & Medicaid
Services (or his or her designee), in the case of an entity
participating in the Medicare program under title XVIII of
the Social Security Act or the Medicaid program under title
XIX of such Act; or
``(ii) the Secretary in the case of other entities;
``(B) demonstrate to the satisfaction of the Secretary
(through criteria established by

[[Page S1164]]

the Secretary) that any certified EHR technology purchased,
improved, or otherwise financially supported under a loan
under this section is used to exchange health information in
a manner that, in accordance with law and standards (as
adopted under section 3005) applicable to the exchange of
information, improves the quality of health care, such as
promoting care coordination;
``(C) comply with such other requirements as the entity or
the Secretary may require;
``(D) include a plan on how healthcare providers involved
intend to maintain and support the certified EHR technology
over time; and
``(E) include a plan on how the healthcare providers
involved intend to maintain and support the certified EHR
technology that would be purchased with such loan, including
the type of resources expected to be involved and any such
other information as the State or Indian tribe, respectively,
may require; and
``(5) agrees to provide matching funds in accordance with
subsection (i).
``(c) Establishment of Fund.--For purposes of subsection
(b)(3), an eligible entity shall establish a certified EHR
technology loan fund (referred to in this subsection as a
`Loan Fund') and comply with the other requirements contained
in this section. A grant to an eligible entity under this
section shall be deposited in the Loan Fund established by
the eligible entity. No funds authorized by other provisions
of this title to be used for other purposes specified in this
title shall be deposited in any Loan Fund.
``(d) Strategic Plan.--
``(1) In general.--For purposes of subsection (b)(2), a
strategic plan of an eligible entity under this subsection
shall identify the intended uses of amounts available to the
Loan Fund of such entity.
``(2) Contents.--A strategic plan under paragraph (1), with
respect to a Loan Fund of an eligible entity, shall include
for a year the following:
``(A) A list of the projects to be assisted through the
Loan Fund during such year.
``(B) A description of the criteria and methods established
for the distribution of funds from the Loan Fund during the
year.
``(C) A description of the financial status of the Loan
Fund as of the date of submission of the plan.
``(D) The short-term and long-term goals of the Loan Fund.
``(e) Use of Funds.--Amounts deposited in a Loan Fund,
including loan repayments and interest earned on such
amounts, shall be used only for awarding loans or loan
guarantees, making reimbursements described in subsection
(g)(4)(A), or as a source of reserve and security for
leveraged loans, the proceeds of which are deposited in the
Loan Fund established under subsection (a). Loans under this
section may be used by a health care provider to--
``(1) facilitate the purchase of certified EHR technology;
``(2) enhance the utilization of certified EHR technology
(which may include costs associated with upgrading health
information technology so that it meets criteria necessary to
be a certified EHR technology);
``(3) train personnel in the use of such technology; or
``(4) improve the secure electronic exchange of health
information.
``(f) Types of Assistance.--Except as otherwise limited by
applicable State law, amounts deposited into a Loan Fund
under this subsection may only be used for the following:
``(1) To award loans that comply with the following:
``(A) The interest rate for each loan shall not exceed the
market interest rate.
``(B) The principal and interest payments on each loan
shall commence not later than 1 year after the date the loan
was awarded, and each loan shall be fully amortized not later
than 10 years after the date of the loan.
``(C) The Loan Fund shall be credited with all payments of
principal and interest on each loan awarded from the Loan
Fund.
``(2) To guarantee, or purchase insurance for, a local
obligation (all of the proceeds of which finance a project
eligible for assistance under this subsection) if the
guarantee or purchase would improve credit market access or
reduce the interest rate applicable to the obligation
involved.
``(3) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the eligible entity if the proceeds of the sale of
the bonds will be deposited into the Loan Fund.
``(4) To earn interest on the amounts deposited into the
Loan Fund.
``(5) To make reimbursements described in subsection
(g)(4)(A).
``(g) Administration of Loan Funds.--
``(1) Combined financial administration.--An eligible
entity may (as a convenience and to avoid unnecessary
administrative costs) combine, in accordance with applicable
State law, the financial administration of a Loan Fund
established under this subsection with the financial
administration of any other revolving fund established by the
entity if otherwise not prohibited by the law under which the
Loan Fund was established.
``(2) Cost of administering fund.--Each eligible entity may
annually use not to exceed 4 percent of the funds provided to
the entity under a grant under this subsection to pay the
reasonable costs of the administration of the programs under
this section, including the recovery of reasonable costs
expended to establish a Loan Fund which are incurred after
the date of the enactment of this title.
``(3) Guidance and regulations.--The National Coordinator
shall publish guidance and promulgate regulations as may be
necessary to carry out the provisions of this section,
including--
``(A) provisions to ensure that each eligible entity
commits and expends funds allotted to the entity under this
subsection as efficiently as possible in accordance with this
title and applicable State laws; and
``(B) guidance to prevent waste, fraud, and abuse.
``(4) Private sector contributions.--
``(A) In general.--A Loan Fund established under this
subsection may accept contributions from private sector
entities, except that such entities may not specify the
recipient or recipients of any loan issued under this
subsection. An eligible entity may agree to reimburse a
private sector entity for any contribution made under this
subparagraph, except that the amount of such reimbursement
may not be greater than the principal amount of the
contribution made.
``(B) Availability of information.--An eligible entity
shall make publicly available the identity of, and amount
contributed by, any private sector entity under subparagraph
(A) and may issue letters of commendation or make other
awards (that have no financial value) to any such entity.
``(h) Matching Requirements.--
``(1) In general.--The National Coordinator may not make a
grant under subsection (a) to an eligible entity unless the
entity agrees to make available (directly or through
donations from public or private entities) non-Federal
contributions in cash to the costs of carrying out the
activities for which the grant is awarded in an amount equal
to not less than $1 for each $5 of Federal funds provided
under the grant.
``(2) Determination of amount of non-federal
contribution.--In determining the amount of non-Federal
contributions that an eligible entity has provided pursuant
to subparagraph (A), the National Coordinator may not include
any amounts provided to the entity by the Federal Government.
``(i) Effective Date.--The Secretary may not make an award
under this section prior to January 1, 2010.

``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION
TECHNOLOGY INTO CLINICAL EDUCATION.

``(a) In General.--The Secretary may award grants under
this section to carry out demonstration projects to develop
academic curricula integrating certified EHR technology in
the clinical education of health professionals. Such awards
shall be made on a competitive basis and pursuant to peer
review.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a), an entity shall--
``(1) submit to the Secretary an application at such time,
in such manner, and containing such information as the
Secretary may require;
``(2) submit to the Secretary a strategic plan for
integrating certified EHR technology in the clinical
education of health professionals to reduce medical errors,
increase access to prevention, reduce chronic diseases, and
enhance health care quality;
``(3) be--
``(A) a school of medicine, osteopathic medicine,
dentistry, or pharmacy, a graduate program in behavioral or
mental health, or any other graduate health professions
school;
``(B) a graduate school of nursing or physician assistant
studies;
``(C) a consortium of two or more schools described in
subparagraph (A) or (B); or
``(D) an institution with a graduate medical education
program in medicine, osteopathic medicine, dentistry,
pharmacy, nursing, or physician assistance studies.
``(4) provide for the collection of data regarding the
effectiveness of the demonstration project to be funded under
the grant in improving the safety of patients, the efficiency
of health care delivery, and in increasing the likelihood
that graduates of the grantee will adopt and incorporate
certified EHR technology, in the delivery of health care
services; and
``(5) provide matching funds in accordance with subsection
(d).
``(c) Use of Funds.--
``(1) In general.--With respect to a grant under subsection
(a), an eligible entity shall--
``(A) use grant funds in collaboration with 2 or more
disciplines; and
``(B) use grant funds to integrate certified EHR technology
into community-based clinical education.
``(2) Limitation.--An eligible entity shall not use amounts
received under a grant under subsection (a) to purchase
hardware, software, or services.
``(d) Financial Support.--The Secretary may not provide
more than 50 percent of the costs of any activity for which
assistance is provided under subsection (a), except in an
instance of national economic conditions which would render
the cost-share requirement under this subsection detrimental
to the program and upon notification to Congress as to the
justification to waive the cost-share requirement.
``(e) Evaluation.--The Secretary shall take such action as
may be necessary to evaluate the projects funded under this
section and publish, make available, and disseminate the
results of such evaluations on as wide a basis as is
practicable.

[[Page S1165]]

``(f) Reports.--Not later than 1 year after the date of
enactment of this title, and annually thereafter, the
Secretary shall submit to the Committee on Health, Education,
Labor, and Pensions and the Committee on Finance of the
Senate, and the Committee on Energy and Commerce of the House
of Representatives a report that--
``(1) describes the specific projects established under
this section; and
``(2) contains recommendations for Congress based on the
evaluation conducted under subsection (e).

``SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH
CARE.

``(a) In General.--The Secretary, in consultation with the
Director of the National Science Foundation, shall provide
assistance to institutions of higher education (or consortia
thereof) to establish or expand medical health informatics
education programs, including certification, undergraduate,
and masters degree programs, for both health care and
information technology students to ensure the rapid and
effective utilization and development of health information
technologies (in the United States health care
infrastructure).
``(b) Activities.--Activities for which assistance may be
provided under subsection (a) may include the following:
``(1) Developing and revising curricula in medical health
informatics and related disciplines.
``(2) Recruiting and retaining students to the program
involved.
``(3) Acquiring equipment necessary for student instruction
in these programs, including the installation of testbed
networks for student use.
``(4) Establishing or enhancing bridge programs in the
health informatics fields between community colleges and
universities.
``(c) Priority.--In providing assistance under subsection
(a), the Secretary shall give preference to the following:
``(1) Existing education and training programs.
``(2) Programs designed to be completed in less than six
months.
``(d) Financial Support.--The Secretary may not provide
more than 50 percent of the costs of any activity for which
assistance is provided under subsection (a), except in an
instance of national economic conditions which would render
the cost-share requirement under this subsection detrimental
to the program and upon notification to Congress as to the
justification to waive the cost-share requirement.

``SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

``(a) Reports.--The Secretary may require that an entity
receiving assistance under this title shall submit to the
Secretary, not later than the date that is 1 year after the
date of receipt of such assistance, a report that includes--
``(1) an analysis of the effectiveness of such activities
for which the entity receives such assistance, as compared to
the goals for such activities; and
``(2) an analysis of the impact of the project on
healthcare quality and safety.
``(b) Requirement to Improve Quality of Care and Decrease
in Costs.--The National Coordinator shall annually evaluate
the activities conducted under this title and shall, in
awarding grants, implement the lessons learned from such
evaluation in a manner so that awards made subsequent to each
such evaluation are made in a manner that, in the
determination of the National Coordinator, will result in the
greatest improvement in the quality and efficiency of health
care.

``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

``For the purposes of carrying out this subtitle, there is
authorized to be appropriated such sums as may be necessary
for each of the fiscal years 2009 through 2013. Amounts so
appropriated shall remain available until expended.''.

Subtitle D--Privacy

SEC. 13400. DEFINITIONS.

In this subtitle, except as specified otherwise:
(1) Breach.--The term ``breach'' means the unauthorized
acquisition, access, use, or disclosure of protected health
information which compromises the security, privacy, or
integrity of protected health information maintained by or on
behalf of a person. Such term does not include any
unintentional acquisition, access, use, or disclosure of such
information by an employee or agent of the covered entity or
business associate involved if such acquisition, access, use,
or disclosure, respectively, was made in good faith and
within the course and scope of the employment or other
contractual relationship of such employee or agent,
respectively, with the covered entity or business associate
and if such information is not further acquired, accessed,
used, or disclosed by such employee or agent.
(2) Business associate.--The term ``business associate''
has the meaning given such term in section 160.103 of title
45, Code of Federal Regulations.
(3) Covered entity.--The term ``covered entity'' has the
meaning given such term in section 160.103 of title 45, Code
of Federal Regulations.
(4) Disclose.--The terms ``disclose'' and ``disclosure''
have the meaning given the term ``disclosure'' in section
160.103 of title 45, Code of Federal Regulations.
(5) Electronic health record.--The term ``electronic health
record'' means an electronic record of health-related
information on an individual that is created, gathered,
managed, and consulted by authorized health care clinicians
and staff.
(6) Health care operations.--The term ``health care
operation'' has the meaning given such term in section
164.501 of title 45, Code of Federal Regulations.
(7) Health care provider.--The term ``health care
provider'' has the meaning given such term in section 160.103
of title 45, Code of Federal Regulations.
(8) Health plan.--The term ``health plan'' has the meaning
given such term in section 1171(5) of the Social Security
Act.
(9) National coordinator.--The term ``National
Coordinator'' means the head of the Office of the National
Coordinator for Health Information Technology established
under section 3001(a) of the Public Health Service Act, as
added by section 13101.
(10) Payment.--The term ``payment'' has the meaning given
such term in section 164.501 of title 45, Code of Federal
Regulations.
(11) Personal health record.--The term ``personal health
record'' means an electronic record of individually
identifiable health information on an individual that can be
drawn from multiple sources and that is managed, shared, and
controlled by or for the individual.
(12) Protected health information.--The term ``protected
health information'' has the meaning given such term in
section 160.103 of title 45, Code of Federal Regulations.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(14) Security.--The term ``security'' has the meaning given
such term in section 164.304 of title 45, Code of Federal
Regulations.
(15) State.--The term ``State'' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana
Islands.
(16) Treatment.--The term ``treatment'' has the meaning
given such term in section 164.501 of title 45, Code of
Federal Regulations.
(17) Use.--The term ``use'' has the meaning given such term
in section 160.103 of title 45, Code of Federal Regulations.
(18) Vendor of personal health records.--The term ``vendor
of personal health records'' means an entity, other than a
covered entity (as defined in paragraph (3)), that offers or
maintains a personal health record.

PART I--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES
TO BUSINESS ASSOCIATES OF COVERED ENTITIES;
ANNUAL GUIDANCE ON SECURITY PROVISIONS.

(a) Application of Security Provisions.--Sections 164.308,
164.310, 164.312, and 164.316 of title 45, Code of Federal
Regulations, shall apply to a business associate of a covered
entity in the same manner that such sections apply to the
covered entity. The additional requirements of this title
that relate to security and that are made applicable with
respect to covered entities shall also be applicable to such
a business associate and shall be incorporated into the
business associate agreement between the business associate
and the covered entity.
(b) Application of Civil and Criminal Penalties.--In the
case of a business associate that violates any security
provision specified in subsection (a), sections 1176 and 1177
of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6) shall
apply to the business associate with respect to such
violation in the same manner such sections apply to a covered
entity that violates such security provision.
(c) Annual Guidance.--For the first year beginning after
the date of the enactment of this Act and annually
thereafter, the Secretary of Health and Human Services shall,
in consultation with industry stakeholders, annually issue
guidance on the most effective and appropriate technical
safeguards for use in carrying out the sections referred to
in subsection (a) and the security standards in subpart C of
part 164 of title 45, Code of Federal Regulations, as such
provisions are in effect as of the date before the enactment
of this Act.

SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.

(a) In General.--A covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise
holds, uses, or discloses unsecured protected health
information (as defined in subsection (h)(1)) shall, in the
case of a breach of such information that is discovered by
the covered entity, notify each individual whose unsecured
protected health information has been, or is reasonably
believed by the covered entity to have been, accessed,
acquired, or disclosed as a result of such breach.
(b) Notification of Covered Entity by Business Associate.--
A business associate of a covered entity that accesses,
maintains, retains, modifies, records, stores, destroys, or
otherwise holds, uses, or discloses unsecured protected
health information shall, following the discovery of a breach
of such information, notify the covered entity of such
breach. Such notice shall include the identification of each
individual whose unsecured protected health information has
been, or is reasonably believed by the business associate to
have been, accessed, acquired, or disclosed during such
breach.
(c) Breaches Treated as Discovered.--For purposes of this
section, a breach shall

[[Page S1166]]

be treated as discovered by a covered entity or by a business
associate as of the first day on which such breach is known
to such entity or associate, respectively, (including any
person, other than the individual committing the breach, that
is an employee, officer, or other agent of such entity or
associate, respectively) or should reasonably have been known
to such entity or associate (or person) to have occurred.
(d) Timeliness of Notification.--
(1) In general.--Subject to subsection (g), all
notifications required under this section shall be made
without unreasonable delay and in no case later than 60
calendar days after the discovery of a breach by the covered
entity involved (or business associate involved in the case
of a notification required under subsection (b)).
(2) Burden of proof.--The covered entity involved (or
business associate involved in the case of a notification
required under subsection (b)), shall have the burden of
demonstrating that all notifications were made as required
under this part, including evidence demonstrating the
necessity of any delay.
(e) Methods of Notice.--
(1) Individual notice.--Notice required under this section
to be provided to an individual, with respect to a breach,
shall be provided promptly and in the following form:
(A) Written notification by first-class mail to the
individual (or the next of kin of the individual if the
individual is deceased) at the last known address of the
individual or the next of kin, respectively, or, if specified
as a preference by the individual, by electronic mail. The
notification may be provided in one or more mailings as
information is available.
(B) In the case in which there is insufficient, or out-of-
date contact information (including a phone number, email
address, or any other form of appropriate communication) that
precludes direct written (or, if specified by the individual
under subparagraph (A), electronic) notification to the
individual, a substitute form of notice shall be provided,
including, in the case that there are 10 or more individuals
for which there is insufficient or out-of-date contact
information, a conspicuous posting for a period determined by
the Secretary on the home page of the Web site of the covered
entity involved or notice in major print or broadcast media,
including major media in geographic areas where the
individuals affected by the breach likely reside. Such a
notice in media or web posting will include a toll-free phone
number where an individual can learn whether or not the
individual's unsecured protected health information is
possibly included in the breach.
(C) In any case deemed by the covered entity involved to
require urgency because of possible imminent misuse of
unsecured protected health information, the covered entity,
in addition to notice provided under subparagraph (A), may
provide information to individuals by telephone or other
means, as appropriate.
(2) Media notice.--Notice shall be provided to prominent
media outlets serving a State or jurisdiction, following the
discovery of a breach described in subsection (a), if the
unsecured protected health information of more than 500
residents of such State or jurisdiction is, or is reasonably
believed to have been, accessed, acquired, or disclosed
during such breach.
(3) Notice to secretary.--Notice shall be provided to the
Secretary by covered entities of unsecured protected health
information that has been acquired or disclosed in a breach.
If the breach was with respect to 500 or more individuals
than such notice must be provided immediately. If the breach
was with respect to less than 500 individuals, the covered
entity may maintain a log of any such breach occurring and
annually submit such a log to the Secretary documenting such
breaches occurring during the year involved.
(4) Posting on hhs public website.--The Secretary shall
make available to the public on the Internet website of the
Department of Health and Human Services a list that
identifies each covered entity involved in a breach described
in subsection (a) in which the unsecured protected health
information of more than 500 individuals is acquired or
disclosed.
(f) Content of Notification.--Regardless of the method by
which notice is provided to individuals under this section,
notice of a breach shall include, to the extent possible, the
following:
(1) A brief description of what happened, including the
date of the breach and the date of the discovery of the
breach, if known.
(2) A description of the types of unsecured protected
health information that were involved in the breach (such as
full name, Social Security number, date of birth, home
address, account number, or disability code).
(3) The steps individuals should take to protect themselves
from potential harm resulting from the breach.
(4) A brief description of what the covered entity involved
is doing to investigate the breach, to mitigate losses, and
to protect against any further breaches.
(5) Contact procedures for individuals to ask questions or
learn additional information, which shall include a toll-free
telephone number, an e-mail address, Web site, or postal
address.
(g) Delay of Notification Authorized for Law Enforcement
Purposes.--If a law enforcement official determines that a
notification, notice, or posting required under this section
would impede a criminal investigation or cause damage to
national security, such notification, notice, or posting
shall be delayed in the same manner as provided under section
164.528(a)(2) of title 45, Code of Federal Regulations, in
the case of a disclosure covered under such section.
(h) Unsecured Protected Health Information.--
(1) Definition.--
(A) In general.--Subject to subparagraph (B), for purposes
of this section, the term ``unsecured protected health
information'' means protected health information that is not
secured through the use of a technology or methodology
specified by the Secretary in the guidance issued under
paragraph (2).
(B) Exception in case timely guidance not issued.--In the
case that the Secretary does not issue guidance under
paragraph (2) by the date specified in such paragraph, for
purposes of this section, the term ``unsecured protected
health information'' shall mean protected health information
that is not secured by a technology standard that renders
protected health information unusable, unreadable, or
indecipherable to unauthorized individuals and is developed
or endorsed by a standards developing organization that is
accredited by the American National Standards Institute.
(2) Guidance.--For purposes of paragraph (1) and section
13407(f)(3), not later than the date that is 60 days after
the date of the enactment of this Act, the Secretary shall,
after consultation with stakeholders, issue (and annually
update) guidance specifying the technologies and
methodologies that render protected health information
unusable, unreadable, or indecipherable to unauthorized
individuals.
(i) Report to Congress on Breaches.--
(1) In general.--Not later than 12 months after the date of
the enactment of this Act and annually thereafter, the
Secretary shall prepare and submit to the Committee on
Finance and the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Ways and Means
and the Committee on Energy and Commerce of the House of
Representatives a report containing the information described
in paragraph (2) regarding breaches for which notice was
provided to the Secretary under subsection (e)(3).
(2) Information.--The information described in this
paragraph regarding breaches specified in paragraph (1) shall
include--
(A) the number and nature of such breaches; and
(B) actions taken in response to such breaches.
(j) Regulations; Effective Date.--To carry out this
section, the Secretary of Health and Human Services shall
promulgate interim final regulations by not later than the
date that is 180 days after the date of the enactment of this
title. The provisions of this section shall apply to breaches
that are discovered on or after the date that is 30 days
after the date of publication of such interim final
regulations.

SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.

(a) Regional Office Privacy Advisors.--Not later than 6
months after the date of the enactment of this Act, the
Secretary shall designate an individual in each regional
office of the Department of Health and Human Services to
offer guidance and education to covered entities, business
associates, and individuals on their rights and
responsibilities related to Federal privacy and security
requirements for protected health information.
(b) Education Initiative on Uses of Health Information.--
Not later than 12 months after the date of the enactment of
this Act, the Office for Civil Rights within the Department
of Health and Human Services shall develop and maintain a
multi-faceted national education initiative to enhance public
transparency regarding the uses of protected health
information, including programs to educate individuals about
the potential uses of their protected health information, the
effects of such uses, and the rights of individuals with
respect to such uses. Such programs shall be conducted in a
variety of languages and present information in a clear and
understandable manner.

SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES
TO BUSINESS ASSOCIATES OF COVERED ENTITIES.

(a) Application of Contract Requirements.--In the case of a
business associate of a covered entity that obtains or
creates protected health information pursuant to a written
contract (or other written arrangement) described in section
164.502(e)(2) of title 45, Code of Federal Regulations, with
such covered entity, the business associate may use and
disclose such protected health information only if such use
or disclosure, respectively, is in compliance with each
applicable requirement of section 164.504(e) of such title.
The additional requirements of this subtitle that relate to
privacy and that are made applicable with respect to covered
entities shall also be applicable to such a business
associate and shall be incorporated into the business
associate agreement between the business associate and the
covered entity.
(b) Application of Knowledge Elements Associated With
Contracts.--Section 164.504(e)(1)(ii) of title 45, Code of
Federal Regulations, shall apply to a business associate
described in subsection (a), with respect to compliance with
such subsection, in the same manner that such section applies
to a covered entity, with respect to compliance with the
standards in sections 164.502(e)

[[Page S1167]]

and 164.504(e) of such title, except that in applying such
section 164.504(e)(1)(ii) each reference to the business
associate, with respect to a contract, shall be treated as a
reference to the covered entity involved in such contract.
(c) Application of Civil and Criminal Penalties.--In the
case of a business associate that violates any provision of
subsection (a) or (b), the provisions of sections 1176 and
1177 of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6)
shall apply to the business associate with respect to such
violation in the same manner as such provisions apply to a
person who violates a provision of part C of title XI of such
Act.

SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF
HEALTH INFORMATION; ACCOUNTING OF CERTAIN
PROTECTED HEALTH INFORMATION DISCLOSURES;
ACCESS TO CERTAIN INFORMATION IN ELECTRONIC
FORMAT.

(a) Requested Restrictions on Certain Disclosures of Health
Information.--In the case that an individual requests under
paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code
of Federal Regulations, that a covered entity restrict the
disclosure of the protected health information of the
individual, notwithstanding paragraph (a)(1)(ii) of such
section, the covered entity must comply with the requested
restriction if--
(1) except as otherwise required by law, the disclosure is
to a health plan for purposes of carrying out payment or
health care operations (and is not for purposes of carrying
out treatment); and
(2) the protected health information pertains solely to a
health care item or service for which the health care
provider involved has been paid out of pocket in full.
(b) Disclosures Required to Be Limited to the Limited Data
Set or the Minimum Necessary.--
(1) In general.--
(A) In general.--Subject to subparagraph (B), a covered
entity shall be treated as being in compliance with section
164.502(b)(1) of title 45, Code of Federal Regulations, with
respect to the use, disclosure, or request of protected
health information described in such section, only if the
covered entity limits such protected health information, to
the extent practicable, to the limited data set (as defined
in section 164.514(e)(2) of such title) or, if needed by such
entity, to the minimum necessary to accomplish the intended
purpose of such use, disclosure, or request, respectively.
(B) Guidance.--Not later than 18 months after the date of
the enactment of this section, the Secretary shall issue
guidance on what constitutes ``minimum necessary'' for
purposes of subpart E of part 164 of title 45, Code of
Federal Regulation. In issuing such guidance the Secretary
shall take into consideration the guidance under section
13424(c).
(C) Sunset.--Subparagraph (A) shall not apply on and after
the effective date on which the Secretary issues the guidance
under subparagraph (B).
(2) Determination of minimum necessary.--For purposes of
paragraph (1), in the case of the disclosure of protected
health information, the covered entity or business associate
disclosing such information shall determine what constitutes
the minimum necessary to accomplish the intended purpose of
such disclosure.
(3) Application of exceptions.--The exceptions described in
section 164.502(b)(2) of title 45, Code of Federal
Regulations, shall apply to the requirement under paragraph
(1) as of the effective date described in section 13423 in
the same manner that such exceptions apply to section
164.502(b)(1) of such title before such date.
(4) Rule of construction.--Nothing in this subsection shall
be construed as affecting the use, disclosure, or request of
protected health information that has been de-identified.
(c) Accounting of Certain Protected Health Information
Disclosures Required if Covered Entity Uses Electronic Health
Record.--
(1) In general.--In applying section 164.528 of title 45,
Code of Federal Regulations, in the case that a covered
entity uses or maintains an electronic health record with
respect to protected health information--
(A) the exception under paragraph (a)(1)(i) of such section
shall not apply to disclosures through an electronic health
record made by such entity of such information; and
(B) an individual shall have a right to receive an
accounting of disclosures described in such paragraph of such
information made by such covered entity during only the three
years prior to the date on which the accounting is requested.
(2) Regulations.--The Secretary shall promulgate
regulations on what information shall be collected about each
disclosure referred to in paragraph (1)(A) not later than 18
months after the date on which the Secretary adopts standards
on accounting for disclosure described in the section
3002(b)(2)(B)(iv) of the Public Health Service Act, as added
by section 13101. Such regulations shall only require such
information to be collected through an electronic health
record in a manner that takes into account the interests of
individuals in learning the circumstances under which their
protected health information is being disclosed and takes
into account the administrative burden of accounting for such
disclosures.
(3) Construction.--Nothing in this subsection shall be
construed as--
(A) requiring a covered entity to account for disclosures
of protected health information that are not made by such
covered entity; or
(B) requiring a business associate of a covered entity to
account for disclosures of protected health information that
are not made by such business associate.
(4) Reasonable fee.--A covered entity may impose a
reasonable fee on an individual for an accounting performed
under paragraph (1)(B). Any such fee shall not be greater
than the entity's labor costs in responding to the request.
(5) Effective date.--
(A) Current users of electronic records.--In the case of a
covered entity insofar as it acquired an electronic health
record as of January 1, 2009, paragraph (1) shall apply to
disclosures, with respect to protected health information,
made by the covered entity from such a record on and after
January 1, 2014.
(B) Others.--In the case of a covered entity insofar as it
acquires an electronic health record after January 1, 2010,
paragraph (1) shall apply to disclosures, with respect to
protected health information, made by the covered entity from
such record on and after the later of the following:
(i) January 1, 2011; or
(ii) the date that it acquires an electronic health record.
(d) Review of Health Care Operations.--Not later than 18
months after the date of the enactment of this title, the
Secretary shall promulgate regulations to eliminate from the
definition of health care operations under section 164.501 of
title 45, Code of Federal Regulations, those activities that
can reasonably and efficiently be conducted through the use
of information that is de-identified (in accordance with the
requirements of section 164.514(b) of such title) or that
should require a valid authorization for use or disclosure.
In promulgating such regulations, the Secretary may choose to
narrow or clarify activities that the Secretary chooses to
retain in the definition of health care operations and the
Secretary shall take into account the report under section
13424(d). In such regulations the Secretary shall specify the
date on which such regulations shall apply to disclosures
made by a covered entity, but in no case would such date be
sooner than the date that is 24 months after the date of the
enactment of this section.
(e) Prohibition on Sale of Electronic Health Records or
Protected Health Information Obtained From Electronic Health
Records.--
(1) In general.--Except as provided in paragraph (2), a
covered entity or business associate shall not directly or
indirectly receive remuneration in exchange for any protected
health information of an individual unless the covered entity
obtained from the individual, in accordance with section
164.508 of title 45, Code of Federal Regulations, a valid
authorization that includes, in accordance with such section,
a specification of whether the protected health information
can be further exchanged for remuneration by the entity
receiving protected health information of that individual.
(2) Exceptions.--Paragraph (1) shall not apply in the
following cases:
(A) The purpose of the exchange is for research or public
health activities (as described in sections 164.501,
164.512(i), and 164.512(b) of title 45, Code of Federal
Regulations) and the price charged reflects the costs of
preparation and transmittal of the data for such purpose.
(B) The purpose of the exchange is for the treatment of the
individual and the price charges reflects not more than the
costs of preparation and transmittal of the data for such
purpose.
(C) The purpose of the exchange is the health care
operation specifically described in subparagraph (iv) of
paragraph (6) of the definition of healthcare operations in
section 164.501 of title 45, Code of Federal Regulations.
(D) The purpose of the exchange is for remuneration that is
provided by a covered entity to a business associate for
activities involving the exchange of protected health
information that the business associate undertakes on behalf
of and at the specific request of the covered entity pursuant
to a business associate agreement.
(E) The purpose of the exchange is to provide an individual
with a copy of the individual's protected health information
pursuant to section 164.524 of title 45, Code of Federal
Regulations.
(F) The purpose of the exchange is otherwise determined by
the Secretary in regulations to be similarly necessary and
appropriate as the exceptions provided in subparagraphs (A)
through (E).
(3) Regulations.--The Secretary shall promulgate
regulations to carry out this subsection, including
exceptions described in paragraph (2), not later than 18
months after the date of the enactment of this title.
(4) Effective date.--Paragraph (1) shall apply to exchanges
occurring on or after the date that is 6 months after the
date of the promulgation of final regulations implementing
this subsection.
(f) Access to Certain Information in Electronic Format.--In
applying section 164.524 of title 45, Code of Federal
Regulations, in the case that a covered entity uses or
maintains an electronic health record with respect to
protected health information of an individual--

[[Page S1168]]

(1) the individual shall have a right to obtain from such
covered entity a copy of such information in an electronic
format; and
(2) notwithstanding paragraph (c)(4) of such section, any
fee that the covered entity may impose for providing such
individual with a copy of such information (or a summary or
explanation of such information) if such copy (or summary or
explanation) is in an electronic form shall not be greater
than the entity's labor costs in responding to the request
for the copy (or summary or explanation).

SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH
CARE OPERATIONS.

(a) Marketing.--
(1) In general.--A communication by a covered entity or
business associate that is about a product or service and
that encourages recipients of the communication to purchase
or use the product or service shall not be considered a
health care operation for purposes of subpart E of part 164
of title 45, Code of Federal Regulations, unless the
communication is made as described in subparagraph (i), (ii),
or (iii) of paragraph (1) of the definition of marketing in
section 164.501 of such title.
(2) Payment for certain communications.--A covered entity
or business associate may not receive direct or indirect
payment in exchange for making any communication described in
subparagraph (i), (ii), or (iii) of paragraph (1) of the
definition of marketing in section 164.501 of title 45, Code
of Federal Regulations, except--
(A) a business associate of a covered entity may receive
payment from the covered entity for making any such
communication on behalf of the covered entity that is
consistent with the written contract (or other written
arrangement) described in section 164.502(e)(2) of such title
between such business associate and covered entity;
(B) a covered entity may receive payment in exchange for
making any such communication if the entity obtains from the
recipient of the communication, in accordance with section
164.508 of title 45, Code of Federal Regulations, a valid
authorization (as described in paragraph (b) of such section)
with respect to such communication; and
(C) where such communication describes only a health care
item or service that has previously been prescribed for or
administered to the recipient of the communication, or a
family member of such recipient.
(b) Fundraising.--Fundraising for the benefit of a covered
entity shall not be considered a health care operation for
purposes of section 164.501 of title 45, Code of Federal
Regulations.
(c) Effective Date.--This section shall apply to
contracting occurring on or after the effective date
specified under section 13423.

SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR
VENDORS OF PERSONAL HEALTH RECORDS AND OTHER
NON-HIPAA COVERED ENTITIES.

(a) In General.--In accordance with subsection (c), each
vendor of personal health records, following the discovery of
a breach of security of unsecured PHR identifiable health
information that is in a personal health record maintained or
offered by such vendor, and each entity described in clause
(ii) or (iii) of section 13424(b)(1)(A), following the
discovery of a breach of security of such information that is
obtained through a product or service provided by such
entity, shall--
(1) notify each individual who is a citizen or resident of
the United States whose unsecured PHR identifiable health
information was acquired by an unauthorized person as a
result of such a breach of security; and
(2) notify the Federal Trade Commission.
(b) Notification by Third Party Service Providers.--A third
party service provider that provides services to a vendor of
personal health records or to an entity described in clause
(ii) or (iii) of section 13424(b)(1)(A) in connection with
the offering or maintenance of a personal health record or a
related product or service and that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise
holds, uses, or discloses unsecured PHR identifiable health
information in such a record as a result of such services
shall, following the discovery of a breach of security of
such information, notify such vendor or entity, respectively,
of such breach. Such notice shall include the identification
of each individual whose unsecured PHR identifiable health
information has been, or is reasonably believed to have been,
accessed, acquired, or disclosed during such breach.
(c) Application of Requirements for Timeliness, Method, and
Content of Notifications.--Subsections (c), (d), (e), and (f)
of section 13402 shall apply to a notification required under
subsection (a) and a vendor of personal health records, an
entity described in subsection (a) and a third party service
provider described in subsection (b), with respect to a
breach of security under subsection (a) of unsecured PHR
identifiable health information in such records maintained or
offered by such vendor, in a manner specified by the Federal
Trade Commission.
(d) Notification of the Secretary.--Upon receipt of a
notification of a breach of security under subsection (a)(2),
the Federal Trade Commission shall notify the Secretary of
such breach.
(e) Enforcement.--A violation of subsection (a) or (b)
shall be treated as an unfair and deceptive act or practice
in violation of a regulation under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B))
regarding unfair or deceptive acts or practices.
(f) Definitions.--For purposes of this section:
(1) Breach of security.--The term ``breach of security''
means, with respect to unsecured PHR identifiable health
information of an individual in a personal health record,
acquisition of such information without the authorization of
the individual.
(2) PHR identifiable health information.--The term ``PHR
identifiable health information'' means individually
identifiable health information, as defined in section
1171(6) of the Social Security Act (42 U.S.C. 1320d(6)), and
includes, with respect to an individual, information--
(A) that is provided by or on behalf of the individual; and
(B) that identifies the individual or with respect to which
there is a reasonable basis to believe that the information
can be used to identify the individual.
(3) Unsecured phr identifiable health information.--
(A) In general.--Subject to subparagraph (B), the term
``unsecured PHR identifiable health information'' means PHR
identifiable health information that is not protected through
the use of a technology or methodology specified by the
Secretary in the guidance issued under section 13402(h)(2).
(B) Exception in case timely guidance not issued.--In the
case that the Secretary does not issue guidance under section
13402(h)(2) by the date specified in such section, for
purposes of this section, the term ``unsecured PHR
identifiable health information'' shall mean PHR identifiable
health information that is not secured by a technology
standard that renders protected health information unusable,
unreadable, or indecipherable to unauthorized individuals and
that is developed or endorsed by a standards developing
organization that is accredited by the American National
Standards Institute.
(g) Regulations; Effective Date; Sunset.--
(1) Regulations; effective date.--To carry out this
section, the Secretary of Health and Human Services shall
promulgate interim final regulations by not later than the
date that is 180 days after the date of the enactment of this
section. The provisions of this section shall apply to
breaches of security that are discovered on or after the date
that is 30 days after the date of publication of such interim
final regulations.
(2) Sunset.--The provisions of this section shall not apply
to breaches of security occurring on or after the earlier of
the following the dates:
(A) The date on which a standard relating to requirements
for entities that are not covered entities that includes
requirements relating to breach notification has been
promulgated by the Secretary.
(B) The date on which a standard relating to requirements
for entities that are not covered entities that includes
requirements relating to breach notification has been
promulgated by the Federal Trade Commission and has taken
effect.

SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN
ENTITIES.

Each organization, with respect to a covered entity, that
provides data transmission of protected health information to
such entity (or its business associate) and that requires
access on a routine basis to such protected health
information, such as a Health Information Exchange
Organization, Regional Health Information Organization, E-
prescribing Gateway, or each vendor that contracts with a
covered entity to allow that covered entity to offer a
personal health record to patients as part of its electronic
health record, is required to enter into a written contract
(or other written arrangement) described in section
164.502(e)(2) of title 45, Code of Federal Regulations and a
written contract (or other arrangement) described in section
164.308(b) of such title, with such entity and shall be
treated as a business associate of the covered entity for
purposes of the provisions of this subtitle and subparts C
and E of part 164 of title 45, Code of Federal Regulations,
as such provisions are in effect as of the date of enactment
of this title.

SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL
DISCLOSURES CRIMINAL PENALTIES.

Section 1177(a) of the Social Security Act (42 U.S.C.
1320d-6(a)) is amended by adding at the end the following new
sentence: ``For purposes of the previous sentence, a person
(including an employee or other individual) shall be
considered to have obtained or disclosed individually
identifiable health information in violation of this part if
the information is maintained by a covered entity (as defined
in the HIPAA privacy regulation described in section
1180(b)(3)) and the individual obtained or disclosed such
information without authorization.''.

SEC. 13410. IMPROVED ENFORCEMENT.

(a) In General.--Section 1176 of the Social Security Act
(42 U.S.C. 1320d-5) is amended--
(1) in subsection (b)(1), by striking ``the act constitutes
an offense punishable under section 1177'' and inserting ``a
penalty has been imposed under section 1177 with respect to
such act''; and
(2) by adding at the end the following new subsection:
``(c) Noncompliance Due to Willful Neglect.--

[[Page S1169]]

``(1) In general.--A violation of a provision of this part
due to willful neglect is a violation for which the Secretary
is required to impose a penalty under subsection (a)(1).
``(2) Required investigation.--For purposes of paragraph
(1), the Secretary shall formally investigate any complaint
of a violation of a provision of this part if a preliminary
investigation of the facts of the complaint indicate such a
possible violation due to willful neglect.''.
(b) Effective Date; Regulations.--
(1) The amendments made by subsection (a) shall apply to
penalties imposed on or after the date that is 24 months
after the date of the enactment of this title.
(2) Not later than 18 months after the date of the
enactment of this title, the Secretary of Health and Human
Services shall promulgate regulations to implement such
amendments.
(c) Distribution of Certain Civil Monetary Penalties
Collected.--
(1) In general.--Subject to the regulation promulgated
pursuant to paragraph (3), any civil monetary penalty or
monetary settlement collected with respect to an offense
punishable under this subtitle or section 1176 of the Social
Security Act (42 U.S.C. 1320d-5) insofar as such section
relates to privacy or security shall be transferred to the
Office of Civil Rights of the Department of Health and Human
Services to be used for purposes of enforcing the provisions
of this subtitle and subparts C and E of part 164 of title
45, Code of Federal Regulations, as such provisions are in
effect as of the date of enactment of this Act.
(2) GAO report.--Not later than 18 months after the date of
the enactment of this title, the Comptroller General shall
submit to the Secretary a report including recommendations
for a methodology under which an individual who is harmed by
an act that constitutes an offense referred to in paragraph
(1) may receive a percentage of any civil monetary penalty or
monetary settlement collected with respect to such offense.
(3) Establishment of methodology to distribute percentage
of cmps collected to harmed individuals.--Not later than 3
years after the date of the enactment of this title, the
Secretary shall establish by regulation and based on the
recommendations submitted under paragraph (2), a methodology
under which an individual who is harmed by an act that
constitutes an offense referred to in paragraph (1) may
receive a percentage of any civil monetary penalty or
monetary settlement collected with respect to such offense.
(4) Application of methodology.--The methodology under
paragraph (3) shall be applied with respect to civil monetary
penalties or monetary settlements imposed on or after the
effective date of the regulation.
(d) Tiered Increase in Amount of Civil Monetary
Penalties.--
(1) In general.--Section 1176(a)(1) of the Social Security
Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who
violates a provision of this part a penalty of not more
than'' and all that follows and inserting the following:
``who violates a provision of this part--
``(A) in the case of a violation of such provision in which
it is established that the person did not know (and by
exercising reasonable diligence would not have known) that
such person violated such provision, a penalty for each such
violation of an amount that is at least the amount described
in paragraph (3)(A) but not to exceed the amount described in
paragraph (3)(D);
``(B) in the case of a violation of such provision in which
it is established that the violation was due to reasonable
cause and not to willful neglect, a penalty for each such
violation of an amount that is at least the amount described
in paragraph (3)(B) but not to exceed the amount described in
paragraph (3)(D); and
``(C) in the case of a violation of such provision in which
it is established that the violation was due to willful
neglect--
``(i) if the violation is corrected as described in
subsection (b)(3)(A), a penalty in an amount that is at least
the amount described in paragraph (3)(C) but not to exceed
the amount described in paragraph (3)(D); and
``(ii) if the violation is not corrected as described in
such subsection, a penalty in an amount that is at least the
amount described in paragraph (3)(D).
``In determining the amount of a penalty under this section
for a violation, the Secretary shall base such determination
on the nature and extent of the violation and the nature and
extent of the harm resulting from such violation.''.
(2) Tiers of penalties described.--Section 1176(a) of such
Act (42 U.S.C. 1320d-5(a)) is further amended by adding at
the end the following new paragraph:
``(3) Tiers of penalties described.--For purposes of
paragraph (1), with respect to a violation by a person of a
provision of this part--
``(A) the amount described in this subparagraph is $100 for
each such violation, except that the total amount imposed on
the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $25,000;
``(B) the amount described in this subparagraph is $1,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $100,000;
``(C) the amount described in this subparagraph is $10,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $250,000; and
``(D) the amount described in this subparagraph is $50,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $1,500,000.''.
(3) Conforming amendments.--Section 1176(b) of such Act (42
U.S.C. 1320d-5(b)) is amended--
(A) by striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively; and
(B) in paragraph (2), as so redesignated--
(i) in subparagraph (A), by striking ``in subparagraph (B),
a penalty may not be imposed under subsection (a) if'' and
all that follows through ``the failure to comply is
corrected'' and inserting ``in subparagraph (B) or subsection
(a)(1)(C), a penalty may not be imposed under subsection (a)
if the failure to comply is corrected''; and
(ii) in subparagraph (B), by striking ``(A)(ii)'' and
inserting ``(A)'' each place it appears.
(4) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the
enactment of this title.
(e) Enforcement Through State Attorneys General.--
(1) In general.--Section 1176 of the Social Security Act
(42 U.S.C. 1320d-5) is amended by adding at the end the
following new subsection:
``(d) Enforcement by State Attorneys General.--
``(1) Civil action.--Except as provided in subsection (b),
in any case in which the attorney general of a State has
reason to believe that an interest of one or more of the
residents of that State has been or is threatened or
adversely affected by any person who violates a provision of
this part, the attorney general of the State, as parens
patriae, may bring a civil action on behalf of such residents
of the State in a district court of the United States of
appropriate jurisdiction--
``(A) to enjoin further such violation by the defendant; or
``(B) to obtain damages on behalf of such residents of the
State, in an amount equal to the amount determined under
paragraph (2).
``(2) Statutory damages.--
``(A) In general.--For purposes of paragraph (1)(B), the
amount determined under this paragraph is the amount
calculated by multiplying the number of violations by up to
$100. For purposes of the preceding sentence, in the case of
a continuing violation, the number of violations shall be
determined consistent with the HIPAA privacy regulations (as
defined in section 1180(b)(3)) for violations of subsection
(a).
``(B) Limitation.--The total amount of damages imposed on
the person for all violations of an identical requirement or
prohibition during a calendar year may not exceed $25,000.
``(C) Reduction of damages.--In assessing damages under
subparagraph (A), the court may consider the factors the
Secretary may consider in determining the amount of a civil
money penalty under subsection (a) under the HIPAA privacy
regulations.
``(3) Attorney fees.--In the case of any successful action
under paragraph (1), the court, in its discretion, may award
the costs of the action and reasonable attorney fees to the
State.
``(4) Notice to secretary.--The State shall serve prior
written notice of any action under paragraph (1) upon the
Secretary and provide the Secretary with a copy of its
complaint, except in any case in which such prior notice is
not feasible, in which case the State shall serve such notice
immediately upon instituting such action. The Secretary shall
have the right--
``(A) to intervene in the action;
``(B) upon so intervening, to be heard on all matters
arising therein; and
``(C) to file petitions for appeal.
``(5) Construction.--For purposes of bringing any civil
action under paragraph (1), nothing in this section shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by
the laws of that State.
``(6) Venue; service of process.--
``(A) Venue.--Any action brought under paragraph (1) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
``(B) Service of process.--In an action brought under
paragraph (1), process may be served in any district in which
the defendant--
``(i) is an inhabitant; or
``(ii) maintains a physical place of business.
``(7) Limitation on state action while federal action is
pending.--If the Secretary has instituted an action against a
person under subsection (a) with respect to a specific
violation of this part, no State attorney general may bring
an action under this subsection against the person with
respect to such violation during the pendency of that action.
``(8) Application of cmp statute of limitation.--A civil
action may not be instituted with respect to a violation of
this part unless an action to impose a civil money penalty
may be instituted under subsection (a) with

[[Page S1170]]

respect to such violation consistent with the second sentence
of section 1128A(c)(1).''.
(2) Conforming amendments.--Subsection (b) of such section,
as amended by subsection (d)(3), is amended--
(A) in paragraph (1), by striking ``A penalty may not be
imposed under subsection (a)'' and inserting ``No penalty may
be imposed under subsection (a) and no damages obtained under
subsection (d)'';
(B) in paragraph (2)(A)--
(i) after ``subsection (a)(1)(C),'', by striking ``a
penalty may not be imposed under subsection (a)'' and
inserting ``no penalty may be imposed under subsection (a)
and no damages obtained under subsection (d)''; and
(ii) in clause (ii), by inserting ``or damages'' after
``the penalty'';
(C) in paragraph (2)(B)(i), by striking ``The period'' and
inserting ``With respect to the imposition of a penalty by
the Secretary under subsection (a), the period''; and
(D) in paragraph (3), by inserting ``and any damages under
subsection (d)'' after ``any penalty under subsection (a)''.
(3) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the
enactment of this Act.
(f) Allowing Continued Use of Corrective Action.--Such
section is further amended by adding at the end the following
new subsection:
``(e) Allowing Continued Use of Corrective Action.--Nothing
in this section shall be construed as preventing the Office
of Civil Rights of the Department of Health and Human
Services from continuing, in its discretion, to use
corrective action without a penalty in cases where the person
did not know (and by exercising reasonable diligence would
not have known) of the violation involved.''.

SEC. 13411. AUDITS.

The Secretary shall provide for periodic audits to ensure
that covered entities and business associates that are
subject to the requirements of this subtitle and subparts C
and E of part 164 of title 45, Code of Federal Regulations,
as such provisions are in effect as of the date of enactment
of this Act, comply with such requirements.

PART II--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE
DATE; REPORTS

SEC. 13421. RELATIONSHIP TO OTHER LAWS.

(a) Application of HIPAA State Preemption.--Section 1178 of
the Social Security Act (42 U.S.C. 1320d-7) shall apply to a
provision or requirement under this subtitle in the same
manner that such section applies to a provision or
requirement under part C of title XI of such Act or a
standard or implementation specification adopted or
established under sections 1172 through 1174 of such Act.
(b) Health Insurance Portability and Accountability Act.--
The standards governing the privacy and security of
individually identifiable health information promulgated by
the Secretary under sections 262(a) and 264 of the Health
Insurance Portability and Accountability Act of 1996 shall
remain in effect to the extent that they are consistent with
this subtitle. The Secretary shall by rule amend such Federal
regulations as required to make such regulations consistent
with this subtitle. In carrying out the preceding sentence,
the Secretary shall revise the definition of ``psychotherapy
notes'' in section 164.501 of title 45, Code of Federal
Regulations, to include test data that is related to direct
responses, scores, items, forms, protocols, manuals, or other
materials that are part of a mental health evaluation, as
determined by the mental health professional providing
treatment or evaluation.

SEC. 13422. REGULATORY REFERENCES.

Each reference in this subtitle to a provision of the Code
of Federal Regulations refers to such provision as in effect
on the date of the enactment of this title (or to the most
recent update of such provision).

SEC. 13423. EFFECTIVE DATE.

Except as otherwise specifically provided, the provisions
of part I shall take effect on the date that is 12 months
after the date of the enactment of this title.

SEC. 13424. STUDIES, REPORTS, GUIDANCE.

(a) Report on Compliance.--
(1) In general.--For the first year beginning after the
date of the enactment of this Act and annually thereafter,
the Secretary shall prepare and submit to the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Ways and Means and the Committee on Energy and
Commerce of the House of Representatives a report concerning
complaints of alleged violations of law, including the
provisions of this subtitle as well as the provisions of
subparts C and E of part 164 of title 45, Code of Federal
Regulations, (as such provisions are in effect as of the date
of enactment of this Act) relating to privacy and security of
health information that are received by the Secretary during
the year for which the report is being prepared. Each such
report shall include, with respect to such complaints
received during the year--
(A) the number of such complaints;
(B) the number of such complaints resolved informally, a
summary of the types of such complaints so resolved, and the
number of covered entities that received technical assistance
from the Secretary during such year in order to achieve
compliance with such provisions and the types of such
technical assistance provided;
(C) the number of such complaints that have resulted in the
imposition of civil monetary penalties or have been resolved
through monetary settlements, including the nature of the
complaints involved and the amount paid in each penalty or
settlement;
(D) the number of compliance reviews conducted and the
outcome of each such review;
(E) the number of subpoenas or inquiries issued;
(F) the Secretary's plan for improving compliance with and
enforcement of such provisions for the following year; and
(G) the number of audits performed and a summary of audit
findings pursuant to section 13411.
(2) Availability to public.--Each report under paragraph
(1) shall be made available to the public on the Internet
website of the Department of Health and Human Services.
(b) Study and Report on Application of Privacy and Security
Requirements to Non-HIPAA Covered Entities.--
(1) Study.--Not later than one year after the date of the
enactment of this title, the Secretary, in consultation with
the Federal Trade Commission, shall conduct a study, and
submit a report under paragraph (2), on privacy and security
requirements for entities that are not covered entities or
business associates as of the date of the enactment of this
title, including--
(A) requirements relating to security, privacy, and
notification in the case of a breach of security or privacy
(including the applicability of an exemption to notification
in the case of individually identifiable health information
that has been rendered unusable, unreadable, or
indecipherable through technologies or methodologies
recognized by appropriate professional organization or
standard setting bodies to provide effective security for the
information) that should be applied to--
(i) vendors of personal health records;
(ii) entities that offer products or services through the
website of a vendor of personal health records;
(iii) entities that are not covered entities and that offer
products or services through the websites of covered entities
that offer individuals personal health records;
(iv) entities that are not covered entities and that access
information in a personal health record or send information
to a personal health record; and
(v) third party service providers used by a vendor or
entity described in clause (i), (ii), (iii), or (iv) to
assist in providing personal health record products or
services;
(B) a determination of which Federal government agency is
best equipped to enforce such requirements recommended to be
applied to such vendors, entities, and service providers
under subparagraph (A); and
(C) a timeframe for implementing regulations based on such
findings.
(2) Report.--The Secretary shall submit to the Committee on
Finance, the Committee on Health, Education, Labor, and
Pensions, and the Committee on Commerce of the Senate and the
Committee on Ways and Means and the Committee on Energy and
Commerce of the House of Representatives a report on the
findings of the study under paragraph (1) and shall include
in such report recommendations on the privacy and security
requirements described in such paragraph.
(c) Guidance on Implementation Specification to De-Identify
Protected Health Information.--Not later than 12 months after
the date of the enactment of this title, the Secretary shall,
in consultation with stakeholders, issue guidance on how best
to implement the requirements for the de-identification of
protected health information under section 164.514(b) of
title 45, Code of Federal Regulations.
(d) GAO Report on Treatment Disclosures.--Not later than
one year after the date of the enactment of this title, the
Comptroller General of the United States shall submit to the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Ways and Means and the Committee
on Energy and Commerce of the House of Representatives a
report on the best practices related to the disclosure among
health care providers of protected health information of an
individual for purposes of treatment of such individual. Such
report shall include an examination of the best practices
implemented by States and by other entities, such as health
information exchanges and regional health information
organizations, an examination of the extent to which such
best practices are successful with respect to the quality of
the resulting health care provided to the individual and with
respect to the ability of the health care provider to manage
such best practices, and an examination of the use of
electronic informed consent for disclosing protected health
information for treatment, payment, and health care
operations.-

TITLE XIV--STATE FISCAL STABILIZATION

DEPARTMENT OF EDUCATION

State Fiscal Stabilization Fund

For necessary expenses for a State Fiscal Stabilization
Fund, $79,000,000,000, which shall be administered by the
Department of Education, and shall be available through
September 30, 2010.

GENERAL PROVISIONS--THIS TITLE

SEC. 1401. ALLOCATIONS.

(a) Outlying Areas.--The Secretary of Education shall first
allocate one-half of 1 percent to the outlying areas on the
basis of their respective needs, as determined by the
Secretary, for activities consistent with this

[[Page S1171]]

title under such terms and conditions as the Secretary may
determine.
(b) Administration and Oversight.--The Secretary may
reserve up to $25,000,000 for administration and oversight of
this title, including for program evaluation.
(c) Reservation for Additional Programs.--After reserving
funds under subsections (a) and (b), the Secretary shall
reserve $15,000,000,000 for grants under sections 1406 and
1407.
(d) State Allocations.--After carrying out subsections (a),
(b), and (c), the Secretary shall allocate the remaining
funds made available to carry out this title to the States as
follows:
(1) 61 percent on the basis of their relative population of
individuals aged 5 through 24.
(2) 39 percent on the basis of their relative total
population.
(e) State Grants.--From funds allocated under subsection
(d), the Secretary shall make grants to the Governor of each
State.
(f) Reallocation.--The Governor shall return to the
Secretary any funds received under subsection (e) that the
Governor does not obligate within 1 year of receiving a
grant, and the Secretary shall reallocate such funds to the
remaining States in accordance with subsection (d).

SEC. 1402. STATE USES OF FUNDS.

(a) Education Fund.--
(1) In general.--The Governor shall use at least 61 percent
of the State's allocation under section 1401 for the support
of elementary, secondary, and postsecondary education and, as
applicable, early childhood education programs and services.
(2) Restoring 2008 state support for education.--
(A) In general.--The Governor shall first use the funds
described in paragraph (1)--
(i) to provide the amount of funds, through the State's
principal elementary and secondary funding formula, that is
needed to restore State support for elementary and secondary
education to the fiscal year 2008 level; and where
applicable, to allow existing State formula increases for
fiscal years 2009, 2010, and 2011 to be implemented and allow
funding for phasing in State equity and adequacy adjustments
that were enacted prior to July 1, 2008; and
(ii) to provide the amount of funds to public institutions
of higher education in the State that is needed to restore
State support for postsecondary education to the fiscal year
2008 level.
(B) Shortfall.--If the Governor determines that the amount
of funds available under paragraph (1) is insufficient to
restore State support for education to the levels described
in clauses (i) and (ii) of subparagraph (A), the Governor
shall allocate those funds between those clauses in
proportion to the relative shortfall in State support for the
education sectors described in those clauses.
(3) Subgrants to improve basic programs operated by local
educational agencies.--After carrying out paragraph (2), the
Governor shall use any funds remaining under paragraph (1) to
provide local educational agencies in the State with
subgrants based on their relative shares of funding under
part A of title I of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year
for which data are available.
(b) Other Government Services.--The Governor may use up to
39 percent of the State's allocation under section 1401 for
public safety and other government services, which may
include assistance for elementary and secondary education and
public institutions of higher education.

SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

(a) In General.--A local educational agency that receives
funds under this title may use the funds for any activity
authorized by the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.) (``ESEA''), the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et seq.)
(``IDEA''), or the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins
Act'').
(b) Prohibition.--A local educational agency may not use
funds received under this title for capital projects unless
authorized by ESEA, IDEA, or the Perkins Act.

SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

(a) In General.--A public institution of higher education
that receives funds under this title shall use the funds for
education and general expenditures, and in such a way as to
mitigate the need to raise tuition and fees for in-State
students.
(b) Prohibition.--An institution of higher education may
not use funds received under this title to increase its
endowment.
(c) Additional Prohibition.--An institution of higher
education may not use funds received under this title for
construction, renovation, or facility repair.

SEC. 1405. STATE APPLICATIONS.

(a) In General.--The Governor of a State desiring to
receive an allocation under section 1401 shall submit an
application at such time, in such manner, and containing such
information as the Secretary may reasonably require.
(b) Application.--The Governor shall--
(1) include the assurances described in subsection (d);
(2) provide baseline data that demonstrates the State's
current status in each of the areas described in such
assurances; and
(3) describe how the State intends to use its allocation.
(c) Incentive Grant Application.--The Governor of a State
seeking a grant under section 1406 shall--
(1) submit an application for consideration;
(2) describe the status of the State's progress in each of
the areas described in subsection (d);
(3) describe the achievement and graduation rates of public
elementary and secondary school students in the State, and
the strategies the State is employing to help ensure that all
subgroups of students identified in 1111(b)(2) of ESEA in the
State continue making progress toward meeting the State's
student academic achievement standards;
(4) describe how the State would use its grant funding to
improve student academic achievement in the State, including
how it will allocate the funds to give priority to high-need
schools and local educational agencies; and
(5) include a plan for evaluating its progress in closing
achievement gaps.
(d) Assurances.--An application under subsection (b) shall
include the following assurances:
(1) Maintenance of effort.--
(A) Elementary and secondary education.--The State will, in
each of fiscal years 2009 and 2010, maintain State support
for elementary and secondary education at least at the level
of such support in fiscal year 2006.
(B) Higher education.--The State will, in each of fiscal
years 2009 and 2010, maintain State support for public
institutions of higher education (not including support for
capital projects or for research and development) at least at
the level of such support in fiscal year 2006.
(2) Achieving equity in teacher distribution.--The State
will take action, including activities outlined in section
2113(c) of ESEA, to increase the number, and improve the
distribution, of effective teachers and principals in high-
poverty schools and local educational agencies throughout the
State.
(3) Improving collection and use of data.--The State will
establish a longitudinal data system that includes the
elements described in section 6401(e)(2)(D) of the America
COMPETES Act (20 U.S.C. 9871).
(4) Standards and assessments.--The State--
(A) will enhance the quality of academic assessments
described in section 1111(b)(3) of ESEA (20 U.S.C.
6311(b)(3)) through activities such as those described in
section 6112(a) of such Act (20 U.S.C. 7301a(a));
(B) will comply with the requirements of paragraphs
(3)(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C.
6311(b)) and section 612(a)(16) of IDEA (20 U.S.C.
1412(a)(16)) related to the inclusion of children with
disabilities and limited English proficient students in State
assessments, the development of valid and reliable
assessments for those students, and the provision of
accommodations that enable their participation in State
assessments; and
(C) will take steps to improve State academic content
standards and student academic achievement standards
consistent with 6401(e)(1)(A)(ii) of the America COMPETES
Act.
(5) will ensure compliance with the requirements of section
1116(a)(7)(C)(iv) and section 1116(a)(8)(B) with respect to
schools identified under such sections.

SEC. 1406. STATE INCENTIVE GRANTS.

(a) In General.--From the total amount reserved under
section 1401(c) that is not used for section 1407, the
Secretary shall, in fiscal year 2010, make grants to States
that have made significant progress in meeting the objectives
of paragraphs (2), (3), (4), and (5) of section 1405(d).
(b) Basis for Grants.--The Secretary shall determine which
States receive grants under this section, and the amount of
those grants, on the basis of information provided in State
applications under section 1405 and such other criteria as
the Secretary determines appropriate.
(c) Subgrants to Local Educational Agencies.--Each State
receiving a grant under this section shall use at least 50
percent of the grant to provide local educational agencies in
the State with subgrants based on their relative shares of
funding under part A of title I of ESEA (20 U.S.C. 6311 et
seq.) for the most recent year.

SEC. 1407. INNOVATION FUND.

(a) In General.--
(1) Eligible entity.--For the purposes of this section, the
term ``eligible entity'' means--
(A) A local educational agency; or
(B) a partnership between a nonprofit organization and--
(i) one or more local educational agencies;
(ii) or a consortium of schools.
(2) Program established.--From the total amount reserved
under section 1401(c), the Secretary may reserve up to
$650,000,000 to establish an Innovation Fund, which shall
consist of academic achievement awards that recognize
eligible entities that meet the requirements described in
subsection (b).
(3) Basis for awards.--The Secretary shall make awards to
eligible entities that have made significant gains in closing
the achievement gap as described in subsection (b)(1)--
(A) to allow such eligible entities to expand their work
and serve as models for best practices;
(B) to allow such eligible entities to work in partnership
with the private sector and the philanthropic community; and
(C) to identify and document best practices that can be
shared, and taken to scale based on demonstrated success.

[[Page S1172]]

(b) Eligibility.--To be eligible for such an award, an
eligible entity shall--
(1) have significantly closed the achievement gaps between
groups of students described in section 1111(b)(2) of ESEA
(20 U.S.C. 6311(b)(2));
(2) have exceeded the State's annual measurable objectives
consistent with such section 1111(b)(2) for 2 or more
consecutive years or have demonstrated success in
significantly increasing student academic achievement for all
groups of students described in such section through another
measure, such as measures described in section 1111(c)(2) of
ESEA;
(3) have made significant improvement in other areas, such
as graduation rates or increased recruitment and placement of
high-quality teachers and school leaders, as demonstrated
with meaningful data; and
(4) demonstrate that they have established partnerships
with the private sector, which may include philanthropic
organizations, and that the private sector will provide
matching funds in order to help bring results to scale.

SEC. 1408. STATE REPORTS.

A State receiving funds under this title shall submit a
report to the Secretary, at such time and in such manner as
the Secretary may require, that describes--
(1) the uses of funds provided under this title within the
State;
(2) how the State distributed the funds it received under
this title;
(3) the number of jobs that the Governor estimates were
saved or created with funds the State received under this
title;
(4) tax increases that the Governor estimates were averted
because of the availability of funds from this title;
(5) the State's progress in reducing inequities in the
distribution of teachers, in implementing a State student
longitudinal data system, and in developing and implementing
valid and reliable assessments for limited English proficient
students and children with disabilities;
(6) the tuition and fee increases for in-State students
imposed by public institutions of higher education in the
State during the period of availability of funds under this
title, and a description of any actions taken by the State to
limit those increases; and
(7) the extent to which public institutions of higher
education maintained, increased, or decreased enrollment of
in-State students, including students eligible for Pell
Grants or other need-based financial assistance.

SEC. 1409. EVALUATION.

The Comptroller General of the United States shall conduct
evaluations of the programs under sections 1406 and 1407
which shall include, but not be limited to, the criteria used
for the awards made, the States selected for awards, award
amounts, how each State used the award received, and the
impact of this funding on the progress made toward closing
achievement gaps.

SEC. 1410. SECRETARY'S REPORT TO CONGRESS.

The Secretary shall submit a report to the Committee on
Education and Labor of the House of Representatives, the
Committee on Health, Education, Labor, and Pensions of the
Senate, and the Committees on Appropriations of the House of
Representatives and of the Senate, not less than 6 months
following the submission of the State reports, that evaluates
the information provided in the State reports under section
1408.

SEC. 1411. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

No recipient of funds under this title shall use such funds
to provide financial assistance to students to attend private
elementary or secondary schools, unless such funds are used
to provide special education and related services to children
with disabilities, as authorized by the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et seq.).

SEC. 1412. DEFINITIONS.

Except as otherwise provided in this title, as used in this
title--
(1) the term ``institution of higher education'' has the
meaning given such term in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001);
(2) the term ``Secretary'' means the Secretary of
Education;
(3) the term ``State'' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico;
and
(4) any other term that is defined in section 9101 of ESEA
(20 U.S.C. 7801) shall have the meaning given the term in
such section.

SEC. 1413. REGULATORY RELIEF.

(a) Waiver Authority.--Subject to subsections (b) and (c),
the Secretary of Education may, as applicable, waive or
modify, in order to ease fiscal burdens, any requirement
relating to the following:
(1) Maintenance of effort.
(2) The use of Federal funds to supplement, not supplant,
non-Federal funds.
(b) Duration.--A waiver under this section shall be for
fiscal years 2009 and 2010.
(c) Limitations.--
(1) Relation to idea.--Nothing in this section shall be
construed to permit the Secretary to waive or modify any
provision of the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), except as described in a(1) and
a(2).
(2) Maintenance of effort.--If the Secretary grants a
waiver or modification under this section waiving or
modifying a requirement relating to maintenance of effort for
fiscal years 2009 and 2010, the level of effort required for
fiscal year 2011 shall not be reduced because of the waiver
or modification.

TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY
INDEPENDENT ADVISORY PANEL

SEC. 1501. DEFINITIONS.

In this title:
(1) Agency.--The term ``agency'' has the meaning given
under section 551 of title 5, United States Code.
(2) Board.--The term ``Board'' means the Recovery
Accountability and Transparency Board established in section
1511.
(3) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(4) Covered funds.--The term ``covered funds'' means any
funds that are expended or obligated--
(A) from appropriations made under this Act; and
(B) under any other authorities provided under this Act.
(5) Panel.--The term ``Panel'' means the Recovery
Independent Advisory Panel established in section 1531.

Subtitle A--Recovery Accountability and Transparency Board

SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND
TRANSPARENCY BOARD.

There is established the Recovery Accountability and
Transparency Board to coordinate and conduct oversight of
covered funds to prevent fraud, waste, and abuse.

SEC. 1512. COMPOSITION OF BOARD.

(a) Chairperson.--
(1) Designation or appointment.--The President shall--
(A) designate the Deputy Director for Management of the
Office of Management and Budget to serve as Chairperson of
the Board;
(B) designate another Federal officer who was appointed by
the President to a position that required the advice and
consent of the Senate, to serve as Chairperson of the Board;
or
(C) appoint an individual as the Chairperson of the Board,
by and with the advice and consent of the Senate.
(2) Compensation.--
(A) Designation of federal officer.--If the President
designates a Federal officer under paragraph (1)(A) or (B) to
serve as Chairperson, that Federal officer may not receive
additional compensation for services performed as
Chairperson.
(B) Appointment of non-federal officer.--If the President
appoints an individual as Chairperson under paragraph (1)(C),
that individual shall be compensated at the rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
(b) Members.--The members of the Board shall include--
(1) the Inspectors General of the Departments of
Agriculture, Commerce, Education, Energy, Health and Human
Services, Homeland Security, Justice, Transportation,
Treasury, and the Treasury Inspector General for Tax
Administration; and
(2) any other Inspector General as designated by the
President from any agency that expends or obligates covered
funds.

SEC. 1513. FUNCTIONS OF THE BOARD.

(a) Functions.--
(1) In general.--The Board shall coordinate and conduct
oversight of covered funds in order to prevent fraud, waste,
and abuse.
(2) Specific functions.--The functions of the Board shall
include--
(A) reviewing whether the reporting of contracts and grants
using covered funds meets applicable standards and specifies
the purpose of the contract or grant and measures of
performance;
(B) reviewing whether competition requirements applicable
to contracts and grants using covered funds have been
satisfied;
(C) auditing and investigating covered funds to determine
whether wasteful spending, poor contract or grant management,
or other abuses are occurring;
(D) reviewing whether there are sufficient qualified
acquisition and grant personnel overseeing covered funds;
(E) reviewing whether personnel whose duties involve
acquisitions or grants made with covered funds receive
adequate training; and
(F) reviewing whether there are appropriate mechanisms for
interagency collaboration relating to covered funds.
(b) Reports.--
(1) Quarterly reports.--The Board shall submit quarterly
reports to the President and Congress, including the
Committees on Appropriations of the Senate and House of
Representatives, summarizing the findings of the Board and
the findings of inspectors general of agencies. The Board may
submit additional reports as appropriate.
(2) Annual reports.--The Board shall submit annual reports
to the President and the Committees on Appropriations of the
Senate and House of Representatives, consolidating applicable
quarterly reports on the use of covered funds.
(3) Public availability.--
(A) In general.--All reports submitted under this
subsection shall be made publicly available and posted on a
website established by the Board.
(B) Redactions.--Any portion of a report submitted under
this subsection may be redacted when made publicly available,
if that portion would disclose information that is not
subject to disclosure under section 552 of title 5, United
States Code (commonly known as the Freedom of Information
Act).
(c) Recommendations.--

[[Page S1173]]

(1) In general.--The Board shall make recommendations to
agencies on measures to prevent fraud, waste, and abuse
relating to covered funds.
(2) Responsive reports.--Not later than 30 days after
receipt of a recommendation under paragraph (1), an agency
shall submit a report to the President, the congressional
committees of jurisdiction, including the Committees on
Appropriations of the Senate and House of Representatives,
and the Board on--
(A) whether the agency agrees or disagrees with the
recommendations; and
(B) any actions the agency will take to implement the
recommendations.

SEC. 1514. POWERS OF THE BOARD.

(a) In General.--The Board shall conduct, supervise, and
coordinate audits and investigations by inspectors general of
agencies relating to covered funds.
(b) Audits and Investigations.--The Board may--
(1) conduct its own independent audits and investigations
relating to covered funds; and
(2) collaborate on audits and investigations relating to
covered funds with any inspector general of an agency.
(c) Authorities.--
(1) Audits and investigations.--In conducting audits and
investigations, the Board shall have the authorities provided
under section 6 of the Inspector General Act of 1978 (5
U.S.C. App.).
(2) Standards and guidelines.--The Board shall carry out
the powers under subsections (a) and (b) in accordance with
section 4(b)(1) of the Inspector General Act of 1978 (5
U.S.C. App.).
(d) Public Hearings.--The Board may hold public hearings
and Board personnel may conduct investigative depositions.
The head of each agency shall make all officers and employees
of that agency available to provide testimony to the Board
and Board personnel. The Board may issue subpoenas to compel
the testimony of persons who are not Federal officers or
employees. Any such subpoenas may be enforced as provided
under section 6 of the Inspector General Act of 1978 (5
U.S.C. App.).
(e) Contracts.--The Board may enter into contracts to
enable the Board to discharge its duties under this subtitle,
including contracts and other arrangements for audits,
studies, analyses, and other services with public agencies
and with private persons, and make such payments as may be
necessary to carry out the duties of the Board.
(f) Transfer of Funds.--The Board may transfer funds
appropriated to the Board for expenses to support
administrative support services and audits or investigations
of covered funds to any office of inspector general, the
Office of Management and Budget, the General Services
Administration, and the Panel.

SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.

(a) Employment and Personnel Authorities.--
(1) In general.--
(A) Authorities.--Subject to paragraph (2), the Board may
exercise the authorities of subsections (b) through (i) of
section 3161 of title 5, United States Code (without regard
to subsection (a) of that section).
(B) Application.--For purposes of exercising the
authorities described under subparagraph (A), the term
``Chairperson of the Board'' shall be substituted for the
term ``head of a temporary organization''.
(C) Consultation.--In exercising the authorities described
under subparagraph (A), the Chairperson shall consult with
members of the Board.
(2) Employment authorities.--In exercising the employment
authorities under subsection (b) of section 3161 of title 5,
United States Code, as provided under paragraph (1) of this
subsection--
(A) paragraph (2) of subsection (b) of section 3161 of that
title (relating to periods of appointments) shall not apply;
and
(B) no period of appointment may exceed the date on which
the Board terminates under section 1521.
(b) Information and Assistance.--
(1) In general.--Upon request of the Board for information
or assistance from any agency or other entity of the Federal
Government, the head of such entity shall, insofar as is
practicable and not in contravention of any existing law,
furnish such information or assistance to the Board, or an
authorized designee.
(2) Report of refusals.--Whenever information or assistance
requested by the Board is, in the judgment of the Board,
unreasonably refused or not provided, the Board shall report
the circumstances to the congressional committees of
jurisdiction, including the Committees on Appropriations of
the Senate and House of Representatives, without delay.
(c) Administrative Support.--The General Services
Administration shall provide the Board with administrative
support services, including the provision of office space and
facilities.

SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL.

(a) Independent Authority.--Nothing in this subtitle shall
affect the independent authority of an inspector general to
determine whether to conduct an audit or investigation of
covered funds.
(b) Requests by Board.--If the Board requests that an
inspector general conduct or refrain from conducting an audit
or investigation and the inspector general rejects the
request in whole or in part, the inspector general shall, not
later than 30 days after rejecting the request, submit a
report to the Board, the head of the applicable agency, and
the congressional committees of jurisdiction, including the
Committees on Appropriations of the Senate and House of
Representatives. The report shall state the reasons that the
inspector general has rejected the request in whole or in
part.

SEC. 1517. COORDINATION WITH THE COMPTROLLER GENERAL AND
STATE AUDITORS.

The Board shall coordinate its oversight activities with
the Comptroller General of the United States and State
auditor generals.

SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT AND
CONTRACTOR WHISTLEBLOWERS.

(a) Prohibition of Reprisals.--An employee of any non-
Federal employer receiving covered funds may not be
discharged, demoted, or otherwise discriminated against as a
reprisal for disclosing to the Board, an inspector general,
the Comptroller General, a member of Congress, or a the head
of a Federal agency, or their representatives, information
that the employee reasonably believes is evidence of--
(1) gross mismanagement of an agency contract or grant
relating to covered funds;
(2) a gross waste of covered funds;
(3) a substantial and specific danger to public health or
safety; or
(4) a violation of law related to an agency contract
(including the competition for or negotiation of a contract)
or grant, awarded or issued relating to covered funds.
(b) Investigation of Complaints.--
(1) In general.--A person who believes that the person has
been subjected to a reprisal prohibited by subsection (a) may
submit a complaint to the appropriate inspector general.
Unless the inspector general determines that the complaint is
frivolous, the inspector general shall investigate the
complaint and, upon completion of such investigation, submit
a report of the findings of the investigation to the person,
the person's employer, the head of the appropriate agency,
and the Board.
(2) Time limitations for actions.--
(A) In general.--Except as provided under subparagraph (B),
the inspector general shall make a determination that a
complaint is frivolous or submit a report under paragraph (1)
within 180 days after receiving the complaint.
(B) Extension.--If the inspector general is unable to
complete an investigation in time to submit a report within
the 180-day period specified under subparagraph (A) and the
person submitting the complaint agrees to an extension of
time, the inspector general shall submit a report under
paragraph (1) within such additional period of time as shall
be agreed upon between the inspector general and the person
submitting the complaint.
(c) Remedy and Enforcement Authority.--
(1) Agency action.--Not later than 30 days after receiving
an inspector general report under subsection (b), the head of
the agency concerned shall determine whether there is
sufficient basis to conclude that the non-Federal employer
has subjected the complainant to a reprisal prohibited by
subsection (a) and shall either issue an order denying relief
or shall take 1 or more of the following actions:
(A) Order the employer to take affirmative action to abate
the reprisal.
(B) Order the employer to reinstate the person to the
position that the person held before the reprisal, together
with the compensation (including back pay), employment
benefits, and other terms and conditions of employment that
would apply to the person in that position if the reprisal
had not been taken.
(C) Order the employer to pay the complainant an amount
equal to the aggregate amount of all costs and expenses
(including attorneys' fees and expert witnesses' fees) that
were reasonably incurred by the complainant for, or in
connection with, bringing the complaint regarding the
reprisal, as determined by the head of the agency.
(2) Civil action.--If the head of an agency issues an order
denying relief under paragraph (1) or has not issued an order
within 210 days after the submission of a complaint under
subsection (b), or in the case of an extension of time under
subsection (b)(2)(B), not later than 30 days after the
expiration of the extension of time, and there is no showing
that such delay is due to the bad faith of the complainant,
the complainant shall be deemed to have exhausted all
administrative remedies with respect to the complaint, and
the complainant may bring a de novo action at law or equity
against the employer to seek compensatory damages and other
relief available under this section in the appropriate
district court of the United States, which shall have
jurisdiction over such an action without regard to the amount
in controversy. Such an action shall, at the request of
either party to the action, be tried by the court with a
jury.
(3) Evidence.--An inspector general determination and an
agency head order denying relief under paragraph (2) shall be
admissible in evidence in any de novo action at law or equity
brought in accordance with this subsection.
(4) Judicial enforcement of order.--Whenever a person fails
to comply with an order issued under paragraph (1), the head
of

[[Page S1174]]

the agency shall file an action for enforcement of such order
in the United States district court for a district in which
the reprisal was found to have occurred. In any action
brought under this paragraph, the court may grant appropriate
relief, including injunctive relief and compensatory and
exemplary damages.
(5) Judicial review.--Any person adversely affected or
aggrieved by an order issued under paragraph (1) may obtain
review of the order's conformance with this subsection, and
any regulations issued to carry out this section, in the
United States court of appeals for a circuit in which the
reprisal is alleged in the order to have occurred. No
petition seeking such review may be filed more than 60 days
after issuance of the order by the head of the agency. Review
shall conform to chapter 7 of title 5, United States Code.
(d) Rule of Construction.--Nothing in this section may be
construed to authorize the discharge of, demotion of, or
discrimination against an employee for a disclosure other
than a disclosure protected by subsection (a) or to modify or
derogate from a right or remedy otherwise available to the
employee.

SEC. 1519. BOARD WEBSITE.

(a) Establishment.--The Board shall establish and maintain
a user-friendly, public-facing website to foster greater
accountability and transparency in the use of covered funds.
(b) Purpose.--The website established and maintained under
subsection (a) shall be a portal or gateway to key
information relating to this Act and provide connections to
other Government websites with related information.
(c) Content and Function.--In establishing the website
established and maintained under subsection (a), the Board
shall ensure the following:
(1) The website shall provide materials explaining what
this Act means for citizens. The materials shall be easy to
understand and regularly updated.
(2) The website shall provide accountability information,
including a database of findings from audits, inspectors
general, and the Government Accountability Office.
(3) The website shall provide data on relevant economic,
financial, grant, and contract information in user-friendly
visual presentations to enhance public awareness of the use
of covered funds.
(4) The website shall provide detailed data on contracts
awarded by the Government that expend covered funds,
including information about the competitiveness of the
contracting process, notification of solicitations for
contracts to be awarded, and information about the process
that was used for the award of contracts.
(5) The website shall include printable reports on covered
funds obligated by month to each State and congressional
district.
(6) The website shall provide a means for the public to
give feedback on the performance of contracts that expend
covered funds.
(7) The website shall be enhanced and updated as necessary
to carry out the purposes of this subtitle.
(d) Waiver.--The Board may exclude posting contractual or
other information on the website on a case-by-case basis when
necessary to protect national security.

SEC. 1520. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as
necessary to carry out this subtitle.

SEC. 1521. TERMINATION OF THE BOARD.

The Board shall terminate on September 30, 2012.

Subtitle B--Recovery Independent Advisory Panel

SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY
PANEL.

(a) Establishment.--There is established the Recovery
Independent Advisory Panel.
(b) Membership.--The Panel shall be composed of 5 members
who shall be appointed by the President.
(c) Qualifications.--Members shall be appointed on the
basis of expertise in economics, public finance, contracting,
accounting, or any other relevant field.
(d) Initial Meeting.--Not later than 30 days after the date
on which all members of the Panel have been appointed, the
Panel shall hold its first meeting.
(e) Meetings.--The Panel shall meet at the call of the
Chairperson of the Panel.
(f) Quorum.--A majority of the members of the Panel shall
constitute a quorum, but a lesser number of members may hold
hearings.
(g) Chairperson and Vice Chairperson.--The Panel shall
select a Chairperson and Vice Chairperson from among its
members.

SEC. 1532. DUTIES OF THE PANEL.

The Panel shall make recommendations to the Board on
actions the Board could take to prevent fraud, waste, and
abuse relating to covered funds.

SEC. 1533. POWERS OF THE PANEL.

(a) Hearings.--The Panel may hold such hearings, sit and
act at such times and places, take such testimony, and
receive such evidence as the Panel considers advisable to
carry out this subtitle.
(b) Information From Federal Agencies.--The Panel may
secure directly from any agency such information as the Panel
considers necessary to carry out this subtitle. Upon request
of the Chairperson of the Panel, the head of such agency
shall furnish such information to the Panel.
(c) Postal Services.--The Panel may use the United States
mails in the same manner and under the same conditions as
agencies of the Federal Government.
(d) Gifts.--The Panel may accept, use, and dispose of gifts
or donations of services or property.

SEC. 1534. PANEL PERSONNEL MATTERS.

(a) Compensation of Members.--Each member of the Panel who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties
of the Panel. All members of the Panel who are officers or
employees of the United States shall serve without
compensation in addition to that received for their services
as officers or employees of the United States.
(b) Travel Expenses.--The members of the Panel shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Panel.
(c) Staff.--
(1) In general.--The Chairperson of the Panel may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary to enable the Panel to perform
its duties. The employment of an executive director shall be
subject to confirmation by the Panel.
(2) Compensation.--The Chairperson of the Panel may fix the
compensation of the executive director and other personnel
without regard to chapter 51 and subchapter III of chapter 53
of title 5, United States Code, relating to classification of
positions and General Schedule pay rates, except that the
rate of pay for the executive director and other personnel
may not exceed the rate payable for level V of the Executive
Schedule under section 5316 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any personnel
of the Panel who are employees shall be employees under
section 2105 of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that
title.
(B) Members of panel.--Subparagraph (A) shall not be
construed to apply to members of the Panel.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Panel without reimbursement,
and such detail shall be without interruption or loss of
civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--
The Chairperson of the Panel may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
(f) Administrative Support.--The General Services
Administration shall provide the Board with administrative
support services, including the provision of office space and
facilities.

SEC. 1535. TERMINATION OF THE PANEL.

The Panel shall terminate on September 30, 2012.

SEC. 1536. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as
necessary to carry out this subtitle.

Subtitle C--Reports of the Council of Economic Advisers

SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.

(a) In General.--In consultation with the Director of the
Office of Management and Budget and the Secretary of the
Treasury, the Chairperson of the Council of Economic Advisers
shall submit quarterly reports to the Committees on
Appropriations of the Senate and House of Representatives
that detail the estimated impact of programs funded through
covered funds on employment, economic growth, and other key
economic indicators.
(b) Submission.--The first report under subsection (a)
shall be submitted not later than 15 days after the end of
the first full quarter following the date of enactment of
this Act. The last report required to be submitted under
subsection (a) shall apply to the quarter in which the Board
terminates under section 1521.

TITLE XVI--GENERAL PROVISIONS--THIS ACT

emergency designation

Sec. 1601. Each amount in this Act is designated as an
emergency requirement and necessary to meet emergency needs
pursuant to section 204(a) of S. Con. Res. 21 (110th
Congress) and section 301(b)(2) of S. Con. Res. 70 (110th
Congress), the concurrent resolutions on the budget for
fiscal years 2008 and 2009.

AVAILABILITY

Sec. 1602. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.

RELATIONSHIP TO OTHER APPROPRIATIONS

Sec. 1603. Each amount appropriated or made available in
this Act is in addition to

[[Page S1175]]

amounts otherwise appropriated for the fiscal year involved.
Enactment of this Act shall have no effect on the
availability of amounts under the Continuing Appropriations
Resolution, 2009 (division A of Public Law 110-329).

Buy American

Sec. 1604. Use of American Iron, Steel, and Manufactured
Goods. (a) None of the funds appropriated or otherwise made
available by this Act may be used for a project for the
construction, alteration, maintenance, or repair of a public
building or public work unless all of the iron, steel, and
manufactured goods used in the project are produced in the
United States.
(b) Subsection (a) shall not apply in any case in which the
head of the Federal department or agency involved finds
that--
(1) applying subsection (a) would be inconsistent with the
public interest;
(2) iron, steel, and the relevant manufactured goods are
not produced in the United States if sufficient and
reasonably available quantities and of a satisfactory
quality; or
(3) inclusion of iron, steel, and manufactured goods
produced in the United States will increase the cost of the
overall project by more than 25 percent.
(c) If the head of a Federal department or agency
determines that it is necessary to waive the application of
subsection (a) based on a finding under subsection (b), the
head of the department or agency shall publish in the Federal
Register a detailed written jurisdiction as to why the
provision is being waived.
(d) In this section, the terms ``public building'' and
``public work'' have the meanings given such terms in section
1 of the Buy American Act (41 U.S.C. 10c) and include
airports, bridges, canals, dams, dikes, pipelines, railroads,
multiline mass transit systems, roads, tunnels, harbors, and
piers.

CERTIFICATION

Sec. 1605. With respect to funds in titles I though XVI of
this Act made available to State, or local government
agencies, the Governor, mayor, or other chief executive, as
appropriate, shall certify that the infrastructure investment
has received the full review and vetting required by law and
that the chief executive accepts responsibility that the
infrastructure investment is an appropriate use of taxpayer
dollars. A State or local agency may not receive
infrastructure investment funding from funds made available
in this Act unless this certification is made.

economic stabilization contracting

Sec. 1606. Reform of Contracting Procedures Under EESA.
Section 107(b) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5217(b)) is amended by inserting ``and
individuals with disabilities and businesses owned by
individuals with disabilities (for purposes of this
subsection the term `individual with disability' has the same
meaning as the term `handicapped individual' as that term is
defined in section 3(f) of the Small Business Act (15 U.S.C.
632(f)),'' after ``(12 U.S.C. 1441a(r)(4)),''.

DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS

TITLE I--TAX PROVISIONS

SEC. 1000. SHORT TITLE, ETC.

(a) Short Title.--This title may be cited as the ``American
Recovery and Reinvestment Tax Act of 2009''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986.
(c) Table of Contents.--The table of contents for this
title is as follows:

TITLE I--TAX PROVISIONS

Sec. 1000. Short title, etc.

Subtitle A--Tax Relief for Individuals and Families

PART I--General Tax Relief

Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified
higher education expense for section 529 accounts in 2009
and 2010.
Sec. 1006. Extension of first-time homebuyer credit; waiver of
requirement to repay.
Sec. 1007. Suspension of tax on portion of unemployment compensation.

PART II--Alternative Minimum Tax Relief

Sec. 1011. Extension of alternative minimum tax relief for
nonrefundable personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption
amount.

Subtitle B--Energy Incentives

PART I--Renewable Energy Incentives

Sec. 1101. Extension of credit for electricity produced from certain
renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy
property.

PART II--Increased Allocations of New Clean Renewable Energy Bonds and
Qualified Energy Conservation Bonds

Sec. 1111. Increased limitation on issuance of new clean renewable
energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy
conservation bonds.

PART III--Energy Conservation Incentives

Sec. 1121. Extension and modification of credit for nonbusiness energy
property.
Sec. 1122. Modification of credit for residential energy efficient
property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle
refueling property.

PART IV--Energy Research Incentives

Sec. 1131. Increased research credit for energy research.

PART V--General Business Credit

Sec. 1141. 5-year carryback of general business credits.
Sec. 1142. Temporary provision allowing general business credits to
offset 100 percent of Federal income tax liability.

PART VI--Modification of Credit for Carbon Dioxide Sequestration

Sec. 1151. Application of monitoring requirements to carbon dioxide
used as a tertiary injectant.

PART VII--Plug-in Electric Drive Motor Vehicles

Sec. 1161. Modification of credit for qualified plug-in electric motor
vehicles.

Subtitle C--Tax Incentives for Business

PART I--Temporary Investment Incentives

Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain
depreciable business assets.

PART II--5-Year Carryback of Operating Losses

Sec. 1211. 5-year carryback of operating losses.
Sec. 1212. Exception for TARP recipients.

PART III--Incentives for New Jobs

Sec. 1221. Incentives to hire unemployed veterans and disconnected
youth.

PART IV--Cancellation of Indebtedness

Sec. 1231. Deferral and ratable inclusion of income arising from
indebtedness discharged by the repurchase of a debt
instrument.

PART V--Qualified Small Business Stock

Sec. 1241. Special rules applicable to qualified small business stock
for 2009 and 2010.

PART VI--Parity for Transportation Fringe Benefits

Sec. 1251. Increased exclusion amount for commuter transit benefits and
transit passes.

PART VII--S Corporations

Sec. 1261. Temporary reduction in recognition period for built-in gains
tax.

PART VIII--Broadband Incentives

Sec. 1271. Broadband Internet access tax credit.

PART IX--Clarification of Regulations Related to Limitations on Certain
Built-in Losses Following an Ownership Change

Sec. 1281. Clarification of regulations related to limitations on
certain built-in losses following an ownership change.

Subtitle D--Manufacturing Recovery Provisions

Sec. 1301. Temporary expansion of availability of industrial
development bonds to facilities manufacturing intangible
property.
Sec. 1302. Credit for investment in advanced energy facilities.

Subtitle E--Economic Recovery Tools

Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Modifications to new markets tax credit.

Subtitle F--Infrastructure Financing Tools

PART I--Improved Marketability for Tax-Exempt Bonds

Sec. 1501. De minimis safe harbor exception for tax-exempt interest
expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt
interest expense allocation rules for financial
institutions.
Sec. 1503. Temporary modification of alternative minimum tax
limitations on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.

PART II--Delay in Application of Withholding Tax on Government
Contractors

Sec. 1511. Delay in application of withholding tax on government
contractors.

PART III--Tax Credit Bonds for Schools

Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.

PART IV--Build America Bonds

Sec. 1531. Build America bonds.

[[Page S1176]]

Subtitle G--Economic Recovery Payments to Certain Individuals

Sec. 1601. Economic recovery payment to recipients of Social Security,
supplemental security income, railroad retirement
benefits, and veterans disability compensation or pension
benefits.

Subtitle H--Trade Adjustment Assistance

Sec. 1701. Temporary extension of Trade Adjustment Assistance program.

Subtitle I--Prohibition on Collection of Certain Payments Made Under
the Continued Dumping and Subsidy Offset Act of 2000

Sec. 1801. Prohibition on collection of certain payments made under the
Continued Dumping and Subsidy Offset Act of 2000.

Subtitle J--Other Provisions

Sec. 1901. Application of certain labor standards to projects financed
with certain tax-favored bonds.
Sec. 1902. Increase in public debt limit.

Subtitle A--Tax Relief for Individuals and Families

PART I--GENERAL TAX RELIEF

SEC. 1001. MAKING WORK PAY CREDIT.

(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 is amended by inserting after section 36 the
following new section:

``SEC. 36A. MAKING WORK PAY CREDIT.<q p='02'>

``(a) Allowance of Credit.--In the case of an eligible
individual, there shall be allowed as a credit against the
tax imposed by this subtitle for the taxable year an amount
equal to the lesser of--
``(1) 6.2 percent of earned income of the taxpayer, or
``(2) $500 ($1,000 in the case of a joint return).
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount allowable as a credit under
subsection (a) (determined without regard to this paragraph
and subsection (c)) for the taxable year shall be reduced
(but not below zero) by 4 percent of so much of the
taxpayer's modified adjusted gross income as exceeds $75,000
($150,000 in the case of a joint return).
``(2) Modified adjusted gross income.--For purposes of
subparagraph (A), the term `modified adjusted gross income'
means the adjusted gross income of the taxpayer for the
taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.
``(c) Reduction for Certain Other Payments.--The credit
allowed under subsection (a) for any taxable year shall be
reduced by the amount of any payments received by the
taxpayer during such taxable year under section 1601 of the
American Recovery and Reinvestment Tax Act of 2009.
``(d) Definitions.--For purposes of this section--
``(1) Eligible individual.--The term `eligible individual'
means any individual other than--
``(A) any nonresident alien individual,
``(B) any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins, and
``(C) an estate or trust.
Such term shall not include any individual unless the
requirements of section 32(c)(1)(E) are met with respect to
such individual.
``(2) Earned income.--The term `earned income' has the
meaning given such term by section 32(c)(2), except that such
term shall not include net earnings from self-employment
which are not taken into account in computing taxable income.
For purposes of the preceding sentence, any amount excluded
from gross income by reason of section 112 shall be treated
as earned income which is taken into account in computing
taxable income for the taxable year.<q p='02'>
``(e) Termination.--This section shall not apply to taxable
years beginning after December 31, 2010.''.
(b)  Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--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
with respect to taxable years beginning in 2009 and 2010.
Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of
the respective possession.
(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 residents of such
possession by reason of the amendments made by this section
for taxable years beginning in 2009 and 2010 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 residents 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 section 36A of
the Internal Revenue Code of 1986 (as added by this section)
to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession 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 the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana 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 36A of the
Internal Revenue Code of 1986 (as added by this section).
(c) Refunds Disregarded in the Administration of Federal
Programs and Federally Assisted Programs.--Any credit or
refund allowed or made to any individual by reason of section
36A of the Internal Revenue Code of 1986 (as added by this
section) or by reason of subsection (b) of this section shall
not be taken into account as income and shall not be taken
into account as resources for the month of receipt and the
following 2 months, for purposes of determining the
eligibility of such individual or any other individual for
benefits or assistance, or the amount or extent of benefits
or assistance, under any Federal program or under any State
or local program financed in whole or in part with Federal
funds.
(d) Authority Relating to Clerical Errors.--Section
6213(g)(2) is amended by striking ``and'' at the end of
subparagraph (L)(ii), by striking the period at the end of
subparagraph (M) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(N) an omission of the reduction required under section
36A(c) with respect to the credit allowed under section 36A
or an omission of the correct TIN required under section
36A(d)(1).''.
(e) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by inserting ``36A,''
after ``36,''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36A,'' after ``36,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 36 the following new item:

``Sec. 36A. Making work pay credit.''.
(f) Effective Date.--This section, and the amendments made
by this section, shall apply to taxable years beginning after
December 31, 2008.

SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.

(a) In General.--Subsection (b) of section 32 is amended by
adding at the end the following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of any
taxable year beginning in 2009 or 2010--
``(A) Increased credit percentage for 3 or more qualifying
children.--In the case of a taxpayer with 3 or more
qualifying children, the credit percentage is 45 percent.
``(B) Reduction of marriage penalty.--
``(i) In general.--The dollar amount in effect under
paragraph (2)(B) shall be $5,000.
``(ii) Inflation adjustment.--In the case of any taxable
year beginning in 2010, the $5,000 amount in clause (i) shall
be increased by an amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost of living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins determined by substituting `calendar year 2008'
for `calendar year 1992' in subparagraph (B) thereof.

``(iii) Rounding.--Subparagraph (A) of subsection (j)(2)
shall apply after taking into account any increase under
clause (ii).''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD
CREDIT.

(a) In General.--Paragraph (4) of section 24(d) is amended
to read as follows:
``(4) Special rule for 2009 and 2010.--Notwithstanding
paragraph (3), in the case of any taxable year beginning in
2009 or 2010, the dollar amount in effect for such taxable
year under paragraph (1)(B)(i) shall be $6,000.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

(a) In General.--Section 25A (relating to Hope scholarship
credit) is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the
following new subsection:
``(i) American Opportunity Tax Credit.--In the case of any
taxable year beginning in 2009 or 2010--
``(1) Increase in credit.--The Hope Scholarship Credit
shall be an amount equal to the sum of--

[[Page S1177]]

``(A) 100 percent of so much of the qualified tuition and
related expenses paid by the taxpayer during the taxable year
(for education furnished to the eligible student during any
academic period beginning in such taxable year) as does not
exceed $2,000, plus
``(B) 25 percent of such expenses so paid as exceeds $2,000
but does not exceed $4,000.
``(2) Credit allowed for first 4 years of post-secondary
education.--Subparagraphs (A) and (C) of subsection (b)(2)
shall be applied by substituting `4' for `2'.
``(3) Qualified tuition and related expenses to include
required course materials.--Subsection (f)(1)(A) shall be
applied by substituting `tuition, fees, and course materials'
for `tuition and fees'.
``(4) Increase in agi limits for hope scholarship credit.--
In lieu of applying subsection (d) with respect to the Hope
Scholarship Credit, such credit (determined without regard to
this paragraph) shall be reduced (but not below zero) by the
amount which bears the same ratio to such credit (as so
determined) as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted gross income (as
defined in subsection (d)(3)) for such taxable year, over
``(ii) $80,000 ($160,000 in the case of a joint return),
bears to
``(B) $10,000 ($20,000 in the case of a joint return).
``(5) Credit allowed against alternative minimum tax.--In
the case of a taxable year to which section 26(a)(2) does not
apply, so much of the credit allowed under subsection (a) as
is attributable to the Hope Scholarship Credit shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this subsection and sections 23, 25D, and 30D)
and section 27 for the taxable year.
Any reference in this section or section 24, 25, 26, 25B,
904, or 1400C to a credit allowable under this subsection
shall be treated as a reference to so much of the credit
allowable under subsection (a) as is attributable to the Hope
Scholarship Credit.
``(6) Portion of credit made refundable.--30 percent of so
much of the credit allowed under subsection (a) as is
attributable to the Hope Scholarship Credit (determined after
application of paragraph (4) and without regard to this
paragraph and section 26(a)(2) or paragraph (5), as the case
may be) shall be treated as a credit allowable under subpart
C (and not allowed under subsection (a)). The preceding
sentence shall not apply to any taxpayer for any taxable year
if such taxpayer is a child to whom subsection (g) of section
1 applies for such taxable year.
``(7) Coordination with midwestern disaster area
benefits.--In the case of a taxpayer with respect to whom
section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act
of 2008 applies for any taxable year, such taxpayer may elect
to waive the application of this subsection to such taxpayer
for such taxable year.''.
(b) Conforming Amendments.--
(1) Section 24(b)(3)(B) is amended by inserting ``25A(i),''
after ``23,''.
(2) Section 25(e)(1)(C)(ii) is amended by inserting
``25A(i),'' after ``24,''.
(3) Section 26(a)(1) is amended by inserting ``25A(i),''
after ``24,''.
(4) Section 25B(g)(2) is amended by inserting ``25A(i),''
after ``23,''.
(5) Section 904(i) is amended by inserting ``25A(i),''
after ``24,''.
(6) Section 1400C(d)(2) is amended by inserting ``25A(i),''
after ``24,''.
(7) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``25A,'' before ``35''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
(d) Application of EGTRRA Sunset.--The amendment made by
subsection (b)(1) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
(e) Treasury Studies Regarding Education Incentives.--
(1) Study regarding coordination with non-tax educational
incentives.--The Secretary of the Treasury, or the
Secretary's delegate, shall study how to coordinate the
credit allowed under section 25A of the Internal Revenue Code
of 1986 with the Federal Pell Grant program under section 401
of the Higher Education Act of 1965.
(2) Study regarding imposition of community service
requirements.--The Secretary of the Treasury, or the
Secretary's delegate, shall study the feasibility of
requiring students to perform community service as a
condition of taking their tuition and related expenses into
account under section 25A of the Internal Revenue Code of
1986.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall report to Congress on the results
of the studies conducted under this paragraph.

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A
QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION
529 ACCOUNTS IN 2009 AND 2010.

(a) In General.--Section 529(e)(3)(A) is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii), and by adding at the end
the following:
``(iii) expenses paid or incurred in 2009 or 2010 for the
purchase of any computer technology or equipment (as defined
in section 170(e)(6)(F)(i)) or Internet access and related
services, if such technology, equipment, or services are to
be used by the beneficiary and the beneficiary's family
during any of the years the beneficiary is enrolled at an
eligible educational institution.
Clause (iii) shall not include expenses for computer software
designed for sports, games, or hobbies unless the software is
predominantly educational in nature.''.
(b) Effective Date.--The amendments made by this section
shall apply to expenses paid or incurred after December 31,
2008.

SEC. 1006. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT; WAIVER
OF REQUIREMENT TO REPAY.

(a) Extension.--
(1) In general.--Section 36(h) is amended by striking
``July 1, 2009'' and inserting ``September 1, 2009''.
(2) Conforming amendment.--Section 36(g) is amended by
striking ``July 1, 2009'' and inserting ``September 1,
2009''.
(b) Waiver of Recapture.--
(1) In general.--Paragraph (4) of section 36(f) is amended
by adding at the end the following new subparagraph:
``(D) Waiver of recapture for purchases in 2009.--In the
case of any credit allowed with respect to the purchase of a
principal residence after December 31, 2008, and before
September 1, 2009--
``(i) paragraph (1) shall not apply, and
``(ii) paragraph (2) shall apply only if the disposition or
cessation described in paragraph (2) with respect to such
residence occurs during the 36-month period beginning on the
date of the purchase of such residence by the taxpayer.''.
(2) Conforming amendment.--Subsection (g) of section 36 is
amended by striking ``subsection (c)'' and inserting
``subsections (c) and (f)(4)(D)''.
(c) Effective Date.--The amendments made by this section
shall apply to residences purchased after December 31, 2008.

SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT
COMPENSATION.

(a) In General.--Section 85 of the Internal Revenue Code of
1986 (relating to unemployment compensation) is amended by
adding at the end the following new subsection:
``(c) Special Rule for 2009.--In the case of any taxable
year beginning in 2009, gross income shall not include so
much of the unemployment compensation received by an
individual as does not exceed $2,400.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2008.

PART II--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.

(a) In General.--Paragraph (2) of section 26(a) (relating
to special rule for taxable years 2000 through 2008) is
amended--
(1) by striking ``or 2008'' and inserting ``2008, or
2009'', and
(2) by striking ``2008'' in the heading thereof and
inserting ``2009''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.

(a) In General.--Paragraph (1) of section 55(d) (relating
to exemption amount) is amended--
(1) by striking ``($69,950 in the case of taxable years
beginning in 2008)'' in subparagraph (A) and inserting
``($70,950 in the case of taxable years beginning in 2009)'',
and
(2) by striking ``($46,200 in the case of taxable years
beginning in 2008)'' in subparagraph (B) and inserting
``($46,700 in the case of taxable years beginning in 2009)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

Subtitle B--Energy Incentives

PART I--RENEWABLE ENERGY INCENTIVES

SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM
CERTAIN RENEWABLE RESOURCES.

(a) In General.--Subsection (d) of section 45 is amended--
(1) by striking ``2010'' in paragraph (1) and inserting
``2013'',
(2) by striking ``2011'' each place it appears in
paragraphs (2), (3), (4), (6), (7) and (9) and inserting
``2014'', and
(3) by striking ``2012'' in paragraph (11)(B) and inserting
``2014''.
(b) Technical Amendment.--Paragraph (5) of section 45(d) is
amended by striking ``and before'' and all that follows and
inserting `` and before October 3, 2008.''.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (a)
shall apply to property placed in service after the date of
the enactment of this Act.
(2) Technical amendment.--The amendment made by subsection
(b) shall take effect as if included in section 102 of the
Energy Improvement and Extension Act of 2008.

SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF
PRODUCTION CREDIT.

(a) In General.--Subsection (a) of section 48 is amended by
adding at the end the following new paragraph:

[[Page S1178]]

``(5) Election to treat qualified facilities as energy
property.--
``(A) In general.--In the case of any qualified investment
credit facility--
``(i) such facility shall be treated as energy property for
purposes of this section, and
``(ii) the energy percentage with respect to such property
shall be 30 percent.
``(B) Denial of production credit.--No credit shall be
allowed under section 45 for any taxable year with respect to
any qualified investment credit facility.
``(C) Qualified investment credit facility.--For purposes
of this paragraph, the term `qualified investment credit
facility' means any of the following facilities if no credit
has been allowed under section 45 with respect to such
facility and the taxpayer makes an irrevocable election to
have this paragraph apply to such facility:
``(i) Wind facilities.--Any facility described in paragraph
(1) of section 45(d) if such facility is placed in service in
2009, 2010, 2011, or 2012.
``(ii) Other facilities.--Any facility described in
paragraph (2), (3), (4), (6), (7), (9), or (11) of section
45(d) if such facility is placed in service in 2009, 2010,
2011, 2012, or 2013.''.
(b) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after December
31, 2008.

SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR
RENEWABLE ENERGY PROPERTY.

(a) Repeal of Limitation on Credit for Qualified Small Wind
Energy Property.--Paragraph (4) of section 48(c) is amended
by striking subparagraph (B) and by redesignating
subparagraphs (C) and (D) as subparagraphs (B) and (C).
(b) Repeal of Limitation on Property Financed by Subsidized
Energy Financing.--
(1) In general.--Section 48(a)(4) is amended by adding at
the end the following new subparagraph:
``(D) Termination.--This paragraph shall not apply to
periods after December 31, 2008, under rules similar to the
rules of section 48(m) (as in effect on the day before the
date of the enactment of the Revenue Reconciliation Act of
1990).''.
(2) Conforming amendments.--
(A) Section 25C(e)(1) is amended by striking ``(8), and
(9)'' and inserting ``and (8)''.
(B) Section 25D(e) is amended by striking paragraph (9).
(C) Section 48A(b)(2) is amended by inserting ``(without
regard to subparagraph (D) thereof)'' after ``section
48(a)(4)''.
(D) Section 48B(b)(2) is amended by inserting ``(without
regard to subparagraph (D) thereof)'' after ``section
48(a)(4)''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to periods after
December 31, 2008, under rules similar to the rules of
section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
(2) Conforming amendments.--The amendments made by
subsection (b)(2) shall apply to taxable years beginning
after December 31, 2008.

PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND
QUALIFIED ENERGY CONSERVATION BONDS

SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN
RENEWABLE ENERGY BONDS.

Subsection (c) of section 54C is amended by adding at the
end the following new paragraph:
``(4) Additional limitation.--The national new clean
renewable energy bond limitation shall be increased by
$1,600,000,000. Such increase shall be allocated by the
Secretary consistent with the rules of paragraphs (2) and
(3).''.

SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED
ENERGY CONSERVATION BONDS.

Section 54D(d) is amended by striking ``800,000,000'' and
inserting ``$3,200,000,000''.

PART III--ENERGY CONSERVATION INCENTIVES

SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR
NONBUSINESS ENERGY PROPERTY.

(a) In General.--Section 25C is amended by striking
subsections (a) and (b) and inserting the following new
subsections:
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to 30
percent of the sum of--
``(1) the amount paid or incurred by the taxpayer during
such taxable year for qualified energy efficiency
improvements, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.
``(b) Limitation.--The aggregate amount of the credits
allowed under this section for taxable years beginning in
2009 and 2010 with respect to any taxpayer shall not exceed
$1,500.''.
(b) Extension.--Section 25C(g)(2) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.

(a) Removal of Credit Limitation for Property Placed in
Service.--
(1) In general.--Paragraph (1) of section 25D(b) is amended
to read as follows:
``(1) Maximum credit for fuel cells.--In the case of any
qualified fuel cell property expenditure, the credit allowed
under subsection (a) (determined without regard to subsection
(c)) for any taxable year shall not exceed $500 with respect
to each half kilowatt of capacity of the qualified fuel cell
property (as defined in section 48(c)(1)) to which such
expenditure relates.''.
(2) Conforming amendment.--Paragraph (4) of section 25D(e)
is amended--
(A) by striking all that precedes subparagraph (B) and
inserting the following:
``(4) Fuel cell expenditure limitations in case of joint
occupancy.--In the case of any dwelling unit with respect to
which qualified fuel cell property expenditures are made and
which is jointly occupied and used during any calendar year
as a residence by two or more individuals the following rules
shall apply:
``(A) Maximum expenditures for fuel cells.--The maximum
amount of such expenditures which may be taken into account
under subsection (a) by all such individuals with respect to
such dwelling unit during such calendar year shall be $1,667
in the case of each half kilowatt of capacity of qualified
fuel cell property (as defined in section 48(c)(1)) with
respect to which such expenditures relate.'', and
(B) by striking subparagraph (C).
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL
VEHICLE REFUELING PROPERTY.

(a) In General.--Section 30C(e) is amended by adding at the
end the following new paragraph:
``(6) Special rule for property placed in service during
2009 and 2010.--In the case of property placed in service in
taxable years beginning after December 31, 2008, and before
January 1, 2011--
``(A) in the case of any such property which does not
relate to hydrogen--
``(i) subsection (a) shall be applied by substituting `50
percent' for `30 percent',
``(ii) subsection (b)(1) shall be applied by substituting
`$50,000' for `$30,000', and
``(iii) subsection (b)(2) shall be applied by substituting
`$2,000' for `$1,000', and
``(B) in the case of any such property which relates to
hydrogen, subsection (b)(1) shall be applied by substituting
`$200,000' for `$30,000'.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2008.

PART IV--ENERGY RESEARCH INCENTIVES

SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.

(a) In General.--Section 41 is amended by redesignating
subsection (h) as subsection (i) and by inserting after
subsection (g) the following new subsection:
``(h) Energy Research Credit.--In the case of any taxable
year beginning in 2009 or 2010--
``(1) In general.--The credit determined under subsection
(a)(1) shall be increased by 20 percent of the qualified
energy research expenses for the taxable year.
``(2) Qualified energy research expenses.--For purposes of
this subsection--
``(A) In general.--The term `qualified energy research
expenses' means so much of the taxpayer's qualified research
expenses as are related to the fields of fuel cells and
battery technology, renewable energy and renewable fuels,
energy conservation technology, efficient transmission and
distribution of electricity, and carbon capture and
sequestration.
``(B) Coordination with qualifying advanced energy project
credit.--Such term shall not include expenditures taken into
account in determining the amount of the credit under section
48 or 48C.
``(3) Coordination with other research credits.--
``(A) In general.--The amount of qualified energy research
expenses taken into account under subsection (a)(1)(A) shall
not exceed the base amount.
``(B) Alternative simplified credit.--For purposes of
subsection (c)(5), the amount of qualified energy research
expenses taken into account for the taxable year for which
the credit is being determined shall not exceed--
``(i) in the case of subsection (c)(5)(A), 50 percent of
the average qualified research expenses for the 3 taxable
years preceding the taxable year for which the credit is
being determined, and
``(ii) in the case of subsection (c)(5)(B)(ii), zero.
``(C) Basic research and energy research consortium
payments.--Any amount taken into account under paragraph (1)
shall not be taken into account under paragraph (2) or (3) of
subsection (a).''.
(b) Conforming Amendment.--Subparagraph (B) of section
41(i)(1)(B), as redesignated by subsection (a), is amended by
inserting ``(in the case of the increase in the credit
determined under subsection (h), December 31, 2010)'' after
``December 31, 2009''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

[[Page S1179]]

PART V--GENERAL BUSINESS CREDIT

SEC. 1141. 5-YEAR CARRYBACK OF GENERAL BUSINESS CREDITS.

(a) In General.--Subsection (a) of section 39 is amended by
adding at the end the following new paragraph:
``(4) Special rule for 2008 and 2009 business credits.--In
the case of any current year business credit for a taxable
year ending in 2008 or 2009--
``(A) paragraph (1)(A) shall be applied by substituting
`each of the 5 taxable years' for `the taxable year' in
subparagraph (A) thereof, and
``(B) paragraph (2) shall be applied--
``(i) by substituting `25 taxable years' for `21 taxable
years', and
``(ii) by substituting `24 taxable years' for `20 taxable
years'.''.
(b) Effective Date.--The amendment made by this subsection
shall apply to taxable years ending after December 31, 2007,
and to carrybacks of business credits from such taxable
years.

SEC. 1142. TEMPORARY PROVISION ALLOWING GENERAL BUSINESS
CREDITS TO OFFSET 100 PERCENT OF FEDERAL INCOME
TAX LIABILITY.

(a) In General.--Subsection (c) of section 38 is amended by
adding at the end the following new paragraph:
``(6) Temporary provision allowing general business credits
to offset 100 percent of federal income tax liability.--
``(A) In general.--In the case of a taxable year ending in
2008 or 2009--
``(i) the limitation under paragraph (1) shall be the net
income tax (as defined in paragraph (1)) for purposes of
determining the amount of the credit allowed under subsection
(a) for such taxable year, and
``(ii) the excess credit for such taxable year shall,
solely for purposes of determining the amount of such excess
credit which may be carried back to a preceding taxable year,
be increased by the amount of business credit carryforwards
which are carried to such taxable year and which are not
allowed for such taxable year by reason of the limitation
under paragraph (1) (as modified by clause (i)).
``(B) Increase in limitation for taxable years to which
excess credits for 2008 and 2009 are carried back.--
``(i) In general.--Solely for purposes of determining the
portion of any excess credit described in subparagraph
(A)(ii) for which credit will be allowed under subsection
(a)(3) for any preceding taxable year, the limitation under
paragraph (1) for such preceding taxable year shall be the
net income tax (as defined in paragraph (1)).
``(ii) Ordering rule.--If the excess credit described in
subparagraph (A)(ii) includes business credit carryforwards
from preceding taxable years, such excess credit shall be
treated as allowed for any preceding taxable year on a first-
in first-out basis.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after December 31, 2007,
and to carrybacks of credits from such taxable years.

PART VI--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

SEC. 1151. APPLICATION OF MONITORING REQUIREMENTS TO CARBON
DIOXIDE USED AS A TERTIARY INJECTANT.

(a) In General.--Section 45Q(a)(2) is amended by striking
``and'' at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting ``,and'',
and by adding at the end the following new subparagraph:
``(C) disposed of by the taxpayer in secure geological
storage.''.
(b) Conforming Amendment.--Section 45Q(d)(2) is amended by
striking ``subsection (a)(1)(B)'' and inserting ``paragraph
(1)(B) or (2)(C) of subsection (a)''.
(c) Effective Date.--The amendments made by this section
shall apply to carbon dioxide captured after the date of the
enactment of this Act.

PART VII--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

SEC. 1161. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN
ELECTRIC MOTOR VEHICLES.

(a) Increase in Vehicles Eligible for Credit.--Section
30D(b)(2)(B) is amended by striking ``250,000'' and inserting
``500,000''.
(b) Exclusion of Neighborhood Electric Vehicles From
Existing Credit.--Section 30D(e)(1) is amended to read as
follows:
``(1) Motor vehicle.--The term `motor vehicle' means a
motor vehicle (as defined in section 30(c)(2)), which is
treated as a motor vehicle for purposes of title II of the
Clean Air Act.''.
(c) Credit for Certain Other Vehicles.--Section 30D is
amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively, and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Credit for Certain Other Vehicles.--For purposes of
this section--
``(1) In general.--In the case of a specified vehicle, this
section shall be applied with the following modifications:
``(A) For purposes of subsection (a)(1), in lieu of the
applicable amount determined under subsection (a)(2), the
applicable amount shall be 10 percent of so much of the cost
of the specified vehicle as does not exceed $40,000.
``(B) Subsection (b) shall not apply and no specified
vehicle shall be taken into account under subsection (b)(2).
``(C) Subsection (c)(3) shall not apply.
``(2) Specified vehicle.--For purposes of this subsection--
``(A) In general.--The term `specified vehicle' means--
``(i) any 2- or 3- wheeled motor vehicle, or
``(ii) any low-speed motor vehicle,
which is placed in service after December 31, 2009, and
before January 1, 2012.
``(B) 2- or 3-wheeled motor vehicle.--The term `2- or 3-
wheeled motor vehicle' means any vehicle--
``(i) which would be described in section 30(c)(2) except
that it has 2 or 3 wheels,
``(ii) with motive power having a seat or saddle for the
use of the rider and designed to travel on not more than 3
wheels in contact with the ground,
``(iii) which has an electric motor that produces in excess
of 5-brake horsepower,
``(iv) which draws propulsion from 1 or more traction
batteries, and
``(v) which has been certified to the Department of
Transportation pursuant to section 567 of title 49, Code of
Federal Regulations, as conforming to all applicable Federal
motor vehicle safety standards in effect on the date of the
manufacture of the vehicle.
``(C) Low-speed motor vehicle.--The term `low-speed motor
vehicle' means a motor vehicle (as defined in section
30(c)(2)) which meets the requirements of section 571.500 of
title 49, Code of Federal Regulations.''.
(d) Effective Dates.--
(1) Increase in vehicles eligible for credit.--The
amendment made by subsection (a) shall take effect on the
date of the enactment of this Act.
(2) Other modifications.--The amendments made by
subsections (b) and (c) shall apply to property placed in
service after December 31, 2009, in taxable years beginning
after such date.

Subtitle C--Tax Incentives for Business

PART I--TEMPORARY INVESTMENT INCENTIVES

SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED
DURING 2009.

(a) Extension of Special Allowance.--
(1) In general.--Paragraph (2) of section 168(k) is
amended--
(A) by striking ``January 1, 2010'' and inserting ``January
1, 2011'', and
(B) by striking ``January 1, 2009'' each place it appears
and inserting ``January 1, 2010''.
(2) Conforming amendments.--
(A) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2010''.
(B) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2009'' and inserting
``pre-january 1, 2010''.
(C) Subparagraph (B) of section 168(l)(5) is amended by
striking ``January 1, 2009'' and inserting ``January 1,
2010''.
(D) Subparagraph (C) of section 168(n)(2) is amended by
striking ``January 1, 2009'' and inserting ``January 1,
2010''.
(E) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2009'' and inserting ``January 1,
2010''.
(3) Technical amendment.--Subparagraph (D) of section
168(k)(4) is amended--
(A) by striking ``and'' at the end of clause (i),
(B) by redesignating clause (ii) as clause (iii), and
(C) by inserting after clause (i) the following new clause:
``(ii) `April 1, 2008' shall be substituted for `January 1,
2008' in subparagraph (A)(iii)(I) thereof, and''.
(b) Extension of Election to Accelerate the AMT and
Research Credits in Lieu of Bonus Depreciation.--Section
168(k)(4) (relating to election to accelerate the AMT and
research credits in lieu of bonus depreciation) is amended--
(1) by striking ``2009'' and inserting ``2010''in
subparagraph (D)(iii) (as redesignated by subsection (a)(3)),
and
(2) by adding at the end the following new subparagraph:
``(H) Special rules for extension property.--
``(i) Taxpayers previously electing acceleration.--In the
case of a taxpayer who made the election under subparagraph
(A) for its first taxable year ending after March 31, 2008--

``(I) the taxpayer may elect not to have this paragraph
apply to extension property, but
``(II) if the taxpayer does not make the election under
subclause (I), in applying this paragraph to the taxpayer a
separate bonus depreciation amount, maximum amount, and
maximum increase amount shall be computed and applied to
eligible qualified property which is extension property and
to eligible qualified property which is not extension
property.

``(ii) Taxpayers not previously electing acceleration.--In
the case of a taxpayer who did not make the election under
subparagraph (A) for its first taxable year ending after
March 31, 2008--

``(I) the taxpayer may elect to have this paragraph apply
to its first taxable year ending after December 31, 2008, and
each subsequent taxable year, and
``(II) if the taxpayer makes the election under subclause
(I), this paragraph shall only apply to eligible qualified
property which is extension property.

``(iii) Extension property.--For purposes of this
subparagraph, the term `extension property' means property
which is eligible

[[Page S1180]]

qualified property solely by reason of the extension of the
application of the special allowance under paragraph (1)
pursuant to the amendments made by section 1201(a) of the
American Recovery and Reinvestment Tax Act of 2009 (and the
application of such extension to this paragraph pursuant to
the amendment made by section 1201(b)(1) of such Act).''.
(c) Inclusion of Films or Videotape as Qualified
Property.--
(1) In general.--Section 168(k)(2) is amended by adding at
the end the following new subparagraph:
``(H) Certain films.--The term `qualified property'
includes property--
``(i) which is a motion picture film or video tape (within
the meaning of subsection (f)(3)) for which a deduction is
allowable under section 167(a) without regard to this
section,
``(ii) the original use of which commences with the
taxpayer after December 31, 2008,
``(iii) which is--

``(I) acquired by the taxpayer after December 31, 2008, and
before January 1, 2010, but only if no written binding
contract for the acquisition was in effect before January 1,
2009, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into after December 31,
2008, and before January 1, 2010,

``(iv) which is placed in service by the taxpayer before
January 1, 2010, or, in the case of property described in
subparagraph (B), before January 1, 2011, and
``(v) the production of which is a qualified film or
television production (as defined in section 181(d)
(determined without regard to paragraph (2)(B)(ii) thereof))
with respect to which an election is not in effect under
section 181.''.
(2) Conforming amendments.--
(A) Subclause (I) of section 168(k)(2)(B)(i) is amended by
inserting ``subparagraph (H) or'' after ``requirements of''.
(B) Subclause (II) of section 168(k)(2)(B)(i) is amended by
striking ``or is transportation property'' and inserting ``,
is transportation property, or is property described in
subparagraph (H)''.
(C) Clause (iii) of section 168(k)(2)(D) is amended by
adding at the end the following new sentence: ``For purposes
of the preceding sentence, all property described in
subparagraph (H) shall be treated as one class of
property.''.
(D) Subparagraph (E) of section 168(k)(2) is amended by
adding at the end the following new clause:
``(v) Application to film and videotape property.--In the
case of property described in subparagraph (H), clauses (i),
(ii), (iii), and (iv) of this subparagraph shall be applied--

``(I) by substituting `December 31, 2008' for `December 31,
2007' each place it appears, and
``(II) by treating any reference to a clause of
subparagraph (A) as a reference to the corresponding clause
of subparagraph (H).''.

(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
placed in service after December 31, 2008, in taxable years
ending after such date.
(2) Technical amendment.--The amendments made by subsection
(a)(3) shall apply to taxable years ending after March 31,
2008.

SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF
CERTAIN DEPRECIABLE BUSINESS ASSETS.

(a) In General.--Paragraph (7) of section 179(b) is
amended--
(1) by striking ``2008'' and inserting ``2008, or 2009'',
and
(2) by striking ``2008'' in the heading thereof and
inserting ``2008, and 2009''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

PART II--5-YEAR CARRYBACK OF OPERATING LOSSES

SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES.

(a) In General.--Subparagraph (H) of section 172(b)(1) is
amended to read as follows:
``(H) Carryback for 2008 and 2009 net operating losses.--
``(i) In general.--In the case of an applicable 2008 or
2009 net operating loss with respect to which the taxpayer
has elected the application of this subparagraph--

``(I) subparagraph (A)(i) shall be applied by substituting
any whole number elected by the taxpayer which is more than 2
and less than 6 for `2',
``(II) subparagraph (E)(ii) shall be applied by
substituting the whole number which is one less than the
whole number substituted under subclause (II) for `2', and
``(III) subparagraph (F) shall not apply.

``(ii) Applicable 2008 or 2009 net operating loss.--For
purposes of this subparagraph, the term `applicable 2008 or
2009 net operating loss' means--

``(I) the taxpayer's net operating loss for any taxable
year ending in 2008 or 2009, or
``(II) if the taxpayer elects to have this subclause apply
in lieu of subclause (I), the taxpayer's net operating loss
for any taxable year beginning in 2008 or 2009.

``(iii) Election.--Any election under this subparagraph
shall be made in such manner as may be prescribed by the
Secretary, and shall be made by the due date (including
extension of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Any such election,
once made, shall be irrevocable.
``(iv) Coordination with alternative tax net operating loss
deduction.--In the case of a taxpayer who elects to have
clause (ii)(II) apply, section 56(d)(1)(A)(ii) shall be
applied by substituting `ending during 2001 or 2002 or
beginning during 2008 or 2009' for `ending during 2001, 2002,
2008, or 2009'.''.
(b) Alternative Tax Net Operating Loss Deduction.--
Subclause (I) of section 56(d)(1)(A)(ii) is amended to read
as follows:

``(I) the amount of such deduction attributable to the sum
of carrybacks of net operating losses from taxable years
ending during 2001, 2002, 2008, or 2009 and carryovers of net
operating losses to such taxable years, or''.

(c) Loss From Operations of Life Insurance Companies.--
Subsection (b) of section 810 is amended by adding at the end
the following new paragraph:
``(4) Carryback for 2008 and 2009 losses.--
``(A) In general.--In the case of an applicable 2008 or
2009 loss from operations with respect to which the taxpayer
has elected the application of this paragraph, paragraph
(1)(A) shall be applied, at the election of the taxpayer, by
substituting `5' or `4' for `3'.
``(B) Applicable 2008 or 2009 loss from operations.--For
purposes of this paragraph, the term `applicable 2008 or 2009
loss from operations' means--
``(i) the taxpayer's loss from operations for any taxable
year ending in 2008 or 2009, or
``(ii) if the taxpayer elects to have this clause apply in
lieu of clause (i), the taxpayer's loss from operations for
any taxable year beginning in 2008 or 2009.
``(C) Election.--Any election under this paragraph shall be
made in such manner as may be prescribed by the Secretary,
and shall be made by the due date (including extension of
time) for filing the taxpayer's return for the taxable year
of the loss from operations. Any such election, once made,
shall be irrevocable.
``(D) Coordination with alternative tax net operating loss
deduction.--In the case of a taxpayer who elects to have
subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be
applied by substituting `ending during 2001 or 2002 or
beginning during 2008 or 2009' for `ending during 2001, 2002,
2008, or 2009'.''.
(d) Conforming Amendment.--Section 172 is amended by
striking subsection (k) and by redesignating subsection (l)
as subsection (k).
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to net operating losses arising in taxable years ending after
December 31, 2007.
(2) Alternative tax net operating loss deduction.--The
amendment made by subsection (b) shall apply to taxable years
ending after 1997.
(3) Loss from operations of life insurance companies.--The
amendment made by subsection (d) shall apply to losses from
operations arising in taxable years ending after December 31,
2007.
(4) Transitional rule.--In the case of a net operating loss
(or, in the case of a life insurance company, a loss from
operations) for a taxable year ending before the date of the
enactment of this Act--
(A) any election made under section 172(b)(3) or 810(b)(3)
of the Internal Revenue Code of 1986 with respect to such
loss may (notwithstanding such section) be revoked before the
applicable date,
(B) any election made under section 172(k) or 810(b)(4) of
such Code with respect to such loss shall (notwithstanding
such section) be treated as timely made if made before the
applicable date, and
(C) any application under section 6411(a) of such Code with
respect to such loss shall be treated as timely filed if
filed before the applicable date.

For purposes of this paragraph, the term ``applicable date''
means the date which is 60 days after the date of the
enactment of this Act.

SEC. 1212. EXCEPTION FOR TARP RECIPIENTS.

The amendments made by this part shall not apply to--
(1) any taxpayer if--
(A) the Federal Government acquires, at any time, an equity
interest in the taxpayer pursuant to the Emergency Economic
Stabilization Act of 2008, or
(B) the Federal Government acquires, at any time, any
warrant (or other right) to acquire any equity interest with
respect to the taxpayer pursuant to such Act,
(2) the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation, and
(3) any taxpayer which at any time in 2008 or 2009 is a
member of the same affiliated group (as defined in section
1504 of the Internal Revenue Code of 1986, determined without
regard to subsection (b) thereof) as a taxpayer described in
paragraph (1) or (2).

PART III--INCENTIVES FOR NEW JOBS

SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND
DISCONNECTED YOUTH.

(a) In General.--Subsection (d) of section 51 is amended by
adding at the end the following new paragraph:
``(14) Credit allowed for unemployed veterans and
disconnected youth hired in 2009 or 2010.--
``(A) In general.--Any unemployed veteran or disconnected
youth who begins work for the employer during 2009 or 2010
shall be treated as a member of a targeted group for purposes
of this subpart.
``(B) Definitions.--For purposes of this paragraph--

[[Page S1181]]

``(i) Unemployed veteran.--The term `unemployed veteran'
means any veteran (as defined in paragraph (3)(B), determined
without regard to clause (ii) thereof) who is certified by
the designated local agency as--

``(I) having been discharged or released from active duty
in the Armed Forces during 2008, 2009, or 2010, and
``(II) being in receipt of unemployment compensation under
State or Federal law for not less than 4 weeks during the 1-
year period ending on the hiring date.

``(ii) Disconnected youth.--The term `disconnected youth'
means any individual who is certified by the designated local
agency--

``(I) as having attained age 16 but not age 25 on the
hiring date,
``(II) as not regularly attending any secondary, technical,
or post-secondary school during the 6-month period preceding
the hiring date,
``(III) as not regularly employed during such 6-month
period, and
``(IV) as not readily employable by reason of lacking a
sufficient number of basic skills.''.

(b) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after December 31, 2008.

PART IV--CANCELLATION OF INDEBTEDNESS

SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING
FROM INDEBTEDNESS DISCHARGED BY THE REPURCHASE
OF A DEBT INSTRUMENT.

(a) In General.--Section 108 (relating to income from
discharge of indebtedness) is amended by adding at the end
the following new subsection:
``(i) Deferral and Ratable Inclusion of Income Arising From
Indebtedness Discharged by the Repurchase of a Debt
Instrument.--
``(1) In general.--Notwithstanding section 61, income from
the discharge of indebtedness in connection with the
repurchase of a debt instrument after December 31, 2008, and
before January 1, 2011, shall be includible in gross income
ratably over the 8-taxable-year period beginning with--
``(A) in the case of a repurchase occurring in 2009, the
second taxable year following the taxable year in which the
repurchase occurs, and
``(B) in the case of a repurchase occurring in 2010, the
taxable year following the taxable year in which the
repurchase occurs.
``(2) Debt instrument.--For purposes of this subsection,
the term `debt instrument' means a bond, debenture, note,
certificate, or any other instrument or contractual
arrangement constituting indebtedness (within the meaning of
section 1275(a)(1)).
``(3) Repurchase.--For purposes of this subsection, the
term `repurchase' means, with respect to any debt instrument,
a cash purchase of the debt instrument by--
``(A) the debtor which issued the debt instrument, or
``(B) any person related to such debtor.

For purposes of subparagraph (B), the determination of
whether a person is related to another person shall be made
in the same manner as under subsection (e)(4).
``(4) Authority to prescribe regulations.--The Secretary
may prescribe such regulations as may be necessary or
appropriate for purposes of applying this subsection.''.
(b) Effective Date.--The amendments made by this section
shall apply to discharges in taxable years ending after
December 31, 2008.

PART V--QUALIFIED SMALL BUSINESS STOCK

SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL
BUSINESS STOCK FOR 2009 AND 2010.

(a) In General.--Section 1202(a) is amended by adding at
the end the following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of
qualified small business stock acquired after the date of the
enactment of this paragraph and before January 1, 2011--
``(A) paragraph (1) shall be applied by substituting `75
percent' for `50 percent', and
``(B) paragraph (2) shall not apply.''.
(b) Effective Date.--The amendment made by this section
shall apply to stock acquired after the date of the enactment
of this Act.

PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT
BENEFITS AND TRANSIT PASSES.

(a) In General.--Paragraph (2) of section 132(f) is amended
by adding at the end the following flush sentence:

``In the case of any month beginning on or after the date of
the enactment of this sentence and before January 1, 2011,
subparagraph (A) shall be applied as if the dollar amount
therein were the same as the dollar amount under subparagraph
(B) (as in effect for such month).''.
(b) Effective Date.--The amendment made by this section
shall apply to months beginning on or after the date of the
enactment of this section.

PART VII--S CORPORATIONS

SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR
BUILT-IN GAINS TAX.

(a) In General.--Paragraph (7) of section 1374(d) (relating
to definitions and special rules) is amended to read as
follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period' means the
10-year period beginning with the 1st day of the 1st taxable
year for which the corporation was an S corporation.
``(B) Special rule for 2009 and 2010.--In the case of any
taxable year beginning in 2009 or 2010, no tax shall be
imposed on the net unrecognized built-in gain of an S
corporation if the 7th taxable year in the recognition period
preceded such taxable year. The preceding sentence shall be
applied separately with respect to any asset to which
paragraph (8) applies.
``(C) Special rule for distributions to shareholders.--For
purposes of applying this section to any amount includible in
income by reason of distributions to shareholders pursuant to
section 593(e)--
``(i) subparagraph (A) shall be applied without regard to
the phrase `10-year', and
``(ii) subparagraph (B) shall not apply.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2008.

PART VIII--BROADBAND INCENTIVES

SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT.

(a) In General.--Subpart E of part IV of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for
computing investment credit), as amended by this Act, is
amended by inserting after section 48C the following new
section:

``SEC. 48D. BROADBAND INTERNET ACCESS CREDIT.

``(a) General Rule.--For purposes of section 46, the
broadband credit for any taxable year is the sum of--
``(1) the current generation broadband credit, plus
``(2) the next generation broadband credit.
``(b) Current Generation Broadband Credit; Next Generation
Broadband Credit.--For purposes of this section--
``(1) Current generation broadband credit.--The current
generation broadband credit for any taxable year is equal to
10 percent (20 percent in the case of qualified subscribers
which are unserved subscribers) of the qualified broadband
expenditures incurred with respect to qualified equipment
providing current generation broadband services to qualified
subscribers and taken into account with respect to such
taxable year.
``(2) Next generation broadband credit.--The next
generation broadband credit for any taxable year is equal to
20 percent of the qualified broadband expenditures incurred
with respect to qualified equipment providing next generation
broadband services to qualified subscribers and taken into
account with respect to such taxable year.
``(c) When Expenditures Taken Into Account.--For purposes
of this section--
``(1) In general.--Qualified broadband expenditures with
respect to qualified equipment shall be taken into account
with respect to the first taxable year in which--
``(A) current generation broadband services are provided
through such equipment to qualified subscribers, or
``(B) next generation broadband services are provided
through such equipment to qualified subscribers.
``(2) Limitation.--
``(A) In general.--Qualified broadband expenditures shall
be taken into account under paragraph (1) only with respect
to qualified equipment--
``(i) the original use of which commences with the
taxpayer, and
``(ii) which is placed in service, after December 31, 2008,
and before January 1, 2011.
``(B) Sale-leasebacks.--For purposes of subparagraph (A),
if property--
``(i) is originally placed in service after December 31,
2008, by any person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,

such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in clause (ii).
``(d) Special Allocation Rules for Current Generation
Broadband Services.--For purposes of determining the current
generation broadband credit under subsection (a)(1) with
respect to qualified equipment through which current
generation broadband services are provided, if the qualified
equipment is capable of serving both qualified subscribers
and other subscribers, the qualified broadband expenditures
shall be multiplied by a fraction--
``(1) the numerator of which is the sum of the number of
potential qualified subscribers within the rural areas and
the underserved areas and the unserved areas which the
equipment is capable of serving with current generation
broadband services, and
``(2) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with current generation broadband
services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the
Communications Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service

[[Page S1182]]

carrier' means any person authorized to provide commercial
mobile radio service as defined in section 20.3 of title 47,
Code of Federal Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 5,000,000 bits per second to
the subscriber and at least 1,000,000 bits per second from
the subscriber (at least 3,000,000 bits per second to the
subscriber and at least 768,000 bits per second from the
subscriber in the case of service through radio transmission
of energy).
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals
over a single channel, and the term `demultiplexing' means
the separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of
signals at a rate of at least 100,000,000 bits per second to
the subscriber (or its equivalent when the data rate is
measured before being compressed for transmission) and at
least 20,000,000 bits per second from the subscriber (or its
equivalent as so measured).
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means any person who purchases broadband services
which are delivered to the permanent place of business of
such person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide
service under section 653 of the Communications Act of 1934
(47 U.S.C. 573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the radio
transmission of energy.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of a digitized transmission
signal which is assembled into packets or cells.
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment any--
``(A) cable operator,
``(B) commercial mobile service carrier,
``(C) open video system operator,
``(D) satellite carrier,
``(E) telecommunications carrier, or
``(F) other wireless carrier,

providing current generation broadband services or next
generation broadband services to subscribers through such
qualified equipment.
``(12) Provision of services.--A provider shall be treated
as providing services to 1 or more subscribers if--
``(A) such a subscriber has been passed by the provider's
equipment and can be connected to such equipment for a
standard connection fee,
``(B) the provider is physically able to deliver current
generation broadband services or next generation broadband
services, as applicable, to such a subscriber without making
more than an insignificant investment with respect to such
subscriber,
``(C) the provider has made reasonable efforts to make such
subscribers aware of the availability of such services,
``(D) such services have been purchased by 1 or more such
subscribers, and
``(E) such services are made available to such subscribers
at average prices comparable to those at which the provider
makes available similar services in any areas in which the
provider makes available such services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment' means
property with respect to which depreciation (or amortization
in lieu of depreciation) is allowable and which provides
current generation broadband services or next generation
broadband services--
``(i) at least a majority of the time during periods of
maximum demand to each subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no credit is allowed under subsection
(a)(1).
``(B) Only certain investment taken into account.--Except
as provided in subparagraph (C) or (D), equipment shall be
taken into account under subparagraph (A) only to the extent
it--
``(i) extends from the last point of switching to the
outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a telecommunications
carrier or broadband-over-powerline operator,
``(ii) extends from the customer side of the mobile
telephone switching office to a transmission/receive antenna
(including such antenna) owned or leased by a subscriber in
the case of a commercial mobile service carrier,
``(iii) extends from the customer side of the headend to
the outside of the unit, building, dwelling, or office owned
or leased by a subscriber in the case of a cable operator or
open video system operator, or
``(iv) extends from a transmission/receive antenna
(including such antenna) which transmits and receives signals
to or from multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside of the unit,
building, dwelling, or office owned or leased by a subscriber
in the case of a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed in
connection with equipment described in subparagraph (B) and
is uniquely designed to perform the function of packet
switching for current generation broadband services or next
generation broadband services, but only if such packet
switching is the last in a series of such functions performed
in the transmission of a signal to a subscriber or the first
in a series of such functions performed in the transmission
of a signal from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be taken into
account under subparagraph (A) only to the extent it is
deployed in connection with equipment described in
subparagraph (B) and is uniquely designed to perform the
function of multiplexing and demultiplexing packets or cells
of data and making associated application adaptions, but only
if such multiplexing or demultiplexing equipment is located
between packet switching equipment described in subparagraph
(C) and the subscriber's premises.
``(14) Qualified broadband expenditure.--
``(A) In general.--The term `qualified broadband
expenditure' means any amount--
``(i) chargeable to capital account with respect to the
purchase and installation of qualified equipment (including
any upgrades thereto) for which depreciation is allowable
under section 168, and
``(ii) incurred after December 31, 2008, and before January
1, 2011.
``(B) Certain satellite expenditures excluded.--Such term
shall not include any expenditure with respect to the
launching of any satellite equipment.
``(C) Leased equipment.--Such term shall include so much of
the purchase price paid by the lessor of equipment subject to
a lease described in subsection (c)(2)(B) as is attributable
to expenditures incurred by the lessee which would otherwise
be described in subparagraph (A).
``(15) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, an underserved area, or an
unserved area, or
``(ii) any residential subscriber residing in a dwelling
located in a rural area, an underserved area, or an unserved
area which is not a saturated market, and
``(B) with respect to the provision of next generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, an underserved area, or an
unserved area , or
``(ii) any residential subscriber.
``(16) Residential subscriber.--The term `residential
subscriber' means any individual who purchases broadband
services which are delivered to such individual's dwelling.
``(17) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 10 miles of any incorporated or census
designated place containing more than 25,000 people, and
``(B) is not within a county or county equivalent which has
an overall population density of more than 500 people per
square mile of land.
``(18) Rural subscriber.--The term `rural subscriber' means
any residential subscriber residing in a dwelling located in
a rural area or nonresidential subscriber maintaining a
permanent place of business located in a rural area.
``(19) Satellite carrier.--The term `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such point-to-multipoint distribution.
``(20) Saturated market.--The term `saturated market' means
any census tract in which, as of the date of the enactment of
this section--
``(A) current generation broadband services have been
provided by a single provider to 85 percent or more of the
total number of potential residential subscribers residing in
dwellings located within such census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time during periods of
maximum demand by each such subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no credit is allowed under subsection
(a)(1).
``(21) Subscriber.--The term `subscriber' means any person
who purchases current generation broadband services or next
generation broadband services.
``(22) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term
by section 3(44) of

[[Page S1183]]

the Communications Act of 1934 (47 U.S.C. 153(44)), but--
``(A) includes all members of an affiliated group of which
a telecommunications carrier is a member, and
``(B) does not include any commercial mobile service
carrier.
``(23) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect
to any area and based on the most recent census data, the
total number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located
in such area.
``(24) Underserved area.--The term `underserved area' means
any census tract which is located in--
``(A) an empowerment zone or enterprise community
designated under section 1391,
``(B) the District of Columbia Enterprise Zone established
under section 1400,
``(C) a renewal community designated under section 1400E,
or
``(D) a low-income community designated under section 45D.
``(25) Underserved subscriber.--The term `underserved
subscriber' means any residential subscriber residing in a
dwelling located in an underserved area or nonresidential
subscriber maintaining a permanent place of business located
in an underserved area.
``(26) Unserved area.--The term `unserved area' means any
census tract in which no current generation broadband
services are provided, as certified by the State in which
such tract is located not later than September 30, 2009.
``(27) Unserved subscriber.--The term `unserved subscriber'
means any residential subscriber residing in a dwelling
located in an unserved area or nonresidential subscriber
maintaining a permanent place of business located in an
unserved area.''.
(b) Credit to Be Part of Investment Credit.--Section 46
(relating to the amount of investment credit), as amended by
this Act, is amended by striking ``and'' at the end of
paragraph (4), by striking the period at the end of paragraph
(5) and inserting ``, and'', and by adding at the end the
following:
``(6) the broadband Internet access credit.''
(c) Special Rule for Mutual or Cooperative Telephone
Companies.--Section 501(c)(12)(B) (relating to list of exempt
organizations) is amended by striking ``or'' at the end of
clause (iii), by striking the period at the end of clause
(iv) and inserting ``, or'', and by adding at the end the
following new clause:
``(v) from the sale of property subject to a lease
described in section 48D(c)(2)(B), but only to the extent
such income does not in any year exceed an amount equal to
the credit for qualified broadband expenditures which would
be determined under section 48D for such year if the mutual
or cooperative telephone company was not exempt from taxation
and was treated as the owner of the property subject to such
lease.''.
(d) Conforming Amendments.--
(1) Section 49(a)(1)(C), as amended by this Act, is amended
by striking ``and'' at the end of clause (iv), by striking
the period at the end of clause (v) and inserting ``, and'',
and by adding after clause (v) the following new clause:
``(vi) the portion of the basis of any qualified equipment
attributable to qualified broadband expenditures under
section 48D.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by inserting after the item relating to section 48C the
following:

``Sec. 48D. Broadband internet access credit''.

(e) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this
Act, designate and publish those census tracts meeting the
criteria described in paragraphs (17), (23), (24), and (26)
of section 48D(e) of the Internal Revenue Code of 1986 (as
added by this section). In making such designations, the
Secretary of the Treasury shall consult with such other
departments and agencies as the Secretary determines
appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and publishing
those census tracts meeting the criteria described in
subsection (e)(20) of such section 48D--
(i) the Secretary of the Treasury shall prescribe not later
than 30 days after the date of the enactment of this Act the
form upon which any provider which takes the position that it
meets such criteria with respect to any census tract shall
submit a list of such census tracts (and any other
information required by the Secretary) not later than 60 days
after the date of the publication of such form, and
(ii) the Secretary of the Treasury shall publish an
aggregate list of such census tracts submitted and the
applicable providers not later than 30 days after the last
date such submissions are allowed under clause (i).
(B) No subsequent lists required.--The Secretary of the
Treasury shall not be required to publish any list of census
tracts meeting such criteria subsequent to the list described
in subparagraph (A)(ii).
(C) Authority to disregard false submissions.--In addition
to imposing any other applicable penalties, the Secretary of
the Treasury shall have the discretion to disregard any form
described in subparagraph (A)(i) on which a provider
knowingly submitted false information.
(f) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or
instrumentality shall adopt regulations or ratemaking
procedures that would have the effect of eliminating or
reducing any credit or portion thereof allowed under section
48D of the Internal Revenue Code of 1986 (as added by this
section) or otherwise subverting the purpose of this section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the broadband Internet access credit
under section 48D of the Internal Revenue Code of 1986 (as
added by this section) to provide incentives for the
purchase, installation, and connection of equipment and
facilities offering expanded broadband access to the Internet
for users in certain low income and rural areas of the United
States, as well as to residential users nationwide, in a
manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe
such regulations as may be necessary or appropriate to carry
out the purposes of section 48D of such Code, including--
(A) regulations to determine how and when a taxpayer that
incurs qualified broadband expenditures satisfies the
requirements of section 48D of such Code to provide broadband
services, and
(B) regulations describing the information, records, and
data taxpayers are required to provide the Secretary to
substantiate compliance with the requirements of section 48D
of such Code.
(g) Effective Date.--The amendments made by this section
shall apply to expenditures incurred after December 31, 2008.

PART IX--CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN
BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO
LIMITATIONS ON CERTAIN BUILT-IN LOSSES
FOLLOWING AN OWNERSHIP CHANGE.

(a) Findings.--Congress finds as follows:
(1) The delegation of authority to the Secretary of the
Treasury under section 382(m) of the Internal Revenue Code of
1986 does not authorize the Secretary to provide exemptions
or special rules that are restricted to particular industries
or classes of taxpayers.
(2) Internal Revenue Service Notice 2008-83 is inconsistent
with the congressional intent in enacting such section
382(m).
(3) The legal authority to prescribe Internal Revenue
Service Notice 2008-83 is doubtful.
(4) However, as taxpayers should generally be able to rely
on guidance issued by the Secretary of the Treasury
legislation is necessary to clarify the force and effect of
Internal Revenue Service Notice 2008-83 and restore the
proper application under the Internal Revenue Code of 1986 of
the limitation on built-in losses following an ownership
change of a bank.
(b) Determination of Force and Effect of Internal Revenue
Service Notice 2008-83 Exempting Banks From Limitation on
Certain Built-in Losses Following Ownership Change.--
(1) In general.--Internal Revenue Service Notice 2008-83--
(A) shall be deemed to have the force and effect of law
with respect to any ownership change (as defined in section
382(g) of the Internal Revenue Code of 1986) occurring on or
before January 16, 2009, and
(B) shall have no force or effect with respect to any
ownership change after such date.
(2) Binding contracts.--Notwithstanding paragraph (1),
Internal Revenue Service Notice 2008-83 shall have the force
and effect of law with respect to any ownership change (as so
defined) which occurs after January 16, 2009, if such
change--
(A) is pursuant to a written binding contract entered into
on or before such date, or
(B) is pursuant to a written agreement entered into on or
before such date and such agreement was described on or
before such date in a public announcement or in a filing with
the Securities and Exchange Commission required by reason of
such ownership change.

Subtitle D--Manufacturing Recovery Provisions

SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL
DEVELOPMENT BONDS TO FACILITIES MANUFACTURING
INTANGIBLE PROPERTY.

(a) In General.--Subparagraph (C) of section 144(a)(12) is
amended--
(1) by striking ``For purposes of this paragraph, the
term'' and inserting ``For purposes of this paragraph--
``(i) In general.--The term'', and
(2) by striking the last sentence and inserting the
following new clauses:
``(ii) Certain facilities included.--Such term includes
facilities which are directly related and ancillary to a
manufacturing facility (determined without regard to this
clause) if--

``(I) such facilities are located on the same site as the
manufacturing facility, and
``(II) not more than 25 percent of the net proceeds of the
issue are used to provide such facilities.

``(iii) Special rules for bonds issued in 2009 and 2010.--
In the case of any issue made after the date of enactment of
this clause

[[Page S1184]]

and before January 1, 2011, clause (ii) shall not apply and
the net proceeds from a bond shall be considered to be used
to provide a manufacturing facility if such proceeds are used
to provide--

``(I) a facility which is used in the creation or
production of intangible property which is described in
section 197(d)(1)(C)(iii), or
``(II) a facility which is functionally related and
subordinate to a manufacturing facility (determined without
regard to this subclause) if such facility is located on the
same site as the manufacturing facility.''.

(b) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.

SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY
FACILITIES.

(a) In General.--Section 46 (relating to amount of credit)
is amended by striking ``and'' at the end of paragraph (3),
by striking the period at the end of paragraph (4), and by
adding at the end the following new paragraph:
``(5) the qualifying advanced energy project credit.''.
(b) Amount of Credit.--Subpart E of part IV of subchapter A
of chapter 1 (relating to rules for computing investment
credit) is amended by inserting after section 48B the
following new section:

``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

``(a) In General.--For purposes of section 46, the
qualifying advanced energy project credit for any taxable
year is an amount equal to 30 percent of the qualified
investment for such taxable year with respect to any
qualifying advanced energy project of the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during
such taxable year which is part of a qualifying advanced
energy project--
``(A)(i) the construction, reconstruction, or erection of
which is completed by the taxpayer after October 31, 2008, or
``(ii) which is acquired by the taxpayer if the original
use of such eligible property commences with the taxpayer
after October 31, 2008, and
``(B) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) (without regard to subparagraph
(D) thereof) shall apply for purposes of this section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(4) Limitation.--The amount which is treated for all
taxable years with respect to any qualifying advanced energy
project shall not exceed the amount designated by the
Secretary as eligible for the credit under this section.
``(c) Definitions.--
``(1) Qualifying advanced energy project.--
``(A) In general.--The term `qualifying advanced energy
project' means a project--
``(i) which re-equips, expands, or establishes a
manufacturing facility for the production of property which
is--

``(I) designed to be used to produce energy from the sun,
wind, geothermal deposits (within the meaning of section
613(e)(2)), or other renewable resources,
``(II) designed to manufacture fuel cells, microturbines,
or an energy storage system for use with electric or hybrid-
electric motor vehicles,
``(III) designed to manufacture electric grids to support
the transmission of intermittent sources of renewable energy,
``(IV) designed to capture and sequester carbon dioxide
emissions, or
``(V) designed to refine or blend renewable fuels or to
produce energy conservation technologies (including energy-
conserving lighting technologies and smart grid
technologies), and

``(ii) any portion of the qualified investment of which is
certified by the Secretary under subsection (d) as eligible
for a credit under this section.
``(B) Exception.--Such term shall not include any portion
of a project for the production of any property which is used
in the refining or blending of any transportation fuel (other
than renewable fuels).
``(2) Eligible property.--The term `eligible property'
means any property which is part of a qualifying advanced
energy project and is necessary for the production of
property described in paragraph (1)(A)(i).
``(d) Qualifying Advanced Energy Project Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, in consultation
with the Secretary of Energy, shall establish a qualifying
advanced energy project program to consider and award
certifications for qualified investments eligible for credits
under this section to qualifying advanced energy project
sponsors.
``(B) Limitation.--The total amount of credits that may be
allocated under the program shall not exceed $2,000,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application containing
such information as the Secretary may require during the 3-
year period beginning on the date the Secretary establishes
the program under paragraph (1).
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 2 years from the date
of acceptance by the Secretary of the application during
which to provide to the Secretary evidence that the
requirements of the certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 5 years from the date of issuance of
the certification in order to place the project in service
and if such project is not placed in service by that time
period then the certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualifying
advanced energy projects to certify under this section, the
Secretary shall take into consideration only those projects
where there is a reasonable expectation of commercial
viability.
``(4) Review and redistribution.--
``(A) Review.--Not later than 6 years after the date of
enactment of this section, the Secretary shall review the
credits allocated under this section as of the date which is
6 years after the date of enactment of this section.
``(B) Redistribution.--The Secretary may reallocate credits
awarded under this section if the Secretary determines that--
``(i) there is an insufficient quantity of qualifying
applications for certification pending at the time of the
review, or
``(ii) any certification made pursuant to paragraph (2) has
been revoked pursuant to paragraph (2)(B) because the project
subject to the certification has been delayed as a result of
third party opposition or litigation to the proposed project.
``(C) Reallocation.--If the Secretary determines that
credits under this section are available for reallocation
pursuant to the requirements set forth in paragraph (2), the
Secretary is authorized to conduct an additional program for
applications for certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly
disclose the identity of the applicant and the amount of the
credit with respect to such applicant.
``(e) Denial of Double Benefit.--A credit shall not be
allowed under this section for any qualified investment for
which a credit is allowed under section 48, 48A, or 48B.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) is amended by striking ``and'' at
the end of clause (iii), by striking the period at the end of
clause (iv) and inserting ``, and'', and by adding after
clause (iv) the following new clause:
``(v) the basis of any property which is part of a
qualifying advanced energy project under section 48C.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48B the following new item:

``48C. Qualifying advanced energy project credit.''.

(d) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of
this Act, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue
Reconciliation Act of 1990).

Subtitle E--Economic Recovery Tools

SEC. 1401. RECOVERY ZONE BONDS.

(a) In General.--Subchapter Y of chapter 1 is amended by
adding at the end the following new part:

``PART III--RECOVERY ZONE BONDS

``Sec. 1400U-1. Allocation of recovery zone bonds.
``Sec. 1400U-2. Recovery zone economic development bonds.
``Sec. 1400U-3. Recovery zone facility bonds.

``SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.

``(a) Allocations.--
``(1) In general.--The Secretary shall allocate the
national recovery zone economic development bond limitation
and the national recovery zone facility bond limitation among
the States--
``(A) by allocating 1 percent of each such limitation to
each State, and
``(B) by allocating the remainder of each such limitation
among the States in the proportion that each State's 2008
State employment decline bears to the aggregate of the 2008
State employment declines for all of the States.
``(2) 2008 state employment decline.--For purposes of this
subsection, the term `2008 State employment decline' means,
with respect to any State, the excess (if any) of--
``(A) the number of individuals employed in such State
determined for December 2007, over
``(B) the number of individuals employed in such State
determined for December 2008.
``(3) Allocations by states.--
``(A) In general.--Each State with respect to which an
allocation is made under paragraph (1) shall reallocate such
allocation among the counties and large municipalities in
such State in the proportion the each such county's or
municipality's 2008 employment decline bears to the aggregate
of the 2008 employment declines for all the counties and
municipalities in such State.

[[Page S1185]]

``(B) Large municipalities.--For purposes of subparagraph
(A), the term `large municipality' means a municipality with
a population of more than 100,000.
``(C) Determination of local employment declines.--For
purposes of this paragraph, the employment decline of any
municipality or county shall be determined in the same manner
as determining the State employment decline under paragraph
(2), except that in the case of a municipality any portion of
which is in a county, such portion shall be treated as part
of such municipality and not part of such county.
``(4) National limitations.--
``(A) Recovery zone economic development bonds.--There is a
national recovery zone economic development bond limitation
of $10,000,000,000.
``(B) Recovery zone facility bonds.--There is a national
recovery zone facility bond limitation of $15,000,000,000.
``(b) Recovery Zone.--For purposes of this part, the term
`recovery zone' means--
``(1) any area designated by the issuer as having
significant poverty, unemployment, rate of home foreclosures,
or general distress, and
``(2) any area for which a designation as an empowerment
zone or renewal community is in effect.

``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.

``(a) In General.--In the case of a recovery zone economic
development bond--
``(1) such bond shall be treated as a qualified bond for
purposes of section 6431, and
``(2) subsection (b) of such section shall be applied by
substituting `40 percent' for `35 percent'.
``(b) Recovery Zone Economic Development Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone economic development bond' means any build
America bond (as defined in section 54AA(d)) issued before
January 1, 2011, as part of issue if--
``(A) 100 percent of the available project proceeds (as
defined in section 54A) of such issue are to be used for one
or more qualified economic development purposes, and
``(B) the issuer designates such bond for purposes of this
section.
``(2) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds which may be
designated by any issuer under paragraph (1) shall not exceed
the amount of the recovery zone economic development bond
limitation allocated to such issuer under section 1400U-1.
``(c) Qualified Economic Development Purpose.--For purposes
of this section, the term `qualified economic development
purpose' means expenditures for purposes of promoting
development or other economic activity in a recovery zone,
including--
``(1) capital expenditures paid or incurred with respect to
property located in such zone,
``(2) expenditures for public infrastructure and
construction of public facilities, and
``(3) expenditures for job training and educational
programs.

``SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.

``(a) In General.--For purposes of part IV of subchapter B
(relating to tax exemption requirements for State and local
bonds), the term `exempt facility bond' includes any recovery
zone facility bond.
``(b) Recovery Zone Facility Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone facility bond' means any bond issued as part
of an issue if--
``(A) 95 percent or more of the net proceeds (as defined in
section 150(a)(3)) of such issue are to be used for recovery
zone property,
``(B) such bond is issued before January 1, 2011, and
``(C) the issuer designates such bond for purposes of this
section.
``(2) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds which may be
designated by any issuer under paragraph (1) shall not exceed
the amount of recovery zone facility bond limitation
allocated to such issuer under section 1400U-1.
``(c) Recovery Zone Property.--For purposes of this
section--
``(1) In general.--The term `recovery zone property' means
any property to which section 168 applies (or would apply but
for section 179) if--
``(A) such property was acquired by the taxpayer by
purchase (as defined in section 179(d)(2)) after the date on
which the designation of the recovery zone took effect,
``(B) the original use of which in the recovery zone
commences with the taxpayer, and
``(C) substantially all of the use of which is in the
recovery zone and is in the active conduct of a qualified
business by the taxpayer in such zone.
``(2) Qualified business.--The term `qualified business'
means any trade or business except that--
``(A) the rental to others of real property located in a
recovery zone shall be treated as a qualified business only
if the property is not residential rental property (as
defined in section 168(e)(2)), and
``(B) such term shall not include any trade or business
consisting of the operation of any facility described in
section 144(c)(6)(B).
``(3) Special rules for substantial renovations and sale-
leaseback.--Rules similar to the rules of subsections (a)(2)
and (b) of section 1397D shall apply for purposes of this
subsection.
``(d) Nonapplication of Certain Rules.--Sections 146
(relating to volume cap) and 147(d) (relating to acquisition
of existing property not permitted) shall not apply to any
recovery zone facility bond.''.
(b) Clerical Amendment.--The table of parts for subchapter
Y of chapter 1 of such Code is amended by adding at the end
the following new item:

``Part III. Recovery Zone Bonds.''.

(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

(a) In General.--Section 7871 is amended by adding at the
end the following new subsection:
``(f) Tribal Economic Development Bonds.--
``(1) Allocation of limitation.--
``(A) In general.--The Secretary shall allocate the
national tribal economic development bond limitation among
the Indian tribal governments in such manner as the
Secretary, in consultation with the Secretary of the
Interior, determines appropriate.
``(B) National limitation.--There is a national tribal
economic development bond limitation of $2,000,000,000.
``(2) Bonds treated as exempt from tax.--In the case of a
tribal economic development bond--
``(A) notwithstanding subsection (c), such bond shall be
treated for purposes of this title in the same manner as if
such bond were issued by a State,
``(B) the Indian tribal government issuing such bond and
any instrumentality of such Indian tribal government shall be
treated as a State for purposes of section 141, and
``(C) section 146 shall not apply.
``(3) Tribal economic development bond.--
``(A) In general.--For purposes of this section, the term
`tribal economic development bond' means any bond issued by
an Indian tribal government--
``(i) the interest on which would be exempt from tax under
section 103 if issued by a State or local government, and
``(ii) which is designated by the Indian tribal government
as a tribal economic development bond for purposes of this
subsection.
``(B) Exceptions.--The term tribal economic development
bond shall not include any bond issued as part of an issue if
any portion of the proceeds of such issue are used to
finance--
``(i) any portion of a building in which class II or class
III gaming (as defined in section 4 of the Indian Gaming
Regulatory Act) is conducted or housed or any other property
actually used in the conduct of such gaming, or
``(ii) any facility located outside the Indian reservation
(as defined in section 168(j)(6)).
``(C) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds which may be
designated by any Indian tribal government under subparagraph
(A) shall not exceed the amount of national tribal economic
development bond limitation allocated to such government
under paragraph (1).''.
(b) Study.--The Secretary of the Treasury, or the
Secretary's delegate, shall conduct a study of the effects of
the amendment made by subsection (a). Not later than 1 year
after the date of the enactment of this Act, the Secretary of
the Treasury, or the Secretary's delegate, shall report to
Congress on the results of the study conducted under this
paragraph, including the Secretary's recommendations
regarding such amendment.
(c) Effective Date.--The amendment made by subsection (a)
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT.

(a) Increase in National Limitation.--
(1) In general.--Section 45D(f)(1) is amended--
(A) by striking ``and'' at the end of subparagraph (C),
(B) by striking ``, 2007, 2008, and 2009.'' in subparagraph
(D), and inserting ``and 2007,'', and
(C) by adding at the end the following new subparagraphs:
``(E) $5,000,000,000 for 2008, and
``(F) $5,000,000,000 for 2009.''.
(2) Special rule for allocation of increased 2008
limitation.--The amount of the increase in the new markets
tax credit limitation for calendar year 2008 by reason of the
amendments made by subsection (a) shall be allocated in
accordance with section 45D(f)(2) of the Internal Revenue
Code of 1986 to qualified community development entities (as
defined in section 45D(c) of such Code) which--
(A) submitted an allocation application with respect to
calendar year 2008, and
(B)(i) did not receive an allocation for such calendar
year, or
(ii) received an allocation for such calendar year in an
amount less than the amount requested in the allocation
application.
(b) Alternative Minimum Tax Relief.--
(1) In general.--Section 38(c)(4)(B) is amended by
redesignating clauses (v) through (viii) as clauses (vi)
through (ix), respectively, and by inserting after clause
(iv) the following new clause:
``(v) the credit determined under section 45D to the extent
that such credit is attributable to a qualified equity
investment which is designated as such under section
45D(b)(1)(C) pursuant to an allocation of the

[[Page S1186]]

new markets tax credit limitation for calendar year 2009,''.
(2) Effective date.--The amendments made by this subsection
shall apply to credits determined under section 45D of the
Internal Revenue Code of 1986 in taxable years ending after
the date of the enactment of this Act, and to carrybacks of
such credits.

Subtitle F--Infrastructure Financing Tools

PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT
INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.

(a) In General.--Subsection (b) of section 265 is amended
by adding at the end the following new paragraph:
``(7) De minimis exception for bonds issued during 2009 or
2010.--
``(A) In general.--In applying paragraph (2)(A), there
shall not be taken into account tax-exempt obligations issued
during 2009 or 2010.
``(B) Limitation.--The amount of tax-exempt obligations not
taken into account by reason of subparagraph (A) shall not
exceed 2 percent of the amount determined under paragraph
(2)(B).
``(C) Refundings.--For purposes of this paragraph, a
refunding bond (whether a current or advance refunding) shall
be treated as issued on the date of the issuance of the
refunded bond (or in the case of a series of refundings, the
original bond).''.
(b) Treatment as Financial Institution Preference Item.--
Clause (iv) of section 291(e)(1)(B) is amended by adding at
the end the following: ``That portion of any obligation not
taken into account under paragraph (2)(A) of section 265(b)
by reason of paragraph (7) of such section shall be treated
for purposes of this section as having been acquired on
August 7, 1986.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2008.

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-
EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR
FINANCIAL INSTITUTIONS.

(a) In General.--Paragraph (3) of section 265(b) (relating
to exception for certain tax-exempt obligations) is amended
by adding at the end the following new subparagraph:
``(G) Special rules for obligations issued during 2009 and
2010.--
``(i) Increase in limitation.--In the case of obligations
issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and
(D)(iii)(II) shall each be applied by substituting
`$30,000,000' for `$10,000,000'.
``(ii) Qualified 501(c)(3) bonds treated as issued by
exempt organization.--In the case of a qualified 501(c)(3)
bond (as defined in section 145) issued during 2009 or 2010,
this paragraph shall be applied by treating the 501(c)(3)
organization for whose benefit such bond was issued as the
issuer.
``(iii) Special rule for qualified financings.--In the case
of a qualified financing issue issued during 2009 or 2010--

``(I) subparagraph (F) shall not apply, and
``(II) any obligation issued as a part of such issue shall
be treated as a qualified tax-exempt obligation if the
requirements of this paragraph are met with respect to each
qualified portion of the issue (determined by treating each
qualified portion as a separate issue which is issued by the
qualified borrower with respect to which such portion
relates).

``(iv) Qualified financing issue.--For purposes of this
subparagraph, the term `qualified financing issue' means any
composite, pooled, or other conduit financing issue the
proceeds of which are used directly or indirectly to make or
finance loans to 1 or more ultimate borrowers each of whom is
a qualified borrower.
``(v) Qualified portion.--For purposes of this
subparagraph, the term `qualified portion' means that portion
of the proceeds which are used with respect to each qualified
borrower under the issue.
``(vi) Qualified borrower.--For purposes of this
subparagraph, the term `qualified borrower' means a borrower
which is a State or political subdivision thereof or an
organization described in section 501(c)(3) and exempt from
taxation under section 501(a).''.
(b) Effective Date.--The amendment made by this section
shall apply to obligations issued after December 31, 2008.

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX
LIMITATIONS ON TAX-EXEMPT BONDS.

(a) Interest on Private Activity Bonds Issued During 2009
and 2010 Not Treated as Tax Preference Item.--Subparagraph
(C) of section 57(a)(5) is amended by adding at the end a new
clause:
``(vi) Exception for bonds issued in 2009 and 2010.--For
purposes of clause (i), the term `private activity bond'
shall not include any bond issued after December 31, 2008,
and before January 1, 2011. For purposes of the preceding
sentence, a refunding bond (whether a current or advance
refunding) shall be treated as issued on the date of the
issuance of the refunded bond (or in the case of a series of
refundings, the original bond).''.
(b) No Adjustment to Adjusted Current Earnings for Interest
on Tax-Exempt Bonds Issued During 2009 and 2010.--
Subparagraph (B) of section 56(g)(4) is amended by adding at
the end the following new clause:
``(iv) Tax exempt interest on bonds issued in 2009 and
2010.--Clause (i) shall not apply in the case of any interest
on a bond issued after December 31, 2008, and before January
1, 2011. For purposes of the preceding sentence, a refunding
bond (whether a current or advance refunding) shall be
treated as issued on the date of the issuance of the refunded
bond (or in the case of a series of refundings, the original
bond).''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2008.

SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY
BONDS.

(a) In General.--Paragraph (1) of section 142(i) is amended
by striking ``operate at speeds in excess of'' and inserting
``be capable of attaining a maximum speed in excess of''.
(b) Effective Date.--The amendment made by this section
shall apply to bonds issued after the date of the enactment
of this Act.

PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
CONTRACTORS

SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON
GOVERNMENT CONTRACTORS.

Subsection (b) of section 511 of the Tax Increase
Prevention and Reconciliation Act of 2005 is amended by
striking ``December 31, 2010'' and inserting ``December 31,
2011''.

PART III--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.

(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:

``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

``(a) Qualified School Construction Bond.--For purposes of
this subchapter, the term `qualified school construction
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for the construction, rehabilitation, or
repair of a public school facility or for the acquisition of
land on which such a facility is to be constructed with part
of the proceeds of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under subsection (a) by
any issuer shall not exceed the limitation amount allocated
under subsection (d) for such calendar year to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified school construction bond
limitation for each calendar year. Such limitation is--
``(1) $5,000,000,000 for 2009,
``(2) $5,000,000,000 for 2010, and
``(3) except as provided in subsection (e), zero after
2010.
``(d) Limitation Allocated Among States.--
``(1) In general.--The limitation applicable under
subsection (c) for any calendar year shall be allocated by
the Secretary among the States in proportion to the
respective numbers of children in each State who have
attained age 5 but not age 18 for the most recent fiscal year
ending before such calendar year. The limitation amount
allocated to a State under the preceding sentence shall be
allocated by the State to issuers within such State.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year for
each State to the extent necessary to ensure that the amount
allocated to such State under this subsection for such year
is not less than an amount equal to such State's adjusted
minimum percentage of the amount to be allocated under
paragraph (1) for the calendar year.
``(B) Minimum percentage.--A State's minimum percentage for
any calendar year is equal to the product of--
``(i) the quotient of--

``(I) the amount the State is eligible to receive under
section 1124(d) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6333(d)) for the most recent fiscal year
ending before such calendar year, divided by
``(II) the amount all States are eligible to receive under
section 1124 of such Act (20 U.S.C. 6333) for such fiscal
year, multiplied by

``(ii) 100.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1)
were made on the basis of respective populations of
individuals below the poverty line (as defined by the Office
of Management and Budget). In making other allocations, the
amount to be allocated under paragraph (1) shall be reduced
by the aggregate amount allocated under this paragraph to
possessions of the United States.
``(4) Allocations for indian schools.--In addition to the
amounts otherwise allocated under this subsection,
$200,000,000 for calendar year 2009, and $200,000,000 for
calendar year 2010, shall be allocated by the Secretary

[[Page S1187]]

of the Interior for purposes of the construction,
rehabilitation, and repair of schools funded by the Bureau of
Indian Affairs. In the case of amounts allocated under the
preceding sentence, Indian tribal governments (as defined in
section 7701(a)(40)) shall be treated as qualified issuers
for purposes of this subchapter.
``(e) Carryover of Unused Limitation.--If for any calendar
year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State
for the following calendar year shall be increased by the
amount of such excess. A similar rule shall apply to the
amounts allocated under subsection (d)(4).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended by striking
``or'' at the end of subparagraph (C), by inserting ``or'' at
the end of subparagraph (D), and by inserting after
subparagraph (D) the following new subparagraph:
``(E) a qualified school construction bond,''.
(2) Subparagraph (C) of section 54A(d)(2) is amended by
striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and
by adding at the end the following new clause:
``(v) in the case of a qualified school construction bond,
a purpose specified in section 54F(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:

``Sec. 54F. Qualified school construction bonds.''.

(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY
BONDS.

(a) In General.--Section 54E(c)(1) is amended by striking
``and 2009'' and inserting ``and $1,400,000,000 for 2009 and
2010''.
(b) Effective Date.--The amendment made by this section
shall apply to obligations issued after December 31, 2008.

PART IV--BUILD AMERICA BONDS

SEC. 1531. BUILD AMERICA BONDS.

(a) In General.--Part IV of subchapter A of chapter 1 is
amended by adding at the end the following new subpart:

``Subpart J--Build America Bonds

``Sec. 54AA. Build America bonds.

``SEC. 54AA. BUILD AMERICA BONDS.

``(a) In General.--If a taxpayer holds a build America bond
on one or more interest payment dates of the bond during any
taxable year, there shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount
equal to the sum of the credits determined under subsection
(b) with respect to such dates.
``(b) Amount of Credit.--The amount of the credit
determined under this subsection with respect to any interest
payment date for a build America bond is 35 percent of the
amount of interest payable by the issuer with respect to such
date.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Build America Bond.--
``(1) In general.--For purposes of this section, the term
`build America bond' means any obligation (other than a
private activity bond) if--
``(A) the interest on such obligation would (but for this
section) be excludable from gross income under section 103,
``(B) such obligation is issued before January 1, 2012, and
``(C) the issuer makes an irrevocable election to have this
section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
``(A) a build America bond shall not be treated as
federally guaranteed by reason of the credit allowed under
subsection (a) or section 6431,
``(B) the yield on a build America bond shall be determined
without regard to the credit allowed under subsection (a),
and
``(C) a bond shall not be treated as a build America bond
if the issue price has more than a de minimis amount
(determined under rules similar to the rules of section
1273(a)(3)) of premium over the stated principal amount of
the bond.
``(e) Interest Payment Date.--For purposes of this section,
the term `interest payment date' means any date on which the
holder of record of the build America bond is entitled to a
payment of interest under such bond.
``(f) Special Rules.--
``(1) Interest on build america bonds includible in gross
income for federal income tax purposes.--For purposes of this
title, interest on any build America bond shall be includible
in gross income.
``(2) Application of certain rules.--Rules similar to the
rules of subsections (f), (g), (h), and (i) of section 54A
shall apply for purposes of the credit allowed under
subsection (a).
``(g) Special Rule for Qualified Bonds Issued Before
2011.--In the case of a qualified bond issued before January
1, 2011--
``(1) Issuer allowed refundable credit.--In lieu of any
credit allowed under this section with respect to such bond,
the issuer of such bond shall be allowed a credit as provided
in section 6431.
``(2) Qualified bond.--For purposes of this subsection, the
term `qualified bond' means any build America bond issued as
part of an issue if--
``(A) 100 percent of the available project proceeds (as
defined in section 54A) of such issue are to be used for
capital expenditures, and
``(B) the issuer makes an irrevocable election to have this
subsection apply.
``(h) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section and section 6431.''.
(b) Credit for Qualified Bonds Issued Before 2011.--
Subchapter B of chapter 65 is amended by adding at the end
the following new section:

``SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.

``(a) In General.--In the case of a qualified bond issued
before January 1, 2011, the issuer of such bond shall be
allowed a credit with respect to each interest payment under
such bond which shall be payable by the Secretary as provided
in subsection (b).
``(b) Payment of Credit.--The Secretary shall pay
(contemporaneously with each interest payment date under such
bond) to the issuer of such bond (or to any person who makes
such interest payments on behalf of the issuer) 35 percent of
the interest payable under such bond on such date.
``(c) Application of Arbitrage Rules.--For purposes of
section 148, the yield on a qualified bond shall be reduced
by the credit allowed under this section.
``(d) Interest Payment Date.--For purposes of this
subsection, the term `interest payment date' means each date
on which interest is payable by the issuer under the terms of
the bond.
``(e) Qualified Bond.--For purposes of this subsection, the
term `qualified bond' has the meaning given such term in
section 54AA(g).''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6428'' and inserting ``6428, or
6431,''.
(2) Section 54A(c)(1)(B) is amended by striking ``subpart
C'' and inserting ``subparts C and J''.
(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are
each amended by striking ``and I'' and inserting ``, I, and
J''.
(4) Section 6401(b)(1) is amended by striking ``and I'' and
inserting ``I, and J''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:

``Subpart J. Build America bonds.''.

(6) The table of section for subchapter B of chapter 65 is
amended by adding at the end the following new item:

``Sec. 6431. Credit for qualified bonds allowed to issuer.''.

(d) Transitional Coordination With State Law.--Except as
otherwise provided by a State after the date of the enactment
of this Act, the interest on any build America bond (as
defined in section 54AA of the Internal Revenue Code of 1986,
as added by this section) and the amount of any credit
determined under such section with respect to such bond shall
be treated for purposes of the income tax laws of such State
as being exempt from Federal income tax.
(e) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

Subtitle G--Economic Recovery Payments to Certain Individuals

SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL
SECURITY, SUPPLEMENTAL SECURITY INCOME,
RAILROAD RETIREMENT BENEFITS, AND VETERANS
DISABILITY COMPENSATION OR PENSION BENEFITS.

(a) Authority to Make Payments.--
(1) Eligibility.--
(A) In general.--Subject to paragraph (5)(B), the Secretary
of the Treasury shall make a $300 payment to each individual
who, for any month during the 3-month period ending with the
month which ends prior to the month that includes the date of
the enactment of this Act, is entitled to a benefit payment
described in clause (i), (ii), or (iii) of subparagraph (B)
or is eligible for a SSI cash benefit described in
subparagraph (C).
(B) Benefit payment described.--For purposes of
subparagraph (A):
(i) Title ii benefit.--A benefit payment described in this
clause is a monthly insurance benefit payable (without regard
to sections 202(j)(1) and 223(b) of the Social Security Act
(42 U.S.C. 402(j)(1), 423(b)) under--

(I) section 202(a) of such Act (42 U.S.C. 402(a));
(II) section 202(b) of such Act (42 U.S.C. 402(b));
(III) section 202(c) of such Act (42 U.S.C. 402(c));

[[Page S1188]]

(IV) section 202(d)(1)(B)(ii) of such Act (42 U.S.C.
402(d)(1)(B)(ii));
(V) section 202(e) of such Act (42 U.S.C. 402(e));
(VI) section 202(f) of such Act (42 U.S.C. 402(f));
(VII) section 202(g) of such Act (42 U.S.C. 402(g));
(VIII) section 202(h) of such Act (42 U.S.C. 402(h));
(IX) section 223(a) of such Act (42 U.S.C. 423(a));
(X) section 227 of such Act (42 U.S.C. 427); or
(XI) section 228 of such Act (42 U.S.C. 428).

(ii) Railroad retirement benefit.--A benefit payment
described in this clause is a monthly annuity or pension
payment payable (without regard to section 5(a)(ii) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))
under--

(I) section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1));
(II) section 2(c) of such Act (45 U.S.C. 231a(c));
(III) section 2(d)(1)(i) of such Act (45 U.S.C.
231a(d)(1)(i));
(IV) section 2(d)(1)(ii) of such Act (45 U.S.C.
231a(d)(1)(ii));
(V) section 2(d)(1)(iii)(C) of such Act to an adult
disabled child (45 U.S.C. 231a(d)(1)(iii)(C));
(VI) section 2(d)(1)(iv) of such Act (45 U.S.C.
231a(d)(1)(iv));
(VII) section 2(d)(1)(v) of such Act (45 U.S.C.
231a(d)(1)(v)); or
(VIII) section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2))
with respect to any of the benefit payments described in
clause (i) of this subparagraph.

(iii) Veterans benefit.--A benefit payment described in
this clause is a compensation or pension payment payable
under--

(I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title
38, United States Code;
(II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title
38, United States Code;
(III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or
1562 of title 38, United States Code; or
(IV) section 1805, 1815, or 1821 of title 38, United States
Code,

to a veteran, surviving spouse, child, or parent as described
in paragraph (2), (3), (4)(A)(ii), or (5) of section 101,
title 38, United States Code, who received that benefit
during any month within the 3 month period ending with the
month which ends prior to the month that includes the date of
the enactment of this Act.
(C) SSI cash benefit described.--A SSI cash benefit
described in this subparagraph is a cash benefit payable
under section 1611 (other than under subsection (e)(1)(B) of
such section) or 1619(a) of the Social Security Act (42
U.S.C. 1382, 1382h).
(2) Requirement.--A payment shall be made under paragraph
(1) only to individuals who reside in 1 of the 50 States, the
District of Columbia, Puerto Rico, Guam, the United States
Virgin Islands, American Samoa, or the Northern Mariana
Islands. For purposes of the preceding sentence, the
determination of the individual's residence shall be based on
the current address of record under a program specified in
paragraph (1).
(3) No double payments.--An individual shall be paid only 1
payment under this section, regardless of whether the
individual is entitled to, or eligible for, more than 1
benefit or cash payment described in paragraph (1).
(4) Limitation.--A payment under this section shall not be
made--
(A) in the case of an individual entitled to a benefit
specified in paragraph (1)(B)(i) or paragraph
(1)(B)(ii)(VIII) if, for the most recent month of such
individual's entitlement in the 3-month period described in
paragraph (1), such individual's benefit under such paragraph
was not payable by reason of subsection (x) or (y) of section
202 the Social Security Act (42 U.S.C. 402) or section 1129A
of such Act (42 U.S.C. 1320a-8a);
(B) in the case of an individual entitled to a benefit
specified in paragraph (1)(B)(iii) if, for the most recent
month of such individual's entitlement in the 3 month period
described in paragraph (1), such individual's benefit under
such paragraph was not payable, or was reduced, by reason of
section 1505, 5313, or 5313B of title 38, United States Code;
(C) in the case of an individual entitled to a benefit
specified in paragraph (1)(C) if, for such most recent month,
such individual's benefit under such paragraph was not
payable by reason of subsection (e)(1)(A) or (e)(4) of
section 1611 (42 U.S.C. 1382) or section 1129A of such Act
(42 U.S.C. 1320a-8a); or
(D) in the case of any individual whose date of death
occurs before the date on which the individual is certified
under subsection (b) to receive a payment under this section.
(5) Timing and manner of payments.--
(A) In general.--The Secretary of the Treasury shall
commence making payments under this section at the earliest
practicable date but in no event later than 120 days after
the date of enactment of this Act. The Secretary of the
Treasury may make any payment electronically to an individual
in such manner as if such payment was a benefit payment or
cash benefit to such individual under the applicable program
described in subparagraph (B) or (C) of paragraph (1).
(B) Deadline.--No payments shall be made under this section
after December 31, 2010, regardless of any determinations of
entitlement to, or eligibility for, such payments made after
such date.
(b) Identification of Recipients.--The Commissioner of
Social Security, the Railroad Retirement Board, and the
Secretary of Veterans Affairs shall certify the individuals
entitled to receive payments under this section and provide
the Secretary of the Treasury with the information needed to
disburse such payments. A certification of an individual
shall be unaffected by any subsequent determination or
redetermination of the individual's entitlement to, or
eligibility for, a benefit specified in subparagraph (B) or
(C) of subsection (a)(1).
(c) Treatment of Payments.--
(1) Payment to be disregarded for purposes of all federal
and federally assisted programs.--A payment under subsection
(a) shall not be regarded as income and shall not be regarded
as a resource for the month of receipt and the following 9
months, for purposes of determining the eligibility of the
recipient (or the recipient's spouse or family) for benefits
or assistance, or the amount or extent of benefits or
assistance, under any Federal program or under any State or
local program financed in whole or in part with Federal
funds.
(2) Payment not considered income for purposes of
taxation.--A payment under subsection (a) shall not be
considered as gross income for purposes of the Internal
Revenue Code of 1986.
(3) Payments protected from assignment.--The provisions of
sections 207 and 1631(d)(1) of the Social Security Act (42
U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301
of title 38, United States Code, shall apply to any payment
made under subsection (a) as if such payment was a benefit
payment or cash benefit to such individual under the
applicable program described in subparagraph (B) or (C) of
subsection (a)(1).
(4) Payments subject to offset.--Notwithstanding paragraph
(3), for purposes of section 3716 of title 31, United States
Code, any payment made under this section shall not be
considered a benefit payment or cash benefit made under the
applicable program described in subparagraph (B) or (C) of
subsection (a)(1) and all amounts paid shall be subject to
offset to collect delinquent debts.
(d) Payment to Representative Payees and Fiduciaries.--
(1) In general.--In any case in which an individual who is
entitled to a payment under subsection (a) and whose benefit
payment or cash benefit described in paragraph (1) of that
subsection is paid to a representative payee or fiduciary,
the payment under subsection (a) shall be made to the
individual's representative payee or fiduciary and the entire
payment shall be used only for the benefit of the individual
who is entitled to the payment.
(2) Applicability.--
(A) Payment on the basis of a title ii or ssi benefit.--
Section 1129(a)(3) of the Social Security Act (42 U.S.C.
1320a-8(a)(3)) shall apply to any payment made on the basis
of an entitlement to a benefit specified in paragraph
(1)(B)(i) or (1)(C) of subsection (a) in the same manner as
such section applies to a payment under title II or XVI of
such Act.
(B) Payment on the basis of a railroad retirement
benefit.--Section 13 of the Railroad Retirement Act (45
U.S.C. 231l) shall apply to any payment made on the basis of
an entitlement to a benefit specified in paragraph (1)(B)(ii)
of subsection (a) in the same manner as such section applies
to a payment under such Act.
(C) Payment on the basis of a veterans benefit.--Sections
5502, 6106, and 6108 of title 38, United States Code, shall
apply to any payment made on the basis of an entitlement to a
benefit specified in paragraph (1)(B)(iii) of subsection (a)
in the same manner as those sections apply to a payment under
that title.
(e) Appropriation.--Out of any sums in the Treasury of the
United States not otherwise appropriated, the following sums
are appropriated for the period of fiscal years 2009 and 2010
to carry out this section:
(1) For the Secretary of the Treasury--
(A) such sums as may be necessary to make payments under
this section; and
(B) $57,000,000 for administrative costs incurred in
carrying out this section and section 36A of the Internal
Revenue Code of 1986 (as added by this Act).
(2) For the Commissioner of Social Security, $90,000,000
for the Social Security Administration's Limitation on
Administrative Expenses for costs incurred in carrying out
this section.
(3) For the Railroad Retirement Board, $1,000,000 for
administrative costs incurred in carrying out this section.
(4) For the Secretary of Veterans Affairs, $100,000 for the
Information Systems Technology account and $7,100,000 for the
General Operating Expenses account for administrative costs
incurred in carrying out this section.

Subtitle H--Trade Adjustment Assistance

SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUSTMENT ASSISTANCE
PROGRAM.

(a) Assistance for Workers.--
(1) In general.--Section 245(a) of the Trade Act of 1974
(19 U.S.C. 2317(a)) is amended by striking ``December 31,
2007'' and inserting ``December 31, 2010''.
(2) Alternative trade adjustment assistance.--Section
246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is
amended by striking ``5 years'' and inserting ``7 years''.
(b) Assistance for Firms.--Section 256(b) of the Trade Act
of 1974 (19 U.S.C. 2346(b)) is

[[Page S1189]]

amended by striking ``2007, and $4,000,000 for the 3-month
period beginning on October 1, 2007,'' and inserting
``December 31, 2010''.
(c) Assistance for Farmers.--Section 298(a) of the Trade
Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking
``through 2007'' and all that follows through the end period
and inserting ``through December 31, 2010 to carry out the
purposes of this chapter.''.
(d) Extension of Termination Dates.--Section 285 of the
Trade Act of 1974 (19 U.S.C. 2271 note) is amended by
striking ``December 31, 2007'' each place it appears and
inserting ``December 31, 2010''.
(e) Sense of the Senate Regarding Adjustment Assistance for
Communities.--It is the sense of the Senate that title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) should be
amended to assist any community impacted by trade with
economic adjustment through--
(1) the coordination of efforts by State and local
governments and economic organizations;
(2) the coordination of Federal, State, and local
resources;
(3) the creation of community-based development strategies;
and
(4) the development and provision of training programs.
(f) Effective Date.--The amendments made by this section
shall be effective as of January 1, 2008.

Subtitle I--Prohibition on Collection of Certain Payments Made Under
the Continued Dumping and Subsidy Offset Act of 2000

SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE
UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET
ACT OF 2000.

(a) In General.--Notwithstanding any other provision of
law, neither the Secretary of Homeland Security nor any other
person may--
(1) require repayment of, or attempt in any other way to
recoup, any payments described in subsection (b); or
(2) offset any past, current, or future distributions of
antidumping or countervailing duties assessed with respect to
imports from countries that are not parties to the North
American Free Trade Agreement in an attempt to recoup any
payments described in subsection (b).
(b) Payments Described.--Payments described in this
subsection are payments of antidumping or countervailing
duties made pursuant to the Continued Dumping and Subsidy
Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19
U.S.C. 1675c; repealed by subtitle F of title VII of the
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat.
154))) that were--
(1) assessed and paid on imports of goods from countries
that are parties to the North American Free Trade Agreement;
and
(2) distributed on or after January 1, 2001, and before
January 1, 2006.
(c) Payment of Funds Collected or Withheld.--Not later than
the date that is 60 days after the date of the enactment of
this Act, the Secretary of Homeland Security shall--
(1) refund any repayments, or any other recoupment, of
payments described in subsection (b); and
(2) fully distribute any antidumping or countervailing
duties that the U.S. Customs and Border Protection is
withholding as an offset as described in subsection (a)(2).
(d) Limitation.--Nothing in this section shall be construed
to prevent the Secretary of Homeland Security, or any other
person, from requiring repayment of, or attempting to
otherwise recoup, any payments described in subsection (b) as
a result of--
(1) a finding of false statements or other misconduct by a
recipient of such a payment; or
(2) the reliquidation of an entry with respect to which
such a payment was made.

Subtitle J--Other Provisions

SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS
FINANCED WITH CERTAIN TAX-FAVORED BONDS.

Subchapter IV of chapter 31 of the title 40, United States
Code, shall apply to projects financed with the proceeds of--
(1) any new clean renewable energy bond (as defined in
section 54C of the Internal Revenue Code of 1986) issued
after the date of the enactment of this Act,
(2) any qualified energy conservation bond (as defined in
section 54D of the Internal Revenue Code of 1986) issued
after the date of the enactment of this Act,
(3) any qualified zone academy bond (as defined in section
54E of the Internal Revenue Code of 1986) issued after the
date of the enactment of this Act,
(4) any qualified school construction bond (as defined in
section 54F of the Internal Revenue Code of 1986), and
(5) any recovery zone economic development bond (as defined
in section 1400U-2 of the Internal Revenue Code of 1986).

SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT.

Subsection (b) of section 3101 of title 31, United States
Code, is amended by striking out the dollar limitation
contained in such subsection and inserting
``$12,140,000,000,000''.

TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

SEC. 2000. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This title may be cited as the
``Assistance for Unemployed Workers and Struggling Families
Act''.
(b) Table of Contents.--The table of contents for this
title is as follows:

TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

Sec. 2000. Short title; table of contents.

Subtitle A--Unemployment Insurance

Sec. 2001. Extension of emergency unemployment compensation program.
Sec. 2002. Increase in unemployment compensation benefits.
Sec. 2003. Unemployment compensation modernization.
Sec. 2004. Temporary assistance for States with advances.

Subtitle B--Assistance for Vulnerable Individuals

Sec. 2101. Emergency fund for TANF program.
Sec. 2102. Extension of TANF supplemental grants.
Sec. 2103. Clarification of authority of states to use tanf funds
carried over from prior years to provide tanf benefits
and services.
Sec. 2104. Temporary reinstatement of authority to provide Federal
matching payments for State spending of child support
incentive payments.

Subtitle A--Unemployment Insurance

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION
PROGRAM.

(a) In General.--Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note), as amended by section 4 of the Unemployment
Compensation Extension Act of 2008 (Public Law 110-449; 122
Stat. 5015), is amended--
(1) by striking ``March 31, 2009'' each place it appears
and inserting ``December 31, 2009'';
(2) in the heading for subsection (b)(2), by striking
``March 31, 2009'' and inserting ``December 31, 2009''; and
(3) in subsection (b)(3), by striking ``August 27, 2009''
and inserting ``May 31, 2010''.
(b) Financing Provisions.--Section 4004 of such Act is
amended by adding at the end the following:
``(e) Transfer of Funds.--Notwithstanding any other
provision of law, the Secretary of the Treasury shall
transfer from the general fund of the Treasury (from funds
not otherwise appropriated)--
``(1) to the extended unemployment compensation account (as
established by section 905 of the Social Security Act) such
sums as the Secretary of Labor estimates to be necessary to
make payments to States under this title by reason of the
amendments made by section 2001(a) of the Assistance for
Unemployed Workers and Struggling Families Act; and
``(2) to the employment security administration account (as
established by section 901 of the Social Security Act) such
sums as the Secretary of Labor estimates to be necessary for
purposes of assisting States in meeting administrative costs
by reason of the amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury,
without fiscal year limitation, the sums referred to in the
preceding sentence and such sums shall not be required to be
repaid.''.

SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

(a) Federal-State Agreements.--Any State which desires to
do so may enter into and participate in an agreement under
this section with the Secretary of Labor (hereinafter in this
section referred to as the ``Secretary''). Any State which is
a party to an agreement under this section may, upon
providing 30 days' written notice to the Secretary, terminate
such agreement.
(b) Provisions of Agreement.--
(1) Additional compensation.--Any agreement under this
section shall provide that the State agency of the State will
make payments of regular compensation to individuals in
amounts and to the extent that they would be determined if
the State law of the State were applied, with respect to any
week for which the individual is (disregarding this section)
otherwise entitled under the State law to receive regular
compensation, as if such State law had been modified in a
manner such that the amount of regular compensation
(including dependents' allowances) payable for any week shall
be equal to the amount determined under the State law (before
the application of this paragraph) plus an additional $25.
(2) Allowable methods of payment.--Any additional
compensation provided for in accordance with paragraph (1)
shall be payable either--
(A) as an amount which is paid at the same time and in the
same manner as any regular compensation otherwise payable for
the week involved; or
(B) at the option of the State, by payments which are made
separately from, but on the same weekly basis as, any regular
compensation otherwise payable.
(c) Nonreduction Rule.--An agreement under this section
shall not apply (or shall cease to apply) with respect to a
State upon a determination by the Secretary that the method
governing the computation of regular compensation under the
State law of that State has been modified in a manner such
that--
(1) the average weekly benefit amount of regular
compensation which will be payable during the period of the
agreement (determined disregarding any additional amounts
attributable to the modification described in subsection
(b)(1)) will be less than

[[Page S1190]]

(2) the average weekly benefit amount of regular
compensation which would otherwise have been payable during
such period under the State law, as in effect on December 31,
2008.
(d) Payments to States.--
(1) In general.--
(A) Full reimbursement.--There shall be paid to each State
which has entered into an agreement under this section an
amount equal to 100 percent of--
(i) the total amount of additional compensation (as
described in subsection (b)(1)) paid to individuals by the
State pursuant to such agreement; and
(ii) any additional administrative expenses incurred by the
State by reason of such agreement (as determined by the
Secretary).
(B) Terms of payments.--Sums payable to any State by reason
of such State's having an agreement under this section shall
be payable, either in advance or by way of reimbursement (as
determined by the Secretary), in such amounts as the
Secretary estimates the State will be entitled to receive
under this section for each calendar month, reduced or
increased, as the case may be, by any amount by which the
Secretary finds that his estimates for any prior calendar
month were greater or less than the amounts which should have
been paid to the State. Such estimates may be made on the
basis of such statistical, sampling, or other method as may
be agreed upon by the Secretary and the State agency of the
State involved.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(3) Appropriation.--There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such
sums as may be necessary for purposes of this subsection.
(e) Applicability.--
(1) In general.--An agreement entered into under this
section shall apply to weeks of unemployment--
(A) beginning after the date on which such agreement is
entered into; and
(B) ending before January 1, 2010.
(2) Transition rule for individuals remaining entitled to
regular compensation as of january 1, 2010.--In the case of
any individual who, as of the date specified in paragraph
(1)(B), has not yet exhausted all rights to regular
compensation under the State law of a State with respect to a
benefit year that began before such date, additional
compensation (as described in subsection (b)(1)) shall
continue to be payable to such individual for any week
beginning on or after such date for which the individual is
otherwise eligible for regular compensation with respect to
such benefit year.
(3) Termination.--Notwithstanding any other provision of
this subsection, no additional compensation (as described in
subsection (b)(1)) shall be payable for any week beginning
after June 30, 2010.
(f) Fraud and Overpayments.--The provisions of section 4005
of the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 122 Stat. 2356) shall apply with respect to additional
compensation (as described in subsection (b)(1)) to the same
extent and in the same manner as in the case of emergency
unemployment compensation.
(g) Application to Other Unemployment Benefits.--
(1) In general.--Each agreement under this section shall
include provisions to provide that the purposes of the
preceding provisions of this section shall be applied with
respect to unemployment benefits described in subsection
(i)(3) to the same extent and in the same manner as if those
benefits were regular compensation.
(2) Eligibility and termination rules.--Additional
compensation (as described in subsection (b)(1))--
(A) shall not be payable, pursuant to this subsection, with
respect to any unemployment benefits described in subsection
(i)(3) for any week beginning on or after the date specified
in subsection (e)(1)(B), except in the case of an individual
who was eligible to receive additional compensation (as so
described) in connection with any regular compensation or any
unemployment benefits described in subsection (i)(3) for any
period of unemployment ending before such date; and
(B) shall in no event be payable for any week beginning
after the date specified in subsection (e)(3).
(h) Disregard of Additional Compensation for Purposes of
Medicaid and SCHIP.--A State that enters into an agreement
under this section shall disregard the monthly equivalent of
$25 per week for any individual who receives additional
compensation under subsection (b)(1) in considering the
amount of income of the individual for any purposes under the
Medicaid program under title XIX of the Social Security Act
and the State Children's Health Insurance Program under title
XXI of such Act.
(i) Definitions.--For purposes of this section--
(1) the terms ``compensation'', ``regular compensation'',
``benefit year'', ``State'', ``State agency'', ``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);
(2) the term ``emergency unemployment compensation'' means
emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252;
122 Stat. 2353); and
(3) any reference to unemployment benefits described in
this paragraph shall be considered to refer to--
(A) extended compensation (as defined by section 205 of the
Federal-State Extended Unemployment Compensation Act of
1970); and
(B) unemployment compensation (as defined by section 85(b)
of the Internal Revenue Code of 1986) provided under any
program administered by a State under an agreement with the
Secretary.

SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZATION.

(a) In General.--Section 903 of the Social Security Act (42
U.S.C. 1103) is amended by adding at the end the following:

``Special Transfers for Modernization

``(f)(1)(A) In addition to any other amounts, the Secretary
of Labor shall provide for the making of unemployment
compensation modernization incentive payments (hereinafter
`incentive payments') to the accounts of the States in the
Unemployment Trust Fund, by transfer from amounts reserved
for that purpose in the Federal unemployment account, in
accordance with succeeding provisions of this subsection.
``(B) The maximum incentive payment allowable under this
subsection with respect to any State shall, as determined by
the Secretary of Labor, be equal to the amount obtained by
multiplying $7,000,000,000 by the same ratio as would apply
under subsection (a)(2)(B) for purposes of determining such
State's share of any excess amount (as described in
subsection (a)(1)) that would have been subject to transfer
to State accounts, as of October 1, 2008, under the
provisions of subsection (a).
``(C) Of the maximum incentive payment determined under
subparagraph (B) with respect to a State--
``(i) one-third shall be transferred to the account of such
State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph
(2); and
``(ii) the remainder shall be transferred to the account of
such State upon a certification under paragraph (4)(B) that
the State law of such State meets the requirements of
paragraph (3).
``(2) The State law of a State meets the requirements of
this paragraph if such State law--
``(A) uses a base period that includes the most recently
completed calendar quarter before the start of the benefit
year for purposes of determining eligibility for unemployment
compensation; or
``(B) provides that, in the case of an individual who would
not otherwise be eligible for unemployment compensation under
the State law because of the use of a base period that does
not include the most recently completed calendar quarter
before the start of the benefit year, eligibility shall be
determined using a base period that includes such calendar
quarter.
``(3) The State law of a State meets the requirements of
this paragraph if such State law includes provisions to carry
out at least 2 of the following subparagraphs:
``(A) An individual shall not be denied regular
unemployment compensation under any State law provisions
relating to availability for work, active search for work, or
refusal to accept work, solely because such individual is
seeking only part-time (and not full-time) work, except that
the State law provisions carrying out this subparagraph may
exclude an individual if a majority of the weeks of work in
such individual's base period do not include part-time work.
``(B) An individual shall not be disqualified from regular
unemployment compensation for separating from employment if
that separation is for any compelling family reason. For
purposes of this subparagraph, the term `compelling family
reason' means the following:
``(i) Domestic violence, verified by such reasonable and
confidential documentation as the State law may require,
which causes the individual reasonably to believe that such
individual's continued employment would jeopardize the safety
of the individual or of any member of the individual's
immediate family (as defined by the Secretary of Labor).
``(ii) The illness or disability of a member of the
individual's immediate family (as defined by the Secretary of
Labor).
``(iii) The need for the individual to accompany such
individual's spouse--
``(I) to a place from which it is impractical for such
individual to commute; and
``(II) due to a change in location of the spouse's
employment.
``(C) Weekly unemployment compensation is payable under
this subparagraph to any individual who is unemployed (as
determined under the State unemployment compensation law),
has exhausted all rights to regular unemployment compensation
under the State law, and is enrolled and making satisfactory
progress in a State-approved training program or in a job
training program authorized under the Workforce Investment
Act of 1998. Such programs shall prepare individuals who have
been separated from a declining occupation, or who have been
involuntarily and indefinitely separated from employment as a
result of a permanent reduction of operations at the
individual's place of employment, for entry into a high-
demand occupation. The amount of unemployment compensation
payable under this subparagraph to an individual for a week
of unemployment shall be equal to the individual's average

[[Page S1191]]

weekly benefit amount (including dependents' allowances) for
the most recent benefit year, and the total amount of
unemployment compensation payable under this subparagraph to
any individual shall be equal to at least 26 times the
individual's average weekly benefit amount (including
dependents' allowances) for the most recent benefit year.
``(D) Dependents' allowances are provided, in the case of
any individual who is entitled to receive regular
unemployment compensation and who has any dependents (as
defined by State law), in an amount equal to at least $15 per
dependent per week, subject to any aggregate limitation on
such allowances which the State law may establish (but which
aggregate limitation on the total allowance for dependents
paid to an individual may not be less than $50 for each week
of unemployment or 50 percent of the individual's weekly
benefit amount for the benefit year, whichever is less).
``(4)(A) Any State seeking an incentive payment under this
subsection shall submit an application therefor at such time,
in such manner, and complete with such information as the
Secretary of Labor may within 60 days after the date of the
enactment of this subsection prescribe (whether by regulation
or otherwise), including information relating to compliance
with the requirements of paragraph (2) or (3), as well as how
the State intends to use the incentive payment to improve or
strengthen the State's unemployment compensation program. The
Secretary of Labor shall, within 30 days after receiving a
complete application, notify the State agency of the State of
the Secretary's findings with respect to the requirements of
paragraph (2) or (3) (or both).
``(B)(i) If the Secretary of Labor finds that the State law
provisions (disregarding any State law provisions which are
not then currently in effect as permanent law or which are
subject to discontinuation) meet the requirements of
paragraph (2) or (3), as the case may be, the Secretary of
Labor shall thereupon make a certification to that effect to
the Secretary of the Treasury, together with a certification
as to the amount of the incentive payment to be transferred
to the State account pursuant to that finding. The Secretary
of the Treasury shall make the appropriate transfer within 7
days after receiving such certification.
``(ii) For purposes of clause (i), State law provisions
which are to take effect within 12 months after the date of
their certification under this subparagraph shall be
considered to be in effect as of the date of such
certification.
``(C)(i) No certification of compliance with the
requirements of paragraph (2) or (3) may be made with respect
to any State whose State law is not otherwise eligible for
certification under section 303 or approvable under section
3304 of the Federal Unemployment Tax Act.
``(ii) No certification of compliance with the requirements
of paragraph (3) may be made with respect to any State whose
State law is not in compliance with the requirements of
paragraph (2).
``(iii) No application under subparagraph (A) may be
considered if submitted before the date of the enactment of
this subsection or after the latest date necessary (as
specified by the Secretary of Labor) to ensure that all
incentive payments under this subsection are made before
October 1, 2010. In the case of a State in which the first
day of the first regularly scheduled session of the State
legislature beginning after the date of enactment of this
subsection begins after December 31, 2010, the preceding
sentence shall be applied by substituting `October 1, 2011'
for `October 1, 2010' .
``(5)(A) Except as provided in subparagraph (B), any amount
transferred to the account of a State under this subsection
may be used by such State only in the payment of cash
benefits to individuals with respect to their unemployment
(including for dependents' allowances and for unemployment
compensation under paragraph (3)(C)), exclusive of expenses
of administration.
``(B) A State may, subject to the same conditions as set
forth in subsection (c)(2) (excluding subparagraph (B)
thereof, and deeming the reference to `subsections (a) and
(b)' in subparagraph (D) thereof to include this subsection),
use any amount transferred to the account of such State under
this subsection for the administration of its unemployment
compensation law and public employment offices.
``(6) Out of any money in the Federal unemployment account
not otherwise appropriated, the Secretary of the Treasury
shall reserve $7,000,000,000 for incentive payments under
this subsection. Any amount so reserved shall not be taken
into account for purposes of any determination under section
902, 910, or 1203 of the amount in the Federal unemployment
account as of any given time. Any amount so reserved for
which the Secretary of the Treasury has not received a
certification under paragraph (4)(B) by the deadline
described in paragraph (4)(C)(iii) shall, upon the close of
fiscal year 2011, become unrestricted as to use as part of
the Federal unemployment account.
``(7) For purposes of this subsection, the terms `benefit
year', `base period', 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).

``Special Transfer in Fiscal Year 2009 for Administration

``(g)(1) In addition to any other amounts, the Secretary of
the Treasury shall transfer from the employment security
administration account to the account of each State in the
Unemployment Trust Fund, within 30 days after the date of the
enactment of this subsection, the amount determined with
respect to such State under paragraph (2).
``(2) The amount to be transferred under this subsection to
a State account shall (as determined by the Secretary of
Labor and certified by such Secretary to the Secretary of the
Treasury) be equal to the amount obtained by multiplying
$500,000,000 by the same ratio as determined under subsection
(f)(1)(B) with respect to such State.
``(3) Any amount transferred to the account of a State as a
result of the enactment of this subsection may be used by the
State agency of such State only in the payment of expenses
incurred by it for--
``(A) the administration of the provisions of its State law
carrying out the purposes of subsection (f)(2) or any
subparagraph of subsection (f)(3);
``(B) improved outreach to individuals who might be
eligible for regular unemployment compensation by virtue of
any provisions of the State law which are described in
subparagraph (A);
``(C) the improvement of unemployment benefit and
unemployment tax operations, including responding to
increased demand for unemployment compensation; and
``(D) staff-assisted reemployment services for unemployment
compensation claimants.''.
(b) Regulations.--The Secretary of Labor may prescribe any
regulations, operating instructions, or other guidance
necessary to carry out the amendment made by subsection (a).

SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.

Section 1202(b) of the Social Security Act (42 U.S.C.
1322(b)) is amended by adding at the end the following new
paragraph:
``(10)(A) With respect to the period beginning on the date
of enactment of this paragraph and ending on December 31,
2010--
``(i) any interest payment otherwise due from a State under
this subsection during such period shall be deemed to have
been made by the State; and
``(ii) no interest shall accrue on any advance or advances
made under section 1201 to a State during such period.
``(B) The provisions of subparagraph (A) shall have no
effect on the requirement for interest payments under this
subsection after the period described in such subparagraph or
on the accrual of interest under this subsection after such
period.''.

Subtitle B--Assistance for Vulnerable Individuals

SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

(a) Temporary Fund.--
(1) In general.--Section 403 of the Social Security Act (42
U.S.C. 603) is amended by adding at the end the following:
``(c) Emergency Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a fund which shall be known as the
`Emergency Contingency Fund for State Temporary Assistance
for Needy Families Programs' (in this subsection referred to
as the `Emergency Fund').
``(2) Deposits into fund.--
``(A) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for fiscal year 2009, $3,000,000,000 for payment
to the Emergency Fund.
``(B) Availability and use of funds.--The amounts
appropriated to the Emergency Fund under subparagraph (A)
shall remain available through fiscal year 2010 and shall be
used to make grants to States in each of fiscal years 2009
and 2010 in accordance with the requirements of paragraph
(3).
``(C) Limitation.--In no case may the Secretary make a
grant from the Emergency Fund for a fiscal year after fiscal
year 2010.
``(3) Grants.--
``(A) Grant related to caseload increases.--
``(i) In general.--For each calendar quarter in fiscal year
2009 or 2010, the Secretary shall make a grant from the
Emergency Fund to each State that--

``(I) requests a grant under this subparagraph for the
quarter; and
``(II) meets the requirement of clause (ii) for the
quarter.

``(ii) Caseload increase requirement.--A State meets the
requirement of this clause for a quarter if the average
monthly assistance caseload of the State for the quarter
exceeds the average monthly assistance caseload of the State
for the corresponding quarter in the emergency fund base year
of the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be 80 percent of the amount
(if any) by which the total expenditures of the State for
basic assistance (as defined by the Secretary) in the
quarter, whether under the State program funded under this
part or as qualified State expenditures, exceeds the total
expenditures of the State for such assistance for the
corresponding quarter in the emergency fund base year of the
State.
``(B) Grant related to increased expenditures for non-
recurrent short term benefits.--
``(i) In general.--For each calendar quarter in fiscal year
2009 or 2010, the Secretary shall make a grant from the
Emergency Fund to each State that--

``(I) requests a grant under this subparagraph for the
quarter; and

[[Page S1192]]

``(II) meets the requirement of clause (ii) for the
quarter.

``(ii) Non-recurrent short term expenditure requirement.--A
State meets the requirement of this clause for a quarter if
the total expenditures of the State for non-recurrent short
term benefits in the quarter, whether under the State program
funded under this part or as qualified State expenditures,
exceeds the total such expenditures of the State for non-
recurrent short term benefits in the corresponding quarter in
the emergency fund base year of the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be an amount equal to 80
percent of the excess described in clause (ii).
``(C) Grant related to increased expenditures for
subsidized employment.--
``(i) In general.--For each calendar quarter in fiscal year
2009 or 2010, the Secretary shall make a grant from the
Emergency Fund to each State that--

``(I) requests a grant under this subparagraph for the
quarter; and
``(II) meets the requirement of clause (ii) for the
quarter.

``(ii) Subsidized employment expenditure requirement.--A
State meets the requirement of this clause for a quarter if
the total expenditures of the State for subsidized employment
in the quarter, whether under the State program funded under
this part or as qualified State expenditures, exceeds the
total of such expenditures of the State in the corresponding
quarter in the emergency fund base year of the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be an amount equal to 80
percent of the excess described in clause (ii).
``(4) Authority to make necessary adjustments to data and
collect needed data.--In determining the size of the caseload
of a State and the expenditures of a State for basic
assistance, non-recurrent short-term benefits, and subsidized
employment, during any period for which the State requests
funds under this subsection, and during the emergency fund
base year of the State, the Secretary may make appropriate
adjustments to the data to ensure that the data reflect
expenditures under the State program funded under this part
and qualified State expenditures. The Secretary may develop a
mechanism for collecting expenditure data, including
procedures which allow States to make reasonable estimates,
and may set deadlines for making revisions to the data.
``(5) Limitation.--The total amount payable to a single
State under subsection (b) and this subsection for a fiscal
year shall not exceed 25 percent of the State family
assistance grant.
``(6) Limitations on use of funds.--A State to which an
amount is paid under this subsection may use the amount only
as authorized by section 404.
``(7) Timing of implementation.--The Secretary shall
implement this subsection as quickly as reasonably possible,
pursuant to appropriate guidance to States.
``(8) Definitions.--In this subsection:
``(A) Average monthly assistance caseload defined.--The
term `average monthly assistance caseload' means, with
respect to a State and a quarter, the number of families
receiving assistance during the quarter under the State
program funded under this part or as qualified State
expenditures, subject to adjustment under paragraph (4).
``(B) Emergency fund base year.--
``(i) In general.--The term `emergency fund base year'
means, with respect to a State and a category described in
clause (ii), whichever of fiscal year 2007 or 2008 is the
fiscal year in which the amount described by the category
with respect to the State is the lesser.
``(ii) Categories described.--The categories described in
this clause are the following:

``(I) The average monthly assistance caseload of the State.
``(II) The total expenditures of the State for non-
recurrent short term benefits, whether under the State
program funded under this part or as qualified State
expenditures.
``(III) The total expenditures of the State for subsidized
employment, whether under the State program funded under this
part or as qualified State expenditures.

``(C) Qualified state expenditures.--The term `qualified
State expenditures' has the meaning given the term in section
409(a)(7).''.
(2) Repeal.--Effective October 1, 2010, subsection (c) of
section 403 of the Social Security Act (42 U.S.C. 603) (as
added by paragraph (1)) is repealed.
(b) Temporary Modification of Caseload Reduction Credit.--
Section 407(b)(3)(A)(i) of such Act (42 U.S.C.
607(b)(3)(A)(i)) is amended by inserting ``(or if the
immediately preceding fiscal year is fiscal year 2008, 2009,
or 2010, then, at State option, during the emergency fund
base year of the State with respect to the average monthly
assistance caseload of the State (within the meaning of
section 403(c)(8)(B), except that, if a State elects such
option for fiscal year 2008, the emergency fund base year of
the State with respect to such caseload shall be fiscal year
2007))'' before ``under the State''.
(c) Disregard From Limitation on Total Payments to
Territories.--Section 1108(a)(2) of the Social Security Act
(42 U.S.C. 1308(a)(2)) is amended by inserting ``403(c)(3),''
after ``403(a)(5),''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

(a) Extension Through Fiscal Year 2010.--Section 7101(a) of
the Deficit Reduction Act of 2005 (Public Law 109-171; 120
Stat. 135), as amended by section 301(a) of the Medicare
Improvements for Patients and Providers Act of 2008 (Public
Law 110-275), is amended by striking ``fiscal year 2009'' and
inserting ``fiscal year 2010''.
(b) Conforming Amendment.--Section 403(a)(3)(H)(ii) of the
Social Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended
to read as follows:
``(ii) subparagraph (G) shall be applied as if `fiscal year
2010' were substituted for `fiscal year 2001'; and''.

SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF
FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE
TANF BENEFITS AND SERVICES.

Section 404(e) of the Social Security Act (42 U.S.C.
604(e)) is amended to read as follows:
``(e) Authority to Carry Over Certain Amounts for Benefits
or Services or for Future Contingencies.--A State or tribe
may use a grant made to the State or tribe under this part
for any fiscal year to provide, without fiscal year
limitation, any benefit or service that may be provided under
the State or tribal program funded under this part.''.

SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY TO PROVIDE
FEDERAL MATCHING PAYMENTS FOR STATE SPENDING OF
CHILD SUPPORT INCENTIVE PAYMENTS.

During the period that begins on October 1, 2008, and ends
on December 31, 2010, section 455(a)(1) of the Social
Security Act (42 U.S.C. 655(a)(1)) shall be applied without
regard to the amendment made by section 7309(a) of the
Deficit Reduction Act of 2005 (Public Law 109-171, 120 Stat.
147).

TITLE III--HEALTH INSURANCE ASSISTANCE

SEC. 3000. TABLE OF CONTENTS OF TITLE.

The table of contents for this title is as follows:

TITLE III--HEALTH INSURANCE ASSISTANCE

Sec. 3000. Table of contents of title.

Subtitle A--Premium Subsidies for COBRA Continuation Coverage for
Unemployed Workers

Sec. 3001. Premium assistance for COBRA benefits.<q p='02'>

Subtitle B--Transitional Medical Assistance (TMA)

Sec. 3101. Extension of transitional medical assistance (TMA).

Subtitle C--Extension of the Qualified Individual (QI) Program

Sec. 3201. Extension of the qualifying individual (QI) program.

Subtitle D--Other Provisions

Sec. 3301. Premiums and cost sharing protections under Medicaid,
eligibility determinations under Medicaid and CHIP, and
protection of certain Indian property from Medicaid
estate recovery.
Sec. 3302. Rules applicable under Medicaid and CHIP to managed care
entities with respect to Indian enrollees and Indian
health care providers and Indian managed care entities.
Sec. 3303. Consultation on Medicaid, CHIP, and other health care
programs funded under the Social Security Act involving
Indian Health Programs and Urban Indian Organizations.
Sec. 3304. Application of prompt pay requirements to nursing
facilities.
Sec. 3305. Period of application; sunset.

Subtitle A--Premium Subsidies for COBRA Continuation Coverage for
Unemployed Workers

SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.

(a) Table of Contents of Subtitle.--The table of contents
of this subtitle is as follows:

Sec. 3001. Premium assistance for COBRA benefits.
(b) Premium Assistance for COBRA Continuation Coverage for
Unemployed Workers and Their Families.--
(1) Provision of premium assistance.--
(A) Reduction of premiums payable.--In the case of any
premium for a month of coverage beginning after the date of
the enactment of the Act for COBRA continuation coverage with
respect to any assistance eligible individual, such
individual shall be treated for purposes of any COBRA
continuation provision as having paid the amount of such
premium if such individual pays 35 percent of the amount of
such premium (as determined without regard to this
subsection).
(B) Plan enrollment option.--
(i) In general.--Notwithstanding the COBRA continuation
provisions, an assistance eligible individual may, not later
than 90 days after the date of notice of the plan enrollment
option described in this subparagraph, elect to enroll in
coverage under a plan offered by the employer involved, or
the employee organization involved (including, for this
purpose, a joint board of trustees of a multiemployer trust
affiliated with one or

[[Page S1193]]

more multiemployer plans), that is different than coverage
under the plan in which such individual was enrolled at the
time the qualifying event occurred, and such coverage shall
be treated as COBRA continuation coverage for purposes of the
applicable COBRA continuation coverage provision.
(ii) Requirements.--An assistance eligible individual may
elect to enroll in different coverage as described in clause
(i) only if--

(I) the employer involved has made a determination that
such employer will permit assistance eligible individuals to
enroll in different coverage as provided for this
subparagraph;
(II) the premium for such different coverage does not
exceed the premium for coverage in which the individual was
enrolled at the time the qualifying event occurred;
(III) the different coverage in which the individual elects
to enroll is coverage that is also offered to the active
employees of the employer at the time at which such election
is made; and
(IV) the different coverage is not--

(aa) coverage that provides only dental, vision,
counseling, or referral services (or a combination of such
services);
(bb) a health flexible spending account or health
reimbursement arrangement; or
(cc) coverage that provides coverage for services or
treatments furnished in an on-site medical facility
maintained by the employer and that consists primarily of
first-aid services, prevention and wellness care, or similar
care (or a combination of such care).
(C) Premium reimbursement.--For provisions providing the
balance of such premium, see section 6432 of the Internal
Revenue Code of 1986, as added by paragraph (12).
(2) Limitation of period of premium assistance.--
(A) In general.--Paragraph (1)(A) shall not apply with
respect to any assistance eligible individual for months of
coverage beginning on or after the earlier of--
(i) the first date that such individual is eligible for
coverage under any other group health plan (other than
coverage consisting of only dental, vision, counseling, or
referral services (or a combination thereof), coverage under
a health reimbursement arrangement or a health flexible
spending arrangement, or coverage of treatment that is
furnished in an on-site medical facility maintained by the
employer and that consists primarily of first-aid services,
prevention and wellness care, or similar care (or a
combination thereof)) or is eligible for benefits under title
XVIII of the Social Security Act; or
(ii) the earliest of--

(I) the date which is 9 months after the first day of first
month that paragraph (1)(A) applies with respect to such
individual,
(II) the date following the expiration of the maximum
period of continuation coverage required under the applicable
COBRA continuation coverage provision, or
(III) the date following the expiration of the period of
continuation coverage allowed under paragraph (4)(B)(ii).

(B) Timing of eligibility for additional coverage.--For
purposes of subparagraph (A)(i), an individual shall not be
treated as eligible for coverage under a group health plan
before the first date on which such individual could be
covered under such plan.
(C) Notification requirement.--An assistance eligible
individual shall notify in writing the group health plan with
respect to which paragraph (1)(A) applies if such paragraph
ceases to apply by reason of subparagraph (A)(i). Such notice
shall be provided to the group health plan in such time and
manner as may be specified by the Secretary of Labor.
(3) Assistance eligible individual.--For purposes of this
section, the term ``assistance eligible individual'' means
any qualified beneficiary if--
(A) at any time during the period that begins with
September 1, 2008, and ends with December 31, 2009, such
qualified beneficiary is eligible for COBRA continuation
coverage,
(B) such qualified beneficiary elects such coverage, and
(C) the qualifying event with respect to the COBRA
continuation coverage consists of the involuntary termination
of the covered employee's employment and occurred during such
period.
(4) Extension of election period and effect on coverage.--
(A) In general.--Notwithstanding section 605(a) of the
Employee Retirement Income Security Act of 1974, section
4980B(f)(5)(A) of the Internal Revenue Code of 1986, section
2205(a) of the Public Health Service Act, and section
8905a(c)(2) of title 5, United States Code, in the case of an
individual who is a qualified beneficiary described in
paragraph (3)(A) as of the date of the enactment of this Act
and has not made the election referred to in paragraph (3)(B)
as of such date, such individual may elect the COBRA
continuation coverage under the COBRA continuation coverage
provisions containing such sections during the 60-day period
commencing with the date on which the notification required
under paragraph (7)(C) is provided to such individual.
(B) Commencement of coverage; no reach-back.--Any COBRA
continuation coverage elected by a qualified beneficiary
during an extended election period under subparagraph (A)--
(i) shall commence on the date of the enactment of this
Act, and
(ii) shall not extend beyond the period of COBRA
continuation coverage that would have been required under the
applicable COBRA continuation coverage provision if the
coverage had been elected as required under such provision.
(C) Preexisting conditions.--With respect to a qualified
beneficiary who elects COBRA continuation coverage pursuant
to subparagraph (A), the period--
(i) beginning on the date of the qualifying event, and
(ii) ending with the day before the date of the enactment
of this Act,
shall be disregarded for purposes of determining the 63-day
periods referred to in section 701)(2) of the Employee
Retirement Income Security Act of 1974, section 9801(c)(2) of
the Internal Revenue Code of 1986, and section 2701(c)(2) of
the Public Health Service Act.
(5) Expedited review of denials of premium assistance.--In
any case in which an individual requests treatment as an
assistance eligible individual and is denied such treatment
by the group health plan by reason of such individual's
ineligibility for COBRA continuation coverage, the Secretary
of Labor (or the Secretary of Health and Human services in
connection with COBRA continuation coverage which is provided
other than pursuant to part 6 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974), in
consultation with the Secretary of the Treasury, shall
provide for expedited review of such denial. An individual
shall be entitled to such review upon application to such
Secretary in such form and manner as shall be provided by
such Secretary. Such Secretary shall make a determination
regarding such individual's eligibility within 10 business
days after receipt of such individual's application for
review under this paragraph.
(6) Disregard of subsidies for purposes of federal and
state programs.--Notwithstanding any other provision of law,
any premium reduction with respect to an assistance eligible
individual under this subsection shall not be considered
income or resources in determining eligibility for, or the
amount of assistance or benefits provided under, any other
public benefit provided under Federal law or the law of any
State or political subdivision thereof.
(7) Notices to individuals.--
(A) General notice.--
(i) In general.--In the case of notices provided under
section 606(4) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the
Internal Revenue Code of 1986, section 2206(4) of the Public
Health Service Act (42 U.S.C. 300bb-6(4)), or section
8905a(f)(2)(A) of title 5, United States Code, with respect
to individuals who, during the period described in paragraph
(3)(A), become entitled to elect COBRA continuation coverage,
such notices shall include an additional notification to the
recipient of--

(I) the availability of premium reduction with respect to
such coverage under this subsection; and
(II) the option to enroll in different coverage if an
employer that permits assistance eligible individuals to
elect enrollment in different coverage (as described in
paragraph (1)(B)).

(ii) Alternative notice.--In the case of COBRA continuation
coverage to which the notice provision under such sections
does not apply, the Secretary of Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health and
Human Services, shall, in coordination with administrators of
the group health plans (or other entities) that provide or
administer the COBRA continuation coverage involved, provide
rules requiring the provision of such notice.
(iii) Form.--The requirement of the additional notification
under this subparagraph may be met by amendment of existing
notice forms or by inclusion of a separate document with the
notice otherwise required.
(B) Specific requirements.--Each additional notification
under subparagraph (A) shall include--
(i) the forms necessary for establishing eligibility for
premium reduction under this subsection,
(ii) the name, address, and telephone number necessary to
contact the plan administrator and any other person
maintaining relevant information in connection with such
premium reduction,
(iii) a description of the extended election period
provided for in paragraph (4)(A),
(iv) a description of the obligation of the qualified
beneficiary under paragraph (2)(C) to notify the plan
providing continuation coverage of eligibility for subsequent
coverage under another group health plan or eligibility for
benefits under title XVIII of the Social Security Act and the
penalty provided for failure to so notify the plan,
(v) a description, displayed in a prominent manner, of the
qualified beneficiary's right to a reduced premium and any
conditions on entitlement to the reduced premium; and
(vi) a description of the option of the qualified
beneficiary to enroll in different coverage if the employer
permits such beneficiary to elect to enroll in such different
coverage under paragraph (1)(B).
(C) Notice relating to retroactive coverage.--In the case
of an individual described in paragraph (3)(A) who has
elected COBRA continuation coverage as of the date of
enactment of this Act or an individual described in paragraph
(4)(A), the administrator of the group health plan (or other
person) involved shall provide (within 60 days after the date
of enactment of this Act) for the additional notification
required to be provided under subparagraph (A).

[[Page S1194]]

(D) Model notices.--Not later than 30 days after the date
of enactment of this Act, the Secretary of the Labor, in
consultation with the Secretary of the Treasury and the
Secretary of Health and Human Services, shall prescribe
models for the additional notification required under this
paragraph.
(8) Safeguards.--The Secretary of the Treasury shall
provide such rules, procedures, regulations, and other
guidance as may be necessary and appropriate to prevent fraud
and abuse under this subsection.
(9) Outreach.--The Secretary of Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health and
Human Services, shall provide outreach consisting of public
education and enrollment assistance relating to premium
reduction provided under this subsection. Such outreach shall
target employers, group health plan administrators, public
assistance programs, States, insurers, and other entities as
determined appropriate by such Secretaries. Such outreach
shall include an initial focus on those individuals electing
continuation coverage who are referred to in paragraph
(7)(C). Information on such premium reduction, including
enrollment, shall also be made available on website of the
Departments of Labor, Treasury, and Health and Human
Services.
(10) Definitions.--For purposes of this subsection--
(A) Administrator.--The term ``administrator'' has the
meaning given such term in section 3(16) of the Employee
Retirement Income Security Act of 1974
(B) COBRA continuation coverage.--The term ``COBRA
continuation coverage'' means continuation coverage provided
pursuant to part 6 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (other than under
section 609), title XXII of the Public Health Service Act,
section 4980B of the Internal Revenue Code of 1986 (other
than subsection (f)(1) of such section insofar as it relates
to pediatric vaccines), or section 8905a of title 5, United
States Code, or under a State program that provides
continuation coverage comparable to such continuation
coverage. Such term does not include coverage under a health
flexible spending arrangement.
(C) COBRA continuation provision.--The term ``COBRA
continuation provision'' means the provisions of law
described in subparagraph (B).
(D) Covered employee.--The term ``covered employee'' has
the meaning given such term in section 607(2) of the Employee
Retirement Income Security Act of 1974.
(E) Qualified beneficiary.--The term ``qualified
beneficiary'' has the meaning given such term in section
607(3) of the Employee Retirement Income Security Act of
1974.
(F) Group health plan.--The term ``group health plan'' has
the meaning given such term in section 607(1) of the Employee
Retirement Income Security Act of 1974.
(G) State.--The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
(11) Reports.--
(A) Interim report.--The Secretary of the Treasury shall
submit an interim report to the Committee on Education and
Labor, the Committee on Ways and Means, and the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate regarding the premium
reduction provided under this subsection that includes--
(i) the number of individuals provided such assistance as
of the date of the report; and
(ii) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with such assistance as of the date of the report.
(B) Final report.--As soon as practicable after the last
period of COBRA continuation coverage for which premium
reduction is provided under this section, the Secretary of
the Treasury shall submit a final report to each Committee
referred to in subparagraph (A) that includes--
(i) the number of individuals provided premium reduction
under this section;
(ii) the average dollar amount (monthly and annually) of
premium reductions provided to such individuals; and
(iii) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with premium reduction under this section.
(12) COBRA premium assistance.--
(A) In general.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:

``SEC. 6432. COBRA PREMIUM ASSISTANCE.

``(a) In General.--The person to whom premiums are payable
under COBRA continuation coverage shall be reimbursed for the
amount of premiums not paid by plan beneficiaries by reason
of section 3001(b) of the American Recovery and Reinvestment
Act of 2009. Such amount shall be treated as a credit against
the requirement of such person to make deposits of payroll
taxes and the liability of such person for payroll taxes. To
the extent that such amount exceeds the amount of such taxes,
the Secretary shall pay to such person the amount of such
excess. No payment may be made under this subsection to a
person with respect to any assistance eligible individual
until after such person has received the reduced premium from
such individual required under section 3001(a)(1)(A) of such
Act.
``(b) Payroll Taxes.--For purposes of this section, the
term `payroll taxes' means--
``(1) amounts required to be deducted and withheld for the
payroll period under section 3401 (relating to wage
withholding),
``(2) amounts required to be deducted for the payroll
period under section 3102 (relating to FICA employee taxes),
and
``(3) amounts of the taxes imposed for the payroll period
under section 3111 (relating to FICA employer taxes).
``(c) Treatment of Credit.--Except as otherwise provided by
the Secretary, the credit described in subsection (a) shall
be applied as though the employer had paid to the Secretary,
on the day that the qualified beneficiary's premium payment
is received, an amount equal to such credit.
``(d) Treatment of Payment.--For purposes of section
1324(b)(2) of title 31, United States Code, any payment under
this subsection shall be treated in the same manner as a
refund of the credit under section 35.
``(e) Reporting.--
``(1) In general.--Each person entitled to reimbursement
under subsection (a) for any period shall submit such reports
as the Secretary may require, including--
``(A) an attestation of involuntary termination of
employment for each covered employee on the basis of whose
termination entitlement to reimbursement is claimed under
subsection (a), and
``(B) a report of the amount of payroll taxes offset under
subsection (a) for the reporting period and the estimated
offsets of such taxes for the subsequent reporting period in
connection with reimbursements under subsection (a).
``(2) Timing of reports relating to amount of payroll
taxes.--Reports required under paragraph (1)(B) shall be
submitted at the same time as deposits of taxes imposed by
chapters 21, 22, and 24 or at such time as is specified by
the Secretary.
``(f) Regulations.--The Secretary may issue such
regulations or other guidance as may be necessary or
appropriate to carry out this section, including the
requirement to report information or the establishment of
other methods for verifying the correct amounts of payments
and credits under this section, and the application of this
section to group health plans which are multiemployer
plans.''.
(B) Social security trust funds held harmless.--In
determining any amount transferred or appropriated to any
fund under the Social Security Act, section 6432 of the
Internal Revenue Code of 1986 shall not be taken into
account.
(C) Clerical amendment.--The table of sections for
subchapter B of chapter 65 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

``Sec. 6432. COBRA premium assistance.''.
(D) Effective date.--The amendments made by this paragraph
shall apply to premiums to which subsection (a)(1)(A)
applies.
(E) Special rule.--
(i) In general.--In the case of an assistance eligible
individual who pays the full premium amount required for
COBRA continuation coverage for any month during the 60-day
period beginning on the first day of the first month after
the date of enactment of this Act, the person to whom such
payment is made shall--

(I) make a reimbursement payment to such individual for the
amount of such premium paid in excess of the amount required
to be paid under subsection (b)(1)(A); or
(II) provide credit to the individual for such amount in a
manner that reduces one or more subsequent premium payments
that the individual is required to pay under such subsection
for the coverage involved.

(ii) Reimbursing employer.--A person to which clause (i)
applies shall be reimbursed as provided for in section 6432
of the Internal Revenue Code of 1986 for any payment made, or
credit provided, to the employee under such clause.
(iii) Payment or credits.--Unless it is reasonable to
believe that the credit for the excess payment in clause
(i)(II) will be used by the assistance eligible individual
within 180 days of the date on which the person receives from
the individual the payment of the full premium amount, a
person to which clause (i) applies shall make the payment
required under such clause to the individual within 60 days
of such payment of the full premium amount. If, as of any day
within the 180-day period, it is no longer reasonable to
believe that the credit will be used during that period,
payment equal to the remainder of the credit outstanding
shall be made to the individual within 60 days of such day.
(13) Penalty for failure to notify health plan of cessation
of eligibility for premium assistance.--
(A) In general.--Part I of subchapter B of chapter 68 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:

``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF
CESSATION OF ELIGIBILITY FOR COBRA PREMIUM
ASSISTANCE.

``(a) In General.--Any person required to notify a group
health plan under section 3001(a)(2)(C) of the American
Recovery and Reinvestment Act of 2009 who fails to make such
a notification at such time and in such manner as the
Secretary of Labor may require shall pay a penalty of 110
percent of the premium reduction provided under such section
after termination of eligibility under such subsection.

[[Page S1195]]

``(b) Reasonable Cause Exception.--No penalty shall be
imposed under subsection (a) with respect to any failure if
it is shown that such failure is due to reasonable cause and
not to willful neglect.''.
(B) Clerical amendment.--The table of sections of part I of
subchapter B of chapter 68 of such Code is amended by adding
at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of
eligibility for COBRA premium assistance.''.
(C) Effective date.--The amendments made by this paragraph
shall apply to failures occurring after the date of the
enactment of this Act.
(14) Coordination with hctc.--
(A) In general.--Subsection (g) of section 35 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraph (9) as paragraph (10) and inserting after paragraph
(8) the following new paragraph:
``(9) COBRA premium assistance.--In the case of an
assistance eligible individual who receives premium reduction
for COBRA continuation coverage under section 3001(a) of the
American Recovery and Reinvestment Act of 2009 for any month
during the taxable year, such individual shall not be treated
as an eligible individual, a certified individual, or a
qualifying family member for purposes of this section or
section 7527 with respect to such month.''.
(B) Effective date.--The amendment made by subparagraph (A)
shall apply to taxable years ending after the date of the
enactment of this Act.
(15) Exclusion of cobra premium assistance from gross
income.--
(A) In general.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting
after section 139B the following new section:

``SEC. 139C. COBRA PREMIUM ASSISTANCE.

``In the case of an assistance eligible individual (as
defined in section 3001 of the American Recovery and
Reinvestment Act of 2009), gross income does not include any
premium reduction provided under subsection (a) of such
section.''.
(B) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 139B the
following new item:

``Sec. 139C. COBRA premium assistance.''.
(C) Effective date.--The amendments made by this paragraph
shall apply to taxable years ending after the date of the
enactment of this Act.

Subtitle B--Transitional Medical Assistance (TMA)

SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE
(TMA).

(a) 18-Month Extension.--
(1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the
Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f))
are each amended by striking ``September 30, 2003'' and
inserting ``December 31, 2010''.
(2) Effective date.--The amendments made by this subsection
shall take effect on July 1, 2009.
(b) State Option of Initial 12-Month Eligibility.--Section
1925 of the Social Security Act (42 U.S.C. 1396r-6) is
amended--
(1) in subsection (a)(1), by inserting ``but subject to
paragraph (5)'' after ``Notwithstanding any other provision
of this title'';
(2) by adding at the end of subsection (a) the following:
``(5) Option of 12-month initial eligibility period.--A
State may elect to treat any reference in this subsection to
a 6-month period (or 6 months) as a reference to a 12-month
period (or 12 months). In the case of such an election,
subsection (b) shall not apply.''; and
(3) in subsection (b)(1), by inserting ``but subject to
subsection (a)(5)'' after ``Notwithstanding any other
provision of this title''.
(c) Removal of Requirement for Previous Receipt of Medical
Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-
6(a)(1)), as amended by subsection (b)(1), is further
amended--
(1) by inserting ``subparagraph (B) and'' before
``paragraph (5)'';
(2) by redesignating the matter after ``Requirement.--'' as
a subparagraph (A) with the heading ``In general.--'' and
with the same indentation as subparagraph (B) (as added by
paragraph (3)); and
(3) by adding at the end the following:
``(B) State option to waive requirement for 3 months before
receipt of medical assistance.--A State may, at its option,
elect also to apply subparagraph (A) in the case of a family
that was receiving such aid for fewer than three months or
that had applied for and was eligible for such aid for fewer
than 3 months during the 6 immediately preceding months
described in such subparagraph.''.
(d) CMS Report on Enrollment and Participation Rates Under
TMA.--Section 1925 of such Act (42 U.S.C. 1396r-6), as
amended by this section, is further amended by adding at the
end the following new subsection:
``(g) Collection and Reporting of Participation
Information.--
``(1) Collection of information from states.--Each State
shall collect and submit to the Secretary (and make publicly
available), in a format specified by the Secretary,
information on average monthly enrollment and average monthly
participation rates for adults and children under this
section and of the number and percentage of children who
become ineligible for medical assistance under this section
whose medical assistance is continued under another
eligibility category or who are enrolled under the State's
child health plan under title XXI. Such information shall be
submitted at the same time and frequency in which other
enrollment information under this title is submitted to the
Secretary.
``(2) Annual reports to congress.--Using the information
submitted under paragraph (1), the Secretary shall submit to
Congress annual reports concerning enrollment and
participation rates described in such paragraph.''.
(e) Effective Date.--The amendments made by subsections (b)
through (d) shall take effect on July 1, 2009.

Subtitle C--Extension of the Qualified Individual (QI) Program

SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI)
PROGRAM.

(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by
striking ``December 2009'' and inserting ``December 2010''.
(b) Extending Total Amount Available for Allocation.--
Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is
amended--
(1) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph (K);
(B) in subparagraph (L), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(M) for the period that begins on January 1, 2010, and
ends on September 30, 2010, the total allocation amount is
$412,500,000; and
``(N) for the period that begins on October 1, 2010, and
ends on December 31, 2010, the total allocation amount is
$150,000,000.''; and
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``or (L)'' and inserting ``(L), or (N)''.

Subtitle D--Other Provisions

SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS UNDER
MEDICAID, ELIGIBILITY DETERMINATIONS UNDER
MEDICAID AND CHIP, AND PROTECTION OF CERTAIN
INDIAN PROPERTY FROM MEDICAID ESTATE RECOVERY.

(a) Premiums and Cost Sharing Protection Under Medicaid.--
(1) In general.--Section 1916 of the Social Security Act
(42 U.S.C. 1396o) is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``and (i)'' and inserting ``, (i), and
(j)''; and
(B) by adding at the end the following new subsection:
``(j) No Premiums or Cost Sharing for Indians Furnished
Items or Services Directly by Indian Health Programs or
Through Referral Under Contract Health Services.--
``(1) No cost sharing for items or services furnished to
indians through indian health programs.--
``(A) In general.--No enrollment fee, premium, or similar
charge, and no deduction, copayment, cost sharing, or similar
charge shall be imposed against an Indian who is furnished an
item or service directly by the Indian Health Service, an
Indian Tribe, Tribal Organization, or Urban Indian
Organization or through referral under contract health
services for which payment may be made under this title.
``(B) No reduction in amount of payment to indian health
providers.--Payment due under this title to the Indian Health
Service, an Indian Tribe, Tribal Organization, or Urban
Indian Organization, or a health care provider through
referral under contract health services for the furnishing of
an item or service to an Indian who is eligible for
assistance under such title, may not be reduced by the amount
of any enrollment fee, premium, or similar charge, or any
deduction, copayment, cost sharing, or similar charge that
would be due from the Indian but for the operation of
subparagraph (A).
``(2) Rule of construction.--Nothing in this subsection
shall be construed as restricting the application of any
other limitations on the imposition of premiums or cost
sharing that may apply to an individual receiving medical
assistance under this title who is an Indian.''.
(2) Conforming amendment.--Section 1916A(b)(3) of such Act
(42 U.S.C. 1396o-1(b)(3)) is amended--
(A) in subparagraph (A), by adding at the end the following
new clause:
``(vi) An Indian who is furnished an item or service
directly by the Indian Health Service, an Indian Tribe,
Tribal Organization or Urban Indian Organization or through
referral under contract health services.''; and
(B) in subparagraph (B), by adding at the end the following
new clause:
``(ix) Items and services furnished to an Indian directly
by the Indian Health Service, an Indian Tribe, Tribal
Organization or Urban Indian Organization or through referral
under contract health services.''.
(b) Treatment of Certain Property From Resources for
Medicaid and CHIP Eligibility.--
(1) Medicaid.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended by adding at the end the following
new subsection:
``(dd) Notwithstanding any other requirement of this title
or any other provision of Federal or State law, a State shall
disregard the following property from resources for purposes
of determining the eligibility of an

[[Page S1196]]

individual who is an Indian for medical assistance under this
title:
``(1) Property, including real property and improvements,
that is held in trust, subject to Federal restrictions, or
otherwise under the supervision of the Secretary of the
Interior, located on a reservation, including any federally
recognized Indian Tribe's reservation, pueblo, or colony,
including former reservations in Oklahoma, Alaska Native
regions established by the Alaska Native Claims Settlement
Act, and Indian allotments on or near a reservation as
designated and approved by the Bureau of Indian Affairs of
the Department of the Interior.
``(2) For any federally recognized Tribe not described in
paragraph (1), property located within the most recent
boundaries of a prior Federal reservation.
``(3) Ownership interests in rents, leases, royalties, or
usage rights related to natural resources (including
extraction of natural resources or harvesting of timber,
other plants and plant products, animals, fish, and
shellfish) resulting from the exercise of federally protected
rights.
``(4) Ownership interests in or usage rights to items not
covered by paragraphs (1) through (3) that have unique
religious, spiritual, traditional, or cultural significance
or rights that support subsistence or a traditional lifestyle
according to applicable tribal law or custom.''.
(2) Application to chip.--Section 2107(e)(1) of such Act
(42 U.S.C. 1397gg(e)(1)) is amended--
(A) by redesignating subparagraphs (B) through (E), as
subparagraphs (C) through (F), respectively; and
(B) by inserting after subparagraph (A), the following new
subparagraph:
``(B) Section 1902(dd) (relating to disregard of certain
property for purposes of making eligibility
determinations).''.
(c) Continuation of Current Law Protections of Certain
Indian Property From Medicaid Estate Recovery.--Section
1917(b)(3) of the Social Security Act (42 U.S.C. 1396p(b)(3))
is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following new subparagraph:
``(B) The standards specified by the Secretary under
subparagraph (A) shall require that the procedures
established by the State agency under subparagraph (A) exempt
income, resources, and property that are exempt from the
application of this subsection as of April 1, 2003, under
manual instructions issued to carry out this subsection (as
in effect on such date) because of the Federal responsibility
for Indian Tribes and Alaska Native Villages. Nothing in this
subparagraph shall be construed as preventing the Secretary
from providing additional estate recovery exemptions under
this title for Indians.''.

SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP TO
MANAGED CARE ENTITIES WITH RESPECT TO INDIAN
ENROLLEES AND INDIAN HEALTH CARE PROVIDERS AND
INDIAN MANAGED CARE ENTITIES.

(a) In General.--Section 1932 of the Social Security Act
(42 U.S.C. 1396u-2) is amended by adding at the end the
following new subsection:
``(h) Special Rules With Respect to Indian Enrollees,
Indian Health Care Providers, and Indian Managed Care
Entities.--
``(1) Enrollee option to select an indian health care
provider as primary care provider.--In the case of a non-
Indian Medicaid managed care entity that--
``(A) has an Indian enrolled with the entity; and
``(B) has an Indian health care provider that is
participating as a primary care provider within the network
of the entity,

insofar as the Indian is otherwise eligible to receive
services from such Indian health care provider and the Indian
health care provider has the capacity to provide primary care
services to such Indian, the contract with the entity under
section 1903(m) or under section 1905(t)(3) shall require, as
a condition of receiving payment under such contract, that
the Indian shall be allowed to choose such Indian health care
provider as the Indian's primary care provider under the
entity.
``(2) Assurance of payment to indian health care providers
for provision of covered services.--Each contract with a
managed care entity under section 1903(m) or under section
1905(t)(3) shall require any such entity, as a condition of
receiving payment under such contract, to satisfy the
following requirements:
``(A) Demonstration of access to indian health care
providers and application of alternative payment
arrangements.--Subject to subparagraph (C), to--
``(i) demonstrate that the number of Indian health care
providers that are participating providers with respect to
such entity are sufficient to ensure timely access to covered
Medicaid managed care services for those Indian enrollees who
are eligible to receive services from such providers; and
``(ii) agree to pay Indian health care providers, whether
such providers are participating or nonparticipating
providers with respect to the entity, for covered Medicaid
managed care services provided to those Indian enrollees who
are eligible to receive services from such providers at a
rate equal to the rate negotiated between such entity and the
provider involved or, if such a rate has not been negotiated,
at a rate that is not less than the level and amount of
payment which the entity would make for the services if the
services were furnished by a participating provider which is
not an Indian health care provider.
``(B) Prompt payment.--To agree to make prompt payment
(consistent with rule for prompt payment of providers under
section 1932(f)) to Indian health care providers that are
participating providers with respect to such entity or, in
the case of an entity to which subparagraph (A)(ii) or (C)
applies, that the entity is required to pay in accordance
with that subparagraph.
``(C) Application of special payment requirements for
federally-qualified health centers and for services provided
by certain indian health care providers.--
``(i) Federally-qualified health centers.--

``(I) Managed care entity payment requirement.--To agree to
pay any Indian health care provider that is a federally-
qualified health center under this title but not a
participating provider with respect to the entity, for the
provision of covered Medicaid managed care services by such
provider to an Indian enrollee of the entity at a rate equal
to the amount of payment that the entity would pay a
federally-qualified health center that is a participating
provider with respect to the entity but is not an Indian
health care provider for such services.
``(II) Continued application of state requirement to make
supplemental payment.--Nothing in subclause (I) or
subparagraph (A) or (B) shall be construed as waiving the
application of section 1902(bb)(5) regarding the State plan
requirement to make any supplemental payment due under such
section to a federally-qualified health center for services
furnished by such center to an enrollee of a managed care
entity (regardless of whether the federally-qualified health
center is or is not a participating provider with the
entity).

``(ii) Payment rate for services provided by certain indian
health care providers.--If the amount paid by a managed care
entity to an Indian health care provider that is not a
federally-qualified health center for services provided by
the provider to an Indian enrollee with the managed care
entity is less than the rate that applies to the provision of
such services by the provider under the State plan, the plan
shall provide for payment to the Indian health care provider,
whether the provider is a participating or nonparticipating
provider with respect to the entity, of the difference
between such applicable rate and the amount paid by the
managed care entity to the provider for such services.
``(D) Construction.--Nothing in this paragraph shall be
construed as waiving the application of section
1902(a)(30)(A) (relating to application of standards to
assure that payments are consistent with efficiency, economy,
and quality of care).
``(3) Special rule for enrollment for indian managed care
entities.--Regarding the application of a Medicaid managed
care program to Indian Medicaid managed care entities, an
Indian Medicaid managed care entity may restrict enrollment
under such program to Indians and to members of specific
Tribes in the same manner as Indian Health Programs may
restrict the delivery of services to such Indians and tribal
members.
``(4) Definitions.--For purposes of this subsection:
``(A) Indian health care provider.--The term `Indian health
care provider' means an Indian Health Program or an Urban
Indian Organization.
``(B) Indian medicaid managed care entity.--The term
`Indian Medicaid managed care entity' means a managed care
entity that is controlled (within the meaning of the last
sentence of section 1903(m)(1)(C)) by the Indian Health
Service, a Tribe, Tribal Organization, or Urban Indian
Organization, or a consortium, which may be composed of 1 or
more Tribes, Tribal Organizations, or Urban Indian
Organizations, and which also may include the Service.
``(C) Non-indian medicaid managed care entity.--The term
`non-Indian Medicaid managed care entity' means a managed
care entity that is not an Indian Medicaid managed care
entity.
``(D) Covered medicaid managed care services.--The term
`covered Medicaid managed care services' means, with respect
to an individual enrolled with a managed care entity, items
and services for which benefits are available with respect to
the individual under the contract between the entity and the
State involved.
``(E) Medicaid managed care program.--The term `Medicaid
managed care program' means a program under sections 1903(m),
1905(t), and 1932 and includes a managed care program
operating under a waiver under section 1915(b) or 1115 or
otherwise.''.
(b) Application to CHIP.--Subject to section _013(d),
section 2107(e)(1) of such Act (42 U.S.C. 1397gg(1)) is
amended by adding at the end the following new subparagraph:
``(E) Subsections (a)(2)(C) and (h) of section 1932.''.

SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH
CARE PROGRAMS FUNDED UNDER THE SOCIAL SECURITY
ACT INVOLVING INDIAN HEALTH PROGRAMS AND URBAN
INDIAN ORGANIZATIONS.

(a) Consultation With Tribal Technical Advisory Group
(TTAG).--The Secretary of Health and Human Services shall
maintain within the Centers for Medicaid & Medicare Services
(CMS) a Tribal Technical Advisory Group (TTAG), which was
first established in

[[Page S1197]]

accordance with requirements of the charter dated September
30, 2003, and the Secretary of Health and Human Services
shall include in such Group a representative of a national
urban Indian health organization and a representative of the
Indian Health Service. The inclusion of a representative of a
national urban Indian health organization in such Group shall
not affect the nonapplication of the Federal Advisory
Committee Act (5 U.S.C. App.) to such Group.
(b) Solicitation of Advice Under Medicaid and CHIP.--
(1) Medicaid state plan amendment.--Subject to subsection
(d), section 1902(a) of the Social Security Act (42 U.S.C.
1396a(a)) is amended--
(A) in paragraph (70), by striking ``and'' at the end;
(B) in paragraph (71), by striking the period at the end
and inserting ``; and''; and
(C) by inserting after paragraph (71), the following new
paragraph:
``(72) in the case of any State in which 1 or more Indian
Health Programs or Urban Indian Organizations furnishes
health care services, provide for a process under which the
State seeks advice on a regular, ongoing basis from designees
of such Indian Health Programs and Urban Indian Organizations
on matters relating to the application of this title that are
likely to have a direct effect on such Indian Health Programs
and Urban Indian Organizations and that--
``(A) shall include solicitation of advice prior to
submission of any plan amendments, waiver requests, and
proposals for demonstration projects likely to have a direct
effect on Indians, Indian Health Programs, or Urban Indian
Organizations; and
``(B) may include appointment of an advisory committee and
of a designee of such Indian Health Programs and Urban Indian
Organizations to the medical care advisory committee advising
the State on its State plan under this title.''.
(2) Application to chip.--Subject to subsection (d),
section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)), as
amended by section 3302(b)(2), is amended--
(A) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively; and
(B) by inserting after subparagraph (A), the following new
subparagraph:
``(B) Section 1902(a)(72) (relating to requiring certain
States to seek advice from designees of Indian Health
Programs and Urban Indian Organizations).''.
(c) Rule of Construction.--Nothing in the amendments made
by this section shall be construed as superseding existing
advisory committees, working groups, guidance, or other
advisory procedures established by the Secretary of Health
and Human Services or by any State with respect to the
provision of health care to Indians.
(d) Contingency Rule.--If the Children's Health Insurance
Program Reauthorization Act of 2009 (in this subsection
referred to as ``CHIPRA'') has been enacted as of the date of
enactment of this Act, the following shall apply:
(1) Subparagraph (I) of section 2107(e) of the Social
Security Act (as redesignated by CHIPRA) is redesignated as
subparagraph (K) and the subparagraph (E) added to section
2107(e) of the Social Security Act by section 3302(b) is
redesignated as subparagraph (J).
(2) Subparagraphs (D) through (H) of section 2107(e) of the
Social Security Act (as added and redesignated by CHIPRA) are
redesignated as subparagraphs (E) through (I), respectively
and the subparagraph (B) of section 2107(e) of the Social
Security Act added by subsection (b)(2) of this section is
redesignated as subparagraph (D) and amended by striking
``1902(a)(72)'' and inserting ``1902(a)(73)''.
(3) Section 1902(a) of the Social Security Act (as amended
by CHIPRA) is amended by striking ``and'' at the end of
paragraph (71), by striking the period at the end of the
paragraph (72) added by CHIPRA and inserting ``; and'' and by
redesignated the paragraph (72) added to such section by
subsection (b)(1) of this section as paragraph (73).

SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS TO NURSING
FACILITIES.

Section 1902(a)(37)(A) of the Social Security Act (42
U.S.C. 1396a(a)(37)(A)) is amended by inserting ``, or by
nursing facilities,'' after ``health facilities''

SEC. 3305. PERIOD OF APPLICATION; SUNSET.

This subtitle and the amendments made by this subtitle
shall be in effect only during the period that begins on
April 1, 2009, and ends on December 31, 2010. On and after
January 1, 2011, the Social Security Act shall be applied as
if this subtitle and the amendments made by this subtitle had
not been enacted.

TITLE IV--HEALTH INFORMATION TECHNOLOGY

SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

(a) Short Title.--This title may be cited as the ``Medicare
and Medicaid Health Information Technology for Economic and
Clinical Health Act'' or the ``M-HITECH Act''.
(b) Table of Contents of Title.--The table of contents for
this title is as follows:

TITLE IV--HEALTH INFORMATION TECHNOLOGY

Sec. 4001. Short title; table of contents of title.

Subtitle A--Medicare Program

Sec. 4201. Incentives for eligible professionals.
Sec. 4202. Incentives for hospitals.
Sec. 4203. Premium hold harmless and implementation funding.
Sec. 4204. Non-application of phased-out indirect medical education
(IME) adjustment factor for fiscal year 2009.
Sec. 4205. Study on application of EHR payment incentives for providers
not receiving other incentive payments.
Sec. 4206. Study on availability of open source health information
technology systems.

Subtitle B--Medicaid Funding

Sec. 4211. Medicaid provider EHR adoption and operation payments;
implementation funding.

Subtitle A--Medicare Program

SEC. 4201. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

(a) Incentive Payments.--Section 1848 of the Social
Security Act (42 U.S.C. 1395w-4) is amended by adding at the
end the following new subsection:
``(o) Incentives for Adoption and Meaningful Use of
Certified EHR Technology.--
``(1) Incentive payments.--
``(A) In general.--
``(i) In general.--Subject to clause (ii) and the
succeeding subparagraphs of this paragraph, with respect to
covered professional services furnished by an eligible
professional during a payment year (as defined in
subparagraph (E)), if the eligible professional is a
meaningful EHR user (as determined under paragraph (2)) for
the reporting period with respect to such year, in addition
to the amount otherwise paid under this part, there also
shall be paid to the eligible professional (or to an employer
or facility in the cases described in clause (A) of section
1842(b)(6)), from the Federal Supplementary Medical Insurance
Trust Fund established under section 1841 an amount equal to
75 percent of the Secretary's estimate (based on claims
submitted not later than 2 months after the end of the
payment year) of the allowed charges under this part for all
such covered professional services furnished by the eligible
professional during such year.
``(ii) No incentive payments with respect to years after
2015.--No incentive payments may be made under this
subsection with respect to a year after 2015.
``(B) Limitations on amounts of incentive payments.--
``(i) In general.--In no case shall the amount of the
incentive payment provided under this paragraph for an
eligible professional for a payment year exceed the
applicable amount specified under this subparagraph with
respect to such eligible professional and such year.
``(ii) Amount.--Subject to clauses (iii) through (v), the
applicable amount specified in this subparagraph for an
eligible professional is as follows:

``(I) For the first payment year for such professional,
$15,000 (or, if the first payment year for such eligible
professional is 2011 or 2012, $18,000).
``(II) For the second payment year for such professional,
$12,000.
``(III) For the third payment year for such professional,
$8,000.
``(IV) For the fourth payment year for such professional,
$4,000.
``(V) For the fifth payment year for such professional,
$2,000.
``(VI) For any succeeding payment year for such
professional, $0.

``(iii) Phase down for eligible professionals first
adopting ehr in 2014.--If the first payment year for an
eligible professional is 2014, then the amount specified in
this subparagraph for a payment year for such professional is
the same as the amount specified in clause (ii) for such
payment year for an eligible professional whose first payment
year is 2013.
``(iv) Increase for certain rural eligible professionals.--
In the case of an eligible professional who predominantly
furnishes services under this part in a rural area that is
designated by the Secretary (under section 332(a)(1)(A) of
the Public Health Service Act) as a health professional
shortage area, the amount that would otherwise apply for a
payment year for such professional under subclauses (I)
through (V) of clause (ii) shall be increased by 25 percent.
In implementing the preceding sentence, the Secretary may, as
determined appropriate, apply provisions of subsections (m)
and (u) of section 1833 in a similar manner as such
provisions apply under such subsection.
``(v) No incentive payment if first adopting after 2014.--
If the first payment year for an eligible professional is
after 2014 then the applicable amount specified in this
subparagraph for such professional for such year and any
subsequent year shall be $0.
``(C) Non-application to hospital-based eligible
professionals.--
``(i) In general.--No incentive payment may be made under
this paragraph in the case of a hospital-based eligible
professional.
``(ii) Hospital-based eligible professional.--For purposes
of clause (i), the term `hospital-based eligible
professional' means, with respect to covered professional
services furnished by an eligible professional during the
reporting period for a payment year, an eligible
professional, such as a pathologist, anesthesiologist, or
emergency physician, who furnishes substantially all of such
services in a hospital setting (whether inpatient

[[Page S1198]]

or outpatient) and through the use of the facilities and
equipment, including qualified electronic health records, of
the hospital.
``(D) Payment.--
``(i) Form of payment.--The payment under this paragraph
may be in the form of a single consolidated payment or in the
form of such periodic installments as the Secretary may
specify.
``(ii) Coordination of application of limitation for
professionals in different practices.--In the case of an
eligible professional furnishing covered professional
services in more than one practice (as specified by the
Secretary), the Secretary shall establish rules to coordinate
the incentive payments, including the application of the
limitation on amounts of such incentive payments under this
paragraph, among such practices.
``(iii) Coordination with medicaid.--The Secretary shall
seek, to the maximum extent practicable, to avoid duplicative
requirements from Federal and State Governments to
demonstrate meaningful use of certified EHR technology under
this title and title XIX. In doing so, the Secretary may deem
satisfaction of State requirements for such meaningful use
for a payment year under title XIX to be sufficient to
qualify as meaningful use under this subsection and
subsection (a)(7) and vice versa. The Secretary may also
adjust the reporting periods under such title and such
subsections in order to carry out this clause.
``(E) Payment year defined.--
``(i) In general.--For purposes of this subsection, the
term `payment year' means a year beginning with 2011.
``(ii) First, second, etc. payment year.--The term `first
payment year' means, with respect to covered professional
services furnished by an eligible professional, the first
year for which an incentive payment is made for such services
under this subsection. The terms `second payment year',
`third payment year', `fourth payment year', and `fifth
payment year' mean, with respect to covered professional
services furnished by such eligible professional, each
successive year immediately following the first payment year
for such professional.
``(2) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible professional shall be treated as a meaningful EHR
user for a reporting period for a payment year (or, for
purposes of subsection (a)(7), for a reporting period under
such subsection for a year) if each of the following
requirements is met:
``(i) Meaningful use of certified ehr technology.--The
eligible professional demonstrates to the satisfaction of the
Secretary, in accordance with subparagraph (C)(i), that
during such period the professional is using certified EHR
technology in a meaningful manner, which shall include the
use of electronic prescribing as determined to be appropriate
by the Secretary.
``(ii) Information exchange.--The eligible professional
demonstrates to the satisfaction of the Secretary, in
accordance with subparagraph (C)(i), that during such period
such certified EHR technology is connected in a manner that
provides, in accordance with law and standards applicable to
the exchange of information, for the electronic exchange of
health information to improve the quality of health care,
such as promoting care coordination.
``(iii) Reporting on measures using ehr.--Subject to
subparagraph (B)(ii) and using such certified EHR technology,
the eligible professional submits information for such
period, in a form and manner specified by the Secretary, on
such clinical quality measures and such other measures as
selected by the Secretary under subparagraph (B)(i).
The Secretary may provide for the use of alternative means
for meeting the requirements of clauses (i), (ii), and (iii)
in the case of an eligible professional furnishing covered
professional services in a group practice (as defined by the
Secretary). The Secretary shall seek to improve the use of
electronic health records and health care quality over time
by requiring more stringent measures of meaningful use
selected under this paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select measures for
purposes of subparagraph (A)(iii) but only consistent with
the following:

``(I) The Secretary shall provide preference to clinical
quality measures that have been endorsed by the entity with a
contract with the Secretary under section 1890(a).
``(II) Prior to any measure being selected under this
subparagraph, the Secretary shall publish in the Federal
Register such measure and provide for a period of public
comment on such measure.

``(ii) Limitation.--The Secretary may not require the
electronic reporting of information on clinical quality
measures under subparagraph (A)(iii) unless the Secretary has
the capacity to accept the information electronically, which
may be on a pilot basis.
``(iii) Coordination of reporting of information.--In
selecting such measures, and in establishing the form and
manner for reporting measures under subparagraph (A)(iii),
the Secretary shall seek to avoid redundant or duplicative
reporting otherwise required, including reporting under
subsection (k)(2)(C).
``(C) Demonstration of meaningful use of certified ehr
technology and information exchange.--
``(i) In general.--A professional may satisfy the
demonstration requirement of clauses (i) and (ii) of
subparagraph (A) through means specified by the Secretary,
which may include--

``(I) an attestation;
``(II) the submission of claims with appropriate coding
(such as a code indicating that a patient encounter was
documented using certified EHR technology);
``(III) a survey response;
``(IV) reporting under subparagraph (A)(iii); and
``(V) other means specified by the Secretary.

``(ii) Use of part d data.--Notwithstanding sections 1860D-
15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data
regarding drug claims submitted for purposes of section
1860D-15 that are necessary for purposes of subparagraph (A).
``(3) Application.--
``(A) Physician reporting system rules.--Paragraphs (5),
(6), and (8) of subsection (k) shall apply for purposes of
this subsection in the same manner as they apply for purposes
of such subsection.
``(B) Coordination with other payments.--The provisions of
this subsection shall not be taken into account in applying
the provisions of subsection (m) of this section and of
section 1833(m) and any payment under such provisions shall
not be taken into account in computing allowable charges
under this subsection.
``(C) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise of the determination of any incentive
payment under this subsection and the payment adjustment
under subsection (a)(7), including the determination of a
meaningful EHR user under paragraph (2), a limitation under
paragraph (1)(B), and the exception under subsection
(a)(7)(B).
``(D) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names, business addresses, and business phone numbers of the
eligible professionals who are meaningful EHR users and, as
determined appropriate by the Secretary, of group practices
receiving incentive payments under paragraph (1).
``(4) Certified ehr technology defined.--For purposes of
this section, the term `certified EHR technology' means a
qualified electronic health record (as defined in 3000(13) of
the Public Health Service Act) that is certified pursuant to
section 3001(c)(5) of such Act as meeting standards adopted
under section 3004 of such Act that are applicable to the
type of record involved (as determined by the Secretary, such
as an ambulatory electronic health record for office-based
physicians or an inpatient hospital electronic health record
for hospitals).
``(5) Definitions.--For purposes of this subsection:
``(A) Covered professional services.--The term `covered
professional services' has the meaning given such term in
subsection (k)(3).
``(B) Eligible professional.--The term `eligible
professional' means a physician, as defined in section
1861(r).
``(C) Reporting period.--The term `reporting period' means
any period (or periods), with respect to a payment year, as
specified by the Secretary.''.
(b) Incentive Payment Adjustment.--Section 1848(a) of the
Social Security Act (42 U.S.C. 1395w-4(a)) is amended by
adding at the end the following new paragraph:
``(7) Incentives for meaningful use of certified ehr
technology.--
``(A) Adjustment.--
``(i) In general.--Subject to subparagraphs (B) and (D),
with respect to covered professional services furnished by an
eligible professional during 2015 or any subsequent payment
year, if the eligible professional is not a meaningful EHR
user (as determined under subsection (o)(2)) for a reporting
period for the year, the fee schedule amount for such
services furnished by such professional during the year
(including the fee schedule amount for purposes of
determining a payment based on such amount) shall be equal to
the applicable percent of the fee schedule amount that would
otherwise apply to such services under this subsection
(determined after application of paragraph (3) but without
regard to this paragraph).
``(ii) Applicable percent.--Subject to clause (iii), for
purposes of clause (i), the term `applicable percent' means--

``(I) for 2015, 99 percent (or, in the case of an eligible
professional who was subject to the application of the
payment adjustment under section 1848(a)(5) for 2014, 98
percent);
``(II) for 2016, 98 percent; and
``(III) for 2017 and each subsequent year, 97 percent.

``(iii) Authority to decrease applicable percentage for
2018 and subsequent years.--For 2018 and each subsequent
year, if the Secretary finds that the proportion of eligible
professionals who are meaningful EHR users (as determined
under subsection (o)(2)) is less than 75 percent, the
applicable percent shall be decreased by 1 percentage point
from the applicable percent in the preceding year, but in no
case shall the applicable percent be less than 95 percent.
``(B) Significant hardship exception.--The Secretary may,
on a case-by-case basis, exempt an eligible professional from
the application of the payment adjustment under subparagraph
(A) if the Secretary determines, subject to annual renewal,
that compliance with the requirement for being a

[[Page S1199]]

meaningful EHR user would result in a significant hardship,
such as in the case of an eligible professional who practices
in a rural area without sufficient Internet access. In no
case may an eligible professional be granted an exemption
under this subparagraph for more than 5 years.
``(C) Application of physician reporting system rules.--
Paragraphs (5), (6), and (8) of subsection (k) shall apply
for purposes of this paragraph in the same manner as they
apply for purposes of such subsection.
``(D) Non-application to hospital-based eligible
professionals.--No payment adjustment may be made under
subparagraph (A) in the case of hospital-based eligible
professionals (as defined in subsection (o)(1)(C)(ii)).
``(E) Definitions.--For purposes of this paragraph:
``(i) Covered professional services.--The term `covered
professional services' has the meaning given such term in
subsection (k)(3).
``(ii) Eligible professional.--The term `eligible
professional' means a physician, as defined in section
1861(r).
``(iii) Reporting period.--The term `reporting period'
means, with respect to a year, a period specified by the
Secretary.''.
(c) Application to Certain MA-Affiliated Eligible
Professionals.--Section 1853 of the Social Security Act (42
U.S.C. 1395w-23) is amended by adding at the end the
following new subsection:
``(l) Application of Eligible Professional Incentives for
Certain MA Organizations for Adoption and Meaningful Use of
Certified EHR Technology.--
``(1) In general.--Subject to paragraphs (3) and (4), in
the case of a qualifying MA organization, the provisions of
sections 1848(o) and 1848(a)(7) shall apply with respect to
eligible professionals described in paragraph (2) of the
organization who the organization attests under paragraph (6)
to be meaningful EHR users in a similar manner as they apply
to eligible professionals under such sections. Incentive
payments under paragraph (3) shall be made to and payment
adjustments under paragraph (4) shall apply to such
qualifying organizations.
``(2) Eligible professional described.--With respect to a
qualifying MA organization, an eligible professional
described in this paragraph is an eligible professional (as
defined for purposes of section 1848(o)) who--
``(A)(i) is employed by the organization; or
``(ii)(I) is employed by, or is a partner of, an entity
that through contract with the organization furnishes at
least 80 percent of the entity's patient care services to
enrollees of such organization; and
``(II) furnishes at least 75 percent of the professional
services of the eligible professional to enrollees of the
organization; and
``(B) furnishes, on average, at least 20 hours per week of
patient care services.
``(3) Eligible professional incentive payments.--
``(A) In general.--In applying section 1848(o) under
paragraph (1), instead of the additional payment amount under
section 1848(o)(1)(A) and subject to subparagraph (B), the
Secretary may substitute an amount determined by the
Secretary to the extent feasible and practical to be similar
to the estimated amount in the aggregate that would be
payable if payment for services furnished by such
professionals was payable under part B instead of this part.
``(B) Avoiding duplication of payments.--
``(i) In general.--If an eligible professional described in
paragraph (2) is eligible for the maximum incentive payment
under section 1848(o)(1)(A) for the same payment period, the
payment incentive shall be made only under such section and
not under this subsection.
``(ii) Methods.--In the case of an eligible professional
described in paragraph (2) who is eligible for an incentive
payment under section 1848(o)(1)(A) but is not described in
clause (i) for the same payment period, the Secretary shall
develop a process--

``(I) to ensure that duplicate payments are not made with
respect to an eligible professional both under this
subsection and under section 1848(o)(1)(A); and
``(II) to collect data from Medicare Advantage
organizations to ensure against such duplicate payments.

``(C) Fixed schedule for application of limitation on
incentive payments for all eligible professionals.--In
applying section 1848(o)(1)(B)(ii) under subparagraph (A), in
accordance with rules specified by the Secretary, a
qualifying MA organization shall specify a year (not earlier
than 2011) that shall be treated as the first payment year
for all eligible professionals with respect to such
organization.
``(D) Cap for economies of scale.--In no case may an
incentive payment be made under this subsection, including
under subparagraph (A), to a qualifying MA organization with
respect to more than 5,000 eligible professionals of the
organization.
``(4) Payment adjustment.--
``(A) In general.--In applying section 1848(a)(7) under
paragraph (1), instead of the payment adjustment being an
applicable percent of the fee schedule amount for a year
under such section, subject to subparagraph (D), the payment
adjustment under paragraph (1) shall be equal to the percent
specified in subparagraph (B) for such year of the payment
amount otherwise provided under this section for such year.
``(B) Specified percent.--The percent specified under this
subparagraph for a year is 100 percent minus a number of
percentage points equal to the product of--
``(i) a percentage equal to 100 percent reduced by the
applicable percent (under section 1848(a)(7)(A)(ii)) for the
year; and
``(ii) a percentage equal to the Secretary's estimate of
the proportion for the year, of the expenditures under parts
A and B that are not attributable to this part, that are
attributable to expenditures for physicians' services.
``(C) Application of payment adjustment.--In the case that
a qualifying MA organization attests that not all eligible
professionals of the organization are meaningful EHR users
with respect to a year, the Secretary shall apply the payment
adjustment under this paragraph based on the proportion of
all eligible professionals of the organization that are not
meaningful EHR users for such year. If the number of eligible
professionals of the organization that are not meaningful EHR
users for such year exceeds 5,000, such number shall be
reduced to 5,000 for purposes of determining the proportion
under the preceding sentence.
``(5) Qualifying ma organization defined.--In this
subsection and subsection (m), the term `qualifying MA
organization' means a Medicare Advantage organization that is
organized as a health maintenance organization (as defined in
section 2791(b)(3) of the Public Health Service Act).
``(6) Meaningful ehr user attestation.--For purposes of
this subsection and subsection (m), a qualifying MA
organization shall submit an attestation, in a form and
manner specified by the Secretary which may include the
submission of such attestation as part of submission of the
initial bid under section 1854(a)(1)(A)(iv), identifying--
``(A) whether each eligible professional described in
paragraph (2), with respect to such organization is a
meaningful EHR user (as defined in section 1848(o)(2)) for a
year specified by the Secretary; and
``(B) whether each eligible hospital described in
subsection (m)(1), with respect to such organization, is a
meaningful EHR user (as defined in section 1886(n)(3)) for an
applicable period specified by the Secretary.
``(7) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names, business addresses, and business phone numbers of--
``(A) each qualifying MA organization receiving an
incentive payment under this subsection for eligible
professionals of the organization; and
``(B) the eligible professionals of such organization for
which such incentive payment is based.''.
(d) Conforming Amendments.--Section 1853 of the Social
Security Act (42 U.S.C. 1395w-23) is amended--
(1) in subsection (a)(1)(A), by striking ``and (i)'' and
inserting ``(i), and (l)'';
(2) in subsection (c)--
(A) in paragraph (1)(D)(i), by striking ``section 1886(h)''
and inserting ``sections 1848(o) and 1886(h)''; and
(B) in paragraph (6)(A), by inserting after ``under part
B,'' the following: ``excluding expenditures attributable to
subsections (a)(7) and (o) of section 1848,''; and
(3) in subsection (f), by inserting ``and for payments
under subsection (l)'' after ``with the organization''.
(e) Conforming Amendments to e-Prescribing.--
(1) Section 1848(a)(5)(A) of the Social Security Act (42
U.S.C. 1395w-4(a)(5)(A)) is amended--
(A) in clause (i), by striking ``or any subsequent year''
and inserting ``, 2013, or 2014''; and
(B) in clause (ii), by striking ``and each subsequent
year''.
(2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-
4(m)(2)) is amended--
(A) in subparagraph (A), by striking ``For 2009'' and
inserting ``Subject to subparagraph (D), for 2009''; and
(B) by adding at the end the following new subparagraph:
``(D) Limitation with respect to ehr incentive payments.--
The provisions of this paragraph shall not apply to an
eligible professional (or, in the case of a group practice
under paragraph (3)(C), to the group practice) if, for the
reporting period the eligible professional (or group
practice) receives an incentive payment under subsection
(o)(1)(A) with respect to a certified EHR technology (as
defined in subsection (o)(4)) that has the capability of
electronic prescribing.''.
(f) Providing Assistance to Eligible Professionals and
Certain Hospitals.--
(1) In general.--The Secretary of Health and Human Services
shall provide assistance to eligible professionals (as
defined in section 1848(o)(5), as added by subsection (a)),
Medicaid providers (as defined in section 1903(t)(2) of such
Act, as added by section 4211(a)), and eligible hospitals (as
defined in section 1886(n)(6)(A) of such Act, as added by
section 4202(a)) located in rural or other medically
underserved areas to successfully choose, implement, and use
certified EHR technology (as defined in section 1848(o)(4) of
the Social Security Act, as added by section 4201(a)).
(2) Use of entities with expertise.--To the extent
practicable, the Secretary shall provide such assistance
through entities that have expertise in the choice,
implementation, and use of such certified EHR technology.

[[Page S1200]]

SEC. 4202. INCENTIVES FOR HOSPITALS.

(a) Incentive Payment.--Section 1886 of the Social Security
Act (42 U.S.C. 1395ww) is amended by adding at the end the
following new subsection:
``(n) Incentives for Adoption and Meaningful Use of
Certified EHR Technology.--
``(1) In general.--Subject to the succeeding provisions of
this subsection, with respect to inpatient hospital services
furnished by an eligible hospital during a payment year (as
defined in paragraph (2)(G)), if the eligible hospital is a
meaningful EHR user (as determined under paragraph (3)) for
the reporting period with respect to such year, in addition
to the amount otherwise paid under this section, there also
shall be paid to the eligible hospital, from the Federal
Hospital Insurance Trust Fund established under section 1817,
an amount equal to the applicable amount specified in
paragraph (2)(A) for the hospital for such payment year.
``(2) Payment amount.--
``(A) In general.--Subject to the succeeding subparagraphs
of this paragraph, the applicable amount specified in this
subparagraph for an eligible hospital for a payment year is
equal to the product of the following:
``(i) Initial amount.--The sum of--

``(I) the base amount specified in subparagraph (B); plus
``(II) the discharge related amount specified in
subparagraph (C) for a 12-month period selected by the
Secretary with respect to such payment year.

``(ii) Medicare share.--The Medicare share as specified in
subparagraph (D) for the hospital for a period selected by
the Secretary with respect to such payment year.
``(iii) Transition factor.--The transition factor specified
in subparagraph (E) for the hospital for the payment year.
``(B) Base amount.--The base amount specified in this
subparagraph is $2,000,000.
``(C) Discharge related amount.--The discharge related
amount specified in this subparagraph for a 12-month period
selected by the Secretary shall be determined as the sum of
the amount, based upon total discharges (regardless of any
source of payment) for the period, for each discharge up to
the 23,000th discharge as follows:
``(i) For the 1,150th through the 9,200nd discharge, $200.
``(ii) For the 9,201st through the 13,800th discharge, 50
percent of the amount specified in clause (i).
``(iii) For the 13,801st through the 23,000th discharge, 30
percent of the amount specified in clause (i).
``(D) Medicare share.--The Medicare share specified under
this subparagraph for a hospital for a period selected by the
Secretary for a payment year is equal to the fraction--
``(i) the numerator of which is the sum (for such period
and with respect to the hospital) of--

``(I) the number of inpatient-bed-days (as established by
the Secretary) which are attributable to individuals with
respect to whom payment may be made under part A; and
``(II) the number of inpatient-bed-days (as so established)
which are attributable to individuals who are enrolled with a
Medicare Advantage organization under part C; and

``(ii) the denominator of which is the product of--

``(I) the total number of inpatient-bed-days with respect
to the hospital during such period; and
``(II) the total amount of the hospital's charges during
such period, not including any charges that are attributable
to charity care (as such term is used for purposes of
hospital cost reporting under this title), divided by the
total amount of the hospital's charges during such period.

Insofar as the Secretary determines that data are not
available on charity care necessary to calculate the portion
of the formula specified in clause (ii)(II), the Secretary
shall use data on uncompensated care and may adjust such data
so as to be an appropriate proxy for charity care including a
downward adjustment to eliminate bad debt data from
uncompensated care data. In the absence of the data
necessary, with respect to a hospital, for the Secretary to
compute the amount described in clause (ii)(II), the amount
under such clause shall be deemed to be 1. In the absence of
data, with respect to a hospital, necessary to compute the
amount described in clause (i)(II), the amount under such
clause shall be deemed to be 0.
``(E) Transition factor specified.--
``(i) In general.--Subject to clause (ii), the transition
factor specified in this subparagraph for an eligible
hospital for a payment year is as follows:

``(I) For the first payment year for such hospital, 1.
``(II) For the second payment year for such hospital, \3/
4\.
``(III) For the third payment year for such hospital, \1/
2\.
``(IV) For the fourth payment year for such hospital, \1/
4\.
``(V) For any succeeding payment year for such hospital, 0.

``(ii) Phase down for eligible hospitals first adopting ehr
after 2013.--If the first payment year for an eligible
hospital is after 2013, then the transition factor specified
in this subparagraph for a payment year for such hospital is
the same as the amount specified in clause (i) for such
payment year for an eligible hospital for which the first
payment year is 2013. If the first payment year for an
eligible hospital is after 2015 then the transition factor
specified in this subparagraph for such hospital and for such
year and any subsequent year shall be 0.
``(F) Form of payment.--The payment under this subsection
for a payment year may be in the form of a single
consolidated payment or in the form of such periodic
installments as the Secretary may specify.
``(G) Payment year defined.--
``(i) In general.--For purposes of this subsection, the
term `payment year' means a fiscal year beginning with fiscal
year 2011.
``(ii) First, second, etc. payment year.--The term `first
payment year' means, with respect to inpatient hospital
services furnished by an eligible hospital, the first fiscal
year for which an incentive payment is made for such services
under this subsection. The terms `second payment year',
`third payment year', and `fourth payment year' mean, with
respect to an eligible hospital, each successive year
immediately following the first payment year for that
hospital.
``(3) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible hospital shall be treated as a meaningful EHR user
for a reporting period for a payment year (or, for purposes
of subsection (b)(3)(B)(ix), for a reporting period under
such subsection for a fiscal year) if each of the following
requirements are met:
``(i) Meaningful use of certified ehr technology.--The
eligible hospital demonstrates to the satisfaction of the
Secretary, in accordance with subparagraph (C)(i), that
during such period the hospital is using certified EHR
technology in a meaningful manner.
``(ii) Information exchange.--The eligible hospital
demonstrates to the satisfaction of the Secretary, in
accordance with subparagraph (C)(i), that during such period
such certified EHR technology is connected in a manner that
provides, in accordance with law and standards applicable to
the exchange of information, for the electronic exchange of
health information to improve the quality of health care,
such as promoting care coordination.
``(iii) Reporting on measures using ehr.--Subject to
subparagraph (B)(ii) and using such certified EHR technology,
the eligible hospital submits information for such period, in
a form and manner specified by the Secretary, on such
clinical quality measures and such other measures as selected
by the Secretary under subparagraph (B)(i).

The Secretary shall seek to improve the use of electronic
health records and health care quality over time by requiring
more stringent measures of meaningful use selected under this
paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select measures for
purposes of subparagraph (A)(iii) but only consistent with
the following:

``(I) The Secretary shall provide preference to clinical
quality measures that have been selected for purposes of
applying subsection (b)(3)(B)(viii) or that have been
endorsed by the entity with a contract with the Secretary
under section 1890(a).
``(II) Prior to any measure (other than a clinical quality
measure that has been selected for purposes of applying
subsection (b)(3)(B)(viii)) being selected under this
subparagraph, the Secretary shall publish in the Federal
Register such measure and provide for a period of public
comment on such measure.

``(ii) Limitations.--The Secretary may not require the
electronic reporting of information on clinical quality
measures under subparagraph (A)(iii) unless the Secretary has
the capacity to accept the information electronically, which
may be on a pilot basis.
``(iii) Coordination of reporting of information.--In
selecting such measures, and in establishing the form and
manner for reporting measures under subparagraph (A)(iii),
the Secretary shall seek to avoid redundant or duplicative
reporting with reporting otherwise required, including
reporting under subsection (b)(3)(B)(viii).
``(C) Demonstration of meaningful use of certified ehr
technology and information exchange.--
``(i) In general.--A hospital may satisfy the demonstration
requirement of clauses (i) and (ii) of subparagraph (A)
through means specified by the Secretary, which may include--

``(I) an attestation;
``(II) the submission of claims with appropriate coding
(such as a code indicating that inpatient care was documented
using certified EHR technology);
``(III) a survey response;
``(IV) reporting under subparagraph (A)(iii); and
``(V) other means specified by the Secretary.

``(ii) Use of part d data.--Notwithstanding sections 1860D-
15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data
regarding drug claims submitted for purposes of section
1860D-15 that are necessary for purposes of subparagraph (A).
``(4) Application.--
``(A) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise of the determination of any incentive
payment under this subsection and the payment adjustment
under subsection (b)(3)(B)(ix), including the determination
of a meaningful EHR user under paragraph (3), determination
of measures applicable to services furnished

[[Page S1201]]

by eligible hospitals under this subsection, and the
exception under subsection (b)(3)(B)(ix)(II).
``(B) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names of the eligible hospitals that are meaningful EHR users
under this subsection or subsection (b)(3)(B)(ix) and other
relevant data as determined appropriate by the Secretary. The
Secretary shall ensure that a hospital has the opportunity to
review the other relevant data that are to be made public
with respect to the hospital prior to such data being made
public.
``(5) Certified ehr technology defined.--The term
`certified EHR technology' has the meaning given such term in
section 1848(o)(4).
``(6) Definitions.--For purposes of this subsection:
``(A) Eligible hospital.--The term `eligible hospital'
means--
``(i) a subsection (d) hospital; and
``(ii) a critical access hospital (as defined in section
1861(mm)(1)).
``(B) Reporting period.--The term `reporting period' means
any period (or periods), with respect to a payment year, as
specified by the Secretary.''.
(b) Incentive Market Basket Adjustment.--
(1) In general.--Section 1886(b)(3)(B) of the Social
Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
(A) in clause (viii)(I), by inserting ``(or, beginning with
fiscal year 2016, by one-quarter)'' after ``2.0 percentage
points''; and
(B) by adding at the end the following new clause:
``(ix)(I) For purposes of clause (i) for fiscal year 2015
and each subsequent fiscal year, in the case of an eligible
hospital (as defined in subsection (n)(6)(A)) that is not a
meaningful EHR user (as defined in subsection (n)(3)) for the
reporting period for such fiscal year, three-quarters of the
applicable percentage increase otherwise applicable under
clause (i) for such fiscal year shall be reduced by 33\1/3\
percent for fiscal year 2015, 66\2/3\ percent for fiscal year
2016, and 100 percent for fiscal year 2017 and each
subsequent fiscal year. Such reduction shall apply only with
respect to the fiscal year involved and the Secretary shall
not take into account such reduction in computing the
applicable percentage increase under clause (i) for a
subsequent fiscal year.
``(II) The Secretary may, on a case-by-case basis, exempt a
subsection (d) hospital from the application of subclause (I)
with respect to a fiscal year if the Secretary determines,
subject to annual renewal, that requiring such hospital to be
a meaningful EHR user during such fiscal year would result in
a significant hardship, such as in the case of a hospital in
a rural area without sufficient Internet access. In no case
may a hospital be granted an exemption under this subclause
for more than 5 years.
``(III) For fiscal year 2015 and each subsequent fiscal
year, a State in which hospitals are paid for services under
section 1814(b)(3) shall adjust the payments to each
subsection (d) hospital in the State that is not a meaningful
EHR user (as defined in subsection (n)(3)) in a manner that
is designed to result in an aggregate reduction in payments
to hospitals in the State that is equivalent to the aggregate
reduction that would have occurred if payments had been
reduced to each subsection (d) hospital in the State in a
manner comparable to the reduction under the previous
provisions of this clause. The State shall report to the
Secretary the methodology it will use to make the payment
adjustment under the previous sentence.
``(IV) For purposes of this clause, the term `reporting
period' means, with respect to a fiscal year, any period (or
periods), with respect to the fiscal year, as specified by
the Secretary.''.
(2) Critical access hospitals.--Section 1814(l) of the
Social Security Act (42 U.S.C. 1395f(l)) is amended--
(A) in subparagraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)''; and
(B) by adding at the end the following new paragraph:
``(3)(A) Subject to subparagraph (B), for fiscal year 2015
and each subsequent fiscal year, in the case of a critical
access hospital that is not a meaningful EHR user (as defined
in section 1886(n)(3)) for the reporting period for such
fiscal year, paragraph (1) shall be applied by substituting
the applicable percent under subparagraph (C) for the percent
described in such paragraph (1).
``(B) The Secretary may, on a case-by-case basis, exempt a
critical access hospital from the application of subparagraph
(A) with respect to a fiscal year if the Secretary
determines, subject to annual renewal, that requiring such
hospital to be a meaningful EHR user during such fiscal year
would result in a significant hardship, such as in the case
of a hospital in a rural area without sufficient Internet
access. In no case may a hospital be granted an exemption
under this subparagraph for more than 5 years.
``(C) The percent described in this subparagraph is--
``(i) for fiscal year 2015, 100.66 percent;
``(ii) for fiscal year 2016, 100.33 percent; and
``(iii) for fiscal year 2017 and each subsequent fiscal
year, 100 percent.''.
(c) Application to Certain MA-Affiliated Eligible
Hospitals.--Section 1853 of the Social Security Act (42
U.S.C. 1395w-23), as amended by section 4201(c), is further
amended by adding at the end the following new subsection:
``(m) Application of Eligible Hospital Incentives for
Certain MA Organizations for Adoption and Meaningful Use of
Certified EHR Technology.--
``(1) Application.--Subject to paragraphs (3) and (4), in
the case of a qualifying MA organization, the provisions of
sections 1814(l)(3), 1886(n), and 1886(b)(3)(B)(ix) shall
apply with respect to eligible hospitals described in
paragraph (2) of the organization which the organization
attests under subsection (l)(6) to be meaningful EHR users in
a similar manner as they apply to eligible hospitals under
such sections. Incentive payments under paragraph (3) shall
be made to and payment adjustments under paragraph (4) shall
apply to such qualifying organizations.
``(2) Eligible hospital described.--With respect to a
qualifying MA organization, an eligible hospital described in
this paragraph is an eligible hospital (as defined in section
1886(n)(6)(A)) that is under common corporate governance with
such organization and serves individuals enrolled under an MA
plan offered by such organization.
``(3) Eligible hospital incentive payments.--
``(A) In general.--In applying section 1886(n)(2) under
paragraph (1), instead of the additional payment amount under
section 1886(n)(2), there shall be substituted an amount
determined by the Secretary to be similar to the estimated
amount in the aggregate that would be payable if payment for
services furnished by such hospitals was payable under part A
instead of this part. In implementing the previous sentence,
the Secretary--
``(i) shall, insofar as data to determine the discharge
related amount under section 1886(n)(2)(C) for an eligible
hospital are not available to the Secretary, use such
alternative data and methodology to estimate such discharge
related amount as the Secretary determines appropriate; and
``(ii) shall, insofar as data to determine the medicare
share described in section 1886(n)(2)(D) for an eligible
hospital are not available to the Secretary, use such
alternative data and methodology to estimate such share,
which data and methodology may include use of the inpatient
bed days (or discharges) with respect to an eligible hospital
during the appropriate period which are attributable to both
individuals for whom payment may be made under part A or
individuals enrolled in an MA plan under a Medicare Advantage
organization under this part as a proportion of the total
number of patient-bed-days (or discharges) with respect to
such hospital during such period.
``(B) Avoiding duplication of payments.--
``(i) In general.--In the case of a hospital that for a
payment year is an eligible hospital described in paragraph
(2) and for which at least one-third of their discharges (or
bed-days) of Medicare patients for the year are covered under
part A, payment for the payment year shall be made only under
section 1886(n) and not under this subsection.
``(ii) Methods.--In the case of a hospital that is an
eligible hospital described in paragraph (2) and also is
eligible for an incentive payment under section 1886(n) but
is not described in clause (i) for the same payment period,
the Secretary shall develop a process--

``(I) to ensure that duplicate payments are not made with
respect to an eligible hospital both under this subsection
and under section 1886(n); and
``(II) to collect data from Medicare Advantage
organizations to ensure against such duplicate payments.

``(4) Payment adjustment.--
``(A) Subject to paragraph (3), in the case of a qualifying
MA organization (as defined in section 1853(l)(5)), if,
according to the attestation of the organization submitted
under subsection (l)(6) for an applicable period, one or more
eligible hospitals (as defined in section 1886(n)(6)(A)) that
are under common corporate governance with such organization
and that serve individuals enrolled under a plan offered by
such organization are not meaningful EHR users (as defined in
section 1886(n)(3)) with respect to a period, the payment
amount payable under this section for such organization for
such period shall be the percent specified in subparagraph
(B) for such period of the payment amount otherwise provided
under this section for such period.
``(B) Specified percent.--The percent specified under this
subparagraph for a year is 100 percent minus a number of
percentage points equal to the product of--
``(i) the number of the percentage point reduction effected
under section 1886(b)(3)(B)(ix)(I) for the period; and
``(ii) the Medicare hospital expenditure proportion
specified in subparagraph (C) for the year.
``(C) Medicare hospital expenditure proportion.--The
Medicare hospital expenditure proportion under this
subparagraph for a year is the Secretary's estimate of the
proportion, of the expenditures under parts A and B that are
not attributable to this part, that are attributable to
expenditures for inpatient hospital services.
``(D) Application of payment adjustment.--In the case that
a qualifying MA organization attests that not all eligible
hospitals are meaningful EHR users with respect to an
applicable period, the Secretary shall apply the payment
adjustment under this paragraph based on a methodology
specified by the Secretary, taking into account

[[Page S1202]]

the proportion of such eligible hospitals, or discharges from
such hospitals, that are not meaningful EHR users for such
period.
``(5) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, --
``(A) a list of the names, business addresses, and business
phone numbers of each qualifying MA organization receiving an
incentive payment under this subsection for eligible
hospitals described in paragraph (2); and
``(B) a list of the names of the eligible hospitals for
which such incentive payment is based.''.
(d) Conforming Amendments.--
(1) Section 1814(b) of the Social Security Act (42 U.S.C.
1395f(b)) is amended--
(A) in paragraph (3), in the matter preceding subparagraph
(A), by inserting ``, subject to section
1886(d)(3)(B)(ix)(III),'' after ``then''; and
(B) by adding at the end the following: ``For purposes of
applying paragraph (3), there shall be taken into account
incentive payments, and payment adjustments under subsection
(b)(3)(B)(ix) or (n) of section 1886.''.
(2) Section 1851(i)(1) of the Social Security Act (42
U.S.C. 1395w-21(i)(1)) is amended by striking ``and
1886(h)(3)(D)'' and inserting ``1886(h)(3)(D), and 1853(m)''.
(3) Section 1853 of the Social Security Act (42 U.S.C.
1395w-23), as amended by section 4311(d)(1), is amended--
(A) in subsection (c)--
(i) in paragraph (1)(D)(i), by striking ``1848(o)'' and
inserting ``, 1848(o), and 1886(n)''; and
(ii) in paragraph (6)(A), by inserting ``and subsections
(b)(3)(B)(ix) and (n) of section 1886'' after ``section
1848''; and
(B) in subsection (f), by inserting ``and subsection (m)''
after ``under subsection (l)''.

SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTATION FUNDING.

(a) Premium Hold Harmless.--
(1) In general.--Section 1839(a)(1) of the Social Security
Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end
the following: ``In applying this paragraph there shall not
be taken into account additional payments under section
1848(o) and section 1853(l)(3) and the Government
contribution under section 1844(a)(3).''.
(2) Payment.--Section 1844(a) of such Act (42 U.S.C.
1395w(a)) is amended--
(A) in paragraph (2), by striking the period at the end and
inserting ``; plus''; and
(B) by adding at the end the following new paragraph:
``(3) a Government contribution equal to the amount of
payment incentives payable under sections 1848(o) and
1853(l)(3).''.
(b) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise
appropriated, there are appropriated to the Secretary of
Health and Human Services for the Center for Medicare &
Medicaid Services Program Management Account, $100,000,000
for each of fiscal years 2009 through 2015 and $45,000,000
for each succeeding fiscal year through fiscal year 2018,
which shall be available for purposes of carrying out the
provisions of (and amendments made by) this part. Amounts
appropriated under this subsection for a fiscal year shall be
available until expended.

SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT MEDICAL
EDUCATION (IME) ADJUSTMENT FACTOR FOR FISCAL
YEAR 2009.

(a) In General.--Section 412.322 of title 42, Code of
Federal Regulations, shall be applied without regard to
paragraph (c) of such section, and the Secretary of Health
and Human Services shall recompute payments for discharges
occurring on or after October 1, 2008, as if such paragraph
had never been in effect.
(b) No Effect on Subsequent Years.--Nothing in subsection
(a) shall be construed as having any effect on the
application of paragraph (d) of section 412.322 of title 42,
Code of Federal Regulations.

SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR
PROVIDERS NOT RECEIVING OTHER INCENTIVE
PAYMENTS.

(a) Study.--
(1) In general.--The Secretary of Health and Human Services
shall conduct a study to determine the extent to which and
manner in which payment incentives (such as under title XVIII
or XIX of the Social Security Act) and other funding for
purposes of implementing and using certified EHR technology
(as defined in section 1848(o)(4) of the Social Security Act,
as added by section 4311(a)) should be made available to
health care providers who are receiving minimal or no payment
incentives or other funding under this Act, under title XVIII
or XIX of such Act, or otherwise, for such purposes.
(2) Details of study.--Such study shall include an
examination of--
(A) the adoption rates of certified EHR technology (as so
defined) by such health care providers;
(B) the clinical utility of such technology by such health
care providers;
(C) whether the services furnished by such health care
providers are appropriate for or would benefit from the use
of such technology;
(D) the extent to which such health care providers work in
settings that might otherwise receive an incentive payment or
other funding under this Act, title XVIII or XIX of the
Social Security Act, or otherwise;
(E) the potential costs and the potential benefits of
making payment incentives and other funding available to such
health care providers; and
(F) any other issues the Secretary deems to be appropriate.
(b) Report.--Not later than June 30, 2010, the Secretary
shall submit to Congress a report on the findings and
conclusions of the study conducted under subsection (a).

SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE HEALTH
INFORMATION TECHNOLOGY SYSTEMS.

(a) In General.--
(1) Study.--The Secretary of Health and Human Services
shall, in consultation with the Under Secretary for Health of
the Veterans Health Administration, the Director of the
Indian Health Service, the Secretary of Defense, the Director
of the Agency for Healthcare Research and Quality, the
Administrator of the Health Resources and Services
Administration, and the Chairman of the Federal
Communications Commission, conduct a study on--
(A) the current availability of open source health
information technology systems to Federal safety net
providers (including small, rural providers);
(B) the total cost of ownership of such systems in
comparison to the cost of proprietary commercial products
available;
(C) the ability of such systems to respond to the needs of,
and be applied to, various populations (including children
and disabled individuals); and
(D) the capacity of such systems to facilitate
interoperability.
(2) Considerations.--In conducting the study under
paragraph (1), the Secretary of Health and Human Services
shall take into account the circumstances of smaller health
care providers, health care providers located in rural or
other medically underserved areas, and safety net providers
that deliver a significant level of health care to uninsured
individuals, Medicaid beneficiaries, SCHIP beneficiaries, and
other vulnerable individuals.
(b) Report.--Not later than October 1, 2010, the Secretary
of Health and Human Services shall submit to Congress a
report on the findings and the conclusions of the study
conducted under subsection (a), together with recommendations
for such legislation and administrative action as the
Secretary determines appropriate.

Subtitle B--Medicaid Funding

SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPERATION
PAYMENTS; IMPLEMENTATION FUNDING.

(a) In General.--Section 1903 of the Social Security Act
(42 U.S.C. 1396b) is amended--
(1) in subsection (a)(3)--
(A) by striking ``and'' at the end of subparagraph (D);
(B) by striking ``plus'' at the end of subparagraph (E) and
inserting ``and''; and
(C) by adding at the end the following new subparagraph:
``(F)(i) 100 percent of so much of the sums expended during
such quarter as are attributable to payments for certified
EHR technology (and support services including maintenance
and training that is for, or is necessary for the adoption
and operation of, such technology) by Medicaid providers
described in subsection (t)(1); and
``(ii) 90 percent of so much of the sums expended during
such quarter as are attributable to payments for reasonable
administrative expenses related to the administration of
payments described in clause (i) if the State meets the
condition described in subsection (t)(9); plus''; and
(2) by inserting after subsection (s) the following new
subsection:
``(t)(1)(A) For purposes of subsection (a)(3)(F), the
payments for certified EHR technology (and support services
including maintenance that is for, or is necessary for the
operation of, such technology) by Medicaid providers
described in this paragraph are payments made by the State in
accordance with this subsection of the applicable percent of
the net allowable costs of Medicaid providers (as defined in
paragraph (2)) for such technology (and support services).
``(B) For purposes of subparagraph (A), the term
`applicable percent' means--
``(i) in the case of a Medicaid provider described in
paragraph (2)(A), 85 percent;
``(ii) in the case of a Medicaid provider described in
clause (i) or (ii) of paragraph (2)(B), 100 percent; and
``(iii) in the case of a Medicaid provider described in
clause (iii) of paragraph (2)(B), a percent specified by the
Secretary, but not less than 85 percent.
``(2) In this subsection and subsection (a)(3)(F), the term
`Medicaid provider' means--
``(A) an eligible professional (as defined in paragraph
(3)(B)) who is not hospital-based and has at least 30 percent
of the professional's patient volume (as estimated in
accordance with standards established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title; and
``(B)(i) a children's hospital, (ii) an acute-care hospital
that is not described in clause (i) and that has at least 10
percent of the hospital's patient volume (as estimated in
accordance with standards established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title, or (iii) a Federally-qualified
health center or rural health clinic that has at least 30
percent of the center's or clinic's patient volume (as
estimated in accordance with

[[Page S1203]]

standards established by the Secretary) attributable to
individuals who are receiving medical assistance under this
title.

An eligible professional shall not qualify as a Medicaid
provider under this subsection unless the professional has
waived, in a manner specified by the Secretary, any right to
payment under section 1848(o) with respect to the adoption or
support of certified EHR technology by the eligible
professional. In applying clauses (ii) and (iii) of
subparagraph (B), the standards established by the Secretary
for patient volume shall include individuals enrolled in a
Medicaid managed care plan (under section 1903(m) or section
1932).
``(3) In this subsection and subsection (a)(3)(F):
``(A) The term `certified EHR technology' means a qualified
electronic health record (as defined in 3000(13) of the
Public Health Service Act) that is certified pursuant to
section 3001(c)(5) of such Act as meeting standards adopted
under section 3004 of such Act that are applicable to the
type of record involved (as determined by the Secretary, such
as an ambulatory electronic health record for office-based
physicians or an inpatient hospital electronic health record
for hospitals).
``(B) The term `eligible professional' means a physician as
defined in paragraphs (1) and (2) of section 1861(r), and
includes a nurse mid-wife and a nurse practitioner.
``(C) The term `hospital-based' means, with respect to an
eligible professional, a professional (such as a pathologist,
anesthesiologist, or emergency physician) who furnishes
substantially all of the individual's professional services
in a hospital setting (whether inpatient or outpatient) and
through the use of the facilities and equipment, including
qualified electronic health records, of the hospital.
``(4)(A) The term `allowable costs' means, with respect to
certified EHR technology of a Medicaid provider, costs of
such technology (and support services including maintenance
and training that is for, or is necessary for the adoption
and operation of, such technology) as determined by the
Secretary to be reasonable.
``(B) The term `net allowable costs' means allowable costs
reduced by any payment that is made to the Medicaid provider
involved from any other source that is directly attributable
to payment for certified EHR technology or services described
in subparagraph (A).
``(C) In no case shall--
``(i) the aggregate allowable costs under this subsection
(covering one or more years) with respect to a Medicaid
provider described in paragraph (2)(A) for purchase and
initial implementation of certified EHR technology (and
services described in subparagraph (A)) exceed $25,000 or
include costs over a period of longer than 5 years;
``(ii) for costs not described in clause (i) relating to
the operation, maintenance, or use of certified EHR
technology, the annual allowable costs under this subsection
with respect to such a Medicaid provider for costs not
described in clause (i) for any year exceed $10,000;
``(iii) payment described in paragraph (1) for costs
described in clause (ii) be made with respect to such a
Medicaid provider over a period of more than 5 years;
``(iv) the aggregate allowable costs under this subsection
with respect to such a Medicaid provider for all costs exceed
$75,000; or
``(v) the allowable costs, whether for purchase and initial
implementation, maintenance, or otherwise, for a Medicaid
provider described in paragraph (2)(B)(iii) exceed such
aggregate or annual limitation as the Secretary shall
establish, based on an amount determined by the Secretary as
being adequate to adopt and maintain certified EHR
technology, consistent with paragraph (6).
``(5) Payments described in paragraph (1) are not in
accordance with this subsection unless the following
requirements are met:
``(A) The State provides assurances satisfactory to the
Secretary that amounts received under subsection (a)(3)(F)
with respect to costs of a Medicaid provider are paid
directly to such provider without any deduction or rebate.
``(B) Such Medicaid provider is responsible for payment of
the costs described in such paragraph that are not provided
under this title.
``(C) With respect to payments to such Medicaid provider
for costs other than costs related to the initial adoption of
certified EHR technology, the Medicaid provider demonstrates
meaningful use of certified EHR technology through a means
that is approved by the State and acceptable to the
Secretary, and that may be based upon the methodologies
applied under section 1848(o) or 1886(n). In establishing
such means, which may include the reporting of clinical
quality measures to the State, the State shall ensure that
populations with unique needs, such as children, are
appropriately addressed.
``(D) To the extent specified by the Secretary, the
certified EHR technology is compatible with State or Federal
administrative management systems.
``(6)(A) In no case shall the payments described in
paragraph (1), with respect to a hospital, exceed in the
aggregate the product of--
``(i) the overall hospital EHR amount for the hospital
computed under subparagraph (B); and
``(ii) the Medicaid share for such hospital computed under
subparagraph (C).
``(B) For purposes of this paragraph, the overall hospital
EHR amount, with respect to a hospital, is the sum of the
applicable amounts specified in section 1886(n)(2)(A) for
such hospital for the first 4 payment years (as estimated by
the Secretary) determined as if the Medicare share specified
in clause (ii) of such section were 1. The Secretary shall
publish in the Federal Register the overall hospital EHR
amount for each hospital eligible for payments under this
subsection. In computing amounts under clause (ii) for
payment years after the first payment year, the Secretary
shall assume that in subsequent payment years discharges
increase at the average annual rate of growth of the most
recent three years for which discharge data are available.
``(C) The Medicaid share computed under this subparagraph,
for a hospital for a period specified by the Secretary, shall
be calculated in the same manner as the Medicare share under
section 1886(n)(2)(D) for such a hospital and period, except
that there shall be substituted for the numerator under
clause (i) of such section the amount that is equal to the
number of inpatient-bed-days (as established by the
Secretary) which are attributable to individuals who are
receiving medical assistance under this title and who are not
described in section 1886(n)(2)(D)(i). In computing
inpatient-bed-days under the previous sentence, the Secretary
shall take into account inpatient-bed-days attributable to
inpatient-bed-days that are paid for individuals enrolled in
a Medicaid managed care plan (under section 1903(m) or
section 1932).
``(7) With respect to health care providers other than
hospitals, the Secretary shall establish and implement a
detailed process to ensure coordination of the different
programs for payment of such health care providers for
adoption or use of health information technology (including
certified EHR technology), as well as payments for such
health care providers provided under this title or title
XVIII, to assure no duplication of funding. The Secretary
shall promulgate regulations to carry out the preceding
sentence.
``(8) In carrying out paragraph (5)(C), the State and
Secretary shall seek, to the maximum extent practicable, to
avoid duplicative requirements from Federal and State
Governments to demonstrate meaningful use of certified EHR
technology under this title and title XVIII. In doing so, the
Secretary may deem satisfaction of requirements for such
meaningful use for a payment year under title XVIII to be
sufficient to qualify as meaningful use under this
subsection. The Secretary may also specify the reporting
periods under this subsection in order to carry out this
paragraph.
``(9) In order to be provided Federal financial
participation under subsection (a)(3)(F)(ii), a State must
demonstrate to the satisfaction of the Secretary, that the
State--
``(A) is using the funds provided for the purposes of
administering payments under this subsection, including
tracking of meaningful use by Medicaid providers;
``(B) is conducting adequate oversight of the program under
this subsection, including routine tracking of meaningful use
attestations and reporting mechanisms; and
``(C) is pursuing initiatives to encourage the adoption of
certified EHR technology to promote health care quality and
the exchange of health care information under this title,
subject to applicable laws and regulations governing such
exchange.
``(10) The Secretary shall periodically submit reports to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate on
status, progress, and oversight of payments under paragraph
(1).''.
(b) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise
appropriated, there are appropriated to the Secretary of
Health and Human Services for the Center for Medicare &
Medicaid Services Program Management Account, $40,000,000 for
each of fiscal years 2009 through 2015 and $20,000,000 for
each succeeding fiscal year through fiscal year 2018, which
shall be available for purposes of carrying out the
provisions of (and the amendments made by) this part. Amounts
appropriated under this subsection for a fiscal year shall be
available until expended.
(c) HHS Report on Implementation of Detailed Process to
Assure No Duplication of Funding.--Not later than July 1,
2012, the Secretary of Health and Human Services shall submit
to Congress a report on the establishment and implementation
of the detailed process under section 1903(t)(7) of the
Social Security Act, as added by subsection (a), together
with recommendations for such legislation and administrative
action as the Secretary determines appropriate.

TITLE V--STATE FISCAL RELIEF

SEC. 5000. PURPOSES; TABLE OF CONTENTS.

(a) Purposes.--The purposes of this title are as follows:
(1) To provide fiscal relief to States in a period of
economic downturn.
(2) To protect and maintain State Medicaid programs during
a period of economic downturn, including by helping to avert
cuts to provider payment rates and benefits or services, and
to prevent constrictions of income eligibility requirements
for such programs, but not to promote increases in such
requirements.
(b) Table of Contents.--The table of contents for this
title is as follows:

TITLE V--STATE FISCAL RELIEF

Sec. 5000. Purposes; table of contents.

[[Page S1204]]

Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Extension and update of special rule for increase of
Medicaid DSH allotments for low DSH States.
Sec. 5003. Payment of Medicare liability to States as a result of the
Special Disability Workload Project.
Sec. 5004. Funding for the Department of Health and Human Services
Office of the Inspector General.
Sec. 5005. GAO study and report regarding State needs during periods of
national economic downturn.

SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

(a) Permitting Maintenance of Fmap.--Subject to subsections
(e), (f), and (g), if the FMAP determined without regard to
this section for a State for--
(1) fiscal year 2009 is less than the FMAP as so determined
for fiscal year 2008, the FMAP for the State for fiscal year
2008 shall be substituted for the State's FMAP for fiscal
year 2009, before the application of this section;
(2) fiscal year 2010 is less than the FMAP as so determined
for fiscal year 2008 or fiscal year 2009 (after the
application of paragraph (1)), the greater of such FMAP for
the State for fiscal year 2008 or fiscal year 2009 shall be
substituted for the State's FMAP for fiscal year 2010, before
the application of this section; and
(3) fiscal year 2011 is less than the FMAP as so determined
for fiscal year 2008, fiscal year 2009 (after the application
of paragraph (1)), or fiscal year 2010 (after the application
of paragraph (2)), the greatest of such FMAP for the State
for fiscal year 2008, fiscal year 2009, or fiscal year 2010
shall be substituted for the State's FMAP for fiscal year
2011, before the application of this section, but only for
the first calendar quarter in fiscal year 2011.
(b) General 7.6 Percentage Point Increase.--Subject to
subsections (e), (f), and (g), for each State for calendar
quarters during the recession adjustment period (as defined
in subsection (h)(2)) , the FMAP (after the application of
subsection (a)) shall be increased (without regard to any
limitation otherwise specified in section 1905(b) of the
Social Security Act) by 7.6 percentage points.
(c) Additional Relief Based on Increase in Unemployment.--
(1) In general.--Subject to subsections (e), (f), and (g),
if a State is a qualifying State under paragraph (2) for a
calendar quarter occurring during the recession adjustment
period, the FMAP for the State shall be further increased by
the number of percentage points equal to the product of the
State percentage applicable for the State under section
1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) after
the application of subsections (a) and (b) and the applicable
percent determined in paragraph (3) for the calendar quarter
(or, if greater, for a previous such calendar quarter,
subject to paragraph (4)) .
(2) Qualifying criteria.--
(A) In general.--For purposes of paragraph (1), a State
qualifies for additional relief under this subsection for a
calendar quarter occurring during the recession adjustment
period if the State is 1 of the 50 States or the District of
Columbia and the State satisfies any of the following
criteria for the quarter:
(i) An increase of at least 1.5 percentage points, but less
than 2.5 percentage points, in the average monthly
unemployment rate, seasonally adjusted, for the State or
District, as determined by comparing months in the most
recent previous 3-consecutive month period for which data are
available for the State or District to the lowest average
monthly unemployment rate, seasonally adjusted, for the State
or District for any 3-consecutive-month period preceding that
period and beginning on or after January 1, 2006 (based on
the most recently available monthly publications of the
Bureau of Labor Statistics of the Department of Labor).
(ii) An increase of at least 2.5 percentage points, but
less than 3.5 percentage points, in the average monthly
unemployment rate, seasonally adjusted, for the State or
District (as so determined).
(iii) An increase of at least 3.5 percentage points for the
State or District, in the average monthly unemployment rate,
seasonally adjusted, for the State or District (as so
determined).
(B) Maintenance of status.--If a State qualifies for
additional relief under this subsection for a calendar
quarter, it shall be deemed to have qualified for such relief
for each subsequent calendar quarter ending before July 1,
2010.
(3) Applicable percent.--For purposes of paragraph (1), the
applicable percent is--
(A) 2.5 percent, if the State satisfies the criteria
described in paragraph (2)(A)(i) for the calendar quarter;
(B) 4.5 percent if the State satisfies the criteria
described in paragraph (2)(A)(ii) for the calendar quarter;
and
(C) 6.5 percent if the State satisfies the criteria
described in paragraph (2)(A)(iii) for the calendar quarter.
(4) Maintenance of higher percentage reduction for period
after lower percentage deduction would otherwise take
effect.--
(A) Hold harmless period.--If the percentage reduction
applied to a State under paragraph (3) for any calendar
quarter in the recession adjustment period beginning on or
after January 1, 2009, and ending before July 1, 2010,
(determined without regard to this paragraph) is less than
the percentage reduction applied for the preceding quarter
(as so determined), the higher percentage reduction shall
continue in effect for each subsequent calendar quarter
ending before July 1, 2010.
(B) Notice of decrease in percentage reduction.--The
Secretary shall notify a State at least 3 months prior to
applying any lower percentage reduction to the State under
paragraph (3).
(d) Increase in Cap on Medicaid Payments to Territories.--
Subject to subsections (f) and (g), with respect to entire
fiscal years occurring during the recession adjustment period
and with respect to fiscal years only a portion of which
occurs during such period (and in proportion to the portion
of the fiscal year that occurs during such period), the
amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and American
Samoa under subsections (f) and (g) of section 1108 of the
Social Security Act (42 6 U.S.C. 1308) shall each be
increased by 15.2 percent.
(e) Scope of Application.--The increases in the FMAP for a
State under this section shall apply for purposes of title
XIX of the Social Security Act and shall not apply with
respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act (42 U.S.C. 1396r-4);
(2) payments under title IV of such Act (42 U.S.C. 601 et
seq.) (except that the increases under subsections (a) and
(b) shall apply to payments under part E of title IV of such
Act (42 U.S.C. 670 et seq.));
(3) payments under title XXI of such Act (42 U.S.C. 1397aa
et seq.);
(4) any payments under title XIX of such Act that are based
on the enhanced FMAP described in section 2105(b) of such Act
(42 U.S.C. 1397ee(b)); or
(5) any payments under title XIX of such Act that are
attributable to expenditures for medical assistance provided
to individuals made eligible under a State plan under title
XIX of the Social Security Act (including under any waiver
under such title or under section 1115 of such Act (42 U.S.C.
1315)) because of income standards (expressed as a percentage
of the poverty line) for eligibility for medical assistance
that are higher than the income standards (as so expressed)
for such eligibility as in effect on July 1, 2008.
(f) State Ineligibility.--
(1) Maintenance of eligibility requirements.--
(A) In general.--Subject to subparagraphs (B) and (C), a
State is not eligible for an increase in its FMAP under
subsection (a), (b), or (c), or an increase in a cap amount
under subsection (d), if eligibility standards,
methodologies, or procedures under its State plan under title
XIX of the Social Security Act (including any waiver under
such title or under section 1115 of such Act (42 U.S.C.
1315)) are more restrictive than the eligibility standards,
methodologies, or procedures, respectively, under such plan
(or waiver) as in effect on July 1, 2008.
(B) State reinstatement of eligibility permitted.--Subject
to subparagraph (C), a State that has restricted eligibility
standards, methodologies, or procedures under its State plan
under title XIX of the Social Security Act (including any
waiver under such title or under section 1115 of such Act (42
U.S.C. 1315)) after July 1, 2008, is no longer ineligible
under subparagraph (A) beginning with the first calendar
quarter in which the State has reinstated eligibility
standards, methodologies, or procedures that are no more
restrictive than the eligibility standards, methodologies, or
procedures, respectively, under such plan (or waiver) as in
effect on July 1, 2008.
(C) Special rules.--A State shall not be ineligible under
subparagraph (A)--
(i) for the calendar quarters before July 1, 2009, on the
basis of a restriction that was applied after July 1, 2008,
and before the date of the enactment of this Act, if the
State prior to July 1, 2009, has reinstated eligibility
standards, methodologies, or procedures that are no more
restrictive than the eligibility standards, methodologies, or
procedures, respectively, under such plan (or waiver) as in
effect on July 1, 2008; or
(ii) on the basis of a restriction that was directed to be
made under State law as of July 1, 2008, and would have been
in effect as of such date, but for a delay in the request
for, and approval of, a waiver under section 1115 of such Act
with respect to such restriction.
(2) Compliance with prompt pay requirements.--No State
shall be eligible for an increased FMAP rate as provided
under this section for any claim submitted by a provider
subject to the terms of section 1902(a)(37)(A) of the Social
Security Act (42 U.S.C. 1396a(a)(37)(A)) during any period in
which that State has failed to pay claims in accordance with
section 1902(a)(37)(A) of such Act. Each State shall report
to the Secretary, no later than 30 days following the 1st day
of the month, its compliance with the requirements of section
1902(a)(37)(A) of the Social Security Act as they pertain to
claims made for covered services during the preceding month.
(3) No waiver authority.--The Secretary may not waive the
application of this subsection or subsection (g) under
section 1115 of the Social Security Act or otherwise.
(g) Requirements.--
(1) In general.--A State may not deposit or credit the
additional Federal funds paid to

[[Page S1205]]

the State as a result of this section to any reserve or rainy
day fund maintained by the State.
(2) State reports.--Each State that is paid additional
Federal funds as a result of this section shall, not later
than September 30, 2011, submit a report to the Secretary, in
such form and such manner as the Secretary shall determine,
regarding how the additional Federal funds were expended.
(3) Additional requirement for certain states.--In the case
of a State that requires political subdivisions within the
State to contribute toward the non-Federal share of
expenditures under the State Medicaid plan required under
section 1902(a)(2) of the Social Security Act (42 U.S.C.
1396a(a)(2)), the State is not eligible for an increase in
its FMAP under subsection (b) or (c), or an increase in a cap
amount under subsection (d), if it requires that such
political subdivisions pay for quarters during the recession
adjustment period a greater percentage of the non-Federal
share of such expenditures, or a greater percentage of the
non-Federal share of payments under section 1923, than the
respective percentage that would have been required by the
State under such plan on September 30, 2008, prior to
application of this section.
(h) Definitions.--In this section, except as otherwise
provided:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)), as determined
without regard to this section except as otherwise specified.
(2) Poverty line.--The term ``poverty line'' has the
meaning given such term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), including any
revision required by such section.
(3) Recession adjustment period.--The term ``recession
adjustment period'' means the period beginning on October 1,
2008, and ending on December 31, 2010.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(5) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(i) Sunset.--This section shall not apply to items and
services furnished after the end of the recession adjustment
period.

SEC. 5002. EXTENSION AND UPDATE OF SPECIAL RULE FOR INCREASE
OF MEDICAID DSH ALLOTMENTS FOR LOW DSH STATES.

Section 1923(f)(5) of the Social Security Act (42 U.S.C.
1396r-4(f)(5)) is amended--
(1) in subparagraph (B)--
(A) in the subparagraph heading, by striking ``year 2004
and subsequent fiscal years'' and inserting ``years 2004
through 2008'';
(B) in clause (i), by inserting ``and'' after the
semicolon;
(C) in clause (ii), by striking ``; and'' and inserting a
period; and
(D) by striking clause (iii); and
(2) by adding at the end the following subparagraph:
``(C) For fiscal year 2009 and subsequent fiscal years.--In
the case of a State in which the total expenditures under the
State plan (including Federal and State shares) for
disproportionate share hospital adjustments under this
section for fiscal year 2006, as reported to the
Administrator of the Centers for Medicare & Medicaid Services
as of August 31, 2009, is greater than 0 but less than 3
percent of the State's total amount of expenditures under the
State plan for medical assistance during the fiscal year, the
DSH allotment for the State with respect to--
``(i) fiscal year 2009, shall be the DSH allotment for the
State for fiscal year 2008 increased by 16 percent;
``(ii) fiscal year 2010, shall be the DSH allotment for the
State for fiscal year 2009 increased by 16 percent;
``(iii) fiscal year 2011 for the period ending on December
31, 2010, shall be \1/4\ of the DSH allotment for the State
for fiscal year 2010 increased by 16 percent;
``(iv) fiscal year 2011 for the period beginning on January
1, 2011, and ending on September 30, 2011, shall be \3/4\ of
the DSH allotment that would have been determined under this
subsection for the State for fiscal year 2011 if this
subparagraph had not been enacted;
``(v) fiscal year 2012, shall be the DSH allotment that
would have been determined under this subsection for the
State for fiscal year 2012 if this subparagraph had not been
enacted; and
``(vi) fiscal year 2013 and any subsequent fiscal year,
shall be the DSH allotment for the State for the previous
fiscal year subject to an increase for inflation as provided
in paragraph (3)(A).''.

SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES AS A
RESULT OF THE SPECIAL DISABILITY WORKLOAD
PROJECT.

(a) In General.--The Secretary, in consultation with the
Commissioner, shall work with each State to reach an
agreement, not later than 3 months after the date of
enactment of this Act, on the amount of a payment for the
State related to the Medicare program liability as a result
of the Special Disability Workload project, subject to the
requirements of subsection (c).
(b) Payments.--
(1) Deadline for making payments.--Not later than 30 days
after reaching an agreement with a State under subsection
(a), the Secretary shall pay the State, from the amounts
appropriated under paragraph (2), the payment agreed to for
the State.
(2) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there is appropriated $3,000,000,000
for fiscal year 2009 for making payments to States under
paragraph (1).
(3) Limitations.--In no case may--
(A) the aggregate amount of payments made by the Secretary
to States under paragraph (1) exceed $3,000,000,000; or
(B) any payments be provided by the Secretary under this
section after the first day of the first month that begins 4
months after the date of enactment of this Act.
(c) Requirements.--The requirements of this subsection are
the following:
(1) Federal data used to determine amount of payments.--The
amount of the payment under subsection (a) for each State is
determined on the basis of the most recent Federal data
available, including the use of proxies and reasonable
estimates as necessary, for determining expeditiously the
amount of the payment that shall be made to each State that
enters into an agreement under this section. The payment
methodology shall consider the following factors:
(A) The number of SDW cases found to have been eligible for
benefits under the Medicare program and the month of the
initial Medicare program eligibility for such cases.
(B) The applicable non-Federal share of expenditures made
by a State under the Medicaid program during the time period
for SDW cases.
(C) Such other factors as the Secretary and the
Commissioner, in consultation with the States, determine
appropriate.
(2) Conditions for payments.--A State shall not receive a
payment under this section unless the State--
(A) waives the right to file a civil action (or to be a
party to any action) in any Federal or State court in which
the relief sought includes a payment from the United States
to the State related to the Medicare liability under title
XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as
a result of the Special Disability Workload project; and
(B) releases the United States from any further claims for
reimbursement of State expenditures as a result of the
Special Disability Workload project.
(3) No individual state claims data required.--No State
shall be required to submit individual claims evidencing
payment under the Medicaid program as a condition for
receiving a payment under this section.
(4) Ineligible states.--No State that is a party to a civil
action in any Federal or State court in which the relief
sought includes a payment from the United States to the State
related to the Medicare liability under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) as a result of
the Special Disability Workload project shall be eligible to
receive a payment under this section while such an action is
pending or if such an action is resolved in favor of the
State.
(d) Definitions.--In this section:
(1) Commissioner.--The term ``Commissioner'' means the
Commissioner of Social Security.
(2) Medicaid program.--The term ``Medicaid program'' means
the program of medical assistance established under title XIX
of the Social Security Act (42 U.S.C. 1396a et seq.) and
includes medical assistance provided under any waiver of that
program approved under section 1115 or 1915 of such Act (42
U.S.C. 1315, 1396n) or otherwise.
(3) Medicare program.--The term ``Medicare program'' means
the program established under title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(5) SDW case.--The term ``SDW case'' means a case in the
Special Disability Workload project involving an individual
determined by the Commissioner to have been eligible for
benefits under title II of the Social Security Act (42 U.S.C.
401 et seq.) for a period during which such benefits were not
provided to the individual and who was, during all or part of
such period, enrolled in a State Medicaid program.
(6) Special disability workload project.--The term
``Special Disability Workload project'' means the project
described in the 2008 Annual Report of the Board of Trustees
of the Federal Old-Age and Survivors Insurance and Federal
Disability Insurance Trust Funds, H.R. Doc. No. 110-104,
110th Cong. (2008).
(7) State.--The term ``State'' means each of the 50 States
and the District of Columbia.

SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH AND HUMAN
SERVICES OFFICE OF THE INSPECTOR GENERAL.

For purposes of ensuring the proper expenditure of Federal
funds under title XIX of the Social Security Act (42 U.S.C.
1396 et seq.), there is appropriated to the Office of the
Inspector General of the Department of Health and Human
Services, out of any money in the Treasury not otherwise
appropriated and without further appropriation, $31,250,000
for the recession adjustment period (as defined in section
5001(h)(3)). Amounts appropriated under this section shall
remain available for expenditure until expended and shall be
in addition to any other amounts appropriated or made
available to such Office for such purposes.

[[Page S1206]]

SEC. 5005. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING
PERIODS OF NATIONAL ECONOMIC DOWNTURN.

(a) In General.--The Comptroller General of the United
States shall study the period of national economic downturn
in effect on the date of enactment of this Act, as well as
previous periods of national economic downturn since 1974,
for the purpose of developing recommendations for addressing
the needs of States during such periods. As part of such
analysis, the Comptroller General shall study the past and
projected effects of temporary increases in the Federal
medical assistance percentage under the Medicaid program with
respect to such periods.
(b) Report.--Not later than April 1, 2011, the Comptroller
General of the United States shall submit a report to the
appropriate committees of Congress on the results of the
study conducted under paragraph (1). Such report shall
include the following:
(1) Such recommendations as the Comptroller General
determines appropriate for modifying the national economic
downturn assistance formula for temporary adjustment of the
Federal medical assistance percentage under Medicaid (also
referred to as a ``countercyclical FMAP'') described in GAO
report number GAO-07-97 to improve the effectiveness of the
application of such percentage in addressing the needs of
States during periods of national economic downturn,
including recommendations for--
(A) improvements to the factors that would begin and end
the application of such percentage;
(B) how the determination of the amount of such percentage
could be adjusted to address State and regional economic
variations during such periods; and
(C) how the determination of the amount of such percentage
could be adjusted to be more responsive to actual Medicaid
costs incurred by States during such periods.
(2) An analysis of the impact on States during such periods
of--
(A) declines in private health benefits coverage;
(B) declines in State revenues; and
(C) caseload maintenance and growth under Medicaid, the
State Children's Health Insurance Program, or any other
publicly-funded programs to provide health benefits coverage
for State residents.
(3) Identification of, and recommendations for addressing,
the effects on States of any other specific economic
indicators that the Comptroller General determines
appropriate.

____________________