[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Amendment Ordered to be Printed Senate (AS)]
AMDT. NO. 98
VI
Calendar No. 19
AMENDMENT NO. 98
Purpose: In the nature of a substitute.
IN THE SENATE OF THE UNITED STATES--111th Cong., 1st Sess.
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 the
fiscal year ending September 30, 2009, and for other purposes.
January 30, 2009
Ordered to lie on the table and to be printed
Intended to be proposed by Mr. Inouye (for himself and Mr. Baucus)
Viz:
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 progarm 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.
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 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.
``(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.
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.
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;
(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 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'', $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 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.
``(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 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 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.
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
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 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 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 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 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 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 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 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'', $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
``(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 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.
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 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 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 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 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.
``(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 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.
``(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 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 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.
``(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 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.
``(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 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) 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--
(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.--
``(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 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 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.
(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.--
(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
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 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.
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.
``(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.
``(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--
``(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:
``(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.
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
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--
``(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 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 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 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.
``(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
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 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));
(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 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
(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 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
``(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.
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 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).
(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.
``(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 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 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 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 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.
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 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 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 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.
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 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.
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.
Amendment No. 98
H.R. 1