    [Congressional Bills 111th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 1 Engrossed Amendment Senate (EAS)]

                      In the Senate of the United States,

                                                         February 10, 2009.
        Resolved, That the bill from the House of Representatives (H.R. 1)
    entitled ``An Act 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.'', do pass with the following

                                   AMENDMENT:

                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'',
    $200,000,000, 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, 2011, for oversight
    and audit of programs, grants, and activities funded under this title
    and an additional $17,500,000 for such purposes, to remain available
    until September 30, 2011.

           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), $50,000,000, to remain available until September 30,
    2010.

                              Farm Service Agency

               agricultural credit insurance fund program account

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

                     Natural Resources Conservation Service

                   watershed and flood prevention operations

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

                        watershed rehabilitation program

        For an additional amount for the ``Watershed Rehabilitation
    Program'', $65,000,000, to remain available until September 30, 2010.

                    rural development salaries and expenses

        For an additional amount for ``Rural Development, Salaries and
    Expenses'', $80,000,000, 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., $100,000,000, 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, $100,000,000, 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 $50,000,000, 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).
        (e) Administration.--There is hereby appropriated $54,000,000 to
    carry out this section.
        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'',
    $7,000,000,000, to remain available until September 30, 2010: Provided,
    That of the funds provided under this heading, $6,650,000,000 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'', $168,000,000, to remain available until September 30,
    2010.

                      construction of research facilities

        For an additional amount for ``Construction of Research
    Facilities'', $307,000,000, 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'', $377,000,000, to remain available until September 30,
    2010.

                   procurement, acquisition and construction

        For an additional amount for ``Procurement, Acquisition and
    Construction'', $645,000,000, 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, 2012.

                             DEPARTMENT OF JUSTICE

                             General Administration

                tactical law enforcement wireless communications

        For an additional amount for ``Tactical Law Enforcement Wireless
    Communications'', $100,000,000 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'', $100,000,000,
    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, 2011.

                         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'', $100,000,000, 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'', $300,000,000, to
    remain available until September 30, 2010.

                             Federal Prison System

                            buildings and facilities

        For an additional amount for ``Federal Prison System, Buildings and
    Facilities'', $800,000,000, 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'', $1,200,000,000 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'', $300,000,000 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'', $90,000,000, 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'', $450,000,000, to remain
    available until September 30, 2010.

                                  aeronautics

        For an additional amount for ``Aeronautics'', $200,000,000, to
    remain available until September 30, 2010.

                                  exploration

        For an additional amount for ``Exploration'', $450,000,000, to
    remain available until September 30, 2010.

                              cross agency support

        For an additional amount for ``Cross Agency Support'',
    $200,000,000, 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, 2011.

                          National Science Foundation

                        research and related activities

        For an additional amount for ``Research and Related Activities'',
    $1,000,000,000, 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, 2011.

                         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, 2011, and an additional $3,000,000 for
    such purposes, to remain available until September 30, 2011.

                     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'', $330,000,000, 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,
    $8,500,000,000, 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 September 30, 2012, and
    an additional $10,000,000 for such purposes, to remain available until
    September 30, 2012.

                        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, $5,548,000,000, 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 $2,500,000,000 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
    $127,000,000 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 not less
    than $5,000,000,000 of the funds provided under this heading shall be
    obligated by September 30, 2010: 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, $300,000,000, 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 and an
    additional $5,000,000 for such purposes, to remain available until
    September 30, 2012.

               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).

    SEC. 505. SURETY BONDS.

        (a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business
    Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--
                (1) by inserting ``(A)'' after ``(1)'';
                (2) by striking ``$2,000,000'' and inserting
            ``$5,000,000''; and
                (3) by adding at the end the following:
        ``(B) The Administrator may guarantee a surety under subparagraph
    (A) for a total work order or contract amount that does not exceed
    $10,000,000, if a contracting officer of a Federal agency certifies
    that such a guarantee is necessary.''.
        (b) Size Standards.--Section 410 of the Small Business Investment
    Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the
    following:
                ``(9) Notwithstanding any other provision of law or any
            rule, regulation, or order of the Administration, for purposes
            of sections 410, 411, and 412 the term `small business concern'
            means a business concern that meets the size standard for the
            primary industry in which such business concern, and the
            affiliates of such business concern, is engaged, as determined
            by the Administrator in accordance with the North American
            Industry Classification System.''.
        (c) Sunset.--The amendments made by this section shall remain in
    effect until September 30, 2010.
        Sec. 506.--Office of Inspector General. For an additional amount
    for ``Treasury Office of Inspector General for Tax Administration'',
    $7,000,000, to remain available until September 30, 2012, for oversight
    and audit of programs grants and activities funded under this title.

                   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'', $198,000,000, to remain available until September 30,
    2011, solely for planning, design, and construction costs, including
    site security, information technology infrastructure, 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, 2012, 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'', $1,000,000,000,
    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'', $450,000,000, to remain available until September 30,
    2010, of which $195,000,000 shall be for shore facilities and aids to
    navigation facilities; and of which $255,000,000 shall be for priority
    procurements due to materials and labor cost increases, and to repair,
    renovate, assess, or improve vessels: 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.

                         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'', $165,000,000,
    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.

                                  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, 2011, and an
    additional $7,400,000 for such purposes, to remain available until
    September 30, 2011.

                            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.

                         ENVIROMENTAL PROTECTION AGENCY

                         Hazardous Substance Superfund

                         (including transfers of funds)

        For an additional amount for ``Hazardous Substance Superfund'',
    $600,000,000, 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'',
    $485,000,000, 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 $260,000,000 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'', $75,000,000,
    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, 2011,
    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'',
    $1,958,000,000, 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
    $1,870,000,000 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).
        The additional amount available for `Office of the Director' in the
    previous sentence shall be increased by $6,500,000,000: Provided, That
    a total of $7,850,000,000 shall be transferred pursuant to such
    sentence: Provided further, That any amounts in this sentence shall be
    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.

                            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,
    $500,000,000, which shall remain available through September 30, 2010.
    In addition, $550,000,000, 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'', $3,000,000,000, 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, 2012, and
    an additional $15,000,000 for such purposes, to remain available until
    September 30, 2012.

                            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, $12,400,000,000, 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
    $1,400,000,000 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,''
    $1,070,000,000, 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, and subtitle B of title
    VII of the McKinney-Vento Homeless Assistance Act (``McKinney-Vento''):
    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, $50,000,000: 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 and an additional $10,000,000 for such
    purposes, to remain available until September 30, 2012.

                                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.

                        Office of the Inspector General

        For an additional amount for the Office of the Inspector General,
    $1,000,000, which shall remain available until September 30, 2011.

                             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, 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.

                              (transfer of funds)

        Sec. 803. (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. 804.  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 ACCOUNTABILITY 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, 2011, 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 Guerrilla 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, $90,000,000, to remain
    available until September 30, 2010, of which up to $20,000,000 shall be
    available for passport facilities and systems, and up to $65,000,000
    shall be available for a consolidated security training facility in the
    United States and should be obligated in accordance with United States
    General Services Administration site selection procedures: 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'',
    $228,000,000, to remain available until September 30, 2010, which shall
    be available for information technology security and upgrades to
    support mission-critical operations: 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, $1,500,000, to remain available until September
    30, 2011.

                           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'',
    $58,000,000, to remain available until September 30, 2010, which shall
    be available for information technology modernization programs and
    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, 2011.

       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, and an additional $12,250,000 for such purposes, to
    remain available until September 30, 2012: 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''.

                      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''), $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''.
        For an additional amount for capital investments in low-income
    housing tax credit projects, $2,000,000,000, to remain available until
    September 30, 2011: Provided, That the funds shall be allocated to
    States under the HOME program under this Heading shall be made
    available to State housing finance agencies in an amount totaling
    $2,000,000,000, subject to any changes made to a State allocation for
    the benefit of a State by the Secretary of Housing and Urban
    Development for areas that have suffered from disproportionate job loss
    and foreclosure: Provided further, That the Secretary, in consultation
    with the States, shall determine the amount of funds each State shall
    have available under HOME: Provided further, That the State housing
    finance agencies (including for purposes throughout this heading any
    entity that is responsible for distributing low-income housing tax
    credits) or as appropriate as an entity as a gap financer, shall
    distribute these funds competitively under this heading to housing
    developers for projects eligible for funding (such terms including
    those who may have received funding) under the low-income housing tax
    credit program as provided under section 42 of the I.R.C. of 1986, with
    a review of both the decisionmaking and process for the award by the
    Secretary of Housing and Urban Development: Provided further, That
    funds under this heading must be awarded by State housing finance
    agencies within 120 days of enactment of the Act and obligated by the
    developer of the low-income housing tax credit project within one year
    of the date of enactment of this Act, shall expend 75 percent of the
    funds within two years of the date on which the funds become available,
    and shall expend 100 percent of the funds within 3 years of such date:
    Provided further, That failure by a developer to expend funds within
    the parameters required within the previous proviso shall result in a
    redistribution of these funds by a State housing finance agency or by
    the Secretary if there is a more deserving project in another
    jurisdiction: Provided further, That projects awarded tax credits
    within 3 years prior to the date of enactment of this Act shall be
    eligible for funding under this heading: Provided further, That as part
    of the review, the Secretary shall ensure equitable distribution of
    funds and an appropriate balance in addressing the needs of urban and
    rural communities with a special priority on areas that have suffered
    from excessive job loss and foreclosures: Provided further, That State
    housing finance agencies shall give priority to projects that require
    an additional share of Federal funds in order to complete an overall
    funding package, and to projects that are expected to be completed
    within 3 years of enactment: Provided further, That any assistance
    provided to an eligible low-income housing tax credit project under
    this heading shall be made in the same manner and be subject to the
    same limitations (including rent, income, and use restrictions) as an
    allocation of the housing credit amount allocated by the State housing
    finance agency under section 42 of the I.R.C. of 1986, except that such
    assistance shall not be limited by, or otherwise affect (except as
    provided in subsection (h)(3)(J) of such section), the State housing
    finance agency applicable to such agency: Provided further, That the
    State housing finance agency shall perform asset management functions
    to ensure compliance with section 42 of the I.R.C. of 1986, and the
    long term viability of buildings funded by assistance under this
    heading: Provided further, That the term basis (as such term is defined
    in such section 42) of a qualified low-income housing tax credit
    building receiving assistance under this heading shall not be reduced
    by the amount of any grant described under this heading: Provided
    further, That the Secretary shall collect all information related to
    the award of Federal funds from state housing finance agencies and
    establish an internet site that shall identify all projects selected
    for an award, including the amount of the award as well as the process
    and all information that was used to make the award decision.

                          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), $2,250,000,000, 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
    $118,000,000 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, and an additional $12,250,000 for such purposes, to
    remain available until September 30, 2012: 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, community mental health center (as defined
            in section 1913(b)), renal dialysis facility, blood center,
            ambulatory surgical center described in section 1833(i) of the
            Social Security Act, 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' includes 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,
            access 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--
                        ``(A) 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;
                        ``(B) make such determinations under subparagraph
                    (A), and report to the Secretary such determinations,
                    not later than 45 days after the date the
                    recommendation is received by the Coordinator;
                        ``(C) review Federal health information technology
                    investments to ensure that Federal health information
                    technology programs are meeting the objectives of the
                    strategic plan published under paragraph (3); and
                        ``(D) provide comments and advice regarding
                    specific Federal health information technology
                    programs, at the request of the Office of Management
                    and Budget.
                ``(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) Harmonization.--The Secretary may recognize an entity
            or entities for the purpose of harmonizing or updating
            standards and implementation specifications in order to achieve
            uniform and consistent implementation of the standards and
            implementation specifications.
                ``(6) Certification.--
                        ``(A) In general.--The National Coordinator, in
                    consultation with the Director of the National
                    Institute of Standards and Technology, shall recognize
                    a program or programs for the voluntary certification
                    of health information technology as being in compliance
                    with applicable certification criteria adopted under
                    this subtitle. Such program shall include, as
                    appropriate, 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--
                                (i) the required level of Federal funding;
                                (ii) expectations for regional, State, and
                            private investment;
                                (iii) the expected contributions by
                            volunteers to activities for the utilization of
                            such records; and
                                (iv) the resources needed to establish or
                            expand education programs in medical and health
                            informatics and health information management
                            to train health care and information technology
                            students and provide a health information
                            technology workforce sufficient to ensure the
                            rapid and effective deployment and utilization
                            of health information technologies.
                ``(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.
                                ``(vi) The use of electronic systems to
                            ensure the comprehensive collection of patient
                            demographic data, including, at a minimum,
                            race, ethnicity, primary language, and gender
                            information.
                                ``(vii) Technologies and design features
                            that address the needs of children and other
                            vulnerable populations.
                        ``(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) Methods to facilitate secure
                            access by an individual to such individual's
                            protected health information.
                                ``(ix) Methods, guidelines, and safeguards
                            to facilitate secure access to patient
                            information by a family member, caregiver, or
                            guardian acting on behalf of a patient due to
                            age-related and other disability, cognitive
                            impairment, or dementia that prevents a patient
                            from accessing the patient's individually
                            identifiable health information.
                                ``(x) 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).
                ``(4) Consistency with evaluation conducted under mippa.--
                        ``(A) Requirement for consistency.--The HIT Policy
                    Committee shall ensure that recommendations made under
                    paragraph (2)(B)(vi) are consistent with the evaluation
                    conducted under section 1809(a) of the Social Security
                    Act.
                        ``(B) Scope.--Nothing in subparagraph (A) shall be
                    construed to limit the recommendations under paragraph
                    (2)(B)(vi) to the elements described in section
                    1809(a)(3) of the Social Security Act.
                        ``(C) Timing.--The requirement under subparagraph
                    (A) shall be applicable to the extent that evaluations
                    have been conducted under section 1809(a) of the Social
                    Security Act, regardless of whether the report
                    described in subsection (b) of such section has been
                    submitted.
        ``(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 HIT Policy Committee shall be
            composed of members to be appointed as follows:
                        ``(A) One member shall be appointed by the
                    Secretary.
                        ``(B) One member shall be appointed by the
                    Secretary of Veterans Affairs who shall represent the
                    Department of Veterans Affairs.
                        ``(C) One member shall be appointed by the
                    Secretary of Defense who shall represent the Department
                    of Defense.
                        ``(D) One member shall be appointed by the Majority
                    Leader of the Senate.
                        ``(E) One member shall be appointed by the Minority
                    Leader of the Senate.
                        ``(F) One member shall be appointed by the Speaker
                    of the House of Representatives.
                        ``(G) One member shall be appointed by the Minority
                    Leader of the House of Representatives.
                        ``(H) Eleven members shall be appointed by the
                    Comptroller General of the United States, of whom--
                                ``(i) three members shall represent
                            patients or consumers;
                                ``(ii) one member shall represent health
                            care providers;
                                ``(iii) one member shall be from a labor
                            organization representing health care workers;
                                ``(iv) one member shall have expertise in
                            privacy and security;
                                ``(v) one member shall have expertise in
                            improving the health of vulnerable populations;
                                ``(vi) one member shall represent health
                            plans or other third party payers;
                                ``(vii) one member shall represent
                            information technology vendors;
                                ``(viii) one member shall represent
                            purchasers or employers; and
                                ``(ix) one member shall have expertise in
                            health care quality measurement and reporting.
                ``(3) Chairperson and vice chairperson.--The HIT Policy
            Committee shall designate one member to serve as the
            chairperson and one member to serve as the vice chairperson of
            the Policy Committee.
                ``(4) National coordinator.--The National Coordinator shall
            serve as a member of the HIT Policy Committee and act as a
            liaison among the HIT Policy Committee, the HIT Standards
            Committee, and the Federal Government.
                ``(5) Participation.--The members of the HIT Policy
            Committee appointed under paragraph (2) shall represent a
            balance among various sectors of the health care system so that
            no single sector unduly influences the recommendations of the
            Policy Committee.
                ``(6) Terms.--
                        ``(A) In general.--The terms of the members of the
                    HIT Policy Committee shall be for 3 years, except that
                    the Comptroller General shall designate staggered terms
                    for the members first appointed.
                        ``(B) Vacancies.--Any member appointed to fill a
                    vacancy in the membership of the HIT Policy Committee
                    that occurs prior to the expiration of the term for
                    which the member's predecessor was appointed shall be
                    appointed only for the remainder of that term. A member
                    may serve after the expiration of that member's term
                    until a successor has been appointed. A vacancy in the
                    HIT Policy Committee shall be filled in the manner in
                    which the original appointment was made.
                ``(7) Outside involvement.--The HIT Policy Committee shall
            ensure an adequate opportunity for the participation of outside
            advisors, including individuals with expertise in--
                        ``(A) health information privacy and security;
                        ``(B) improving the health of vulnerable
                    populations;
                        ``(C) health care quality and patient safety,
                    including individuals with expertise in the measurement
                    and use of health information technology to capture
                    data to improve health care quality and patient safety;
                        ``(D) long-term care and aging services;
                        ``(E) medical and clinical research; and
                        ``(F) data exchange and developing health
                    information technology standards and new health
                    information technology.
                ``(8) Quorum.--Ten members of the HIT Policy Committee
            shall constitute a quorum for purposes of voting, but a lesser
            number of members may meet and hold hearings.
                ``(9) Failure of initial appointment.--If, on the date that
            is 45 days after the date of enactment of this title, an
            official authorized under paragraph (2) to appoint one or more
            members of the HIT Policy Committee has not appointed the full
            number of members that such paragraph authorizes such official
            to appoint--
                        ``(A) the number of members that such official is
                    authorized to appoint shall be reduced to the number
                    that such official has appointed as of that date; and
                        ``(B) the number prescribed in paragraph (8) as the
                    quorum shall be reduced to the smallest whole number
                    that is greater than one-half of the total number of
                    members who have been appointed as of that date.
                ``(10) 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.
                ``(5) 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.
        ``(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) Broad participation.--There is broad participation in
            the HIT Standards Committee by a variety of public and private
            stakeholders, either through membership in the Committee or
            through another means.
                ``(4) Chairperson; vice chairperson.--The HIT Standards
            Committee may designate one member to serve as the chairperson
            and one member to serve as the vice chairperson.
                ``(5) Department membership.--The Secretary shall be a
            member of the HIT Standards Committee. The National Coordinator
            shall act as a liaison among the HIT Standards Committee, the
            HIT Policy Committee, and the Federal Government.
                ``(6) Balance among sectors.--In developing the procedures
            for conducting the activities of the HIT Standards Committee,
            the HIT Standards Committee shall act to ensure a balance among
            various sectors of the health care system so that no single
            sector unduly influences the actions of the HIT Standards
            Committee.
                ``(7) 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) Open and Public Process.--In providing for the establishment
    of the HIT Standards Committee pursuant to subsection (a), the
    Secretary shall ensure the following:
                ``(1) Consensus approach; open process.--The HIT Standards
            Committee shall use a consensus approach and a fair and open
            process to support the development, harmonization, and
            recognition of standards described in subsection (a)(1).
                ``(2) Participation of outside advisers.--The HIT Standards
            Committee shall ensure an adequate opportunity for the
            participation of outside advisors, including individuals with
            expertise in--
                        ``(A) health information privacy;
                        ``(B) health information security;
                        ``(C) health care quality and patient safety,
                    including individuals with expertise in utilizing
                    health information technology to improve healthcare
                    quality and patient safety;
                        ``(D) long-term care and aging services; and
                        ``(E) data exchange and developing health
                    information technology standards and new health
                    information technology.
                ``(3) Open meetings.--Plenary and other regularly scheduled
            formal meetings of the HIT Standards Committee (or established
            subgroups thereof) shall be open to the public.
                ``(4) Publication of meeting notices and materials prior to
            meetings.--The HIT Standards Committee shall develop and
            maintain an Internet website on which it publishes, prior to
            each meeting, a meeting notice, a meeting agenda, and meeting
            materials.
                ``(5) Opportunity for public comment.--The HIT Standards
            Committee shall develop a process that allows for public
            comment during the process by which the Entity develops,
            harmonizes, or recognizes standards and implementation
            specifications.
        ``(e) Voluntary Consensus Standard Body.--The provisions of section
    12(d) of the National Technology Transfer and Advancement Act of 1995
    (15 U.S.C. 272 note) and the Office of Management and Budget circular
    119 shall apply to the HIT Standards Committee.
        ``(f) 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 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).
                ``(3) Subsequent standards activity.--The Secretary shall
            adopt additional standards, implementation specifications, and
            certification criteria as necessary and consistent with the
            schedule published under section 3003(b)(2).

    ``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 and routine updating of qualified electronic health record
    technology (as defined in section 3000) consistent with subsections (b)
    and (c) and make available such qualified electronic health record
    technology unless the Secretary and the HIT Policy Committee determine
    through an assessment 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.--Nothing in section 3001 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.
        ``(b) National EHealth Collaborative.--Nothing in sections 3002 or
    3003 or this subsection shall be construed as prohibiting the National
    eHealth Collaborative from modifying its charter, duties, membership,
    and any other structure or function required to be consistent with the
    requirements of a voluntary consensus standards body so as to allow the
    Secretary to recognize the National eHealth Collaborative as the HIT
    Standards Committee.
        ``(c) Consistency of Recommendations.--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.

    ``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.

               general provisions--hope for homeowners amendments

        Sec. 1211. Section 257 of the National Housing Act (12 U.S.C.
    1715z-23), as amended by the Emergency Economic Stabilization Act of
    2008 (Public Law 110-343), is amended--
                (1) in subsection (e)(1)(B), by inserting after ``being
            reset,'' the following: ``or has, due to a decrease in
            income,'';
                (2) in subsection (k)(2), by striking ``and the mortgagor''
            and all that follows through the end and inserting ``shall,
            upon any sale or disposition of the property to which the
            mortgage relates, be entitled to 25 percent of appreciation, up
            to the appraised value of the home at the time when the
            mortgage being refinanced under this section was originally
            made. The Secretary may share any amounts received under this
            paragraph with the holder of the eligible mortgage refinanced
            under this section.'';
                (3) in subsection (i)--
                        (A) by inserting ``, after weighing maximization of
                    participation with consideration for the solvency of
                    the program,'' after ``Secretary shall'';
                        (B) in paragraph (1), by striking ``equal to 3
                    percent'' and inserting ``not more than 2 percent'';
                    and
                        (C) in paragraph (2), by striking ``equal to 1.5
                    percent'' and inserting ``not more than 1 percent'';
                    and
                (4) by adding at the end the following:
        ``(x) Auctions.--The Board shall, if feasible, establish a
    structure and organize procedures for an auction to refinance eligible
    mortgages on a wholesale or bulk basis.
        ``(y) Compensation of Servicers.--To provide incentive for
    participation in the program under this section, each servicer of an
    eligible mortgage insured under this section shall be paid $1,000 for
    performing services associated with refinancing such mortgage, or such
    other amount as the Board determines is warranted. Funding for such
    compensation shall be provided by funds realized through the HOPE bond
    under subsection (w).''.

              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) may review 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;
                ``(10) establishing and supporting health record banking
            models to further consumer-based consent models that promote
            lifetime access to qualified health records, if such activities
            are included in the plan described in subsection (e), and may
            contain smart card functionality; and
                ``(11) 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) and the information
                    necessary to improve patient outcomes and to detect,
                    prevent, and manage chronic disease.
                        (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 disclosures must be included in an
            accounting referred to in paragraph (1)(A) and what information
            must be collected about each such disclosure 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 when their protected health information
            was disclosed and to whom it was disclosed, and the usefulness
            of such information to the individual, and takes into account
            the administrative and cost 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, 2009, 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.
                        ``(C) Later date.--The Secretary may set an
                    effective date that is later that the date specified
                    under subparagraph (A) or (B) if the Secretary
                    determines that such later date it necessary, but in no
                    case may the date specified under--
                                ``(i) subparagraph (A) be later than 2018;
                            or
                                ``(ii) subparagraph (B) be later than 2014.
        (d) Review of Health Care Operations.--Not later than 18 months
    after the date of the enactment of this title, the Secretary shall
    review and evaluate the definition of health care operations under
    section 164.501 of title 45, Code of Federal Regulations, and to the
    extent appropriate, eliminate by regulation 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
    shall not require that data be de-identified or require valid
    authorization for use or disclosure for activities within a covered
    entity described in paragraph (1) of the definition of health care
    operations under such section 164.501. 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.
    Nothing in this subsection may be construed to supersede any provision
    under subsection (e) or section 13406(a).
        (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).
                        (B) The purpose of the exchange is for the
                    treatment of the individual, subject to any regulation
                    that the Secretary may promulgate to prevent protected
                    health information from inappropriate access, use, or
                    disclosure.
                        (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.--Not later than 18 months after the date
            of enactment of this title, the Secretary shall promulgate
            regulations to carry out this subsection. In promulgating such
            regulations, the Secretary--
                        (A) shall evaluate the impact of restricting the
                    exception described in paragraph (2)(A) to require that
                    the price charged for the purposes described in such
                    paragraph reflects the costs of the preparation and
                    transmittal of the data for such purpose, on research
                    or public health activities, including those conducted
                    by or for the use of the Food and Drug Administration;
                    and
                        (B) may further restrict the exception described in
                    paragraph (2)(A) to require that the price charged for
                    the purposes described in such paragraph reflects the
                    costs of the preparation and transmittal of the data
                    for such purpose, if the Secretary finds that such
                    further restriction will not impede such research or
                    public health activities.
                (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 communication by
            a covered entity or business associate that is 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, shall not be considered a health care
            operation for purposes of subpart E of part 164 of title 45,
            Code of Federal Regulations if the covered entity receives or
            has received direct or indirect payment in exchange for making
            such communication, except where--
                        (A) 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) each of the following conditions apply--
                                (i) the communication is made by the
                            covered entity; and
                                (ii) the covered entity making such
                            communication 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; or
                        (C) each of the following conditions apply--
                                (i) the communication is made on behalf of
                            the covered entity;
                                (ii) the communication 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; and
                                (iii) the business associate making such
                            communication, or the covered entity on behalf
                            of which the communication is made, 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.
        (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 Federal Trade Commission shall, in accordance with
            section 553 of title 5, United States Code, 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.
        (e) Report Required.--Not later than 1 year after the date of
    enactment of this section, the Government Accountability Office shall
    submit to Congress and the Secretary of Health and Human Services a
    report on the impact of any of the provisions of, or amendments made
    by, this division or division B that are related to the Health
    Insurance Portability and Accountability Act of 1996 and section 552a
    of title 5, United States Code, on health insurance premiums and
    overall health care costs.

                     TITLE XIV--STATE FISCAL STABILIZATION

                            DEPARTMENT OF EDUCATION

                        State Fiscal Stabilization Fund

        For necessary expenses for a State Fiscal Stabilization Fund,
    $39,000,000,000, 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
    $7,500,000,000 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.

        Education Fund.--(a) In general.--The Governor shall use 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.
        (b) Restoring 2008 state support for education.--
        (1) In general.--The Governor shall first use the funds described
    in subsection (a)--
                        (A) 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
                        (B) 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.
        (2) Shortfall.--If the Governor determines that the amount of funds
    available under subsection (a) is insufficient to restore State support
    for education to the levels described in subparagraphs (A) and (B) of
    paragraph (1), 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.
        (c) Subgrants to improve basic programs operated by local
    educational agencies.--After carrying out subsection (b), the Governor
    shall use any funds remaining under subsection (a) 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.

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

        (1) 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 to the
    Committees on Appropriations of the Senate and House of Representatives
    quarterly reports based on the reports required under section 1551 that
    detail the impact of programs funded through covered funds on
    employment, estimated economic growth, and other key economic
    indicators.
        (b) Submission of Reports.--
                (1) First report.--The first report submitted under
            subsection (a) shall be submitted not later than 45 days after
            the end of the first full quarter following the date of
            enactment of this Act.
                (2) Last report.--The last report required to be submitted
            under subsection (a) shall apply to the quarter in which the
            Board terminates under section 1521.

                      Subtitle D--Reports on Use of Funds

    SEC. 1551. REPORTS ON USE OF FUNDS.

        (a) Short Title.--This section may be cited as the ``Jobs
    Accountability Act''.
        (b) Definitions.--In this section:
                (1) Agency.--The term ``agency'' has the meaning given
            under section 551 of title 5, United States Code.
                (2) Recipient.--The term ``recipient''--
                        (A) means any entity that receives recovery funds
                    (including recovery funds received through grant, loan,
                    or contract) other than an individual; and
                        (B) includes a State that receives recovery funds.
                (3) Recovery funds.--The term ``recovery funds'' means any
            funds that are made available--
                        (A) from appropriations made under this Act; and
                        (B) under any other authorities provided under this
                    Act.
        (c) Recipient Reports.--Not later than 10 days after the end of
    each calendar quarter, each recipient that received recovery funds from
    an agency shall submit a report to that agency that contains--
                (1) the total amount of recovery funds received from that
            agency;
                (2) the amount of recovery funds received that were
            expended or obligated to projects or activities; and
                (3) a detailed list of all projects or activities for which
            recovery funds were expended or obligated, including--
                        (A) the name of the project or activity;
                        (B) a description of the project or activity;
                        (C) an evaluation of the completion status of the
                    project or activity; and
                        (D) an analysis of the number of jobs created and
                    the number of jobs retained by the project or activity.
        (d) Agency Reports.--Not later than 30 days after the end of each
    calendar quarter, each agency that made recovery funds available to any
    recipient shall make the information in reports submitted under
    subsection (c) publicly available by posting the information on a
    website.
        (e) Other Reports.--The Congressional Budget Office and the
    Government Accountability Office shall comment on the information
    described in subsection (c)(3)(D) for any reports submitted under
    subsection (c). Such comments shall be due within 7 days after such
    reports are submitted.

                    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) This section shall be applied in a manner consistent with
    United States obligations under international agreements.

                                 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)),''.
        Sec. 1607. Findings.--
                (1) The National Environmental Policy Act protects public
            health, safety and environmental quality: by ensuring
            transparency, accountability and public involvement in federal
            actions and in the use of public funds;
                (2) When President Nixon signed the National Environmental
            Policy Act into law on January 1, 1970, he said that the Act
            provided the ``direction'' for the country to ``regain a
            productive harmony between man and nature'';
                (3) The National Environmental Policy Act helps to provide
            an orderly process for considering federal actions and funding
            decisions and prevents ligation and delay that would otherwise
            be inevitable and existed prior to the establishment of the
            National Environmental Policy Act.
        (a) Adequate resources within this bill must be devoted to ensuring
    that applicable environmental reviews under the National Environmental
    Policy Act are completed on an expeditious basis and that the shortest
    existing applicable process under the National Environmental Policy Act
    shall be utilized.
        (b) The President shall report to the Senate Environment and Public
    Works Committee and the House Natural Resources Committee every 90 days
    following the date of enactment until September 30, 2011 on the status
    and progress of projects and activities funded by this Act with respect
    to compliance with National Environmental Policy Act requirements and
    documentation.

                  prohibition on no-bid contracts and earmarks

        Sec. 1608.  (a) Notwithstanding any other provision of this Act,
    none of the funds appropriated or otherwise made available by this Act
    may be used to make any payment in connection with a contract unless
    the contract is awarded using competitive procedures in accordance with
    the requirements of section 303 of the Federal Property and
    Administrative Services Act of 1949 (41 U.S.C. 253), section 2304 of
    title 10, United States Code, and the Federal Acquisition Regulation.
        (b) Notwithstanding any other provision of this Act, none of the
    funds appropriated or otherwise made available by this Act may be
    awarded by grant or cooperative agreement unless the process used to
    award such grant or cooperative agreement uses competitive procedures
    to select the grantee or award recipient.
        Sec. 1609. Limit on Funds.
        None of the amounts appropriated or otherwise made available by
    this Act may be used for any casino or other gambling establishment,
    aquarium, zoo, golf course, swimming pool, stadium, community park,
    museum, theater, art center, and highway beautification project.
    Sec. 1610. Hiring American workers in companies receiving TARP funding.
        (a) Short Title.--This section may be cited as the ``Employ
    American Workers Act''.
        (b) Prohibition.--
                (1) In general.--Notwithstanding any other provision of
            law, it shall be unlawful for any recipient of funding under
            title I of the Emergency Economic Stabilization Act of 2008
            (Public Law 110-343) or section 13 of the Federal Reserve Act
            (12 U.S.C. 342 et seq.) to hire any nonimmigrant described in
            section 101(a)(15)(h)(i)(b) of the Immigration and Nationality
            Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in
            compliance with the requirements for an H-1B dependent employer
            (as defined in section 212(n)(3) of such Act (8 U.S.C.
            1182(n)(3))), except that the second sentence of section
            212(n)(1)(E)(ii) of such Act shall not apply.
                (2) Defined term.--In this subsection, the term ``hire''
            means to permit a new employee to commence a period of
            employment.
        (c) Sunset Provision.--This section shall be effective during the
    2-year period beginning on the date of the enactment of this Act.

     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. Credit for certain home purchases.
    Sec. 1007. Suspension of tax on portion of unemployment compensation.
    Sec. 1008. Above-the-line deduction for interest on indebtedness with
                                respect to the purchase of certain motor
                                vehicles.
    Sec. 1009. Above-the-line deduction for State sales tax and excise tax
                                on the purchase of certain motor vehicles.

                    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--Modification of Credit for Carbon Dioxide Sequestration

    Sec. 1141. Application of monitoring requirements to carbon dioxide
                                used as a tertiary injectant.

                 PART VI--Plug-in Electric Drive Motor Vehicles

    Sec. 1151. 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.
    Sec. 1903. Election to accelerate the low-income housing tax credit.

              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 $70,000 ($140,000 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 $8,100.''.
        (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. CREDIT FOR CERTAIN HOME PURCHASES.

        (a) Allowance of Credit.--Subpart A of part IV of subchapter A of
    chapter 1 is amended by inserting after section 25D the following new
    section:

    ``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

        ``(a) Allowance of Credit.--
                ``(1) In general.--In the case of an individual who is a
            purchaser of a principal residence during the taxable year,
            there shall be allowed as a credit against the tax imposed by
            this chapter an amount equal to 10 percent of the purchase
            price of the residence.
                ``(2) Dollar limitation.--The amount of the credit allowed
            under paragraph (1) shall not exceed $15,000.
                ``(3) Allocation of credit amount.--At the election of the
            taxpayer, the amount of the credit allowed under paragraph (1)
            (after application of paragraph (2)) may be equally divided
            among the 2 taxable years beginning with the taxable year in
            which the purchase of the principal residence is made.
        ``(b) Limitations.--
                ``(1) Date of purchase.--The credit allowed under
            subsection (a) shall be allowed only with respect to purchases
            made--
                        ``(A) after the date of the enactment of the
                    American Recovery and Reinvestment Tax Act of 2009, and
                        ``(B) on or before the date that is 1 year after
                    such date of enactment.
                ``(2) Limitation based on amount of tax.--In the case of a
            taxable year to which section 26(a)(2) does not apply, 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
                    subpart (other than this section) for the taxable year.
                ``(3) One-time only.--
                        ``(A) In general.--If a credit is allowed under
                    this section in the case of any individual (and such
                    individual's spouse, if married) with respect to the
                    purchase of any principal residence, no credit shall be
                    allowed under this section in any taxable year with
                    respect to the purchase of any other principal
                    residence by such individual or a spouse of such
                    individual.
                        ``(B) Joint purchase.--In the case of a purchase of
                    a principal residence by 2 or more unmarried
                    individuals or by 2 married individuals filing
                    separately, no credit shall be allowed under this
                    section if a credit under this section has been allowed
                    to any of such individuals in any taxable year with
                    respect to the purchase of any other principal
                    residence.
        ``(c) Principal Residence.--For purposes of this section, the term
    `principal residence' has the same meaning as when used in section 121.
        ``(d) Denial of Double Benefit.--No credit shall be allowed under
    this section for any purchase for which a credit is allowed under
    section 36 or section 1400C.
        ``(e) Special Rules.--
                ``(1) Joint purchase.--
                        ``(A) Married individuals filing separately.--In
                    the case of 2 married individuals filing separately,
                    subsection (a) shall be applied to each such individual
                    by substituting `$7,500' for `$15,000' in subsection
                    (a)(1).
                        ``(B) Unmarried individuals.--If 2 or more
                    individuals who are not married purchase a principal
                    residence, the amount of the credit allowed under
                    subsection (a) shall be allocated among such
                    individuals in such manner as the Secretary may
                    prescribe, except that the total amount of the credits
                    allowed to all such individuals shall not exceed
                    $15,000.
                ``(2) Purchase.--In defining the purchase of a principal
            residence, rules similar to the rules of paragraphs (2) and (3)
            of section 1400C(e) (as in effect on the date of the enactment
            of this section) shall apply.
                ``(3) Reporting requirement.--Rules similar to the rules of
            section 1400C(f) (as so in effect) shall apply.
        ``(f) Recapture of Credit in the Case of Certain Dispositions.--
                ``(1) In general.--In the event that a taxpayer--
                        ``(A) disposes of the principal residence with
                    respect to which a credit was allowed under subsection
                    (a), or
                        ``(B) fails to occupy such residence as the
                    taxpayer's principal residence,
            at any time within 24 months after the date on which the
            taxpayer purchased such residence, then the tax imposed by this
            chapter for the taxable year during which such disposition
            occurred or in which the taxpayer failed to occupy the
            residence as a principal residence shall be increased by the
            amount of such credit.
                ``(2) Exceptions.--
                        ``(A) Death of taxpayer.--Paragraph (1) shall not
                    apply to any taxable year ending after the date of the
                    taxpayer's death.
                        ``(B) Involuntary conversion.--Paragraph (1) shall
                    not apply in the case of a residence which is
                    compulsorily or involuntarily converted (within the
                    meaning of section 1033(a)) if the taxpayer acquires a
                    new principal residence within the 2-year period
                    beginning on the date of the disposition or cessation
                    referred to in such paragraph. Paragraph (1) shall
                    apply to such new principal residence during the
                    remainder of the 24-month period described in such
                    paragraph as if such new principal residence were the
                    converted residence.
                        ``(C) Transfers between spouses or incident to
                    divorce.--In the case of a transfer of a residence to
                    which section 1041(a) applies--
                                ``(i) paragraph (1) shall not apply to such
                            transfer, and
                                ``(ii) in the case of taxable years ending
                            after such transfer, paragraph (1) shall apply
                            to the transferee in the same manner as if such
                            transferee were the transferor (and shall not
                            apply to the transferor).
                        ``(D) Relocation of members of the armed forces.--
                    Paragraph (1) shall not apply in the case of a member
                    of the Armed Forces of the United States on active duty
                    who moves pursuant to a military order and incident to
                    a permanent change of station.
                ``(3) Joint returns.--In the case of a credit allowed under
            subsection (a) with respect to a joint return, half of such
            credit shall be treated as having been allowed to each
            individual filing such return for purposes of this subsection.
                ``(4) Return requirement.--If the tax imposed by this
            chapter for the taxable year is increased under this
            subsection, the taxpayer shall, notwithstanding section 6012,
            be required to file a return with respect to the taxes imposed
            under this subtitle.
        ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
    is allowed under this section with respect to the purchase of any
    residence, the basis of such residence shall be reduced by the amount
    of the credit so allowed.
        ``(h) Election to Treat Purchase in Prior Year.--In the case of a
    purchase of a principal residence during the period described in
    subsection (b)(1), a taxpayer may elect to treat such purchase as made
    on December 31, 2008, for purposes of this section.''.
        (b) Clerical Amendment.--The table of sections for subpart A of
    part IV of subchapter A of chapter 1 is amended by inserting after the
    item relating to section 25D the following new item:

    ``Sec. 25E. Credit for certain home purchases.''.
        (c) Sunset of Current First-Time Homebuyer Credit.--
                (1) In general.--Subsection (h) of section 36 is amended by
            striking ``July 1, 2009'' and inserting ``the date of the
            enactment of the American Recovery and Reinvestment Tax Act of
            2009''.
                (2) Election to treat purchase in prior year.--Subsection
            (g) of section 36 is amended by striking ``July 1, 2009'' and
            inserting ``the date of the enactment of the American Recovery
            and Reinvestment Tax Act of 2009''.
        (d) Effective Date.--The amendments made by this section shall
    apply to purchases after the date of the enactment of this Act.

    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.

    SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON INDEBTEDNESS WITH
                  RESPECT TO THE PURCHASE OF CERTAIN MOTOR VEHICLES.

        (a) In General.--Paragraph (2) of section 163(h) of the Internal
    Revenue Code of 1986 is amended--
                (1) by striking ``and'' at the end of subparagraph (E),
                (2) by striking the period at the end of subparagraph (F)
            and inserting ``, and'', and
                (3) by adding at the end the following new subparagraph:
                        ``(G) any qualified motor vehicle interest (within
                    the meaning of paragraph (5)).''.
        (b) Qualified Motor Vehicle Interest.--Section 163(h) of the
    Internal Revenue Code of 1986 is amended by adding at the end the
    following new paragraph:
                ``(5) Qualified motor vehicle interest.--For purposes of
            this subsection--
                        ``(A) In general.--The term `qualified motor
                    vehicle interest' means any interest which is paid or
                    accrued during the taxable year on any indebtedness
                    which--
                                ``(i) is incurred after November 12, 2008,
                            and before January 1, 2010, in acquiring any
                            qualified motor vehicle of the taxpayer, and
                                ``(ii) is secured by such qualified motor
                            vehicle.
                    Such term also includes any indebtedness secured by
                    such qualified motor vehicle resulting from the
                    refinancing of indebtedness meeting the requirements of
                    the preceding sentence (or this sentence); but only to
                    the extent the amount of the indebtedness resulting
                    from such refinancing does not exceed the amount of the
                    refinanced indebtedness.
                        ``(B) Dollar limitation.--The aggregate amount of
                    indebtedness treated as described in subparagraph (A)
                    for any period shall not exceed $49,500 ($24,750 in the
                    case of a separate return by a married individual).
                        ``(C) Income limitation.--The amount otherwise
                    treated as interest under subparagraph (A) for any
                    taxable year (after the application of subparagraph
                    (B)) shall be reduced (but not below zero) by the
                    amount which bears the same ratio to the amount which
                    is so treated as--
                                ``(i) the excess (if any) of--
                                        ``(I) the taxpayer's modified
                                    adjusted gross income for such taxable
                                    year, over
                                        ``(II) $125,000 ($250,000 in the
                                    case of a joint return), bears to
                                ``(ii) $10,000.
                    For purposes of the preceding sentence, 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.
                        ``(D) Qualified motor vehicle.--The term `qualified
                    motor vehicle' means a passenger automobile (within the
                    meaning of section 30B(h)(3)) or a light truck (within
                    the meaning of such section)--
                                ``(i) which is acquired for use by the
                            taxpayer and not for resale after November 12,
                            2008, and before January 1, 2010,
                                ``(ii) the original use of which commences
                            with the taxpayer, and
                                ``(iii) which has a gross vehicle weight
                            rating of not more than 8,500 pounds.''.
        (c) Deduction Allowed Above-the-Line.--Section 62(a) of the
    Internal Revenue Code of 1986 is amended by inserting after paragraph
    (21) the following new paragraph:
                ``(22) Qualified motor vehicle interest.--The deduction
            allowed under section 163 by reason of subsection (h)(2)(G)
            thereof.''.
        (d) Reporting of Qualified Motor Vehicle Interest.--
                (1) In general.--Subpart B of part III of subchapter A of
            chapter 61 of the Internal Revenue Code of 1986 is amended by
            adding at the end the following new section:

    ``SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR VEHICLE INTEREST
                  RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS.

        ``(a) Qualified Motor Vehicle Interest.--Any person--
                ``(1) who is engaged in a trade or business, and
                ``(2) who, in the course of such trade or business,
            receives from any individual interest aggregating $600 or more
            for any calendar year on any indebtedness secured by a
            qualified motor vehicle (as defined in section 163(h)(5)(D)),
    shall make the return described in subsection (b) with respect to each
    individual from whom such interest was received at such time as the
    Secretary may by regulations prescribe.
        ``(b) Form and Manner of Returns.--A return is described in this
    subsection if such return--
                ``(1) is in such form as the Secretary may prescribe,
                ``(2) contains--
                        ``(A) the name and address of the individual from
                    whom the interest described in subsection (a)(2) was
                    received,
                        ``(B) the amount of such interest received for the
                    calendar year, and
                        ``(C) such other information as the Secretary may
                    prescribe.
        ``(c) Application to Governmental Units.--For purposes of
    subsection (a)--
                ``(1) Treated as persons.--The term `person' includes any
            governmental unit (and any agency or instrumentality thereof).
                ``(2) Special rules.--In the case of a governmental unit or
            any agency or instrumentality thereof--
                        ``(A) subsection (a) shall be applied without
                    regard to the trade or business requirement contained
                    therein, and
                        ``(B) any return required under subsection (a)
                    shall be made by the officer or employee appropriately
                    designated for the purpose of making such return.
        ``(d) Statements To Be Furnished to Individuals With Respect to
    Whom Information Is Required.--Every person required to make a return
    under subsection (a) shall furnish to each individual whose name is
    required to be set forth in such return a written statement showing--
                ``(1) the name, address, and phone number of the
            information contact of the person required to make such return,
            and
                ``(2) the aggregate amount of interest described in
            subsection (a)(2) received by the person required to make such
            return from the individual to whom the statement is required to
            be furnished.
    The written statement required under the preceding sentence shall be
    furnished on or before January 31 of the year following the calendar
    year for which the return under subsection (a) was required to be made.
        ``(e) Returns Which Would Be Required To Be Made by 2 or More
    Persons.--Except to the extent provided in regulations prescribed by
    the Secretary, in the case of interest received by any person on behalf
    of another person, only the person first receiving such interest shall
    be required to make the return under subsection (a).''.
                (2) Amendments relating to penalties.--
                        (A) Section 6721(e)(2)(A) of such Code is amended
                    by striking ``or 6050L'' and inserting ``6050L, or
                    6050X''.
                        (B) Section 6722(c)(1)(A) of such Code is amended
                    by striking ``or 6050L(c)'' and inserting ``6050L(c),
                    or 6050X(d)''.
                        (C) Subparagraph (B) of section 6724(d)(1) of such
                    Code is amended by redesignating clauses (xvi) through
                    (xxii) as clauses (xvii) through (xxiii), respectively,
                    and by inserting after clause (xii) the following new
                    clause:
                                ``(xvi) section 6050X (relating to returns
                            relating to qualified motor vehicle interest
                            received in trade or business from
                            individuals),''.
                        (D) Paragraph (2) of section 6724(d) of such Code
                    is amended by striking the period at the end of
                    subparagraph (DD) and inserting ``, or'' and by
                    inserting after subparagraph (DD) the following new
                    subparagraph:
                        ``(EE) section 6050X(d) (relating to returns
                    relating to qualified motor vehicle interest received
                    in trade or business from individuals).''.
                (3) Clerical amendment.--The table of sections for subpart
            B of part III of subchapter A of chapter 61 of such Code is
            amended by inserting after the item relating to section 6050W
            the following new item:

    ``Sec. 6050X. Returns relating to qualified motor vehicle interest
                                received in trade or business from
                                individuals.''.
        (e) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.

    SEC. 1009. ABOVE-THE-LINE DEDUCTION FOR STATE SALES TAX AND EXCISE TAX
                  ON THE PURCHASE OF CERTAIN MOTOR VEHICLES.

        (a) In General.--Subsection (a) of section 164 of the Internal
    Revenue Code of 1986 is amended by inserting after paragraph (5) the
    following new paragraph:
                ``(6) Qualified motor vehicle taxes.''.
        (b) Qualified Motor Vehicle Taxes.--Subsection (b) of section 164
    of the Internal Revenue Code of 1986 is amended by adding at the end
    the following new paragraph:
                ``(6) Qualified motor vehicle taxes.--
                        ``(A) In general.--For purposes of this section,
                    the term `qualified motor vehicle taxes' means any
                    State or local sales or excise tax imposed on the
                    purchase of a qualified motor vehicle (as defined in
                    section 163(h)(5)(D)).
                        ``(B) Dollar limitation.--The amount taken into
                    account under subparagraph (A) for any taxable year
                    shall not exceed $49,500 ($24,750 in the case of a
                    separate return by a married individual).
                        ``(C) Income limitation.--The amount otherwise
                    taken into account under subparagraph (A) (after the
                    application of subparagraph (B)) for any taxable year
                    shall be reduced (but not below zero) by the amount
                    which bears the same ratio to the amount which is so
                    treated as--
                                ``(i) the excess (if any) of--
                                        ``(I) the taxpayer's modified
                                    adjusted gross income for such taxable
                                    year, over
                                        ``(II) $125,000 ($250,000 in the
                                    case of a joint return), bears to
                                ``(ii) $10,000.
                    For purposes of the preceding sentence, 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.
                        ``(D) Qualified motor vehicle taxes not included in
                    cost of acquired property.--The last sentence of
                    subsection (a) shall not apply to any qualified motor
                    vehicle taxes.
                        ``(E) Coordination with general sales tax.--This
                    paragraph shall not apply in the case of a taxpayer who
                    makes an election under paragraph (5) for the taxable
                    year.''.
        (c) Conforming Amendments.--Paragraph (5) of section 163(h) of the
    Internal Revenue Code of 1986, as added by section 1, is amended--
                (1) by adding at the end the following new subparagraph:
                        ``(E) Exclusion.--If the indebtedness described in
                    subparagraph (A) includes the amounts of any State or
                    local sales or excise taxes paid or accrued by the
                    taxpayer in connection with the acquisition of a
                    qualified motor vehicle, the aggregate amount of such
                    indebtedness taken into account under such subparagraph
                    shall be reduced, but not below zero, by the amount of
                    any such taxes for which a deduction is allowed under
                    section 164(a) by reason of paragraph (6) thereof.'',
                    and
                (2) by inserting ``, after the application of subparagraph
            (E),'' after ``for any period'' in subparagraph (B).
        (d) Deduction Allowed Above-the-Line.--Section 62(a) of the
    Internal Revenue Code of 1986, as amended by section 1, is amended by
    inserting after paragraph (22) the following new paragraph:
                ``(23) Qualified motor vehicle taxes.--The deduction
            allowed under section 164 by reason of subsection (a)(6)
            thereof.''.
        (e) Effective Date.--The amendments 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.

        (a) In General.--Section 54D(d) is amended by striking
    ``800,000,000'' and inserting ``$3,200,000,000''.
        (b) Clarification With Respect to Green Community Programs.--Clause
    (ii) of section 54D(f)(1)(A) is amended by inserting ``(including the
    use of loans, grants, or other repayment mechanisms to implement such
    programs)'' after ``green community programs''.

                    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) Modifications of Standards for Energy-Efficient Building
    Property.--
                (1) Electric heat pumps.--Subparagraph (B) of section
            25C(d)(3) is amended to read as follows:
                        ``(B) an electric heat pump which achieves the
                    highest efficiency tier established by the Consortium
                    for Energy Efficiency, as in effect on January 1,
                    2009.''.
                (2) Central air conditioners.--Subparagraph (C) of section
            25C(d)(3) is amended by striking ``2006'' and inserting
            ``2009''.
                (3) Water heaters.--Subparagraph (D) of section 25C(d)(3)
            is amended to read as follows:
                        ``(E) a natural gas, propane, or oil water heater
                    which has either an energy factor of at least 0.82 or a
                    thermal efficiency of at least 90 percent.''.
                (4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is
            amended by inserting ``, as measured using a lower heating
            value'' after ``75 percent''.
        (c) Modifications of Standards for Oil Furnaces and Hot Water
    Boilers.--
                (1) In general.--Paragraph (4) of section 25C(d) is amended
            to read as follows:
                ``(4) Qualified natural gas, propane, and oil furnaces and
            hot water boilers.--
                        ``(A) Qualified natural gas furnace.--The term
                    `qualified natural gas furnace' means any natural gas
                    furnace which achieves an annual fuel utilization
                    efficiency rate of not less than 95.
                        ``(B) Qualified natural gas hot water boiler.--The
                    term `qualified natural gas hot water boiler' means any
                    natural gas hot water boiler which achieves an annual
                    fuel utilization efficiency rate of not less than 90.
                        ``(C) Qualified propane furnace.--The term
                    `qualified propane furnace' means any propane furnace
                    which achieves an annual fuel utilization efficiency
                    rate of not less than 95.
                        ``(D) Qualified propane hot water boiler.--The term
                    `qualified propane hot water boiler' means any propane
                    hot water boiler which achieves an annual fuel
                    utilization efficiency rate of not less than 90.
                        ``(E) Qualified oil furnaces.--The term `qualified
                    oil furnace' means any oil furnace which achieves an
                    annual fuel utilization efficiency rate of not less
                    than 90.
                        ``(F) Qualified oil hot water boiler.--The term
                    `qualified oil hot water boiler' means any oil hot
                    water boiler which achieves an annual fuel utilization
                    efficiency rate of not less than 90.''.
                (2) Conforming amendment.--Clause (ii) of section
            25C(d)(2)(A) is amended to read as follows:
                                ``(ii) any qualified natural gas furnace,
                            qualified propane furnace, qualified oil
                            furnace, qualified natural gas hot water
                            boiler, qualified propane hot water boiler, or
                            qualified oil hot water boiler, or''.
        (d) Modifications of Standards for Qualified Energy Efficiency
    Improvements.--
                (1) Qualifications for exterior windows, doors, and
            skylights.--Subsection (c) of section 25C is amended by adding
            at the end the following new paragraph:
                ``(4) Qualifications for exterior windows, doors, and
            skylights.--Such term shall not include any component described
            in subparagraph (B) or (C) of paragraph (2) unless such
            component is equal to or below a U factor of 0.30 and SHGC of
            0.30.''.
                (2) Additional qualification for insulation.--Subparagraph
            (A) of section 25C(c)(2) is amended by inserting ``and meets
            the prescriptive criteria for such material or system
            established by the 2009 International Energy Conservation Code,
            as such Code (including supplements) is in effect on the date
            of the enactment of the American Recovery and Reinvestment Tax
            Act of 2009'' after ``such dwelling unit''.
        (e) Extension.--Section 25C(g)(2) is amended by striking ``December
    31, 2009'' and inserting ``December 31, 2010''.
        (f) Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to taxable years
            beginning after December 31, 2008.
                (2) Efficiency standards.--The amendments made by
            paragraphs (1), (2), and (3) of subsection (b) and subsections
            (c) and (d) shall apply to property placed in service after
            December 31, 2009.

    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) Ensuring Consumer Accessibility to Alternative Fuel Vehicle
    Refueling Property in the Case of Electricity.--Section 179(d)(3) is
    amended by striking subparagraph (B) and inserting the following:
                        ``(B) for the recharging of motor vehicles
                    propelled by electricity, but only if--
                                ``(i) the property complies with the
                            Society of Automotive Engineers' connection
                            standards,
                                ``(ii) the property provides for non-
                            restrictive access for charging and for payment
                            interoperability with other systems, and
                                ``(iii) the property--
                                        ``(I) is located on property owned
                                    by the taxpayer, or
                                        ``(II) is located on property owned
                                    by another person, is placed in service
                                    with the permission of such other
                                    person, and is fully maintained by the
                                    taxpayer.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.

    SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS.

        (a) Temporary 5-Year Recovery Period.--
                (1) In general.--Subparagraph (B) of section 168(e)(3) is
            amended by striking ``and'' at the end of clause (vi), by
            striking the period at the end of clause (vii) and inserting
            ``, and'', and by adding at the end the following new clause:
                                ``(viii) any qualified smart electric meter
                            which is placed in service before January 1,
                            2011.''.
                (2) Conforming amendment.--Clause (iii) of section
            168(e)(3)(D) is amended by inserting ``which is placed in
            service after December 31, 2010'' after ``electric meter''.
        (b) Technical Amendments.--Paragraphs (18)(A)(ii) and (19)(A)(ii)
    of section 168(i) are each amended by striking ``16 years'' and
    inserting ``10 years''.
        (c) 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 the date of the enactment of this Act.
                (2) Technical amendment.--The amendments made by subsection
            (b) shall take effect as if included in section 306 of the
            Energy Improvement and Extension Act of 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--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

    SEC. 1141. 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 Amendments.--
                (1) Section 45Q(d)(2) is amended--
                        (A) by striking ``subsection (a)(1)(B)'' and
                    inserting ``paragraph (1)(B) or (2)(C) of subsection
                    (a)'',
                        (B) by striking ``and unminable coal seems'' and
                    inserting ``, oil and gas reservoirs, and unminable
                    coal seams'', and
                        (C) by inserting ``the Secretary of Energy, and the
                    Secretary of the Interior,'' after ``Environmental
                    Protection Agency''.
                (2) Section 45Q(e) is amended by striking ``captured and
            disposed of or used as a tertiary injectant'' and inserting
            ``taken into account in accordance with 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 VI--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

    SEC. 1151. 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) In the case of a specified vehicle which is a
                    2-or 3-wheeled motor vehicle, subsection (c)(1) shall
                    be applied by substituting `2.5 kilowatt hours' for `4
                    kilowatt hours'.
                        ``(D) In the case of a specified vehicle which is a
                    low-speed motor vehicle, 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--
                                ``(i) is placed in service after December
                            31, 2009, and
                                ``(ii) meets the requirements of section
                            571.500 of title 49, Code of Federal
                            Regulations.''.
        (d) Effective Dates.--
                (1) In general.--The amendment made by subsections (a) and
            (c) shall take effect on the date of the enactment of this Act.
                (2) Other modifications.--The amendments made by subsection
            (b) shall apply to property placed in service after December
            31, 2009, in taxable years beginning after such date.

    SEC. 1152. CONVERSION KITS.

        (a) In General.--Section 30B (relating to alternative motor vehicle
    credit) is amended by redesignating subsections (i) and (j) as
    subsections (j) and (k), respectively, and by inserting after
    subsection (h) the following new subsection:
        ``(i) Plug-In Conversion Credit.--
                ``(1) In general.--For purposes of subsection (a), the
            plug-in conversion credit determined under this subsection with
            respect to any motor vehicle which is converted to a qualified
            plug-in electric drive motor vehicle is 10 percent of so much
            of the cost of the converting such vehicle as does not exceed
            $40,000.
                ``(2) Definitions and special rules.--For purposes of this
            subsection--
                        ``(A) Qualified plug-in electric drive motor
                    vehicle.--The term `qualified plug-in electric drive
                    motor vehicle' means any new qualified plug-in electric
                    drive motor vehicle (as defined in section 30D(c),
                    determined without regard to paragraphs (4) and (6)
                    thereof).
                        ``(B) Plug-in traction battery module.--The term
                    `plug-in traction battery module' means an electro-
                    chemical energy storage device which--
                                ``(i) which has a traction battery capacity
                            of not less than 2.5 kilowatt hours,
                                ``(ii) which is equipped with an electrical
                            plug by means of which it can be energized and
                            recharged when plugged into an external source
                            of electric power,
                                ``(iii) which consists of a standardized
                            configuration and is mass produced,
                                ``(iv) which has been tested and approved
                            by the National Highway Transportation Safety
                            Administration as compliant with applicable
                            motor vehicle and motor vehicle equipment
                            safety standards when installed by a mechanic
                            with standardized training in protocols
                            established by the battery manufacturer as part
                            of a nationwide distribution program,
                                ``(v) which complies with the requirements
                            of section 32918 of title 49, United States
                            Code, and
                                ``(vi) which is certified by a battery
                            manufacturer as meeting the requirements of
                            clauses (i) through (v).
                        ``(C) Credit allowed to lessor of battery module.--
                    In the case of a plug-in traction battery module which
                    is leased to the taxpayer, the credit allowed under
                    this subsection shall be allowed to the lessor of the
                    plug-in traction battery module.
                        ``(D) Credit allowed in addition to other
                    credits.--The credit allowed under this subsection
                    shall be allowed with respect to a motor vehicle
                    notwithstanding whether a credit has been allowed with
                    respect to such motor vehicle under this section (other
                    than this subsection) in any preceding taxable year.
                ``(3) Termination.--This subsection shall not apply to
            conversions made after December 31, 2012.''.
        (b) Credit Treated as Part of Alternative Motor Vehicle Credit.--
    Section 30B(a) is amended by striking ``and'' at the end of paragraph
    (3), by striking the period at the end of paragraph (4) and inserting
    ``, and'', and by adding at the end the following new paragraph:
                ``(5) the plug-in conversion credit determined under
            subsection (i).''.
        (c) No Recapture for Vehicles Converted to Qualified Plug-in
    Electric Drive Motor Vehicles.--Paragraph (8) of section 30B(h) is
    amended by adding at the end the following: ``, except that no benefit
    shall be recaptured if such property ceases to be eligible for such
    credit by reason of conversion to a qualified plug-in electric drive
    motor vehicle.''.
        (d) Effective Date.--The amendments made by this section shall
    apply to property placed in service after December 31, 2008, 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) 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 the period beginning on
                                    September 1, 2001, and ending on
                                    December 31, 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) 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.
                ``(3) 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, including storage of
                                    such energy,
                                        ``(IV) designed to capture and
                                    sequester carbon dioxide emissions,
                                        ``(V) designed to refine or blend
                                    renewable fuels or to produce energy
                                    conservation technologies (including
                                    energy-conserving lighting technologies
                                    and smart grid technologies), or
                                        ``(VI) other advanced energy
                                    property designed to reduce greenhouse
                                    gas emissions as may be determined by
                                    the Secretary, 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--
                        ``(A) shall take into consideration only those
                    projects where there is a reasonable expectation of
                    commercial viability, and
                        ``(B) shall take into consideration which
                    projects--
                                ``(i) will provide the greatest domestic
                            job creation (both direct and indirect) during
                            the credit period,
                                ``(ii) will provide the greatest net impact
                            in avoiding or reducing air pollutants or
                            anthropogenic emissions of greenhouse gases,
                                ``(iii) have the greatest readiness for
                            commercial employment, replication, and further
                            commercial use in the United States,
                                ``(iv) will provide the greatest benefit in
                            terms of newness in the commercial market,
                                ``(v) have the lowest levelized cost of
                            generated or stored energy, or of measured
                            reduction in energy consumption or greenhouse
                            gas emission (based on costs of the full supply
                            chain), and
                                ``(vi) have the shortest project time from
                            certification to completion.
                ``(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).

    SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING PLUG-IN
                  ELECTRIC DRIVE MOTOR VEHICLES AND COMPONENTS.

        (a) Deduction for Manufacturing Facilities.--Part VI of subchapter
    B of chapter 1 (relating to itemized deductions for individuals and
    corporations) is amended by inserting after section 179E the following
    new section:

    ``SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FACILITIES PRODUCING
                  PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES AND COMPONENTS.

        ``(a) Treatment as Expenses.--A taxpayer may elect to treat the
    applicable percentage of the cost of any qualified plug-in electric
    drive motor vehicle manufacturing facility property as an expense which
    is not chargeable to a capital account. Any cost so treated shall be
    allowed as a deduction for the taxable year in which the qualified
    manufacturing facility property is placed in service.
        ``(b) Applicable Percentage.--For purposes of subsection (a), the
    applicable percentage is--
                ``(1) 100 percent, in the case of qualified plug-in
            electric drive motor vehicle manufacturing facility property
            which is placed in service before January 1, 2012, and
                ``(2) 50 percent, in the case of qualified plug-in electric
            drive motor vehicle manufacturing facility property which is
            placed in service after December 31, 2011, and before January
            1, 2015.
        ``(c) Election.--
                ``(1) In general.--An election under this section for any
            taxable year shall be made on the taxpayer's return of the tax
            imposed by this chapter for the taxable year. Such election
            shall be made in such manner as the Secretary may by
            regulations prescribe.
                ``(2) Election irrevocable.--Any election made under this
            section may not be revoked except with the consent of the
            Secretary.
        ``(d) Qualified Plug-In Electric Drive Motor Vehicle Manufacturing
    Facility Property.--For purposes of this section--
                ``(1) In general.--The term `qualified plug-in electric
            drive motor vehicle manufacturing facility property' means any
            qualified property--
                        ``(A) the original use of which commences with the
                    taxpayer,
                        ``(B) which is placed in service by the taxpayer
                    after the date of the enactment of this section and
                    before January 1, 2015, and
                        ``(C) no written binding contract for the
                    construction of which was in effect on or before the
                    date of the enactment of this section.
                ``(2) Qualified property.--
                        ``(A) In general.--The term `qualified property'
                    means any property which is a facility or a portion of
                    a facility used for the production of--
                                ``(i) any new qualified plug-in electric
                            drive motor vehicle (as defined by section
                            30D(c)), or
                                ``(ii) any eligible component.
                        ``(B) Eligible component.--The term `eligible
                    component' means any battery, any electric motor or
                    generator, or any power control unit which is designed
                    specifically for use with a new qualified plug-in
                    electric drive motor vehicle (as so defined).
        ``(e) Special Rule for Dual Use Property.--In the case of any
    qualified plug-in electric drive motor vehicle manufacturing facility
    property which is used to produce both qualified property and other
    property which is not qualified property, the amount of costs taken
    into account under subsection (a) shall be reduced by an amount equal
    to--
                ``(1) the total amount of such costs (determined before the
            application of this subsection), multiplied by
                ``(2) the percentage of property expected to be produced
            which is not qualified property.
        ``(f) Election To Receive Loan in Lieu of Deduction.--
                ``(1) In general.--If a taxpayer elects to have this
            subsection apply for any taxable year--
                        ``(A) subsection (a) shall not apply to any
                    qualified plug-in electric drive motor vehicle
                    manufacturing facility property placed in service by
                    the taxpayer,
                        ``(B) such taxpayer shall receive a loan from the
                    Secretary in an amount and under such terms as provided
                    in section 1303(b) of the American Recovery and
                    Reinvestment Tax Act of 2009, and
                        ``(C) in the taxable year in which such qualified
                    loan is repaid, each of the limitations described in
                    paragraph (2) shall be increased by the qualified plug-
                    in electric drive motor vehicle manufacturing facility
                    amount which is--
                                ``(i) determined under paragraph (3), and
                                ``(ii) allocated to such limitation under
                            paragraph (4).
                ``(2) Limitations to be increased.--The limitations
            described in this paragraph are--
                        ``(A) the limitation imposed by section 38(c), and
                        ``(B) the limitation imposed by section 53(c).
                ``(3) Qualified plug-in electric drive motor vehicle
            manufacturing facility amount.--For purposes of this
            paragraph--
                        ``(A) In general.--The qualified plug-in electric
                    drive motor vehicle manufacturing facility amount is an
                    amount equal to the applicable percentage of any
                    qualified plug-in electric drive motor vehicle
                    manufacturing facility which is placed in service
                    during the taxable year.
                        ``(B) Applicable percentage.--For purposes of
                    subparagraph (A), the applicable percentage is--
                                ``(i) 35 percent, in the case of qualified
                            plug-in electric drive motor vehicle
                            manufacturing facility property which is placed
                            in service before January 1, 2012, and
                                ``(ii) 17.5 percent, in the case of
                            qualified plug-in electric drive motor vehicle
                            manufacturing facility property which is placed
                            in service after December 31, 2011, and before
                            January 1, 2015.
                        ``(C) Special rule for dual use property.--In the
                    case of any qualified plug-in electric drive motor
                    vehicle manufacturing facility property which is used
                    to produce both qualified property and other property
                    which is not qualified property, the amount of costs
                    taken into account under subparagraph (A) shall be
                    reduced by an amount equal to--
                                ``(i) the total amount of such costs
                            (determined before the application of this
                            subparagraph), multiplied by
                                ``(ii) the percentage of property expected
                            to be produced which is not qualified property.
                ``(4) Allocation of qualified plug-in electric drive motor
            vehicle manufacturing facility amount.--The taxpayer shall, at
            such time and in such manner as the Secretary may prescribe,
            specify the portion (if any) of the qualified plug-in electric
            drive motor vehicle manufacturing facility amount for the
            taxable year which is to be allocated to each of the
            limitations described in paragraph (2) for such taxable year.
                ``(5) Election.--
                        ``(A) In general.--An election under this
                    subsection for any taxable year shall be made on the
                    taxpayer's return of the tax imposed by this chapter
                    for the taxable year. Such election shall be made in
                    such manner as the Secretary may by regulations
                    prescribe.
                        ``(B) Election irrevocable.--Any election made
                    under this subsection may not be revoked except with
                    the consent of the Secretary.''.
        (b) Loan Program.--
                (1) In general.--The Secretary of the Treasury (or the
            Secretary's delegate) shall provide a loan to any person who is
            allowed a deduction under section 179F of the Internal Revenue
            Code and who makes an election under section 179F(f) of such
            Code in an amount equal to the qualified plug-in electric drive
            motor vehicle manufacturing facility amount (as defined in such
            section 179F(f)).
                (2) Term.--Such loan shall be in the form of a senior note
            issued by the taxpayer to the Secretary of the Treasury,
            secured by the qualified plug-in electric drive motor vehicle
            manufacturing facility property (as defined in section 179F of
            the Internal Revenue Code of 1986) of the taxpayer, and having
            a term of 20 years and interest payable at the applicable
            Federal rate (as determined under section 1274(d) of the
            Internal Revenue Code of 1986).
                (3) Appropriations.--There is hereby appropriated to the
            Secretary of the Treasury such sums as may be necessary to
            carry out this subsection.
        (c) Clerical Amendment.--The table of sections for part VI of
    subchapter B of chapter 1 is amended by adding at the end the following
    new item:

    ``Sec. 179F. Election to expense manufacturing facilities producing
                                plug-in electric drive motor vehicle and
                                components.''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after the date of the enactment of
    this Act.

                      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 $5,000,000,000.
                        ``(B) Recovery zone facility bonds.--There is a
                    national recovery zone facility bond limitation of
                    $10,000,000,000.
        ``(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 (40 percent in the case of an issuer
    described in section 148(f)(4)(D) (determined without regard to clauses
    (v), (vi), and (vii) thereof and by substituting `$30,000,000' for
    `$5,000,000' each place it appears therein).
        ``(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,
                    2011, and
                        ``(C) the issuer makes an irrevocable election to
                    have this section apply.
                ``(2) Applicable rules.--For purposes of applying paragraph
            (1)--
                        ``(A) for purposes of section 149(b), a build
                    America bond shall not be treated as federally
                    guaranteed by reason of the credit allowed under
                    subsection (a) or section 6431,
                        ``(B) for purposes of section 148, 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 (40 percent in the case of an issuer
    described in section 148(f)(4)(D) (determined without regard to clauses
    (v), (vi), and (vii) thereof and by substituting `$30,000,000' for
    `$5,000,000' each place it appears therein).
        ``(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''.

    SEC. 1903. ELECTION TO ACCELERATE THE LOW-INCOME HOUSING TAX CREDIT.

        (a) In General.--At the election of the taxpayer, the credit
    determined under section 42 of the Internal Revenue Code of 1986 for
    the taxpayer's first three taxable years beginning after December 31,
    2008, in which credits are allowable for any non-federally subsidized
    low-income housing project initially placed in service after such
    date--
                (1) with respect to initial investments made pursuant to a
            binding agreement by such taxpayer after December 31, 2008, and
            before January 1, 2011, and
                (2) only from allocations of a State housing credit ceiling
            before 2011,
    shall be 200 percent of the amount which would (but for this
    subsection) be so allowable.
        (b) Eligibility for Election.--The election under subsection (a)
    shall take effect with respect to the first taxable year referred to in
    such subsection only when all rental requirements pursuant to section
    42(g)(1) of the Internal Revenue Code of 1986 have been met with
    respect to such low-income housing project.
        (c) Reduction in Aggregate Credit to Reflect Accelerated Credit.--
    The aggregate credit allowable to any taxpayer under section 42 of the
    Internal Revenue Code of 1986 with respect to any investment for
    taxable years after the first three taxable years referred to in
    subsection (a) shall be reduced on a pro rata basis by the amount of
    the increased credit allowable by reason of subsection (a) with respect
    to such first three taxable years. The preceding sentence shall not be
    construed to affect whether any taxable year is part of the credit,
    compliance, or extended use periods under such section 42.
        (d) Election.--The election under subsection (a) shall be made at
    the time and in the manner prescribed by the Secretary of the Treasury
    or the Secretary's delegate, and, once made, shall be irrevocable. In
    the case of a partnership, such election shall be made by the
    partnership.

      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
                    50 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 12 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.
                        ````(H) Limitation for critical access hospitals.--
                    In no case shall the total amount of payments made
                    under this subsection to a critical access hospital for
                    all payment years exceed $1,500,000.
                ``(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 September 30, 2012, 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.

                        TITLE VI--EXECUTIVE COMPENSATION

                             Subtitle A--Oversight

                   TITLE VI--EXECUTIVE COMPENSATION OVERSIGHT

    Sec. 6001. Definitions.
    Sec. 6002. Executive compensation and corporate governance.
    Sec. 6003. Board Compensation Committee.
    Sec. 6004. Limitation on luxury expenditures.
    Sec. 6005. Shareholder approval of executive compensation.
    Sec. 6006. Review of prior payments to executives.

    SEC. 6001. DEFINITIONS.

        For purposes of this title, the following definitions shall apply:
                (1) Senior executive officer.--The term ``senior executive
            officer'' means an individual who is 1 of the top 5 most highly
            paid executives of a public company, whose compensation is
            required to be disclosed pursuant to the Securities Exchange
            Act of 1934, and any regulations issued thereunder, and non-
            public company counterparts.
                (2) Golden parachute payment.--The term ``golden parachute
            payment'' means any payment to a senior executive officer for
            departure from a company for any reason, except for payments
            for services performed or benefits accrued.
                (3) TARP.--The term ``TARP'' means the Troubled Asset
            Relief Program established under the Emergency Economic
            Stabilization Act of 2008 (Public Law 110-343, 12 U.S.C. 5201
            et seq.).
                (4) TARP recipient.--The term ``TARP recipient'' means any
            entity that has received or will receive financial assistance
            under the financial assistance provided under the TARP.
                (5) Secretary.--The term ``Secretary'' means the Secretary
            of the Treasury.
                (6) Commission.--The term ``Commission'' means the
            Securities and Exchange Commission.

    SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

        (a) In General.--During the period in which any obligation arising
    from financial assistance provided under the TARP remains outstanding,
    each TARP recipient shall be subject to--
                (1) the standards established by the Secretary under this
            title; and
                (2) the provisions of section 162(m)(5) of the Internal
            Revenue Code of 1986, as applicable.
        (b) Standards Required.--The Secretary shall require each TARP
    recipient to meet appropriate standards for executive compensation and
    corporate governance.
        (c) Specific Requirements.--The standards established under
    subsection (b) shall include--
                (1) limits on compensation that exclude incentives for
            senior executive officers of the TARP recipient to take
            unnecessary and excessive risks that threaten the value of such
            recipient during the period that any obligation arising from
            TARP assistance is outstanding;
                (2) a provision for the recovery by such TARP recipient of
            any bonus, retention award, or incentive compensation paid to a
            senior executive officer and any of the next 20 most highly-
            compensated employees of the TARP recipient based on statements
            of earnings, revenues, gains, or other criteria that are later
            found to be materially inaccurate;
                (3) a prohibition on such TARP recipient making any golden
            parachute payment to a senior executive officer or any of the
            next 5 most highly-compensated employees of the TARP recipient
            during the period that any obligation arising from TARP
            assistance is outstanding;
                (4) a prohibition on such TARP recipient paying or accruing
            any bonus, retention award, or incentive compensation during
            the period that the obligation is outstanding to at least the
            25 most highly-compensated employees, or such higher number as
            the Secretary may determine is in the public interest with
            respect to any TARP recipient;
                (5) a prohibition on any compensation plan that would
            encourage manipulation of the reported earnings of such TARP
            recipient to enhance the compensation of any of its employees;
            and
                (6) a requirement for the establishment of a Board
            Compensation Committee that meets the requirements of section
            6003.
        (d) Certification of Compliance.--The chief executive officer and
    chief financial officer (or the equivalents thereof) of each TARP
    recipient shall provide a written certification of compliance by the
    TARP recipient with the requirements of this title--
                (1) in the case of a TARP recipient, the securities of
            which are publicly traded, to the Securities and Exchange
            Commission, together with annual filings required under the
            securities laws; and
                (2) in the case of a TARP recipient that is not a publicly
            traded company, to the Secretary.

    SEC. 6003. BOARD COMPENSATION COMMITTEE.

        (a) Establishment of Board Required.--Each TARP recipient shall
    establish a Board Compensation Committee, comprised entirely of
    independent directors, for the purpose of reviewing employee
    compensation plans.
        (b) Meetings.--The Board Compensation Committee of each TARP
    recipient shall meet at least semiannually to discuss and evaluate
    employee compensation plans in light of an assessment of any risk posed
    to the TARP recipient from such plans.

    SEC. 6004. LIMITATION ON LUXURY EXPENDITURES.

        (a) Policy Required.--The board of directors of any TARP recipient
    shall have in place a company-wide policy regarding excessive or luxury
    expenditures, as identified by the Secretary, which may include
    excessive expenditures on--
                (1) entertainment or events;
                (2) office and facility renovations;
                (3) aviation or other transportation services; or
                (4) other activities or events that are not reasonable
            expenditures for conferences, staff development, reasonable
            performance incentives, or other similar measures conducted in
            the normal course of the business operations of the TARP
            recipient.

    SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COMPENSATION.

        (a) Annual Shareholder Approval of Executive Compensation.--Any
    proxy or consent or authorization for an annual or other meeting of the
    shareholders of any TARP recipient during the period in which any
    obligation arising from financial assistance provided under the TARP
    remains outstanding shall permit a separate shareholder vote to approve
    the compensation of executives, as disclosed pursuant to the
    compensation disclosure rules of the Commission (which disclosure shall
    include the compensation discussion and analysis, the compensation
    tables, and any related material).
        (b) Nonbinding Vote.--A shareholder vote described in subsection
    (a) shall not be binding on the board of directors of a TARP recipient,
    and may not be construed as overruling a decision by such board, nor to
    create or imply any additional fiduciary duty by such board, nor shall
    such vote be construed to restrict or limit the ability of shareholders
    to make proposals for inclusion in proxy materials related to executive
    compensation.
        (c) Deadline for Rulemaking.--Not later than 1 year after the date
    of enactment of this Act, the Commission shall issue any final rules
    and regulations required by this section.

    SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES.

        (a) In General.--The Secretary shall review bonuses, retention
    awards, and other compensation paid to employees of each entity
    receiving TARP assistance before the date of enactment of this Act to
    determine whether any such payments were excessive, inconsistent with
    the purposes of this Act or the TARP, or otherwise contrary to the
    public interest.
        (b) Negotiations for Reimbursement.--If the Secretary makes a
    determination described in subsection (a), the Secretary shall seek to
    negotiate with the TARP recipient and the subject employee for
    appropriate reimbursements to the Federal Government with respect to
    compensation or bonuses.

                  Subtitle B--Limits on Executive Compensation

    SEC. 6011. SHORT TITLE.

        This subtitle may be cited as the ``Cap Executive Officer Pay Act
    of 2009''.

    SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION.

        (a) In General.--Notwithstanding any other provision of law or
    agreement to the contrary, no person who is an officer, director,
    executive, or other employee of a financial institution or other entity
    that receives or has received funds under the Troubled Asset Relief
    Program (or ``TARP''), established under section 101 of the Emergency
    Economic Stabilization Act of 2008, may receive annual compensation in
    excess of the amount of compensation paid to the President of the
    United States.
        (b) Duration.--The limitation in subsection (a) shall be a
    condition of the receipt of assistance under the TARP, and of any
    modification to such assistance that was received on or before the date
    of enactment of this Act, and shall remain in effect with respect to
    each financial institution or other entity that receives such
    assistance or modification for the duration of the assistance or
    obligation provided under the TARP.

    SEC. 6013. RULEMAKING AUTHORITY.

        The Secretary shall expeditiously issue such rules as are necessary
    to carry out this subtitle, including with respect to reimbursement of
    compensation amounts, as appropriate.

    SEC. 6014. COMPENSATION.

        As used in this subtitle, the term ``compensation'' includes wages,
    salary, deferred compensation, retirement contributions, options,
    bonuses, property, and any other form of compensation or bonus that the
    Secretary of the Treasury determines is appropriate.

                         Subtitle C--Excessive Bonuses

    SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP RECIPIENTS.

        (a) In General.--If, before the date of enactment of this Act, the
    preferred stock of a financial institution was purchased by the
    Government using funds provided under the Troubled Asset Relief Program
    established pursuant to the Emergency Economic Stabilization Act of
    2008, then, notwithstanding any otherwise applicable restriction on the
    redeemability of such preferred stock, such financial institution shall
    redeem an amount of such preferred stock equal to the aggregate amount
    of all excessive bonuses paid or payable to all covered individuals.
        (b) Timing.--Each financial institution described in subsection (a)
    shall comply with the requirements of subsection (a)--
                (1) not later than 120 days after the date of enactment of
            this Act, with respect to excessive bonuses (or portions
            thereof) paid before the date of enactment of this Act; and
                (2) not later than the day before an excessive bonus (or
            portion thereof) is paid, with respect to any excessive bonus
            (or portion thereof) paid on or after the date of enactment of
            this Act.
        (c) Definitions.--As used in this section, the following
    definitions shall apply:
                (1) Excessive bonus.--
                        (A) In general.--The term ``excessive bonus'' means
                    the portion of the applicable bonus payments made to a
                    covered individual in excess of $100,000.
                        (B) Applicable bonus payments.--
                                (i) In general.--The term ``applicable
                            bonus payment'' means any bonus payment to a
                            covered individual--
                                        (I) which is paid or payable by
                                    reason of services performed by such
                                    individual in a taxable year of the
                                    financial institution (or any member of
                                    a controlled group described in
                                    subparagraph (D)) ending in 2008, and
                                        (II) the amount of which was first
                                    communicated to such individual during
                                    the period beginning on January 1,
                                    2008, and ending January 31, 2009, or
                                    was based on a resolution of the board
                                    of directors of such institution that
                                    was adopted before the end of such
                                    taxable year.
                                (ii) Certain payments and conditions
                            disregarded.--In determining whether a bonus
                            payment is described in clause (i)(I)--
                                        (I) a bonus payment that relates to
                                    services performed in any taxable year
                                    before the taxable year described in
                                    such clause and that is wholly or
                                    partially contingent on the performance
                                    of services in the taxable year so
                                    described shall be disregarded, and
                                        (II) any condition on a bonus
                                    payment for services performed in the
                                    taxable year so described that the
                                    employee perform services in taxable
                                    years after the taxable year so
                                    described shall be disregarded.
                        (C) Bonus payment.--The term ``bonus payment''
                    means any payment which--
                                (i) is a discretionary payment to a covered
                            individual by a financial institution (or any
                            member of a controlled group described in
                            subparagraph (D)) for services rendered,
                                (ii) is in addition to any amount payable
                            to such individual for services performed by
                            such individual at a regular hourly, daily,
                            weekly, monthly, or similar periodic rate, and
                                (iii) is paid or payable in cash or other
                            property other than--
                                        (I) stock in such institution or
                                    member, or
                                        (II) an interest in a troubled
                                    asset (within the meaning of the
                                    Emergency Economic Stabilization Act of
                                    2008) held directly or indirectly by
                                    such institution or member.
                    Such term does not include payments to an employee as
                    commissions, welfare and fringe benefits, or expense
                    reimbursements.
                        (D) Covered individual.--The term ``covered
                    individual'' means, with respect to any financial
                    institution, any director or officer or other employee
                    of such financial institution or of any member of a
                    controlled group of corporations (within the meaning of
                    section 52(a) of the Internal Revenue Code of 1986)
                    that includes such financial institution.
                (2) Financial institution.--The term ``financial
            institution'' has the same meaning as in section 3 of the
            Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5252).
        (d) Excise Tax on TARP Companies That Fail To Redeem Certain
    Securities From United States.--
                (1) In general.--Chapter 46 of the Internal Revenue Code of
            1986 (relating to excise tax on golden parachute payments) is
            amended by adding at the end the following new section:

    ``SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES FROM UNITED STATES.

        ``(a) Imposition of Tax.--There is hereby imposed a tax on any
    financial institution which--
                ``(1) is required to redeem an amount of its preferred
            stock from the United States pursuant to section 1903(a) of the
            American Recovery and Reinvestment Tax Act of 2009, and
                ``(2) fails to redeem all or any portion of such amount
            within the period prescribed for such redemption.
        ``(b) Amount of Tax.--The amount of the tax imposed by subsection
    (a) shall be equal to 35 percent of the amount which the financial
    institution failed to redeem within the time prescribed under 1903(b)
    of the American Recovery and Reinvestment Tax Act of 2009.
        ``(c) Administrative Provisions.--
                ``(1) In general.--For purposes of subtitle F, any tax
            imposed by this section shall be treated as a tax imposed by
            subtitle A for the taxable year in which a deduction is allowed
            for any excessive bonus with respect to which the redemption
            described in subsection (a)(1) is required to be made.
                ``(2) Extension of time.--The due date for payment of tax
            imposed by this section shall in no event be earlier than the
            150th day following the date of the enactment of this
            section.''.
                (2) Conforming amendments.--
                        (A) The heading for chapter 46 of such Code are
                    amended to read as follows:

              ``Chapter 46-Taxes on Certain Excessive Remuneration

    ``Sec. 4999. Golden parachute payments.
    ``Sec. 4999A. Failure to redeem certain securities from United
                                States.''.
                        (B) The item relating to chapter 46 in the table of
                    chapters for subtitle D of such Code is amended to read
                    as follows:

    ``Chapter 46. Taxes on excessive remuneration.''.
                (3) Effective date.--The amendments made by this subsection
            shall apply to failures described in section 4999A(a)(2) of the
            Internal Revenue Code of 1986 occurring after the date of the
            enactment of this Act.

                       TITLE VII--FORECLOSURE PREVENTION

                       TITLE VII--FORECLOSURE PREVENTION

    Sec. 7001. Mandatory loan modifications.

    SEC. 7001. MANDATORY LOAN MODIFICATIONS.

        Section 109(a) of the Emergency Economic Stabilization Act of 2008
    (12 U.S.C. 5219) is amended--
                (1) by striking the last sentence;
                (2) by striking ``To the extent'' and inserting the
            following:
                ``(1) In general.--To the extent''; and
                (3) by adding at the end the following:
                ``(2) Loan modifications required.--
                        ``(A) In general.--In addition to actions required
                    under paragraph (1), the Secretary shall, not later
                    than 15 days after the date of enactment of this
                    paragraph, develop and implement a plan to facilitate
                    loan modifications to prevent avoidable mortgage loan
                    foreclosures.
                        ``(B) Funding.--Of amounts made available under
                    section 115 and not otherwise obligated, not less than
                    $50,000,000,000, shall be made available to the
                    Secretary for purposes of carrying out the mortgage
                    loan modification plan required to be developed and
                    implemented under this paragraph.
                        ``(C) Criteria.--The loan modification plan
                    required by this paragraph may incorporate the use of--
                                ``(i) loan guarantees and credit
                            enhancements;
                                ``(ii) the reduction of loan principal
                            amounts and interest rates;
                                ``(iii) extension of mortgage loan terms;
                            and
                                ``(iv) any other similar mechanisms or
                            combinations thereof, as determined appropriate
                            by the Secretary.
                        ``(D) Designation authority.--
                                ``(i) FDIC.--The Secretary may designate
                            the Corporation, on a reimbursable basis, to
                            carry out the loan modification plan developed
                            under this paragraph.
                                ``(ii) Contracting authority.--If
                            designated under clause (i), the Corporation
                            may use its contracting authority under section
                            9 of the Federal Deposit Insurance Act.
                        ``(E) Consultation required.--In developing the
                    loan modification plan under this paragraph, the
                    Secretary shall consult with the Chairperson of the
                    Board of Directors of the Corporation, the Board, and
                    the Secretary of Housing and Urban Development.
                        ``(F) Reports to congress.--The Secretary shall
                    provide to the Committee on Banking, Housing, and Urban
                    Affairs of the Senate and the Committee on Financial
                    Services of the House of Representatives--
                                ``(i) upon development of the plan required
                            by this paragraph, a report describing such
                            plan; and
                                ``(ii) a monthly report on the number and
                            types of loan modifications occurring during
                            the reporting period, and the performance of
                            the loan modification plan overall.''.

                       TITLE VIII--FORECLOSURE MITIGATION

                       TITLE VIII--FORECLOSURE MITIGATION

    Sec. 8001. Short Title.
    Sec. 8002. Definitions.
    Sec. 8003. Payments to eligible servicers authorized.
    Sec. 8004. Authorization of appropriations.
    Sec. 8005. Sunset of authority.

    SEC. 8001. SHORT TITLE.

        This title may be cited as the ``Help Families Keep Their Homes Act
    of 2009''.

    SEC. 8002. DEFINITIONS.

        For purposes of this title--
                (1) the term ``securitized mortgages'' means residential
            mortgages that have been pooled by a securitization vehicle;
                (2) the term ``securitization vehicle'' means a trust,
            corporation, partnership, limited liability entity, special
            purpose entity, or other structure that--
                        (A) is the issuer, or is created by the issuer, of
                    mortgage pass-through certificates, participation
                    certificates, mortgage-backed securities, or other
                    similar securities backed by a pool of assets that
                    includes residential mortgage loans;
                        (B) holds all of the mortgage loans which are the
                    basis for any vehicle described in subparagraph (A);
                    and
                        (C) has not issued securities that are guaranteed
                    by the Federal National Mortgage Association, the
                    Federal Home Loan Mortgage Corporation, or the
                    Government National Mortgage Association;
                (3) the term ``servicer'' means a servicer of securitized
            mortgages;
                (4) the term ``eligible servicer'' means a servicer of
            pooled and securitized residential mortgages;
                (5) the term ``eligible mortgage'' means a residential
            mortgage, the principal amount of which did not exceed the
            conforming loan size limit that was in existence at the time of
            origination for a comparable dwelling, as established by the
            Federal National Mortgage Association;
                (6) the term ``Secretary'' means the Secretary of the
            Treasury;
                (7) the term ``effective term of the Act'' means the period
            beginning on the effective date of this title and ending on
            December 31, 2011;
                (8) the term ``incentive fee'' means the monthly payment to
            eligible servicers, as determined under section 7003; and
                (9) the term ``prepayment fee'' means the payment to
            eligible servicers, as determined under section 7003(b).

    SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHORIZED.

        (a) Authority.--The Secretary is authorized to make payments to
    eligible servicers, subject to the terms and conditions established
    under this title.
        (b) Fees Paid to Eligible Servicers.--
                (1) In general.--An eligible servicer may collect
            reasonable incentive fee payments, as established by the
            Secretary, not to exceed $2,000 per loan.
                (2) Consultation.--The fees permitted under this section
            shall be subject to standards established by the Secretary, in
            consultation with the Secretary of Housing and Urban
            Development and the Chairman of the Board of Directors of the
            Federal Deposit Insurance Corporation, which standards shall--
                        (A) include an evaluation of whether an eligible
                    mortgage is affordable for the remainder of its term;
                    and
                        (B) identify a reasonable fee to be paid to the
                    servicer in the event that an eligible mortgage is
                    prepaid.
                (3) Form of payment.--Fees permitted under this section may
            be paid in a lump sum or on a monthly basis. If paid on a
            monthly basis, the fee may only be remitted as long as the loan
            performs.
        (c) Safe Harbor.--Notwithstanding any other provision of law, and
    notwithstanding any investment contract between a servicer and a
    securitization vehicle, a servicer--
                (1) owes any duty to maximize the net present value of the
            pooled mortgages in the securitization vehicle to all investors
            and parties having a direct or indirect interest in such
            vehicle, and not to any individual party or group of parties;
            and
                (2) shall be deemed to act in the best interests of all
            such investors and parties if the servicer agrees to or
            implements a modification, workout, or other loss mitigation
            plan for a residential mortgage or a class of residential
            mortgages that constitutes a part or all of the pooled
            mortgages in such securitization vehicle, if--
                        (A) default on the payment of such mortgage has
                    occurred or is reasonably foreseeable;
                        (B) the property securing such mortgage is occupied
                    by the mortgagor of such mortgage or the homeowner; and
                        (C) the servicer reasonably and in good faith
                    believes that the anticipated recovery on the principal
                    outstanding obligation of the mortgage under the
                    modification or workout plan exceeds, on a net present
                    value basis, the anticipated recovery on the principal
                    outstanding obligation of the mortgage through
                    foreclosure;
                (3) shall not be obligated to repurchase loans from, or
            otherwise make payments to, the securitization vehicle on
            account of a modification, workout, or other loss mitigation
            plan that satisfies the conditions of paragraph (2); and
                (4) if it acts in a manner consistent with the duties set
            forth in paragraphs (1) and (2), shall not be liable for
            entering into a modification or workout plan to any person--
                        (A) based on ownership by that person of a
                    residential mortgage loan or any interest in a pool of
                    residential mortgage loans, or in securities that
                    distribute payments out of the principal, interest, and
                    other payments in loans in the pool;
                        (B) who is obligated pursuant to a derivative
                    instrument to make payments determined in reference to
                    any loan or any interest referred to in subparagraph
                    (A); or
                        (C) that insures any loan or any interest referred
                    to in subparagraph (A) under any provision of law or
                    regulation of the United States or any State or
                    political subdivision thereof.
        (d) Reporting Requirements.--
                (1) In general.--Each servicer shall report regularly, not
            less frequently than monthly, to the Secretary on the extent
            and scope of the loss mitigation activities of the mortgage
            owner.
                (2) Content.--Each report required by this subsection shall
            include--
                        (A) the number and percent of residential mortgage
                    loans receiving loss mitigation that have become
                    performing loans;
                        (B) the number and percent of residential mortgage
                    loans receiving loss mitigation that have proceeded to
                    foreclosure;
                        (C) the total number of foreclosures initiated
                    during the reporting period;
                        (D) data on loss mitigation activities, including
                    the performance of mitigated loans, disagreggated for
                    each form of loss mitigation, which forms may include--
                                (i) a waiver of any late payment charge,
                            penalty interest, or any other fees or charges,
                            or any combination thereof;
                                (ii) the establishment of a repayment plan
                            under which the homeowner resumes regularly
                            scheduled payments and pays additional amounts
                            at scheduled intervals to cure the delinquency;
                                (iii) forbearance under the loan that
                            provides for a temporary reduction in or
                            cessation of monthly payments, followed by a
                            reamortization of the amounts due under the
                            loan, including arrearage, and a new schedule
                            of repayment amounts;
                                (iv) waiver, modification, or variation of
                            any material term of the loan, including short-
                            term, long-term, or life-of-loan modifications
                            that change the interest rate, forgive or
                            forbear with respect to the payment of
                            principal or interest, or extend the final
                            maturity date of the loan;
                                (v) short refinancing of the loan
                            consisting of acceptance of payment from or on
                            behalf of the homeowner of an amount less than
                            the amount alleged to be due and owing under
                            the loan, including principal, interest, and
                            fees, in full satisfaction of the obligation
                            under such loan and as part of a refinance
                            transaction in which the property is intended
                            to remain the principal residence of the
                            homeowner;
                                (vi) acquisition of the property by the
                            owner or servicer by deed in lieu of
                            foreclosure;
                                (vii) short sale of the principal residence
                            that is subject to the lien securing the loan;
                                (viii) assumption of the obligation of the
                            homeowner under the loan by a third party;
                                (ix) cancellation or postponement of a
                            foreclosure sale to allow the homeowner
                            additional time to sell the property; or
                                (x) any other loss mitigation activity not
                            covered; and
                        (E) such other information as the Secretary
                    determines to be relevant.
                (3) Public availability of reports.--After removing
            information that would compromise the privacy interests of
            mortgagors, the Secretary shall make public the reports
            required by this subsection and summary data.

    SEC. 8004. AUTHORIZATION OF APPROPRIATIONS.

        There are authorized to be appropriated to the Secretary, such sums
    as may be necessary to carry out this title.

    SEC. 8005. SUNSET OF AUTHORITY.

        The authority of the Secretary to provide assistance under this
    title shall terminate on December 31, 2011.

                Attest:

                                                                 Secretary.
    111th CONGRESS

      1st Session

                                    H. R. 1

    _______________________________________________________________________

                                   AMENDMENT