[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