    [Congressional Bills 111th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 1 Enrolled Bill (ENR)]

            H.R.1

                          One Hundred Eleventh Congress

                                     of the

                            United States of America

                              AT THE FIRST SESSION

              Begun and held at the City of Washington on Tuesday,
                 the sixth day of January, two thousand and nine

                                     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.

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,

    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 FUND
    TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
    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--PREMIUM ASSISTANCE FOR COBRA BENEFITS
    TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
              MISCELLANEOUS MEDICARE PROVISIONS
    TITLE V--STATE FISCAL RELIEF
    TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
    TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

    SEC. 3. PURPOSES AND PRINCIPLES.

        (a) Statement of Purposes.--The purposes of this Act include the
    following:
            (1) To preserve and create jobs and promote economic recovery.
            (2) To assist those most impacted by the recession.
            (3) To provide investments needed to increase economic
        efficiency by spurring technological advances in science and
        health.
            (4) To invest in transportation, environmental protection, and
        other infrastructure that will provide long-term economic benefits.
            (5) To stabilize State and local government budgets, in order
        to minimize and avoid reductions in essential services and
        counterproductive state and local tax increases.
        (b) General Principles Concerning Use of Funds.--The President and
    the heads of Federal departments and agencies shall manage and expend
    the funds made available in this Act so as to achieve the purposes
    specified in subsection (a), including commencing expenditures and
    activities as quickly as possible consistent with prudent management.

    SEC. 4. 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.

    SEC. 5. EMERGENCY DESIGNATIONS.

        (a) In General.--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.
        (b) Pay-as-You-Go.--All applicable provisions in this Act are
    designated as an emergency for purposes of pay-as-you-go principles.

                     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

            Agriculture Buildings and Facilities and Rental Payments

        For an additional amount for ``Agriculture Buildings and Facilities
    and Rental Payments'', $24,000,000, for necessary construction, repair,
    and improvement activities.

                          office of inspector general

        For an additional amount for ``Office of Inspector General'',
    $22,500,000, to remain available until September 30, 2013, for
    oversight and audit of programs, grants, and activities funded by this
    Act and administered by the Department of Agriculture.

                         Agricultural Research Service

                            buildings and facilities

        For an additional amount for ``Buildings and Facilities'',
    $176,000,000, for work on deferred maintenance at Agricultural Research
    Service facilities: Provided, That priority in the use of such funds
    shall be given to critical deferred maintenance, to projects that can
    be completed, and to activities that can commence promptly following
    enactment of this Act.

                              Farm Service Agency

                             salaries and expenses

        For an additional amount for ``Farm Service Agency, Salaries and
    Expenses,'' $50,000,000, for the purpose of maintaining and modernizing
    the information technology system.

                     Natural Resources Conservation Service

                   watershed and flood prevention operations

         For an additional amount for ``Watershed and Flood Prevention
    Operations'', $290,000,000, of which $145,000,000 is for necessary
    expenses to purchase and restore floodplain easements as authorized by
    section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
    (except that no more than $30,000,000 of the amount provided for the
    purchase of floodplain easements may be obligated for projects in any
    one State): Provided, That such funds shall be allocated to projects
    that can be fully funded and completed with the funds appropriated in
    this Act, and to activities that can commence promptly following
    enactment of this Act.

                        watershed rehabilitation program

        For an additional amount for ``Watershed Rehabilitation Program'',
    $50,000,000: Provided, That such funds shall be allocated to projects
    that can be fully funded and completed with the funds appropriated in
    this Act, and to activities that can commence promptly following
    enactment of this Act.

                             Rural Housing Service

                  rural housing insurance fund 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, 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, 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 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, $130,000,000.

                      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.

                            Rural Utilities Service

                 rural water and waste disposal program account

        For an additional amount for the cost of direct loans and grants
    for the rural water, waste water, and waste disposal programs
    authorized by sections 306 and 310B and described in section 381E(d)(2)
    of the Consolidated Farm and Rural Development Act, $1,380,000,000.

             distance learning, telemedicine, and broadband program

         For an additional amount for the cost of broadband loans and loan
    guarantees, as authorized by the Rural Electrification Act of 1936 (7
    U.S.C. 901 et seq.) and for grants (including for technical
    assistance), $2,500,000,000: Provided, That the cost of direct and
    guaranteed loans shall be as defined in section 502 of the
    Congressional Budget Act of 1974: Provided further, That,
    notwithstanding title VI of the Rural Electrification Act of 1936, this
    amount is available for grants, loans and loan guarantees for broadband
    infrastructure in any area of the United States: Provided further, That
    at least 75 percent of the area to be served by a project receiving
    funds from such grants, loans or loan guarantees shall be in a rural
    area without sufficient access to high speed broadband service to
    facilitate rural economic development, as determined by the Secretary
    of Agriculture: Provided further, That priority for awarding such funds
    shall be given to project applications for broadband systems that will
    deliver end users a choice of more than one service provider: 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 access to
    broadband service: Provided further, That priority shall be given for
    project applications from borrowers or former borrowers under title II
    of the Rural Electrification Act of 1936 and for project applications
    that include such borrowers or former borrowers: 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 project applications for
    activities that can be completed if the requested funds are provided:
    Provided further, That priority for awarding such funds shall be given
    to activities that can commence promptly following approval: Provided
    further, That no area of a project funded with amounts made available
    under this paragraph may receive funding to provide broadband service
    under the Broadband Technology Opportunities Program: Provided further,
    That the Secretary 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.

              FOOD AND NUTRITION SERVICE CHILD NUTRITION PROGRAMS

        For an 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 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 in a manner
    proportional with each States' administrative expense allocation:
    Provided further, That the States shall provide competitive grants to
    school food authorities based upon the need for equipment assistance in
    participating schools with priority given to school 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.

    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), $500,000,000, of which $400,000,000 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
    $100,000,000 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 emergency food assistance program
    as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance
    Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000: Provided, That of the
    funds made available, the Secretary may use up to $50,000,000 for costs
    associated with the distribution of commodities, of which up to
    $25,000,000 shall be made available in fiscal year 2009.

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 101. Temporary Increase in Benefits Under the Supplemental
    Nutrition Assistance Program. (a) Maximum Benefit Increase.--
            (1) In general.--Beginning the first month that begins not less
        than 25 days after the date of enactment of this Act, the value of
        benefits determined under section 8(a) of the Food and Nutrition
        Act of 2008 and consolidated block grants for Puerto Rico and
        American Samoa determined under section 19(a) of such Act shall be
        calculated using 113.6 percent of the June 2008 value of the
        thrifty food plan as specified under section 3(o) of such Act.
            (2) Termination.--
                (A) The authority provided by this subsection shall
            terminate after September 30, 2009.
                (B) Notwithstanding subparagraph (A), the Secretary of
            Agriculture may not reduce the value of the maximum allotments,
            minimum allotments or consolidated block grants for Puerto Rico
            and American Samoa below the level in effect for fiscal year
            2009 as a result of paragraph (1).
        (b) Requirements for the Secretary.--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 increase 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 that section;
            (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
            (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 through September 30, 2009.
        (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.), the
        Secretary shall make available $145,000,000 in fiscal year 2009 and
        $150,000,000 in fiscal year 2010, of which $4,500,000 is for
        necessary expenses of the Food and Nutrition Service for management
        and oversight of the program and for monitoring the integrity and
        evaluating the effects of the payments made under this section.
            (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 for management and
        oversight, funds described in paragraph (1) shall be made available
        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 (as of the date of
            enactment) 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 (as of the date of
            enactment) for participation in disaster programs under section
            5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)).
        (d) Food Distribution Program on Indian Reservations.--For the
    costs relating to facility improvements and equipment upgrades
    associated with the Food Distribution Program on Indian Reservations,
    as 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:
    Provided, That administrative cost-sharing requirements are not
    applicable to funds provided in accordance with this provision.
        (e) Treatment of Jobless Workers.--
            (1) Remainder of fiscal year 2009 through fiscal year 2010.--
        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, 2010, 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 2011 and thereafter.--Beginning on October 1,
        2010, 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, 2010.
        (f)  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. 102. 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 next year for which a policy is
                available.
                ``(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 the level of coverage, the Secretary shall use
                70 percent of the applicable yield.
                ``(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 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 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 next year for which a policy is
                available.
                ``(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 the level of coverage, the Secretary shall use
                70 percent of the applicable yield.
                ``(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 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 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) Farm Operating Loans.--
            (1) In general.--For the principal amount of direct farm
        operating loans under section 311 of the Consolidated Farm and
        Rural Development Act (7 U.S.C. 1941), $173,367,000.
            (2) Direct farm operating loans.--For the cost of direct farm
        operating loans, including the cost of modifying loans, as defined
        in section 502 of the Congressional Budget Act of 1974 (2 U.S.C.
        661a), $20,440,000.
        (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).
        Sec. 103. For fiscal years 2009 and 2010, in the case of each
    program established or amended by the Food, Conservation, and Energy
    Act of 2008 (Public Law 110-246), other than by title I of such Act,
    that is authorized or required to be carried out using funds of the
    Commodity Credit Corporation--
            (1) such funds shall be available for the purpose of covering
        salaries and related administrative expenses, including technical
        assistance, associated with the implementation of the program,
        without regard to the limitation on the total amount of allotments
        and fund transfers contained in section 11 of the Commodity Credit
        Corporation Charter Act (15 U.S.C. 714i); and
            (2) the use of such funds for such purpose shall not be
        considered to be a fund transfer or allotment for purposes of
        applying the limitation on the total amount of allotments and fund
        transfers contained in such section.
        Sec. 104. In addition to other available funds, of the funds made
    available to the Rural Development mission area in this title, not more
    than 3 percent of the funds can be used for administrative costs to
    carry out loan, loan guarantee and grant activities funded in this
    title, which shall be transferred to and merged with the appropriation
    for ``Rural Development, Salaries and Expenses'': Provided, That of
    this amount $1,750,000 shall be committed to agency projects associated
    with maintaining the compliance, safety, and soundness of the portfolio
    of loans guaranteed through the section 502 guaranteed loan program.
        Sec. 105. Of the amounts appropriated in this title to the ``Rural
    Housing Service, Rural Community Facilities Program Account'', the
    ``Rural Business-Cooperative Service, Rural Business Program Account'',
    and the "Rural Utilities Service, Rural Water and Waste Disposal
    Program Account'', at least 10 percent shall be allocated for
    assistance in persistent poverty counties: Provided, That for the
    purposes of this section, the term ``persistent poverty counties''
    means any county that has had 20 percent or more of its population
    living in poverty over the past 30 years, as measured by the 1980,
    1990, and 2000 decennial censuses.

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

                             DEPARTMENT OF COMMERCE

                      Economic Development Administration

                    economic development assistance programs

        For an additional amount for ``Economic Development Assistance
    Programs'', $150,000,000: 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: Provided further, That not to exceed 2 percent of the
    funds provided under this heading may be transferred to and merged with
    the appropriation for ``Salaries and Expenses'' for purposes of program
    administration and oversight: Provided further, That up to $50,000,000
    of the funds provided under this heading may be transferred to
    federally authorized regional economic development commissions.

                              Bureau of the Census

                         periodic censuses and programs

        For an additional amount for ``Periodic Censuses and Programs'',
    $1,000,000,000.

           National Telecommunications and Information Administration

                   broadband technology opportunities program

        For an amount for ``Broadband Technology Opportunities Program'',
    $4,700,000,000: Provided, That of the funds provided under this
    heading, not less than $4,350,000,000 shall be expended pursuant to
    division B 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 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 division B 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 division B 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 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: 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 (FCC) if deemed necessary and appropriate by
    the Secretary of Commerce in consultation with the FCC, 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.

                 National Institute of Standards and Technology

                 scientific and technical research and services

         For an additional amount for ``Scientific and Technical Research
    and Services'', $220,000,000.

                      construction of research facilities

        For an additional amount for ``Construction of Research
    Facilities'', $360,000,000, of which $180,000,000 shall be for a
    competitive construction grant program for research science buildings.

                National Oceanic and Atmospheric Administration

                      operations, research, and facilities

        For an additional amount for ``Operations, Research, and
    Facilities'', $230,000,000.

                   procurement, acquisition and construction

        For an additional amount for ``Procurement, Acquisition and
    Construction'', $600,000,000.

                          Office of Inspector General

        For an additional amount for ``Office of Inspector General'',
    $6,000,000, to remain available until September 30, 2013.

                             DEPARTMENT OF JUSTICE

                             General Administration

                           Office of Inspector General

        For an additional amount for ``Office of Inspector General'',
    $2,000,000, to remain available until September 30, 2013.

                   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'', $225,000,000 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. 3796gg et seq.): Provided, That,
    $50,000,000 shall be for 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'', $2,000,000,000, 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 Streets Acts 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).
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $225,000,000, for competitive grants to improve the
    functioning of the criminal justice system, to assist victims of crime
    (other than compensation), and youth mentoring grants.
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $40,000,000, 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'', $225,000,000, for assistance to Indian tribes,
    notwithstanding Public Law 108-199, division B, title I, section
    112(a)(1) (118 Stat. 62), which 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).
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $100,000,000, 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'', $125,000,000, for assistance to law enforcement in rural
    States and 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, 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, notwithstanding subsection (i) of such section,
    $1,000,000,000.

                             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.

                                    SCIENCE

                 National Aeronautics and Space Administration

                                    science

        For an additional amount for ``Science'', $400,000,000.

                                  aeronautics

         For an additional amount for ``Aeronautics'', $150,000,000.

                                  exploration

        For an additional amount for ``Exploration'', $400,000,000.

                              cross agency support

        For an additional amount for ``Cross Agency Support'', $50,000,000.

                          office of inspector general

        For an additional amount for ``Office of Inspector General'',
    $2,000,000, to remain available until September 30, 2013.

                          National Science Foundation

                        research and related activities

         For an additional amount for ``Research and Related Activities'',
    $2,500,000,000: Provided, That $300,000,000 shall be available solely
    for the Major Research Instrumentation program and $200,000,000 shall
    be for activities authorized by title II of Public Law 100-570 for
    academic research facilities modernization.

                         education and human resources

         For an additional amount for ``Education and Human Resources'',
    $100,000,000.

              major research equipment and facilities construction

        For an additional amount for ``Major Research Equipment and
    Facilities Construction'', $400,000,000.

                          office of inspector general

        For an additional amount for ``Office of Inspector General'',
    $2,000,000, to remain available until September 30, 2013.

                         GENERAL PROVISION--THIS TITLE

        Sec. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime Control
    and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c))
    shall not apply with respect to funds appropriated in this or any other
    Act making appropriations for fiscal year 2009 or 2010 for Community
    Oriented Policing Services authorized under part Q of such Act of 1968.

                        TITLE III--DEPARTMENT OF DEFENSE

                           OPERATION AND MAINTENANCE

                        Operation and Maintenance, Army

        For an additional amount for ``Operation and Maintenance, Army'',
    $1,474,525,000, to remain available for obligation until September 30,
    2010, to improve, repair and modernize Department of Defense
    facilities, restore and modernize real property to include barracks,
    and invest in the energy efficiency of Department of Defense
    facilities.

                        Operation and Maintenance, Navy

        For an additional amount for ``Operation and Maintenance, Navy'',
    $657,051,000, to remain available for obligation until September 30,
    2010, to improve, repair and modernize Department of Defense
    facilities, restore and modernize real property to include barracks,
    and invest in the energy efficiency of Department of Defense
    facilities.

                    Operation and Maintenance, Marine Corps

        For an additional amount for ``Operation and Maintenance, Marine
    Corps'', $113,865,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                      Operation and Maintenance, Air Force

        For an additional amount for ``Operation and Maintenance, Air
    Force'', $1,095,959,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                    Operation and Maintenance, Army Reserve

        For an additional amount for ``Operation and Maintenance, Army
    Reserve'', $98,269,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                    Operation and Maintenance, Navy Reserve

        For an additional amount for ``Operation and Maintenance, Navy
    Reserve'', $55,083,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                Operation and Maintenance, Marine Corps Reserve

        For an additional amount for ``Operation and Maintenance, Marine
    Corps Reserve'', $39,909,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                  Operation and Maintenance, Air Force Reserve

        For an additional amount for ``Operation and Maintenance, Air Force
    Reserve'', $13,187,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                 Operation and Maintenance, Army National Guard

        For an additional amount for ``Operation and Maintenance, Army
    National Guard'', $266,304,000, to remain available for obligation
    until September 30, 2010, to improve, repair and modernize Department
    of Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                 Operation and Maintenance, Air National Guard

        For an additional amount for ``Operation and Maintenance, Air
    National Guard'', $25,848,000, to remain available for obligation until
    September 30, 2010, to improve, repair and modernize Department of
    Defense facilities, restore and modernize real property to include
    barracks, and invest in the energy efficiency of Department of Defense
    facilities.

                   RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                Research, Development, Test and Evaluation, Army

        For an additional amount for ``Research, Development, Test and
    Evaluation, Army'', $75,000,000, to remain available for obligation
    until September 30, 2010.

                Research, Development, Test and Evaluation, Navy

        For an additional amount for ``Research, Development, Test and
    Evaluation, Navy'', $75,000,000, to remain available for obligation
    until September 30, 2010.

             Research, Development, Test and Evaluation, Air Force

        For an additional amount for ``Research, Development, Test and
    Evaluation, Air Force'', $75,000,000, to remain available for
    obligation until September 30, 2010.

            Research, Development, Test and Evaluation, Defense-Wide

        For an additional amount for ``Research, Development, Test and
    Evaluation, Defense-Wide'', $75,000,000, 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'',
    $400,000,000 for operation and maintenance, to remain available for
    obligation until September 30, 2010, to improve, repair and modernize
    military medical facilities, and invest in the energy efficiency of
    military medical facilities.

                        Office of the Inspector General

        For an additional amount for ``Office of the Inspector General'',
    $15,000,000 for operation and maintenance, to remain available for
    obligation 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'', $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, overhead, engineering
    and design on those projects and on subsequent claims, if any: Provided
    further, That the Secretary of the Army shall submit a quarterly report
    to the Committees on Appropriations of the House of Representatives and
    the Senate detailing the allocation, obligation and expenditures of
    these funds, beginning not later than 45 days after enactment of this
    Act: Provided further, That the Secretary shall have unlimited
    reprogramming authority for these funds provided under this heading.

                                  construction

        For an additional amount for ``Construction'', $2,000,000,000:
    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, funds provided in this
    paragraph shall not be cost shared with 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, overhead, engineering and design on those
    projects and on subsequent claims, if any: Provided further, That the
    Secretary of the Army shall submit a quarterly report to the Committees
    on Appropriations of the House of Representatives and the Senate
    detailing the allocation, obligation and expenditures of these funds,
    beginning not later than 45 days after enactment of this Act: 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'',
    $375,000,000: 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 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, overhead, engineering
    and design on those projects and on subsequent claims, if any: Provided
    further, That the Secretary of the Army shall submit a quarterly report
    to the Committees on Appropriations of the House of Representatives and
    the Senate detailing the allocation, obligation and expenditures of
    these funds, beginning not later than 45 days after enactment of this
    Act: 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'',
    $2,075,000,000: 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 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, overhead, engineering
    and design on those projects and on subsequent claims, if any: Provided
    further, That the Secretary of the Army shall submit a quarterly report
    to the Committees on Appropriations of the House of Representatives and
    the Senate detailing the allocation, obligation and expenditures of
    these funds, beginning not later than 45 days after enactment of this
    Act: 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'', $25,000,000.

                formerly utilized sites remedial action program

        For an additional amount for ``Formerly Utilized Sites Remedial
    Action Program'', $100,000,000: Provided, 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, overhead, engineering and design on those
    projects and on subsequent claims, if any: Provided further, That the
    Secretary of the Army shall submit a quarterly report to the Committees
    on Appropriations of the House of Representatives and the Senate
    detailing the allocation, obligation and expenditures of these funds,
    beginning not later than 45 days after enactment of this Act: Provided
    further, That the Secretary shall have unlimited reprogramming
    authority for these funds provided under this heading.

                           DEPARTMENT OF THE INTERIOR

                             Bureau of Reclamation

                          water and related resources

        For an additional amount for ``Water and Related Resources'',
    $1,000,000,000: Provided, That of the amount appropriated under this
    heading, not less than $126,000,000 shall be used for water reclamation
    and reuse projects authorized under title XVI of Public Law 102-575:
    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
    the costs of extraordinary maintenance and replacement activities
    carried out with funds provided in this Act shall be repaid pursuant to
    existing authority, except the length of repayment period shall be as
    determined by the Commissioner, but in no case shall the repayment
    period exceed 50 years and the repayment shall include interest, at a
    rate determined by the Secretary of the Treasury as of the beginning of
    the fiscal year in which the work is commenced, on the basis of average
    market yields on outstanding marketable obligations of the United
    States with the remaining periods of maturity comparable to the
    applicable reimbursement period of the project adjusted to the nearest
    one-eighth of 1 percent on the unamortized balance of any portion of
    the loan: 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, overhead, engineering
    and design on those projects and on subsequent claims, if any: Provided
    further, That the Secretary of the Interior shall submit a quarterly
    report to the Committees on Appropriations of the House of
    Representatives and the Senate detailing the allocation, obligation and
    expenditures of these funds, beginning not later than 45 days after
    enactment of this Act: 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'', $16,800,000,000: Provided, That $3,200,000,000 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 $2,800,000,000 is available through the formula in
    subtitle E: Provided further, That the Secretary may use the most
    recent and accurate population data available to satisfy the
    requirements of section 543(b) of the Energy Independence and Security
    Act of 2007: Provided further, That the remaining $400,000,000 shall be
    awarded on a competitive basis: Provided further, That $5,000,000,000
    shall be for the Weatherization Assistance Program under part A of
    title IV of the Energy Conservation and Production Act (42 U.S.C. 6861
    et seq.): Provided further, That $3,100,000,000 shall be for the State
    Energy Program authorized under part D of title III of the Energy
    Policy and Conservation Act (42 U.S.C. 6321): 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: Provided, That funds shall be available
    for expenses necessary for electricity delivery and energy reliability
    activities to modernize the electric grid, to include demand responsive
    equipment, enhance security and reliability of the energy
    infrastructure, energy storage research, development, demonstration and
    deployment, and facilitate recovery from disruptions to the energy
    supply, and for implementation of programs authorized under title XIII
    of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et
    seq.): Provided further, 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 further, 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 after
    consultation with the Federal Energy Regulatory Commission: Provided
    further, That the Office of Electricity Delivery and Energy Reliability
    in coordination with the Federal Energy Regulatory Commission 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: Provided further, That the Secretary of Energy may
    use or transfer amounts provided under this heading to carry out new
    authority for transmission improvements, if such authority is enacted
    in any subsequent Act, consistent with existing fiscal management
    practices and procedures.

                     Fossil Energy Research and Development

        For an additional amount for ``Fossil Energy Research and
    Development'', $3,400,000,000.

                       Non-Defense Environmental Cleanup

        For an additional amount for ``Non-Defense Environmental Cleanup'',
    $483,000,000.

          Uranium Enrichment Decontamination and Decommissioning Fund

        For an additional amount for ``Uranium Enrichment Decontamination
    and Decommissioning Fund'', $390,000,000, 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'', $1,600,000,000.

                   Advanced Research Projects Agency--Energy

        For the Advanced Research Projects Agency--Energy, $400,000,000, as
    authorized under section 5012 of the America COMPETES Act (42 U.S.C.
    16538).

             Title 17--Innovative Technology Loan Guarantee Program

        For an additional amount for the cost of guaranteed loans
    authorized by section 1705 of the Energy Policy Act of 2005,
    $6,000,000,000, available until expended, to pay the costs of
    guarantees made under this section: Provided, That of the amount
    provided for title XVII, $25,000,000 shall be used for administrative
    expenses in carrying out the guaranteed loan program: Provided further,
    That of the amounts provided for title XVII, $10,000,000 shall be
    transferred to and available for administrative expenses for the
    Advanced Technology Vehicles Manufacturing 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, $15,000,000, to remain available until September 30, 2012.

                   ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                         Defense Environmental Cleanup

        For an additional amount for ``Defense Environmental Cleanup,''
    $5,127,000,000.

    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. Set-aside for Management and Oversight. Up to 0.5 percent
    of each amount appropriated in this title may be used for the expenses
    of management and oversight of the programs, grants, and activities
    funded by such appropriation, and may be transferred by the head of the
    Federal department or agency involved to any other appropriate account
    within the department or agency for that purpose: Provided, That the
    Secretary will provide a report to the Committees on Appropriations of
    the House of Representatives and the Senate 30 days prior to the
    transfer: Provided further, That funds set aside under this section
    shall remain available for obligation until September 30, 2012.
        Sec. 404. Technical Corrections to the Energy Independence and
    Security Act of 2007. (a) Section 543(a) of the Energy Independence and
    Security Act of 2007 (42 U.S.C. 17153(a)) is amended--
            (1) by redesignating paragraphs (2) through (4) as paragraphs
        (3) through (5), respectively; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) 34 percent to eligible units of local government--
        alternative 1, in accordance with subsection (b);
            ``(2) 34 percent to eligible units of local government--
        alternative 2, in accordance with subsection (b);''.
        (b) Section 543(b) of the Energy Independence and Security Act of
    2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)''
    and inserting ``subsection (a)(1) or (2)''.
        (c) Section 548(a)(1) of the Energy Independence and Security Act
    of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided''
    and all that follows through ``541(3)(B)''.
        Sec. 405. Amendments to Title XIII of the Energy Independence and
    Security Act of 2007. Title XIII of the Energy Independence and
    Security Act of 2007 (42 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 in urban, suburban, tribal, and rural
            areas, including areas where electric system assets are
            controlled by nonprofit entities and areas where electric
            system assets are controlled by investor-owned utilities.''.
            (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 after section 1304(b)(3)(D) the following new
        subparagraphs:
                ``(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.
                ``(F) Open protocols and standards.--The Secretary shall
            require as a condition of receiving funding under this
            subsection that demonstration projects utilize open protocols
            and standards (including Internet-based protocols and
            standards) if available and appropriate.''.
            (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) Procedures and Rules.--(1) The Secretary shall, within 60
    days after the enactment of the American Recovery and Reinvestment Act
    of 2009, by means of a notice of intent and subsequent solicitation of
    grant proposals--
            ``(A) establish procedures by which applicants can obtain
        grants of not more than one-half of their documented costs;
            ``(B) require as a condition of receiving funding under this
        subsection that demonstration projects utilize open protocols and
        standards (including Internet-based protocols and standards) if
        available and appropriate;
            ``(C) 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
        the qualifying Smart Grid investments, and that the grants made
        have a significant effect in encouraging and facilitating the
        development of a smart grid;
            ``(D) establish procedures to ensure there will be public
        records of grants made, recipients, and qualifying Smart Grid
        investments which have received grants; and
            ``(E) establish procedures to provide advance payment of moneys
        up to the full amount of the grant award.
        ``(2) The Secretary shall have discretion and exercise reasonable
    judgment to deny grants for investments that do not qualify.''.
        Sec. 406. Renewable Energy and Electric Power Transmission 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 the following categories of
    projects that commence construction not later than September 30, 2011:
            ``(1) Renewable energy systems, including incremental
        hydropower, that generate electricity or thermal energy, and
        facilities that manufacture related components.
            ``(2) Electric power transmission systems, including upgrading
        and reconductoring projects.
            ``(3) Leading edge biofuel projects that will use technologies
        performing at the pilot or demonstration scale that the Secretary
        determines are likely to become commercial technologies and will
        produce transportation fuels that substantially reduce life-cycle
        greenhouse gas emissions compared to other transportation fuels.
        ``(b) Factors Relating to Electric Power Transmission Systems.--In
    determining to make guarantees to projects described in subsection
    (a)(2), the Secretary may consider the following factors:
            ``(1) The viability of the project without guarantees.
            ``(2) The availability of other Federal and State incentives.
            ``(3) The importance of the project in meeting reliability
        needs.
            ``(4) The effect of the project in meeting a State or region's
        environment (including climate change) and energy goals.
        ``(c) Wage Rate Requirements.--The Secretary shall require that
    each recipient of support under this section provide reasonable
    assurance that all laborers and mechanics employed in the performance
    of the project for which the assistance is provided, including those
    employed by contractors or subcontractors, will be paid wages at rates
    not less than those prevailing on similar work in the locality as
    determined by the Secretary of Labor in accordance with subchapter IV
    of chapter 31 of part A of subtitle II of title 40, United States Code
    (commonly referred to as the `Davis-Bacon Act').
        ``(d) Limitation.--Funding under this section for projects
    described in subsection (a)(3) shall not exceed $500,000,000.
        ``(e) Sunset.--The authority to enter into guarantees under this
    section shall expire on September 30, 2011.''.
        (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. 407. Weatherization Assistance 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 ``$6,500''.
        (c) Effective Use of Funds.--In providing funds made available by
    this Act for the Weatherization Assistance Program, the Secretary may
    encourage States to give priority to using such funds for the most
    cost-effective efficiency activities, which may include insulation of
    attics, if, in the Secretary's view, such use of funds would increase
    the effectiveness of the program.
        (d) 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''.
        (e) Assistance for Previously Weatherized Dwelling Units.--Section
    415(c)(2) of the Energy Conservation and Production Act (42 U.S.C.
    6865(c)(2)) is amended by striking ``September 30, 1979'' and inserting
    ``September 30, 1994''.
        Sec. 408. 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)''.
        Sec. 409. Renewable Electricity Transmission Study. In completing
    the 2009 National Electric Transmission Congestion Study, the Secretary
    of Energy shall include--
            (1) an analysis of the significant potential sources of
        renewable energy that are constrained in accessing appropriate
        market areas by lack of adequate transmission capacity;
            (2) an analysis of the reasons for failure to develop the
        adequate transmission capacity;
            (3) recommendations for achieving adequate transmission
        capacity;
            (4) an analysis of the extent to which legal challenges filed
        at the State and Federal level are delaying the construction of
        transmission necessary to access renewable energy; and
            (5) an explanation of assumptions and projections made in the
        Study, including--
                (A) assumptions and projections relating to energy
            efficiency improvements in each load center;
                (B) assumptions and projections regarding the location and
            type of projected new generation capacity; and
                (C) assumptions and projections regarding projected
            deployment of distributed generation infrastructure.
        Sec. 410. Additional State Energy Grants. (a) In General.--Amounts
    appropriated under the heading ``Department of Energy--Energy
    Programs--Energy Efficiency and Renewable Energy'' in this title shall
    be available to the Secretary of Energy for making additional grants
    under part D of title III of the Energy Policy and Conservation Act (42
    U.S.C. 6321 et seq.). The Secretary shall make grants under this
    section in excess of the base allocation established for a State under
    regulations issued pursuant to the authorization provided in section
    365(f) of such Act only if the governor of the recipient State notifies
    the Secretary of Energy in writing that the governor has obtained
    necessary assurances that each of the following will occur:
            (1) The applicable State regulatory authority will seek to
        implement, in appropriate proceedings for each electric and gas
        utility, with respect to which the State regulatory authority has
        ratemaking authority, a general policy that ensures that utility
        financial incentives are aligned with helping their customers use
        energy more efficiently and that provide timely cost recovery and a
        timely earnings opportunity for utilities associated with cost-
        effective measurable and verifiable efficiency savings, in a way
        that sustains or enhances utility customers' incentives to use
        energy more efficiently.
            (2) The State, or the applicable units of local government that
        have authority to adopt building codes, will implement the
        following:
                (A) A building energy code (or codes) for residential
            buildings that meets or exceeds the most recently published
            International Energy Conservation Code, or achieves equivalent
            or greater energy savings.
                (B) A building energy code (or codes) for commercial
            buildings throughout the State that meets or exceeds the ANSI/
            ASHRAE/IESNA Standard 90.1-2007, or achieves equivalent or
            greater energy savings.
                (C) A plan for the jurisdiction achieving compliance with
            the building energy code or codes described in subparagraphs
            (A) and (B) within 8 years of the date of enactment of this Act
            in at least 90 percent of new and renovated residential and
            commercial building space. Such plan shall include active
            training and enforcement programs and measurement of the rate
            of compliance each year.
            (3) The State will to the extent practicable prioritize the
        grants toward funding energy efficiency and renewable energy
        programs, including--
                (A) the expansion of existing energy efficiency programs
            approved by the State or the appropriate regulatory authority,
            including energy efficiency retrofits of buildings and
            industrial facilities, that are funded--
                    (i) by the State; or
                    (ii) through rates under the oversight of the
                applicable regulatory authority, to the extent applicable;
                (B) the expansion of existing programs, approved by the
            State or the appropriate regulatory authority, to support
            renewable energy projects and deployment activities, including
            programs operated by entities which have the authority and
            capability to manage and distribute grants, loans, performance
            incentives, and other forms of financial assistance; and
                (C) cooperation and joint activities between States to
            advance more efficient and effective use of this funding to
            support the priorities described in this paragraph.
        (b) State Match.--The State cost share requirement under the item
    relating to ``Department of Energy; Energy Conservation'' in title II
    of the Department of the Interior and Related Agencies Appropriations
    Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to
    assistance provided under this section.
        (c) Equipment and Materials for Energy Efficiency Measures and
    Renewable Energy Measures.--No limitation on the percentage of funding
    that may be used for the purchase and installation of equipment and
    materials for energy efficiency measures and renewable energy measures
    under grants provided under part D of title III of the Energy Policy
    and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance
    provided under this section.

               TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                           DEPARTMENT OF THE TREASURY

               Treasury Inspector General for Tax Administration

                              SALARIES AND EXPENSES

        For an additional amount for necessary expenses of the Treasury
    Inspector General for Tax Administration in carrying out the Inspector
    General Act of 1978, $7,000,000, to remain available until September
    30, 2013, for oversight and audits of the administration of the making
    work pay tax credit and economic recovery payments under the American
    Recovery and Reinvestment Act of 2009.

       Community Development Financial Institutions Fund Program Account

        For an additional amount for ``Community Development Financial
    Institutions Fund Program Account'', $100,000,000, to remain available
    until September 30, 2010, for qualified applicants under the fiscal
    year 2009 funding round of the Community Development Financial
    Institutions Program, of which up to $8,000,000 may be for financial
    assistance, technical assistance, training and outreach programs
    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 $2,000,000 may be used for administrative
    expenses: Provided, That for the purpose of the fiscal year 2009
    funding round, 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 5 percent of the aggregate funds available during fiscal year
    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.

                            Internal Revenue Service

                    HEALTH INSURANCE TAX CREDIT ADMINISTRATION

        For an additional amount to implement the health insurance tax
    credit under the TAA Health Coverage Improvement Act of 2009,
    $80,000,000, to remain available until September 30, 2010.

                        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, $5,550,000,000, to carry out the purposes of the Fund, of which
    not less than $750,000,000 shall be available for Federal buildings and
    United States courthouses, not less than $300,000,000 shall be
    available for border stations and land ports of entry, and not less
    than $4,500,000,000 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 to exceed $3,000,000 of the funds provided shall be
    for on-the-job pre-apprenticeship and apprenticeship training programs
    registered with the Department of Labor, for the construction, repair,
    and alteration of Federal buildings: Provided further, That not less
    than $5,000,000,000 of the funds provided under this heading shall be
    obligated by September 30, 2010, and the remainder of the funds
    provided under this heading shall be obligated not later than September
    30, 2011: Provided further, That the Administrator of General Services
    is authorized to initiate design, construction, repair, alteration, and
    other projects through existing authorities of the Administrator:
    Provided further, That the General Services Administration shall submit
    a detailed plan, by project, regarding the use of funds made available
    in this Act to the Committees on Appropriations of the House of
    Representatives and the Senate within 45 days of enactment of this Act,
    and shall provide notification to the Committees within 15 days prior
    to any changes regarding the use of these funds: Provided further,
    That, hereafter, the Administrator shall report to the Committees on
    the obligation of these funds on a quarterly basis beginning on June
    30, 2009: Provided further, That of the amounts provided, $4,000,000
    shall be transferred to and merged with ``Government-Wide Policy'', for
    the Office of Federal High-Performance Green Buildings as authorized in
    the Energy Independence and Security Act of 2007 (Public Law 110-140):
    Provided further, That amounts provided under this heading that are
    savings or cannot be used for the activity for which originally
    obligated may be deobligated and, notwithstanding any other provision
    of law, reobligated for the purposes identified in the plan required
    under this heading not less than 15 days after notification has been
    provided to the Committees on Appropriations of the House of
    Representatives and the Senate.

            Energy-Efficient Federal Motor Vehicle Fleet Procurement

        For capital expenditures and necessary expenses of acquiring motor
    vehicles with higher fuel economy, including: hybrid vehicles; electric
    vehicles; and commercially-available, plug-in hybrid vehicles,
    $300,000,000, to remain available until September 30, 2011: Provided,
    That none of these funds may be obligated until the Administrator of
    General Services submits to the Committees on Appropriations of the
    House of Representatives and the Senate, within 90 days after enactment
    of this Act, a plan for expenditure of the funds that details the
    current inventory of the Federal fleet owned by the General Services
    Administration, as well as other Federal agencies, and the strategy to
    expend these funds to replace a portion of the Federal fleet with the
    goal of substantially increasing energy efficiency over the current
    status, including increasing fuel efficiency and reducing emissions:
    Provided further, That, hereafter, the Administrator shall report to
    the Committees on the obligation of these funds on a quarterly basis
    beginning on September 30, 2009.

                          Office of Inspector General

        For an additional amount for the Office of the Inspector General,
    to remain available until September 30, 2013, for oversight and audit
    of programs, grants, and projects funded under this title, $7,000,000.

               RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

        For necessary expenses of the Recovery Act Accountability and
    Transparency Board to carry out the provisions of title XV of this Act,
    $84,000,000, to remain available until September 30, 2011.

                         SMALL BUSINESS ADMINISTRATION

                             Salaries and Expenses

        For an additional amount, to remain available until September 30,
    2010, $69,000,000, 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, 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, 2013, for
    oversight and audit of programs, grants, and projects funded under this
    title.

                     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, $630,000,000, to remain
    available until September 30, 2010: Provided, That of the amount for
    the cost of guaranteed loans, $375,000,000 shall be for reimbursements,
    loan subsidies and loan modifications for loans to small business
    concerns authorized in section 501 of this title; and $255,000,000
    shall be for loan subsidies and loan modifications for loans to small
    business concerns authorized in section 506 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. Fee Reductions. (a) Administrative Provisions Small
    Business Administration.--Until September 30, 2010, and to the extent
    that the cost of such elimination or reduction 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)) and section 502 of this
    title, 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 or reduce fees to the maximum extent possible; 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 or reduce fees to the maximum extent possible.
        (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 pursuant to 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) Application of Fee Eliminations.--
            (1) To the extent that amounts are made available to the
        Administrator for the purpose of fee eliminations or reductions
        under subsection (a), the Administrator shall--
                (A) first use any amounts provided to eliminate or reduce
            fees paid by small business borrowers under clauses (i) through
            (iii) of paragraph (18)(A), to the maximum extent possible; and
                (B) then use any amounts provided to eliminate or reduce
            fees under paragraph (23)(A) paid by small business lenders
            with assets less than $1,000,000,000 as of the date of
            enactment; and
                (C) then use any remaining amounts appropriated under this
            title to reduce fees paid by small business lenders other than
            those with assets less than $1,000,000,000.
            (2) The Administrator shall eliminate fees under subsections
        (a) and (b) until the amount provided for such purposes, as
        applicable, under the heading ``Business Loans Program Account''
        under the heading ``Small Business Administration'' under this Act
        are expended.
        Sec. 502. Economic Stimulus Lending Program for Small Businesses.
    (a) Purpose.--The purpose of this section is to permit the Small
    Business Administration to guarantee up to 90 percent of qualifying
    small business loans made by eligible lenders.
        (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of the
        Small Business Administration.
            (2) The term ``qualifying small business loan'' means any loan
        to a small business concern pursuant to section 7(a) of the Small
        Business Act (15 U.S.C. 636) or title V of the Small Business
        Investment Act of 1958 (15 U.S.C. 695 and following) except for
        such loans made under section 7(a)(31).
            (3) The term ``small business concern'' has the same meaning as
        provided by section 3 of the Small Business Act (15 U.S.C. 632).
        (c) Qualified Borrowers.--
            (1) Aliens unlawfully present in the united states.--A loan
        guarantee may not be made under this section for a loan made to a
        concern if an individual who is an alien unlawfully present in the
        United States--
                (A) has an ownership interest in that concern; or
                (B) has an ownership interest in another concern that
            itself has an ownership interest in that concern.
            (2) Firms in violation of immigration laws.--No loan guarantee
        may be made under this section for a loan to any entity found,
        based on a determination by the Secretary of Homeland Security or
        the Attorney General to have engaged in a pattern or practice of
        hiring, recruiting or referring for a fee, for employment in the
        United States an alien knowing the person is an unauthorized alien.
        (d) Criminal Background Checks.--Prior to the approval of any loan
    guarantee under this section, the Administrator may verify the
    applicant's criminal background, or lack thereof, through the best
    available means, including, if possible, use of the National Crime
    Information Center computer system at the Federal Bureau of
    Investigation.
        (e) Application of Other Law.--Nothing in this section shall be
    construed to exempt any activity of the Administrator under this
    section from the Federal Credit Reform Act of 1990 (title V of the
    Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661
    and following).
        (f) Sunset.--Loan guarantees may not be issued under this section
    after the date 12 months after the date of enactment of this Act.
        (g) Small Business Act Provisions.--The provisions of the Small
    Business Act applicable to loan guarantees under section 7 of that Act
    and regulations promulgated thereunder as of the date of enactment of
    this Act shall apply to loan guarantees under this section except as
    otherwise provided in this section.
        (h) Authorization.--There are authorized to be appropriated such
    sums as may be necessary to carry out this section.
        Sec. 503. Establishment of SBA Secondary Market Guarantee
    Authority. (a) Purpose.--The purpose of this section is to provide the
    Administrator with the authority to establish the SBA Secondary Market
    Guarantee Authority within the SBA to provide a Federal guarantee for
    pools of first lien 504 loans that are to be sold to third-party
    investors.
        (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of the
        Small Business Administration.
            (2) The term ``first lien position 504 loan'' means the first
        mortgage position, non-federally guaranteed loans made by private
        sector lenders made under title V of the Small Business Investment
        Act.
        (c) Establishment of Authority.--
            (1) Organization.--
                (A) The Administrator shall establish a Secondary Market
            Guarantee Authority within the Small Business Administration.
                (B) The Administrator shall appoint a Director of the
            Authority who shall report to the Administrator.
                (C) The Administrator is authorized to hire such personnel
            as are necessary to operate the Authority and may contract such
            operations of the Authority as necessary to qualified third
            party companies or individuals.
                (D) The Administrator is authorized to contract with
            private sector fiduciary and custom dial agents as necessary to
            operate the Authority.
            (2) Guarantee process.--
                (A) The Administrator shall establish, by rule, a process
            in which private sector entities may apply to the
            Administration for a Federal guarantee on pools of first lien
            position 504 loans that are to be sold to third-party
            investors.
                (B) The Administrator is authorized to contract with
            private sector fiduciary and custom dial agents as necessary to
            operate the Authority.
            (3) Responsibilities.--
                (A) The Administrator shall establish, by rule, a process
            in which private sector entities may apply to the SBA for a
            Federal guarantee on pools of first lien position 504 loans
            that are to be sold to third-party investors.
                (B) The rule under this section shall provide for a process
            for the Administrator to consider and make decisions regarding
            whether to extend a Federal guarantee referred to in clause
            (i). Such rule shall also provide that:
                    (i) The seller of the pools purchasing a guarantee
                under this section retains not less than 5 percent of the
                dollar amount of the pools to be sold to third-party
                investors.
                    (ii) The Administrator shall charge fees, upfront or
                annual, at a specified percentage of the loan amount that
                is at such a rate that the cost of the program under the
                Federal Credit Reform Act of 1990 (title V of the
                Congressional Budget and Impoundment Control Act of 1974; 2
                U.S.C. 661) shall be equal to zero.
                    (iii) The Administrator may guarantee not more than
                $3,000,000,000 of pools under this authority.
                (C) The Administrator shall establish documents, legal
            covenants, and other required documentation to protect the
            interests of the United States.
                (D) The Administrator shall establish a process to receive
            and disburse funds to entities under the authority established
            in this section.
        (d) Limitations.--
            (1) The Administrator shall ensure that entities purchasing a
        guarantee under this section are using such guarantee for the
        purpose of selling 504 first lien position pools to third-party
        investors.
            (2) If the Administrator finds that any such guarantee was used
        for a purpose other than that specified in paragraph (1), the
        Administrator shall--
                (A) prohibit the purchaser of the guarantee or its
            affiliates (within the meaning of the regulations under 13 CFR
            121.103) from using the authority of this section in the
            future; and
                (B) take any other actions the Administrator, in
            consultation with the Attorney General of the United States
            deems appropriate.
        (e) Oversight.--The Administrator shall submit a report to Congress
    not later than the third business day of each month setting forth each
    of the following:
            (1) The aggregate amount of guarantees extended under this
        section during the preceding month.
            (2) The aggregate amount of guarantees outstanding.
            (3) Defaults and payments on defaults made under this section.
            (4) The identity of each purchaser of a guarantee found by the
        Administrator to have misused guarantees under this section.
            (5) Any other information the Administrator deems necessary to
        fully inform Congress of undue risk to the United States associated
        with the issuance of guarantees under this section.
        (f) Duration of Program.--The authority of this section shall
    terminate on the date 2 years after the date of enactment of this
    section.
        (g) Funding.--Such sums as necessary are authorized to be
    appropriated to carry out the provisions of this section.
        (h) Budget Treatment.--Nothing in this section shall be construed
    to exempt any activity of the Administrator under this section from the
    Federal Credit Reform Act of 1990 (title V of the Congressional Budget
    and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
        (i) Emergency Rulemaking Authority.--The Administrator shall issue
    regulations under this section within 15 days after the date of
    enactment of this section. The notice requirements of section 553(b) of
    title 5, United States Code shall not apply to the promulgation of such
    regulations.
        Sec. 504. Stimulus for Community Development Lending. (a) Low
    Interest Refinancing Under the Local Development Business Loan
    Program.--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 refinancing.--
                ``(A) In general.--Any financing approved under this title
            may include a limited amount of debt refinancing.
                ``(B) Expansions.--If the project involves expansion of a
            small business concern, any amount of existing indebtedness
            that does not exceed 50 percent of the project cost of the
            expansion may be refinanced and added to the expansion cost,
            if--
                    ``(i) the proceeds of the indebtedness were used to
                acquire land, including a building situated thereon, to
                construct a building thereon, or to purchase equipment;
                    ``(ii) the existing indebtedness is collateralized by
                fixed assets;
                    ``(iii) the existing indebtedness was incurred for the
                benefit of the small business concern;
                    ``(iv) the financing under this title will be used only
                for refinancing existing indebtedness or costs relating to
                the project financed under this title;
                    ``(v) the financing under this title will provide a
                substantial benefit to the borrower when prepayment
                penalties, financing fees, and other financing costs are
                accounted for;
                    ``(vi) the borrower has been current on all payments
                due on the existing debt for not less than 1 year preceding
                the date of refinancing; and
                    ``(vii) the financing under section 504 will provide
                better terms or rate of interest than the existing
                indebtedness at the time of refinancing.''.
        (b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of
    the Small Business Investment Act (15 U.S.C. 695) are each amended by
    striking ``$50,000'' and inserting ``$65,000''.
        Sec. 505. Increasing Small Business Investment. (a) Simplified
    Maximum Leverage Limits.--Section 303(b) of the Small Business
    Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
            (1) By striking so much of paragraph (2) as precedes
        subparagraphs (C) and (D) and inserting the following:
            ``(2) Maximum leverage.--
                ``(A) In general.--The maximum amount of outstanding
            leverage made available to any one company licensed under
            section 301(c) of this Act may not exceed the lesser of--
                    ``(i) 300 percent of such company's private capital; or
                    ``(ii) $150,000,000.
                ``(B) Multiple licenses under common control.--The maximum
            amount of outstanding leverage made available to two or more
            companies licensed under section 301(c) of this Act that are
            commonly controlled (as determined by the Administrator) and
            not under capital impairment may not exceed $225,000,000.'';
            (2) By amending paragraph (2)(C) by inserting ``(i)'' before
        ``In calculating'' and adding the following at the end thereof:
                    ``(ii) The maximum amount of outstanding leverage made
                available to--

                        ``(I) any 1 company described in clause (iii) may
                    not exceed the lesser of 300 percent of private capital
                    of the company, or $175,000,000; and
                        ``(II) 2 or more companies described in clause
                    (iii) that are under common control (as determined by
                    the Administrator) may not exceed $250,000,000.

                    ``(iii) A company described in this clause is a company
                licensed under section 301(c) in the first fiscal year
                after the date of enactment of this clause or any fiscal
                year thereafter 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).''.
            (3) By striking paragraph (4).
        (b) Simplified Aggregate Investment Limitations.--Section 306(a) of
    the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended
    to read as follows:
        ``(a) Percentage Limitation on Private Capital.--If any small
    business investment company has obtained financing from the
    Administrator and such financing remains outstanding, the aggregate
    amount of securities acquired and for which commitments may be issued
    by such company under the provisions of this title for any single
    enterprise shall not, without the approval of the Administrator, exceed
    10 percent of the sum of--
            ``(1) the private capital of such company; and
            ``(2) the total amount of leverage projected by the company in
        the company's business plan that was approved by the Administrator
        at the time of the grant of the company's license.''.
        (c) 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.''.
        Sec. 506. Business Stabilization Program. (a) In General.--Subject
    to the availability of appropriations, the Administrator of the Small
    Business Administration shall carry out a program to provide loans on a
    deferred basis to viable (as such term is determined pursuant to
    regulation by the Administrator of the Small Business Administration)
    small business concerns that have a qualifying small business loan and
    are experiencing immediate financial hardship.
        (b) Eligible Borrower.--A small business concern as defined under
    section 3 of the Small Business Act (15 U.S.C. 632).
        (c) Qualifying Small Business Loan.--A loan made to a small
    business concern that meets the eligibility standards in section 7(a)
    of the Small Business Act (15 U.S.C. 636(a)) but shall not include
    loans guarantees (or loan guarantee commitments made) by the
    Administrator prior to the date of enactment of this Act.
        (d) Loan Size.--Loans guaranteed under this section may not exceed
    $35,000.
        (e) Purpose.--Loans guaranteed under this program shall be used to
    make periodic payment of principal and interest, either in full or in
    part, on an existing qualifying small business loan for a period of
    time not to exceed 6 months.
        (f) Loan Terms.--Loans made under this section shall:
            (1) carry a 100 percent guaranty; and
            (2) have interest fully subsidized for the period of repayment.
        (g) Repayment.--Repayment for loans made under this section shall--
            (1) be amortized over a period of time not to exceed 5 years;
        and
            (2) not begin until 12 months after the final disbursement of
        funds is made.
        (h) Collateral.--The Administrator of the Small Business
    Administration may accept any available collateral, including
    subordinated liens, to secure loans made under this section.
        (i) Fees.--The Administrator of the Small Business Administration
    is prohibited from charging any processing fees, origination fees,
    application fees, points, brokerage fees, bonus points, prepayment
    penalties, and other fees that could be charged to a loan applicant for
    loans under this section.
        (j) Sunset.--The Administrator of the Small Business Administration
    shall not issue loan guarantees under this section after September 30,
    2010.
        (k) Emergency Rulemaking Authority.--The Administrator of the Small
    Business Administration shall issue regulations under this section
    within 15 days after the date of enactment of this section. The notice
    requirements of section 553(b) of title 5, United States Code shall not
    apply to the promulgation of such regulations.

    SEC. 507. GAO REPORT.

        (a) Report.--Not later than 60 days after the enactment of this
    Act, the Comptroller General of the United States shall report to the
    Congress on the actions of the Administrator in implementing the
    authorities established in the administrative provisions of this title.
        (b) Included Item.--The report under this section shall include a
    summary of the activity of the Administrator under this title and an
    analysis of whether he is accomplishing the purpose of increasing
    liquidity in the secondary market for Small Business Administration
    loans.

    SEC. 508. 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) Denial of Liability--
            Section 411 of the Small Business Investment Act of 1958 (15
        U.S.C. 694b) is amended--
            (1) by striking subsection (e) and inserting the following:
        ``(e) Reimbursement of Surety; Conditions.--
    Pursuant to any such guarantee or agreement, the Administration shall
    reimburse the surety, as provided in subsection (c) of this section,
    except that the Administration shall be relieved of liability (in whole
    or in part within the discretion of the Administration) if--
            (1) the surety obtained such guarantee or agreement, or applied
        for such reinbursement, by fraud or material misrepresentation,
            (2) the total contract amount at the time of execution of the
        bond or bonds exceeds $5,000,000,
            (3) the surety has breached a material term or condition of
        such guarantee agreement, or
            (4) the surety has substantially violated the regulations
        promulgated by the Administration pursuant to subsection (d).''
        (2) by adding at the end the following:
        ``(k) For bonds made or executed with the prior approval of the
    Administration, the Administration shall not deny liability to a surety
    based upon material information that was provided as part of the
    guaranty application.''.
        (c) 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.''.
        (d) Study--The Administrator of the Small Business Administration
    shall conduct a study of the current funding structure of the surety
    bond program carried out under part B (15 U.S.C. 694a et seq.) of title
    IV of the Small Business Investment Act of 1958. The study shall
    include--
            (1) an assessment of whether the program's current funding
        framework and program fees are inhibiting the program's growth;
            (2) an assessment of whether surety companies and small
        business concerns could benefit from an alternative funding
        structure; and
        (e) Report--Not later than 180 days after the date of enactment of
    this Act, the Administrator shall submit to Congress a report on the
    results of the study required under subsection (d).
        (f) Sunset.--The amendments made by this section shall remain in
    effect until September 30, 2010.

    SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

        (a) Purpose.--The purpose of this section is to provide the Small
    Business Administration with the authority to establish a Secondary
    Market Lending Authority within the SBA to make loans to the
    systemically important SBA secondary market broker-dealers who operate
    the SBA secondary market.
        (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of the
        SBA.
            (2) The term ``SBA'' means the Small Business Administration.
            (3) The terms ``Secondary Market Lending Authority'' and
        ``Authority'' mean the office establishedunder subsection (c).
            (4) The term ``SBA secondary market'' meansthe market for the
        purchase and sale of loans originated, underwritten, and closed
        under the Small Business Act.
            (5) The term ``Systemically Important Secondary Market Broker-
        Dealers'' mean those entities designated under subsection (c)(1) as
        vital to the continued operation of the SBA secondary market by
        reason of their purchase and sale of the government guaranteed
        portion of loans, or pools of loans,originated, underwritten, and
        closed under the Small Business Act.
        (c) Responsibilities, Authorities, Organization, and Limitations.--
            (1) Designation of systemically important SBA secondary market
        broker-dealers.--The Administrator shall establish a process to
        designate, in consultation with the Board of Governors of the
        Federal Reserve and the Secretary of the Treasury, Systemically
        Important Secondary Market Broker-Dealers.
            (2) Establishment of SBA secondary market lending authority.--
                (A) Organization.--
                    (i) The Administrator shall establish within the SBA an
                office to provide loans to Systemically Important Secondary
                Market Broker-dealers to be used for the purpose of
                financing the inventory of the government guaranteed
                portion of loans, originated, underwritten, and closed
                under the Small Business Act or pools of such loans.
                    (ii) The Administrator shall appoint a Director of the
                Authority who shall report to the Administrator.
                    (iii) The Administrator is authorized to hire such
                personnel as are necessary to operate the Authority.
                    (iv) The Administrator may contract such Authority
                operations as he determines necessary to qualified third-
                party companies or individuals.
                    (v) The Administrator is authorized to contract with
                private sector fiduciary and custodial agents as necessary
                to operate the Authority.
                (B) Loans.--
                    (i) The Administrator shall establish by rule a process
                under which Systemically Important SBA Secondary Market
                Broker-Dealers designated under paragraph (1) may apply to
                the Administrator for loans under this section.
                    (ii) The rule under clause (i) shall provide a process
                for the Administrator to consider and make decisions
                regarding whether or not to extend a loan applied for under
                this section. Such rule shall include provisions to assure
                each of the following:

                        (I) That loans made under this section are for the
                    sole purpose of financing the inventory of the govern
                    ment guaranteed portion of loans, originated,
                    underwritten, and closed under the Small Business Act
                    or pools of such loans.
                        (II) That loans made under this section are fully
                    collateralized to the satisfaction of the
                    Administrator.
                        (III) That there is no limit to the frequency in
                    which a borrower may borrow under this section unless
                    the Administrator determines that doing so would create
                    an undue risk of loss to the agency or the United
                    States.
                        (IV) That there is no limit on the size of a loan,
                    subject to the discretion of the Administrator.

                    (iii) Interest on loans under this section shall not
                exceed the Federal Funds target rate as established by the
                Federal Reserve Board of Governors plus 25 basis points.
                    (iv) The rule under this section shall provide for such
                loan documents, legal covenants, collateral requirements
                and other required documentation as necessary to protect
                the interests of the agency, the United States, and the
                taxpayer.
                    (v) The Administrator shall establish custodial
                accounts to safeguard any collateral pledged to the SBA in
                connection with a loan under this section.
                    (vi) The Administrator shall establish a process to
                disburse and receive funds to and from borrowers under this
                section.
        (C) Limitations on use of Loan Proceeds by Systemically Important
    Secondary Market Broker-Dealers.--The Administrator shall ensure that
    borrowers under this section are using funds provided under this
    section only for the purpose specified in subparagraph (B)(ii)(I). If
    the Administrator finds that such funds were used for any other
    purpose, the Administrator shall--
            (i) require immediate repayment of outstanding loans;
            (ii) prohibit the borrower, its affiliates, or any future
        corporate manifestation of the borrower from using the Authority;
        and
            (iii) take any other actions the Administrator, in consultation
        with the Attorney General of the United States, deemsappropriate.
        (d) Report to Congress.--The Administrator shall submit a report to
    Congress not later than the third business day of each month containing
    a statement of each of the following:
            (1) The aggregate loan amounts extended during the preceding
        month under this section.
            (2) The aggregate loan amounts repaid under this section during
        the proceeding month.
            (3) The aggregate loan amount outstanding under this section.
            (4) The aggregate value of assets held as collateral under this
        section;
            (5) The amount of any defaults or delinquencies on loans made
        under this section.
            (6) The identity of any borrower found by the Administrator to
        misuse funds made available under this section.
            (7) Any other information the Administrator deems necessary to
        fully inform Congress of undue risk of financial loss to the United
        States in connection with loans made under this section.
        (e) Duration.--The authority of this section shall remain in effect
    for a period of 2 years after the date of enactment of this section.
        (f) Fees.--The Administrator shall charge fees, up front, annual,
    or both at a specified percentage of the loan amount that is at such a
    rate that the cost of the program under the Federal Credit Reform Act
    of 1990 ((title V of the Congressional Budget and Impoundment Control
    Act of 1974; 2 U.S.C. 661) shall be equal to zero.
        (h) Budget treatment.--Nothing in this section shall be construed
    to exempt any activity of the Administrator under this section from the
    Federal Credit Reform Act of 1990 (title V of the Congressional Budget
    and Im poundment Control Act of 1974; 2 U.S.C. 661 and following).
        (i) Emergency Rulemaking Authority.--The Administrator shall
    promulgate regulations under this section within 30 days after the date
    of enactment of enactment of this section. In promulgating these
    regulations,the Administrator the notice requirements of section 553(b)
    of title 5 of the United States Code shall not apply.

                   TITLE VI--DEPARTMENT OF HOMELAND SECURITY

                  Office of the Under Secretary for Management

        For an additional amount for the ``Office of the Under Secretary
    for Management'', $200,000,000 for planning, design, construction
    costs, 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'',
    $160,000,000, of which $100,000,000 shall be for the procurement and
    deployment of non-intrusive inspection systems; and of which
    $60,000,000 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'', $100,000,000 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'', $420,000,000 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'',
    $20,000,000 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
    for procurement and installation of checked baggage explosives
    detection systems and checkpoint explosives detection equipment:
    Provided, That the Assistant Secretary of Homeland Security
    (Transportation Security Administration) shall prioritize the award of
    these funds to accelerate the installations at locations with completed
    design plans: 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.

                                  Coast Guard

                  acquisition, construction, and improvements

        For an additional amount for ``Acquisition, Construction, and
    Improvements'', $98,000,000 for shore facilities and aids to navigation
    facilities; for priority procurements due to materials and labor cost
    increases; and for costs to repair, renovate, assess, or improve
    vessels: 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.

                             alteration of bridges

         For an additional amount for ``Alteration of Bridges'',
    $142,000,000 for alteration or removal of obstructive bridges, as
    authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516):
    Provided, That the Coast Guard shall award these funds to those bridges
    that are ready to proceed to construction: 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.

                      Federal Emergency Management Agency

                            state and local programs

        For an additional amount for grants, $300,000,000, to be allocated
    as follows:
            (1) $150,000,000 for Public Transportation Security Assistance
        and Railroad Security Assistance under sections 1406 and 1513 of
        the Implementing Recommendations of the 9/11 Commission Act of 2007
        (Public Law 110-53; 6 U.S.C. 1135 and 1163).
            (2) $150,000,000 for Port Security Grants in accordance with 46
        U.S.C. 70107, notwithstanding 46 U.S.C. 70107(c).

                         firefighter assistance grants

        For an additional amount for competitive grants, $210,000,000 for
    modifying, upgrading, or constructing non-Federal 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.

                         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 and Rita 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.
        Sec. 603. Subparagraph (E) of section 34(a)(1) of the Federal Fire
    Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not
    apply with respect to funds appropriated in this or any other Act
    making appropriations for fiscal year 2009 or 2010 for grants under
    such section 34.
        Sec. 604. (a) Requirement.--Except as provided in subsections (c)
    through (g), funds appropriated or otherwise available to the
    Department of Homeland Security may not be used for the procurement of
    an item described in subsection (b) if the item is not grown,
    reprocessed, reused, or produced in the United States.
        (b) Covered Items.--An item referred to in subsection (a) is any of
    the following, if the item is directly related to the national security
    interests of the United States:
            (1) An article or item of--
                (A) clothing and the materials and components thereof,
            other than sensors, electronics, or other items added to, and
            not normally associated with, clothing (and the materials and
            components thereof);
                (B) tents, tarpaulins, covers, textile belts, bags,
            protective equipment (including but not limited to body armor),
            sleep systems, load carrying equipment (including but not
            limited to fieldpacks), textile marine equipment, parachutes,
            or bandages;
                (C) cotton and other natural fiber products, woven silk or
            woven silk blends, spun silk yarn for cartridge cloth,
            synthetic fabric or coated synthetic fabric (including all
            textile fibers and yarns that are for use in such fabrics),
            canvas products, or wool (whether in the form of fiber or yarn
            or contained in fabrics, materials, or manufactured articles);
            or
                (D) any item of individual equipment manufactured from or
            containing such fibers, yarns, fabrics, or materials.
        (c) Availability Exception.--Subsection (a) does not apply to the
    extent that the Secretary of Homeland Security determines that
    satisfactory quality and sufficient quantity of any such article or
    item described in subsection (b)(1) grown, reprocessed, reused, or
    produced in the United States cannot be procured as and when needed at
    United States market prices. This section is not applicable to covered
    items that are, or include, materials determined to be non-available in
    accordance with Federal Acquisition Regulation 25.104 Nonavailable
    Articles.
        (d) De Minimis Exception.--Notwithstanding subsection (a), the
    Secretary of Homeland Security may accept delivery of an item covered
    by subsection (b) that contains non-compliant fibers if the total value
    of non-compliant fibers contained in the end item does not exceed 10
    percent of the total purchase price of the end item.
        (e) Exception for Certain Procurements Outside the United States.--
    Subsection (a) does not apply to the following:
            (1) Procurements by vessels in foreign waters.
            (2) Emergency procurements.
        (f) Exception for Small Purchases.--Subsection (a) does not apply
    to purchases for amounts not greater than the simplified acquisition
    threshold referred to in section 2304(g) of title 10, United States
    Code.
        (g) Applicability to Contracts and Subcontracts for Procurement of
    Commercial Items.--This section is applicable to contracts and
    subcontracts for the procurement of commercial items not withstanding
    section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
    430), with the exception of commercial items listed under subsections
    (b)(1)(C) and (b)(1)(D) above. For the purposes of this section,
    ``commercial'' shall be as defined in the Federal Acquisition
    Regulation--Part 2.
        (h) Geographic Coverage.--In this section, the term ``United
    States'' includes the possessions of the United States.
        (i) Notification Required Within 7 Days After Contract Award if
    Certain Exceptions Applied.--In the case of any contract for the
    procurement of an item described in subsection (b)(1), if the Secretary
    of Homeland Security applies an exception set forth in subsection (c)
    with respect to that contract, the Secretary shall, not later than 7
    days after the award of the contract, post a notification that the
    exception has been applied on the Internet site maintained by the
    General Services Administration known as FedBizOps.gov (or any
    successor site).
        (j) Training During Fiscal Year 2009.--
            (1) In general.--The Secretary of Homeland Security shall
        ensure that each member of the acquisition workforce in the
        Department of Homeland Security who participates personally and
        substantially in the acquisition of textiles on a regular basis
        receives training during fiscal year 2009 on the requirements of
        this section and the regulations implementing this section.
            (2) Inclusion of information in new training programs.--The
        Secretary shall ensure that any training program for the
        acquisition workforce developed or implemented after the date of
        the enactment of this Act includes comprehensive information on the
        requirements described in paragraph (1).
        (k) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.-- This section shall
    be applied in a manner consistent with United States obligations under
    international agreements.
        (l) Effective Date.--This section applies with respect to contracts
    entered into by the Department of Homeland Security 180 days after the
    date of the enactment of this Act.

             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'',
    for activities on all Bureau of Land Management lands including
    maintenance, rehabilitation, and restoration of facilities, property,
    trails and lands and for remediation of abandoned mines and wells,
    $125,000,000.

                                  construction

        For an additional amount for ``Construction'', for activities on
    all Bureau of Land Management lands including construction,
    reconstruction, decommissioning and repair of roads, bridges, trails,
    property, and facilities and for energy efficient retrofits of existing
    facilities, $180,000,000.

                            wildland fire management

        For an additional amount for ``Wildland Fire Management'', for
    hazardous fuels reduction, $15,000,000.

                    United States Fish and Wildlife Service

                              resource management

        For an additional amount for ``Resource Management'', for deferred
    maintenance, construction, and capital improvement projects on national
    wildlife refuges and national fish hatcheries and for high priority
    habitat restoration projects, $165,000,000.

                                  construction

        For an additional amount for ``Construction'', for construction,
    reconstruction, and repair of roads, bridges, property, and facilities
    and for energy efficient retrofits of existing facilities,
    $115,000,000.

                             National Park Service

                     operation of the national park system

        For an additional amount for ``Operation of the National Park
    System'', for deferred maintenance of facilities and trails and for
    other critical repair and rehabilitation projects, $146,000,000.

                            Historic Preservation Fund

        For an additional amount for ``Historic Preservation Fund'', for
    historic preservation projects at historically black colleges and
    universities as authorized by the Historic Preservation Fund Act of
    1996 and the Omnibus Parks and Public Lands Act of 1996, $15,000,000:
    Provided, That any matching requirements otherwise required for such
    projects are waived.

                                  construction

        For an additional amount for ``Construction'', for repair and
    restoration of roads; construction of facilities, including energy
    efficient retrofits of existing facilities; equipment replacement;
    preservation and repair of historical resources within the National
    Park System; cleanup of abandoned mine sites on park lands; and other
    critical infrastructure projects, $589,000,000.

                        United States Geological Survey

                     surveys, investigations, and research

        For an additional amount for ``Surveys, Investigations, and
    Research'', $140,000,000, for repair, construction and restoration of
    facilities; equipment replacement and upgrades including stream gages,
    and seismic and volcano monitoring systems; national map activities;
    and other critical deferred maintenance and improvement projects.

                            Bureau of Indian Affairs

                          operation of indian programs

        For an additional amount for ``Operation of Indian Programs'', for
    workforce training programs and the housing improvement program,
    $40,000,000.

                                  construction

        For an additional amount for ``Construction'', for repair and
    restoration of roads; replacement school construction; school
    improvements and repairs; and detention center maintenance and repairs,
    $450,000,000: Provided, That section 1606 of this Act shall not apply
    to tribal contracts entered into by the Bureau of Indian Affairs with
    this appropriation.

                     indian guaranteed loan program account

        For an additional amount for ``Indian Guaranteed Loan Program
    Account'', $10,000,000.

                          Office of Inspector General

                             salaries and expenses

        For an additional amount for ``Office of Inspector General'',
    $15,000,000, to remain available until September 30, 2012.

                         ENVIROMENTAL PROTECTION AGENCY

                          Office of Inspector General

        For an additional amount for ``Office of Inspector General'',
    $20,000,000, to remain available until September 30, 2012.

                         Hazardous Substance Superfund

        For an additional amount for ``Hazardous Substance Superfund'',
    $600,000,000, which shall be for the Superfund Remedial program:
    Provided, That the Administrator of the Environmental Protection Agency
    (Administrator) may retain up to 3 percent of the funds appropriated
    herein for management and oversight purposes.

              Leaking Underground Storage Tank Trust Fund Program

        For an additional amount for ``Leaking Underground Storage Tank
    Trust Fund Program'', $200,000,000, which shall be for cleanup
    activities authorized by section 9003(h) of the Solid Waste Disposal
    Act: Provided, That none of these funds shall be subject to cost share
    requirements under section 9003(h)(7)(B) of such Act: Provided further,
    That the Administrator may retain up to 1.5 percent of the funds
    appropriated herein for management and oversight purposes.

                       State and Tribal Assistance Grants

                         (including transfers of funds)

        For an additional amount for ``State and Tribal Assistance
    Grants'', $6,400,000,000, which shall be allocated as follows:
            (1) $4,000,000,000 shall be for capitalization grants for the
        Clean Water State Revolving Funds under title VI of the Federal
        Water Pollution Control Act and $2,000,000,000 shall be for
        capitalization grants under section 1452 of the Safe Drinking Water
        Act: Provided, That the Administrator may retain up to 1 percent of
        the funds appropriated herein for management and oversight
        purposes: Provided further, That funds appropriated herein shall
        not be subject to the matching or cost share requirements of
        sections 602(b)(2), 602(b)(3) or 202 of the Federal Water Pollution
        Control Act nor the matching requirements of section 1452(e) of the
        Safe Drinking Water Act: Provided further, That the Administrator
        shall reallocate funds appropriated herein for the Clean and
        Drinking Water State Revolving Funds (Revolving Funds) where
        projects are not under contract or construction within 12 months of
        the date of enactment of this Act: Provided further, That
        notwithstanding the priority rankings they would otherwise receive
        under each program, priority for funds appropriated herein shall be
        given to projects on a State priority list that are ready to
        proceed to construction within 12 months of the date of enactment
        of this Act: Provided further, That notwithstanding the
        requirements of section 603(d) of the Federal Water Pollution
        Control Act or section 1452(f) of the Safe Drinking Water Act, for
        the funds appropriated herein, each State shall use not less than
        50 percent of the amount of its capitalization grants to provide
        additional subsidization to eligible recipients in the form of
        forgiveness of principal, negative interest loans or grants or any
        combination of these: Provided further, That, to the extent there
        are sufficient eligible project applications, not less than 20
        percent of the funds appropriated herein for the Revolving Funds
        shall be for projects to address green infrastructure, water or
        energy efficiency improvements or other environmentally innovative
        activities: Provided further, That notwithstanding the limitation
        on amounts specified in section 518(c) of the Federal Water
        Pollution Control Act, up to 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 up to 4 percent of the funds
        appropriated herein for tribal set-asides under the Revolving Funds
        may be transferred to the Indian Health Service to support
        management and oversight of tribal projects: Provided further, That
        none of the funds appropriated herein shall be available for the
        purchase of land or easements as authorized by section 603(c) of
        the Federal Water Pollution Control Act or for activities
        authorized by section 1452(k) of the Safe Drinking Water Act:
        Provided further, That notwithstanding section 603(d)(2) of the
        Federal Water Pollution Control Act and section 1452(f)(2) of the
        Safe Drinking Water Act, funds may be used to buy, refinance or
        restructure the debt obligations of eligible recipients only where
        such debt was incurred on or after October 1, 2008;
            (2) $100,000,000 shall be to carry out Brownfields projects
        authorized by section 104(k) of the Comprehensive Environmental
        Response, Compensation, and Liability Act of 1980: Provided, That
        the Administrator may reserve up to 3.5 percent of the funds
        appropriated herein for management and oversight purposes: Provided
        further, That none of the funds appropriated herein shall be
        subject to cost share requirements under section 104(k)(9)(B)(iii)
        of such Act; and
            (3) $300,000,000 shall be for Diesel Emission Reduction Act
        grants pursuant to title VII, subtitle G of the Energy Policy Act
        of 2005: Provided, That the Administrator may reserve up to 2
        percent of the funds appropriated herein for management and
        oversight purposes: Provided further, That none of the funds
        appropriated herein for Diesel Emission Reduction Act grants shall
        be subject to the State Grant and Loan Program Matching Incentive
        provisions of section 793(c)(3) of such Act.

           Administrative Provision, Environmental Protection Agency

                          (Including Transfers of Funds)

        Funds made available to the Environmental Protection Agency by this
    Act for management and oversight purposes shall remain available until
    September 30, 2011, and may be transferred to the ``Environmental
    Programs and Management'' account as needed.

                           DEPARTMENT OF AGRICULTURE

                                 Forest Service

                      capital improvement and maintenance

        For an additional amount for ``Capital Improvement and
    Maintenance'', $650,000,000, for priority road, bridge and trail
    maintenance and decommissioning, including related watershed
    restoration and ecosystem enhancement projects; facilities improvement,
    maintenance and renovation; 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'',
    $500,000,000, of which $250,000,000 is for hazardous fuels reduction,
    forest health protection, rehabilitation and hazard mitigation
    activities on Federal lands and of which $250,000,000 is for State and
    private forestry activities including hazardous fuels reduction, forest
    health and ecosystem improvement activities on State and private lands
    using all authorities available to the Forest Service: Provided, That
    up to $50,000,000 of the total funding may be used to make wood-to-
    energy grants to promote increased utilization of biomass from Federal,
    State and private lands: Provided further, That funds provided for
    activities on State and private lands shall not be subject to matching
    or cost share requirements.

                    DEPARTMENT OF HEALTH AND HUMAN SERVICES

                             Indian Health Service

                             indian health services

        For an additional amount for ``Indian Health Services'', for health
    information technology activities, $85,000,000: Provided, That such
    funds 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'', for
    facilities construction projects, deferred maintenance and improvement
    projects, the backlog of sanitation projects and the purchase of
    equipment, $415,000,000, of which $227,000,000 is provided within the
    health facilities construction activity for the completion of up to two
    facilities from the current priority list for which work has already
    been initiated: 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:
    Provided further, That section 1606 of this Act shall not apply to
    tribal contracts entered into by the Service with this appropriation.

                             OTHER RELATED AGENCIES

                            Smithsonian Institution

                                Facilities Capital

        For an additional amount for ``Facilities Capital'', for repair and
    revitalization of existing facilities, $25,000,000.

               National Foundation on the Arts and the Humanities

                        National Endowment for the Arts

                           grants and administration

        For an additional amount for ``Grants and Administration'',
    $50,000,000, to be distributed in direct grants to fund arts projects
    and activities which preserve jobs in the non-profit arts sector
    threatened by declines in philanthropic and other support during the
    current economic downturn: Provided, That 40 percent of such funds
    shall be distributed to State arts agencies and regional arts
    organizations in a manner similar to the agency's current practice and
    60 percent of such funds shall be for competitively selected arts
    projects and activities according to sections 2 and 5(c) of the
    National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C.
    951, 954(c)): Provided further, That matching requirements under
    section 5(e) of such Act shall be waived.

                         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 shall utilize, where practicable, the Public
    Lands Corps, Youth Conservation Corps, Student Conservation
    Association, Job Corps and other related partnerships with Federal,
    State, local, tribal or non-profit groups that serve young adults.
        Sec. 703. Each agency receiving funds under this title may transfer
    up to 10 percent of the funds in any account to other appropriation
    accounts within the agency, if the head of the agency (1) determines
    that the transfer will enhance the efficiency or effectiveness of the
    use of the funds without changing the intended purpose; and (2)
    notifies the Committees on Appropriations of the House of
    Representatives and the Senate 10 days prior to the transfer.

       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 under the Workforce Investment Act of 1998 (``WIA''),
    $3,950,000,000, which shall be available for obligation on the date of
    enactment of this Act, as follows:
            (1) $500,000,000 for grants to the States 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 summer employment
        for youth provided with such funds;
            (3) $1,250,000,000 for grants to the States for dislocated
        worker employment and training activities;
            (4) $200,000,000 for the dislocated workers assistance national
        reserve;
            (5) $50,000,000 for YouthBuild activities: 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; and
            (6) $750,000,000 for a program of competitive grants for worker
        training and placement in high growth and emerging industry
        sectors: Provided, That $500,000,000 shall be for research, labor
        exchange and job training projects that prepare workers for careers
        in energy efficiency and renewable energy as described in section
        171(e)(1)(B) of the WIA: Provided further, That in awarding grants
        from those funds not designated in the preceding proviso, the
        Secretary of Labor shall give priority to projects that prepare
        workers for careers in the health care sector:
    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 or other
    eligible training provider 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'' to carry out title V of the Older Americans Act of
    1965, $120,000,000, which shall be available for obligation 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, and which shall be available for obligation on the date of
    enactment of this Act: Provided, That such funds shall 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

                             salaries and expenses

                         (including transfer of funds)

        For an additional amount for ``Departmental Management'',
    $80,000,000, for the enforcement of worker protection laws and
    regulations, oversight, and coordination activities related to the
    infrastructure and unemployment insurance investments in this Act:
    Provided, That the Secretary of Labor may transfer such sums as
    necessary to ``Employment and Standards Administration'', ``Employee
    Benefits Security Administration'', ``Occupational Safety and Health
    Administration'', and ``Employment and Training Administration--Program
    Administration'' for enforcement, oversight, and coordination
    activities: Provided further, That prior to obligating any funds
    proposed to be transferred from this account, 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.

                              office of job corps

        For an additional amount for ``Office of Job Corps'', $250,000,000,
    for construction, rehabilitation and acquisition of Job Corps Centers,
    which shall be available upon the date of enactment of this Act and
    remain available for obligation through June 30, 2010: Provided, That
    section 1552(a) of title 31, United States Code shall not apply if
    funds are used for a multi-year lease agreement that will result in
    construction activities that can commence within 120 days of enactment
    of this Act: Provided further, That notwithstanding section 3324(a) of
    title 31, United States Code, the funds used for an agreement under the
    preceding proviso may be used for advance, progress, and other
    payments: Provided further, That the Secretary of Labor may transfer up
    to 15 percent of such funds to meet the operational needs of such
    centers, which may include training for careers in the energy
    efficiency, renewable energy, and environmental protection industries:
    Provided further, That the Secretary shall provide to the Committees on
    Appropriations of the House of Representatives and the Senate an
    operating plan describing the allocation of funds, and a report on the
    actual obligations, expenditures, and unobligated balances for each
    activity funded under this heading not later than September 30, 2009
    and quarterly thereafter as long as funding provided under this heading
    is available for obligation or expenditure.

                          office of inspector general

        For an additional amount for the ``Office of Inspector General'',
    $6,000,000, 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.

                    DEPARTMENT OF HEALTH AND HUMAN SERVICES

                  Health Resources and Services Administration

                         health resources and services

        For an additional amount for ``Health Resources and Services'',
    $2,500,000,000 which shall be used as follows:
            (1) $500,000,000 shall be for grants to health centers
        authorized under section 330 of the Public Health Service Act
        (``PHS Act'');
            (2) $1,500,000,000 shall be available for grants for
        construction, renovation and equipment, and for the acquisition of
        health information technology systems, for health centers including
        health center controlled networks receiving operating grants under
        section 330 of the PHS Act, notwithstanding the limitation in
        section 330(e)(3); and
            (3) $500,000,000 to address health professions workforce
        shortages, of which $75,000,000 for the National Health Service
        Corps shall remain available through September 30, 2011: Provided,
        That funds may be used to provide scholarships, loan repayment, and
        grants to training programs for equipment as authorized in the PHS
        Act, and grants authorized in sections 330L, 747, 767 and 768 of
        the PHS Act: Provided further, That 20 percent of the funds
        allocated to the National Health Service Corps shall be used for
        field operations:
        Provided, That up to 0.5 percent of funds provided in this
    paragraph may used for administration of such funds: Provided further,
    That the Secretary shall provide to the Committees on Appropriations of
    the House of Representatives and the Senate an operating plan detailing
    activities to be supported and timelines for expenditure prior to
    making any Federal obligations of funds provided in this paragraph but
    not later than 90 days after the date of enactment of this Act:
    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 activity funded in this paragraph not later than November 1, 2009
    and every 6 months thereafter as long as funding provided in this
    paragraph is available for obligation or expenditure.

                         National Institutes of Health

                     national center for research resources

        For an additional amount for ``National Center for Research
    Resources'', $1,300,000,000, of which $1,000,000,000 shall be for
    grants or contracts under section 481A of the Public Health Service Act
    to construct, renovate or repair existing non-Federal research
    facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1),
    (3), and (4) of section 481A(e), and section 481B of such Act shall not
    apply to the use of such funds: Provided further, That the references
    to ``20 years'' in subsections (c)(1)(B)(i) and (f) of section 481A of
    such Act are deemed to be references to ``10 years'' for purposes of
    using such funds: Provided further, That the National Center for
    Research Resources may also use $300,000,000 to provide, under the
    authority of section 301 and title IV of such Act, shared
    instrumentation and other capital research equipment to recipients of
    grants and contracts under section 481A of such Act and other
    appropriate entities: Provided further, That the Director of the Center
    shall provide to the Committees on Appropriations of the House of
    Representatives and the Senate an annual report indicating the number
    of institutions receiving awards of a grant or contract under section
    481A of such Act, the proposed use of the funding, the average award
    size, a list of grant or contract recipients, and the amount of each
    award.

                             office of the director

                         (including transfer of funds)

        For an additional amount for ``Office of the Director'',
    $8,200,000,000: Provided, That $7,400,000,000 shall be transferred to
    the Institutes and Centers of the National Institutes of Health
    (``NIH'') 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 NIH: 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, or the Global Fund for HIV/AIDS, Tuberculosis and Malaria:
    Provided further, That the funds provided in this Act to the NIH shall
    not be subject to the provisions of 15 U.S.C. 638(f)(1) and 15 U.S.C.
    638(n)(1): Provided further, That $400,000,000 may be used to carry out
    section 215 of division G of Public Law 110-161.

                            buildings and facilities

        For an additional amount for ``Buildings and Facilities'',
    $500,000,000, 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 effectiveness research: 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
    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
    effectiveness research to be allocated at the discretion of the
    Secretary of Health and Human Services (``Secretary''): Provided, That
    the funding appropriated in this paragraph shall be used to accelerate
    the development and dissemination of research assessing the comparative
    effectiveness of health care treatments and strategies, 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
    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 Effectiveness
    Research established by section 804 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 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
    research conducted with funds appropriated under this paragraph shall
    be consistent with Departmental policies relating to the inclusion of
    women and minorities in 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: Provided further, That the Secretary, jointly with the
    Directors of the Agency for Healthcare Research and Quality and the
    National Institutes of Health, shall provide the Committees on
    Appropriations of the House of Representatives and the Senate a fiscal
    year 2009 operating plan for the funds appropriated under this heading
    prior to making any Federal obligations of such funds in fiscal year
    2009, but not later than July 30, 2009, 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 type of research being conducted or supported,
    including the priority conditions addressed; and specify the allocation
    of resources within the Department of Health and Human Services:
    Provided further, That the Secretary, jointly with the Directors of the
    Agency for Healthcare Research and Quality and the National Institutes
    of Health, 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.

                    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'', $2,000,000,000, which shall be used
    to supplement, not supplant State general revenue funds for child care
    assistance for low-income families: Provided, That, in addition to the
    amounts required to be reserved by the States under section 658G of the
    Child Care and Development Block Grant Act of 1990, $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.

                    children and families services programs

        For an additional amount for ``Children and Families Services
    Programs'', $3,150,000,000, which shall be used as follows:
            (1) $1,000,000,000 for carrying out activities under the Head
        Start Act.
            (2) $1,100,000,000 for expansion of Early Head Start programs,
        as described in section 645A of the Head Start Act: Provided, That
        of the funds provided in this paragraph, 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.
            (3) $1,000,000,000 for carrying out activities under sections
        674 through 679 of the Community Services Block Grant Act, of which
        no part shall be subject to section 674(b)(3) of such Act:
        Provided, That notwithstanding section 675C(a)(1) and 675C(b) of
        such Act, 1 percent of the funds made available to each State from
        this additional amount shall be used for benefits enrollment
        coordination activities relating to the identification and
        enrollment of eligible individuals and families in Federal, State,
        and local benefit programs: Provided further, That all funds
        remaining available to a State from this additional amount after
        application of the previous proviso shall be distributed to
        eligible entities as defined in section 673(1) of such Act:
        Provided further, That for services furnished under such Act during
        fiscal years 2009 and 2010, States may apply the last sentence of
        section 673(2) of such Act by substituting ``200 percent'' for
        ``125 percent''.
            (4) $50,000,000 for carrying out activities under section 1110
        of the Social Security Act.

                            Administration on Aging

                            aging services programs

        For an additional amount for ``Aging Services Programs'' under
    subparts 1 and 2 of part C, of title III, and under title VI, of the
    Older Americans Act of 1965, $100,000,000, of which $65,000,000 shall
    be for Congregate Nutrition Services, $32,000,000 shall be for Home-
    Delivered Nutrition Services and $3,000,000 shall be for Nutrition
    Services for Native Americans.

                            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'', $2,000,000,000, to carry out title
    XIII of this Act, to remain available until expended: Provided, That of
    such 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 $300,000,000 is to
    support regional or sub-national efforts toward health information
    exchange: Provided further, That 0.25 percent of the funds provided in
    this paragraph may be used for administration of such funds: 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 fiscal year
    2009 operating plan shall be provided not later than 90 days after
    enactment of this Act and that subsequent annual operating plans shall
    be provided not later than November 1 of each year: Provided further,
    That these operating plans shall describe how expenditures are aligned
    with the specific objectives, milestones, and metrics of the Federal
    Health Information Technology Strategic Plan, including any subsequent
    updates to the Plan; the allocation of resources within the Department
    of Health and Human Services and other Federal agencies; and the
    identification of programs and activities that are supported: 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 provided under this heading is
    available for obligation or expenditure.

                          office of inspector general

        For an additional amount for the ``Office of Inspector General'',
    $17,000,000 which shall remain available until September 30, 2012.

                public health and social services emergency fund

        For an additional amount for ``Public Health and Social Services
    Emergency Fund'' to improve information technology security at the
    Department of Health and Human Services, $50,000,000.

                          prevention and wellness fund

                         (including transfer of funds)

        For necessary expenses for a ``Prevention and Wellness Fund'' to be
    administered through the Department of Health and Human Services,
    Office of the Secretary, $1,000,000,000: Provided, That of the amount
    provided in this paragraph, $300,000,000 shall be transferred to the
    Centers for Disease Control and Prevention (``CDC'') as an additional
    amount to carry out the immunization program (``section 317
    immunization program'') authorized by section 317(a), (j), and (k)(1)
    of the Public Health Service Act (``PHS Act''): Provided further, That
    of the amount provided in this paragraph, $650,000,000 shall be to
    carry out evidence-based clinical and community-based prevention and
    wellness strategies authorized by the PHS Act, as determined by the
    Secretary, that deliver specific, measurable health outcomes that
    address chronic disease rates: Provided further, That funds
    appropriated in the preceding proviso may be transferred to other
    appropriation accounts of the Department of Health and Human Services,
    as determined by the Secretary to be appropriate: Provided further,
    That of the amount appropriated in this paragraph, $50,000,000 shall be
    provided to States for an additional amount to carry out activities to
    implement healthcare associated infections reduction strategies:
    Provided further, That not more than 0.5 percent of funds made
    available in this paragraph may be used for management and oversight
    expenses in the office or division of the Department of Health and
    Human Services administering the funds: Provided further, That the
    Secretary shall, directly or through contracts with public or private
    entities, provide for annual evaluations of programs carried out with
    funds provided under this heading in order to determine the quality and
    effectiveness of the programs: Provided further, That the Secretary
    shall, not later than 1 year after the date of enactment of this Act,
    submit to the Committees on Appropriations of the House of
    Representatives and the Senate, the Committee on Energy and Commerce of
    the House of Representatives, and the Committee on Health, Education,
    Labor, and Pensions of the Senate, a report summarizing the annual
    evaluations of programs from the preceding proviso: Provided further,
    That the Secretary shall provide to the Committees on Appropriations of
    the House of Representatives and the Senate an operating plan for the
    Prevention and Wellness Fund prior to making any Federal obligations of
    funds provided in this paragraph (excluding funds to carry out the
    section 317 immunization program), but not later than 90 days after the
    date of enactment of this Act, that indicates the prevention priorities
    to be addressed; provides measurable goals for each prevention
    priority; details the allocation of resources within the Department of
    Health and Human Services; and identifies which programs or activities
    are supported, including descriptions of any new programs or
    activities: 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 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.

                            DEPARTMENT OF EDUCATION

                        Education for the Disadvantaged

        For an additional amount for ``Education for the Disadvantaged'' to
    carry out title I of the Elementary and Secondary Education Act of 1965
    (``ESEA''), $13,000,000,000: Provided, That $5,000,000,000 shall be
    available for targeted grants under section 1125 of the ESEA: Provided
    further, That $5,000,000,000 shall be available for education finance
    incentive grants under section 1125A of the ESEA: Provided further,
    That $3,000,000,000 shall be for school improvement grants under
    section 1003(g) of the ESEA: 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: Provided further, That each State educational agency shall report
    that information to the Secretary of Education by March 31, 2010.

                                   Impact Aid

        For an additional amount for ``Impact Aid'' to carry out section
    8007 of title VIII of the Elementary and Secondary Education Act of
    1965, $100,000,000, which shall be expended pursuant to the
    requirements of section 805.

                          School Improvement Programs

        For an additional amount for ``School Improvement Programs'' to
    carry out subpart 1, part D of title II of the Elementary and Secondary
    Education Act of 1965 (``ESEA''), and subtitle B of title VII of the
    McKinney-Vento Homeless Assistance Act, $720,000,000: Provided, That
    $650,000,000 shall be available for subpart 1, part D of title II of
    the ESEA: Provided further, 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.

                           Innovation and Improvement

        For an additional amount for ``Innovation and Improvement'' to
    carry out subpart 1, part D of title V of the Elementary and Secondary
    Education Act of 1965 (``ESEA''), $200,000,000: Provided, That these
    funds shall be expended as directed in the fifth, sixth, and seventh
    provisos under the heading ``Innovation and Improvement'' in the
    Department of Education Appropriations Act, 2008: Provided further,
    That a portion of these funds shall also be used for a rigorous
    national evaluation by the Institute of Education Sciences, utilizing
    randomized controlled methodology to the extent feasible, that assesses
    the impact of performance-based teacher and principal compensation
    systems supported by the funds provided in this Act on teacher and
    principal recruitment and retention in high-need schools and subjects:
    Provided further, That the Secretary may reserve up to 1 percent of the
    amount made available under this heading for management and oversight
    of the activities supported with those funds.

                               Special Education

        For an additional amount for ``Special Education'' for carrying out
    parts B and C of the Individuals with Disabilities Education Act
    (``IDEA''), $12,200,000,000, of which $11,300,000,000 shall be
    available for section 611 of the IDEA: 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
    total amount for each of sections 611(b)(2) and 643(b)(1) of the IDEA,
    under this and all other Acts, for fiscal year 2009, whenever enacted,
    shall be equal to the amounts respectively available for these
    activities under these sections during fiscal year 2008 increased by
    the amount of inflation as specified in section 619(d)(2)(B) of the
    IDEA: Provided further, That $400,000,000 shall be available for
    section 619 of the IDEA and $500,000,000 shall be available for part C
    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, $680,000,000: Provided, That $540,000,000
    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: Provided further, That
    $140,000,000 shall be available for parts B and C of chapter 1 and
    chapter 2 of title VII of the Rehabilitation Act: Provided further,
    That $18,200,000 shall be for State Grants, $87,500,000 shall be for
    independent living centers, and $34,300,000 shall be for services for
    older blind individuals.

                          Student Financial Assistance

        For an additional amount for ``Student Financial Assistance'' to
    carry out subpart 1 of part A and part C of title IV of the Higher
    Education Act of 1965 (``HEA''), $15,840,000,000, which shall remain
    available through September 30, 2011: Provided, That $15,640,000,000
    shall be available for subpart 1 of part A of title IV of the HEA:
    Provided further, That $200,000,000 shall be available for part C of
    title IV of the HEA.
        The maximum Pell Grant for which a student shall be eligible during
    award year 2009-2010 shall be $4,860.

                           Student Aid Administration

        For an additional amount for ``Student Aid Administration'' to
    carry out part D of title I, and subparts 1, 3, and 4 of part A, and
    parts B, C, D, and E of title IV of the Higher Education Act of 1965,
    $60,000,000.

                                Higher Education

        For an additional amount for ``Higher Education'' to carry out part
    A of title II of the Higher Education Act of 1965, $100,000,000.

                        Institute of Education Sciences

        For an additional amount for ``Institute of Education Sciences'' to
    carry out section 208 of the Educational Technical Assistance Act,
    $250,000,000, which may be used for Statewide data systems that include
    postsecondary and workforce information, of which up to $5,000,000 may
    be used for State data coordinators and for awards to public or private
    organizations or agencies to improve data coordination.

                            Departmental Management

                        office of the inspector general

        For an additional amount for the ``Office of the Inspector
    General'', $14,000,000, 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.

                                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: Provided, That $89,000,000 of the funds made available in
    this paragraph shall be used to make additional awards to existing
    AmeriCorps grantees and 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, of which up to
    $800,000 may be used to administer the funds provided in this
    paragraph: Provided further, That of the amount provided 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 Inspector General

        For an additional amount for the ``Office of Inspector General'',
    $1,000,000, which shall remain available until September 30, 2012.

                             National Service Trust

                         (including transfer of funds)

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

                         Social Security Administration

                      Limitation on Administrative Expenses

                          (including transfer of funds)

        For an additional amount for ``Limitation on Administrative
    Expenses'', $1,000,000,000 shall be available as follows:
            (1) $500,000,000 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 and prior to the lease or purchase of such site:
        Provided further, That the construction plan and site selection for
        such center shall be subject to review and approval by the Office
        of Management and Budget: Provided further, That such center shall
        continue to be a government-operated facility; and
            (2) $500,000,000 for processing disability and retirement
        workloads, including information technology acquisitions and
        research in support of such activities: Provided, That up to
        $40,000,000 may be used by the Commissioner of Social Security for
        health information technology research and activities to facilitate
        the adoption of electronic medical records in disability claims,
        including the transfer of funds to ``Supplemental Security Income
        Program'' to carry out activities under section 1110 of the Social
        Security Act.

                          Office of Inspector General

        For an additional amount for the ``Office of Inspector General'',
    $2,000,000, 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.

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 801. (a) Up to 1 percent of the funds made available to the
    Department of Labor in this title may be used for the administration,
    management, and oversight of the programs, grants, and activities
    funded by such appropriation, including the evaluation of the use of
    such funds.
        (b) Funds designated for these purposes may be available for
    obligation through September 30, 2010.
        (c) Not later than 30 days after enactment of this Act, the
    Secretary of Labor shall provide an operating plan describing the
    proposed use of funds for the purposes described in (a).
        Sec. 802.  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, 2010, and not later than
    April 15, 2010, 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) the Bureau of the
    Census of the Department of Commerce shall include and separately
    report on American Samoa, the Commonwealth of the Northern Mariana
    Islands, Guam, and the Virgin Islands in its County Business Patterns
    data with the same regularity and to the same extent as each Bureau
    collects and reports such data for the 50 States. In the event that the
    inclusion of American Samoa, the Commonwealth of the Northern Mariana
    Islands, Guam, and the Virgin Islands in such surveys and data
    compilations requires time to structure and implement, the Bureau of
    the Census shall in the interim annually report the best available data
    that can feasibly be secured with respect to such territories. Such
    interim report shall describe the steps the Bureau will take to improve
    future data collection in the territories to achieve comparability with
    the data collected in the United States. 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. 803.  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;''.
        Sec. 804. Federal Coordinating Council for Comparative
    Effectiveness Research. (a) Establishment.--There is hereby established
    a Federal Coordinating Council for Comparative Effectiveness Research
    (in this section referred to as the ``Council'').
        (b) Purpose.--The Council shall foster optimum coordination of
    comparative 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) 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 effectiveness and
        related health services research; and
            (2) advise the President and Congress on--
                (A) strategies with respect to the infrastructure needs of
            comparative effectiveness research within the Federal
            Government; and
                (B) organizational expenditures for comparative
            effectiveness research by relevant Federal departments and
            agencies.
        (d) 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.
        (e) 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 current Federal activities on comparative
        effectiveness research and recommendations for such research
        conducted or supported from funds made available for allotment by
        the Secretary for comparative 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, organizational
        expenditures and opportunities for better coordination of
        comparative effectiveness research by relevant Federal departments
        and agencies.
        (f) Staffing; Support.--From funds made available for allotment by
    the Secretary for comparative effectiveness research in this Act, the
    Secretary shall make available not more than 1 percent to the Council
    for staff and administrative support.
        (g) Rules of Construction.--
            (1) Coverage.--Nothing in this section shall be construed to
        permit the Council to mandate coverage, reimbursement, or other
        policies for any public or private payer.
            (2) Reports and recommendations.--None of the reports submitted
        under this section or recommendations made by the Council shall be
        construed as mandates or clinical guidelines for payment, coverage,
        or treatment.
        Sec. 805. Grants for Impact Aid Construction. (a) Reservation for
    Management and Oversight.--From the funds appropriated to carry out
    this section, the Secretary may reserve up to 1 percent for management
    and oversight of the activities carried out with those funds.
        (b) Construction Payments.--
            (1) Formula grants.--(A) in general.--From 40 percent of the
        amount not reserved under subsection (a), the Secretary shall make
        payments in accordance with section 8007(a) of the Elementary and
        Secondary Education Act of 1965 (20 U.S.C. 7707(a)), except that
        the amount of such payments shall be determined in accordance with
        subparagraph (B).
                (B) Amount of payments.--The Secretary shall make a payment
            to each local educational agency eligible for a payment under
            section 8007(a) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 7707(a)) in an amount that bears the same
            relationship to the funds made available under subparagraph (A)
            as the number of children determined under subparagraphs (B),
            (C), and (D)(i) of section 8003(a)(1) of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), (C),
            and (D)(i)) who were in average daily attendance in the local
            educational agency for the most recent year for which such
            information is available bears to the number of such children
            in all the local educational agencies eligible for a payment
            under section 8007(a) of the Elementary and Secondary Education
            Act of 1965 (20 U.S.C. 7707(a)).
            (2) Competitive grants.--From 60 percent of the amount not
        reserved under subsection (a), the Secretary--
                (A) shall award emergency grants in accordance with section
            8007(b) of the Elementary and Secondary Education Act of 1965
            (20 U.S.C. 7707(b)) to eligible local educational agencies to
            enable the agencies to carry out emergency repairs of school
            facilities; and
                (B) may award modernization grants in accordance with
            section 8007(b) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 7707(b)) to eligible local educational
            agencies to enable the agencies to carry out the modernization
            of school facilities.
            (3) Provisions not to apply.--Paragraphs (2), (3), (4),
        (5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary and
        Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3), (4),
        (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made under
        paragraph (2).
            (4) Eligibility.--A local educational agency is eligible to
        receive a grant under paragraph (2) if the local educational
        agency--
                (A) was eligible to receive a payment under section 8002 or
            8003 of the Elementary and Secondary Education Act of 1965 (20
            U.S.C. 7702 and 7703) for fiscal year 2008; and
                (B) has--
                    (i) a total taxable assessed value of real property
                that may be taxed for school purposes of less than
                $100,000,000; or
                    (ii) an assessed value of real property per student
                that may be taxed for school purposes that is less than the
                average of the assessed value of real property per student
                that may be taxed for school purposes in the State in which
                the local educational agency is located.
            (5) Criteria for grants.--In awarding grants under paragraph
        (2), the Secretary shall consider the following criteria:
                (A) Whether the facility poses a health or safety threat to
            students and school personnel, including noncompliance with
            building codes and inaccessibility for persons with
            disabilities, or whether the existing building capacity meets
            the needs of the current enrollment and supports the provision
            of comprehensive educational services to meet current standards
            in the State in which the local educational agency is located.
                (B) The extent to which the new design and proposed
            construction utilize energy efficient and recyclable materials.
                (C) The extent to which the new design and proposed
            construction utilizes non-traditional or alternative building
            methods to expedite construction and project completion and
            maximize cost efficiency.
                (D) The feasibility of project completion within 24 months
            from award.
                (E) The availability of other resources for the proposed
            project.
        Sec. 806. Mandatory Pell Grants. Section 401(b)(9)(A) of the Higher
    Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended--
            (1) in clause (ii), by striking ``$2,090,000,000'' and
        inserting ``$2,733,000,000''; and
            (2) in clause (iii), by striking ``$3,030,000,000'' and
        inserting ``$3,861,000,000''.
        Sec. 807. (a) In General.--Notwithstanding any other provision of
    law, and in order to begin expenditures and activities under this Act
    as quickly as possible consistent with prudent management, the
    Secretary of Education may--
            (1) award fiscal year 2009 funds to States and local
        educational agencies on the basis of eligibility determinations
        made for the award of fiscal year 2008 funds; and
            (2) require States to make prompt allocations to local
        educational agencies.
        (b) Interest Not to Accrue.--Notwithstanding sections 3335 and 6503
    of title 31, United States Code, or any other provision of law, the
    United States shall not be liable to any State or other entity for any
    interest or fee with respect to any funds under this Act that are
    allocated by the Secretary of Education to the State or other entity
    within 30 days of the date on which they are available for obligation.

                          TITLE IX--LEGISLATIVE BRANCH

                        GOVERNMENT ACCOUNTABILITY OFFICE

                             Salaries and Expenses

        For an additional amount for ``Salaries and Expenses'' of the
    Government Accountability Office, $25,000,000, 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 States 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 and use by any Federal, State, or
    local government agency of funds made available in this Act.
        Sec. 902.  Access of Government Accountability Office. (a)
    Access.--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 officer or employee of the contractor or
        any of its subcontractors, or of any State or local government
        agency administering the contract, regarding such transactions.
        (b) Relationship to Existing Authority.--Nothing in this section
    shall be interpreted to limit or restrict in any way any existing
    authority of the Comptroller General.

              TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                             DEPARTMENT OF DEFENSE

                          Military Construction, Army

         For an additional amount for ``Military Construction, Army'',
    $180,000,000, 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 of the amount provided under this heading,
    $80,000,000 shall be for child development centers, and $100,000,000
    shall be for warrior transition complexes: Provided further, That not
    later than 30 days after the date 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.

                  Military Construction, Navy and Marine Corps

         For an additional amount for ``Military Construction, Navy and
    Marine Corps'', $280,000,000, 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 of the amount provided under
    this heading, $100,000,000 shall be for troop housing, $80,000,000
    shall be for child development centers, and $100,000,000 shall be for
    energy conservation and alternative energy projects: Provided further,
    That not later than 30 days after the date 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.

                        Military Construction, Air Force

         For an additional amount for ``Military Construction, Air Force'',
    $180,000,000, 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 of the amount provided under this heading,
    $100,000,000 shall be for troop housing and $80,000,000 shall be for
    child development centers: Provided further, That not later than 30
    days after the date 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.

                      Military Construction, Defense-Wide

        For an additional amount for ``Military Construction, Defense-
    Wide'', $1,450,000,000, 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 of the amount provided under
    this heading, $1,330,000,000 shall be for the construction of hospitals
    and $120,000,000 shall be for the Energy Conservation Investment
    Program: Provided further, That not later than 30 days after the date
    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.

                   Military Construction, Army National Guard

         For an additional amount for ``Military Construction, Army
    National Guard'', $50,000,000, 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 not later than 30 days after
    the date of enactment of this Act, the Secretary of Defense, in
    consultation with 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.

                   Military Construction, Air National Guard

         For an additional amount for ``Military Construction, Air National
    Guard'', $50,000,000, 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 not later than 30 days after
    the date of enactment of this Act, the Secretary of Defense, in
    consultation with 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.

                       Family Housing Construction, Army

        For an additional amount for ``Family Housing Construction, Army'',
    $34,507,000, 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 Defense shall submit to the Committees on
    Appropriations of both Houses of Congress an expenditure plan for funds
    provided under this heading.

                 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
    maintenance and repair 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 Defense shall submit to the Committees on
    Appropriations of both Houses of Congress an expenditure plan for funds
    provided under this heading.

              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 maintenance and repair 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),
    $555,000,000, to remain available until expended: Provided, That the
    Secretary of Defense shall submit quarterly reports to the Committees
    on Appropriations of both Houses of Congress on the expenditure of
    funds made available under this heading in this or any other Act.

                            Administrative Provision

        Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program
    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; 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
                performance of his or her duties during a forward
                deployment occurring on or after September 11, 2001, 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 or in the performance of his or her duties during a
                deployment on or after September 11, 2001, 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 determined by the Secretary of Defense)
                    at the time of sale; 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 determined by the Secretary of Defense)
                    at the time of sale; 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 facilities

         For an additional amount for ``Medical Facilities'' for non-
    recurring maintenance, including energy projects, $1,000,000,000, to
    remain available until September 30, 2010: Provided, That not later
    than 30 days after the date 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.

                        National Cemetery Administration

        For an additional amount for ``National Cemetery Administration''
    for monument and memorial repairs, including energy projects,
    $50,000,000, to remain available until September 30, 2010: Provided,
    That not later than 30 days after the date 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.

                          Departmental Administration

                           general operating expenses

        For an additional amount for ``General Operating Expenses'',
    $150,000,000, to remain available until September 30, 2010, for
    additional expenses related to hiring and training temporary surge
    claims processors.

                         information technology systems

        For an additional amount for ``Information Technology Systems'',
    $50,000,000, to remain available until September 30, 2010, for the
    Veterans Benefits Administration: Provided, That not later than 30 days
    after the 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.

                          office of inspector general

        For an additional amount for ``Office of Inspector General'',
    $1,000,000, to remain available until September 30, 2011, for oversight
    and audit of programs, grants and projects funded under this title.

           grants for construction of state extended care facilities

        For an additional amount for ``Grants for Construction of State
    Extended Care Facilities'', $150,000,000, 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.

           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 for passport and training
    functions, $90,000,000: 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 agencies, 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, passport agencies with other Federal facilities.

                            capital investment fund

                          (including transfer of funds)

        For an additional amount for ``Capital Investment Fund'',
    $290,000,000, for information technology security and upgrades to
    support mission-critical operations, of which up to $38,000,000 shall
    be transferred to, and merged with, funds made available under the
    heading ``Capital Investment Fund'' of the United States Agency for
    International Development: 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, and
    shall submit to the Committees on Appropriations within 90 days of
    enactment of this Act a detailed spending plan for funds appropriated
    under this heading.

                          office of inspector general

        For an additional amount for ``Office of Inspector General'' for
    oversight requirements, $2,000,000.

                           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, $220,000,000: 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 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.

       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, $1,500,000,000, to remain available
    through 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 or
    transit agencies 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 and administrative
    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 $300,000,000: Provided further, That
    the Secretary may waive the minimum grant size cited in the preceding
    proviso for the purpose of funding significant projects in smaller
    cities, regions, or States: Provided further, That not more than 20
    percent of the funds made available under this paragraph may be awarded
    to projects in a single State: 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 a contribution 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 90 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 the
    publication of such criteria, and announce all projects selected to be
    funded from such funds not later than 1 year after enactment of this
    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
    the Secretary may retain up to $1,500,000 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, to remain
    available through September 30, 2010: 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.

                            Grants-In-Aid for Airports

        For an additional amount for ``Grants-In-Aid for Airports'', to
    enable the Secretary of Transportation to make grants for discretionary
    projects as authorized by subchapter 1 of chapter 471 and subchapter 1
    of chapter 475 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, to remain available through September 30, 2010:
    Provided, That such funds shall not be subject to apportionment
    formulas, special apportionment categories, or minimum percentages
    under chapter 471: Provided further, That the Secretary shall
    distribute funds provided under this heading as discretionary grants to
    airports, with priority given to those projects that demonstrate to his
    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 Secretary
    shall award grants totaling not less than 50 percent of the funds made
    available under this heading within 120 days of enactment of this Act,
    and award grants for the remaining amounts not later than 1 year after
    enactment of this Act: 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 the Administrator of the Federal Aviation Administration
    may retain up to 0.2 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

                        highway infrastructure 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, and for passenger and freight rail
    transportation and port infrastructure projects eligible for assistance
    under subsection 601(a)(8) of such title, $27,500,000,000, to remain
    available through September 30, 2010: Provided, That, after making the
    set-asides required under this heading, 50 percent of the funds made
    available under this heading shall be apportioned to States using the
    formula set forth in section 104(b)(3) of title 23, United States Code,
    and the remaining funds shall be apportioned to States in the same
    ratio as the obligation limitation for fiscal year 2008 was distributed
    among the States in accordance with the formula specified in section
    120(a)(6) of division K of Public Law 110-161: Provided further, That
    funds made available under this heading shall be apportioned not later
    than 21 days after the date of enactment of this Act: Provided further,
    That in selecting projects to be carried out with funds apportioned
    under this heading, priority shall be given to projects that are
    projected for completion within a 3-year time frame, and are located in
    economically distressed areas as defined by section 301 of the Public
    Works and Economic Development Act of 1965, as amended (42 U.S.C.
    3161): Provided further, That 120 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 State
    (excluding funds suballocated within the State) less the amount of
    funding obligated (excluding funds suballocated within the State), 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 the Secretary shall redistribute
    such amounts to States that have had no funds withdrawn under this
    proviso (excluding funds suballocated within the State) in the manner
    described in section 120(c) of division K of Public Law 110-161:
    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 feels satisfied that the State has encountered
    extreme conditions that create 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 3 percent of
    the funds apportioned to a State under this heading shall be set aside
    for the purposes described in subsection 133(d)(2) of title 23, United
    States Code (without regard to the comparison to fiscal year 2005):
    Provided further, That 30 percent of the funds apportioned to a State
    under this heading shall be suballocated within the State in the manner
    and for the purposes described in the first sentence of subsection
    133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection
    133(d)(3)(D): Provided further, That such suballocation shall be
    conducted in every State: Provided further, That funds suballocated
    within a State to urbanized areas and other areas shall not be subject
    to the redistribution of amounts required 120 days following the date
    of apportionment of funds provided under this heading: Provided
    further, That of the funds provided under this heading, $105,000,000
    shall be for the Puerto Rico highway program authorized under section
    165 of title 23, United States Code, and $45,000,000 shall be for the
    territorial highway program authorized under section 215 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 (without regard to
    subsection(d)): 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 satisfaction their ability to be completed within 2 years of
    enactment of this Act: Provided further, That of the funds provided
    under this heading, $550,000,000 shall be for investments in
    transportation at Indian reservations and Federal lands: Provided
    further, That of the funds identified in the preceding proviso,
    $310,000,000 shall be for the Indian Reservation Roads program,
    $170,000,000 shall be for the Park Roads and Parkways program,
    $60,000,000 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 $550,000,000 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 of the
    funds made available under this heading, $20,000,000 shall be for
    highway surface transportation and technology training under section
    140(b) of title 23, United States Code, and $20,000,000 shall be for
    disadvantaged business enterprises bonding assistance under section
    332(e) of title 49, United States Code: Provided further, That funds
    made available under this heading shall be administered as if
    apportioned under chapter 1 of title 23, United States Code, except for
    funds made available for investments in transportation at Indian
    reservations and Federal lands, and for the territorial highway
    program, which shall be administered in accordance with chapter 2 of
    title 23, United States Code, and except for funds made available for
    disadvantaged business enterprises bonding assistance, which shall be
    administered in accordance with chapter 3 of title 49, United States
    Code: 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, up to 100
    percent of the total cost thereof: Provided further, That funds made
    available by this Act shall not be obligated for the purposes
    authorized under section 115(b) of title 23, United States Code:
    Provided further, That funding provided under this heading shall be in
    addition to any and all funds provided for fiscal years 2009 and 2010
    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 section 1101(b) of Public Law 109-59
    shall apply to funds apportioned under this heading: Provided further,
    That the Administrator of the Federal Highway Administration may retain
    up to $40,000,000 of the funds provided under this heading 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, and such funds shall be available through September 30, 2012.

                        Federal Railroad Administration

         Capital Assistance for High Speed Rail Corridors and Intercity
                             Passenger Rail Service

        For an additional amount for section 501 of Public Law 110-432 and
    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, subsection (b) of section 24105 of such title,
    $8,000,000,000, to remain available through September 30, 2012:
    Provided, That the Secretary of Transportation shall give priority to
    projects that support the development of intercity high speed rail
    service: Provided further, That within 60 days of the enactment of this
    Act, the Secretary shall submit to the House and Senate Committees on
    Appropriations a strategic plan that describes how the Secretary will
    use the funding provided under this heading to improve and deploy high
    speed passenger rail systems: Provided further, That within 120 days of
    enactment of this Act, the Secretary shall issue interim guidance to
    applicants covering grant terms, conditions, and procedures until final
    regulations are issued: Provided further, That such interim guidance
    shall provide separate instructions for the high speed rail corridor
    program, capital assistance for intercity passenger rail service
    grants, and congestion grants: Provided further, That the Secretary
    shall waive the requirement that a project conducted using funds
    provided under this heading be in a State rail plan developed under
    chapter 227 of title 49, United States Code: Provided further, That the
    Federal share payable of the costs for which a grant is made under this
    heading shall be, at the option of the recipient, up to 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 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 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,
    and funds retained for said purposes shall remain available through
    September 30, 2014.

          capital grants to the national railroad passenger corporation

        For an additional amount for the National Railroad Passenger
    Corporation (Amtrak) to enable the Secretary of Transportation to make
    capital grants to Amtrak as authorized by section 101(c) of the
    Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-
    432), $1,300,000,000, to remain available through September 30, 2010,
    of which $450,000,000 shall be used for capital security grants:
    Provided, That priority for the use of non-security funds shall be
    given to projects for the repair, rehabilitation, or upgrade of
    railroad assets or infrastructure, and for capital projects that expand
    passenger rail capacity including the rehabilitation of rolling stock:
    Provided further, That none of the funds under this heading shall be
    used to subsidize the operating losses of Amtrak: Provided further,
    That funds provided under this heading shall be awarded not later than
    30 days after the date of enactment of this Act: Provided further, That
    the Secretary 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 the Secretary shall certify
    to the House and Senate Committees on Appropriations in writing
    compliance with the preceding proviso: Provided further, That not more
    than 60 percent of the funds provided for non-security activities under
    this heading may be used for capital projects along the Northeast
    Corridor: Provided further, That of the funding provided under this
    heading, $5,000,000 shall be made available for the Amtrak Office of
    Inspector General and made available through September 30, 2013.

                         Federal Transit Administration

                            transit capital assistance

        For an additional amount for transit capital assistance grants
    authorized under section 5302(a)(1) of title 49, United States Code,
    $6,900,000,000, to remain available through September 30, 2010:
    Provided, That the Secretary of Transportation shall provide 80 percent
    of the funds appropriated under this heading for grants under section
    5307 of title 49, United States Code, and apportion such funds in
    accordance with section 5336 of such title (other than subsections
    (i)(1) and (j)): Provided further, That the Secretary shall apportion
    10 percent of the funds appropriated under this heading in accordance
    with section 5340 of such title: Provided further, That the Secretary
    shall provide 10 percent of the funds appropriated under this heading
    for grants under section 5311 of title 49, United States Code, and
    apportion such funds in accordance with such section: Provided further,
    That funds apportioned under this heading shall be apportioned not
    later than 21 days after the date of enactment of this Act: Provided
    further, That 180 days following the date of such apportionment, the
    Secretary shall withdraw from each urbanized area or State an amount
    equal to 50 percent of the funds apportioned to such urbanized areas or
    States less the amount of funding obligated, and the Secretary shall
    redistribute such amounts to other urbanized areas or States that have
    had no funds withdrawn under this proviso utilizing whatever method he
    deems appropriate to ensure that all funds redistributed under this
    proviso shall be utilized promptly: Provided further, That 1 year
    following the date of such apportionment, the Secretary shall withdraw
    from each urbanized area or State any unobligated funds, and the
    Secretary shall redistribute such amounts to other urbanized areas or
    States that have had no funds withdrawn under this proviso utilizing
    whatever method he deems appropriate to ensure that all funds
    redistributed under this proviso shall be utilized promptly: Provided
    further, That at the request of an urbanized area or State, the
    Secretary of Transportation may provide an extension of such 1-year
    period if he feels satisfied that the urbanized area or State 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 provided for section
    5311 of title 49, United States Code, 2.5 percent shall be made
    available for section 5311(c)(1): Provided further, That of the funding
    provided under this heading, $100,000,000 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 applicable chapter 53 requirements shall apply
    to funding provided under this heading, except that the Federal share
    of the costs for which any grant is made under this heading shall be,
    at the option of the recipient, 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 appropriated under this heading: Provided further, That
    the funds appropriated under this heading shall not be comingled with
    any prior year funds: Provided further, That notwithstanding any other
    provision of law, three-quarters of 1 percent of the funds provided for
    grants under section 5307 and section 5340, and one-half of 1 percent
    of the funds provided for grants under section 5311, shall be available
    for administrative expenses and program management oversight, and such
    funds shall be available through September 30, 2012.

                    fixed guideway infrastructure investment

        For an amount for capital expenditures authorized under section
    5309(b)(2) of title 49, United States Code, $750,000,000, to remain
    available through September 30, 2010: Provided, That the Secretary of
    Transportation shall apportion funds under this heading pursuant to the
    formula set forth in section 5337 of title 49, United States Code:
    Provided further, That the funds appropriated under this heading shall
    not be commingled with any prior year funds: Provided further, That
    funds made available under this heading shall be apportioned not later
    than 21 days after the date of enactment of this Act: Provided further,
    That 180 days following the date of such apportionment, the Secretary
    shall withdraw from each urbanized area an amount equal to 50 percent
    of the funds apportioned to such urbanized area less the amount of
    funding obligated, and the Secretary shall redistribute such amounts to
    other urbanized areas that have had no funds withdrawn under this
    proviso utilizing whatever method he or she deems appropriate to ensure
    that all funds redistributed under this proviso shall be utilized
    promptly: Provided further, That 1 year following the date of such
    apportionment, the Secretary shall withdraw from each urbanized area
    any unobligated funds, and the Secretary shall redistribute such
    amounts to other urbanized areas that have had no funds withdrawn under
    this proviso utilizing whatever method he or she deems appropriate to
    ensure that all funds redistributed under this proviso shall be
    utilized promptly: Provided further, That at the request of an
    urbanized area, the Secretary of Transportation may provide an
    extension of such 1-year period if he or she feels satisfied that the
    urbanized area 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 applicable
    chapter 53 requirements shall apply except that the Federal share of
    the costs for which a grant is made under this heading shall be, at the
    option of the recipient, up to 100 percent: Provided further, That the
    provisions of section 1101(b) of Public Law 109-59 shall apply to funds
    made available under this heading: Provided further, That
    notwithstanding any other provision of law, up to 1 percent of the
    funds under this heading shall be available for administrative expenses
    and program management oversight and shall remain available for
    obligation until September 30, 2012.

                            capital investment grants

         For an additional amount for ``Capital Investment Grants'', as
    authorized under section 5338(c)(4) of title 49, United States Code,
    and allocated under section 5309(m)(2)(A) of such title, to enable the
    Secretary of Transportation to make discretionary grants as authorized
    by section 5309(d) and (e) of such title, $750,000,000, to remain
    available through September 30, 2010: Provided, That such amount shall
    be allocated without regard to the limitation under section
    5309(m)(2)(A)(i): Provided further, That in selecting projects to be
    funded, priority shall be given to projects that are currently in
    construction or are able to obligate funds within 150 days of enactment
    of this Act: Provided further, That the provisions of section 1101(b)
    of Public Law 109-59 shall apply to funds made available under this
    heading: Provided further, That funds appropriated under this heading
    shall not be commingled with any prior year funds: Provided further,
    That applicable chapter 53 requirements shall apply, except that
    notwithstanding any other provision of law, up to 1 percent of the
    funds provided under this heading shall be available for administrative
    expenses and program management oversight, and shall remain available
    through September 30, 2012.

                            Maritime Administration

              supplemental grants for assistance to small shipyards

        To make grants to qualified shipyards as authorized under section
    3508 of Public Law 110-417 or section 54101 of title 46, United States
    Code, $100,000,000, to remain available through September 30, 2010:
    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, $20,000,000, to remain available through
    September 30, 2013: 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: 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. (a) Maintenance of Effort.--Not later than 30 days after
    the date of enactment of this Act, for each amount that is distributed
    to a State or agency thereof from an appropriation in this Act for a
    covered program, the Governor of the State shall certify to the
    Secretary of Transportation that the State will maintain its effort
    with regard to State funding for the types of projects that are funded
    by the appropriation. As part of this certification, the Governor shall
    submit to the Secretary of Transportation a statement identifying the
    amount of funds the State planned to expend from State sources as of
    the date of enactment of this Act during the period beginning on the
    date of enactment of this Act through September 30, 2010, for the types
    of projects that are funded by the appropriation.
        (b) Failure To Maintain Effort.--
            If a State is unable to maintain the level of effort certified
        pursuant to subsection (a), the State will be prohibited by the
        Secretary of Transportation from receiving additional limitation
        pursuant to the redistribution of the limitation on obligations for
        Federal-aid highway and highway safety construction programs that
        occurs after August 1 for fiscal year 2011.
        (c) Periodic Reports.--
            (1) In general.--Notwithstanding any other provision of law,
        each grant recipient shall submit to the covered agency from which
        they received funding periodic reports on the use of the funds
        appropriated in this Act for covered programs. Such reports shall
        be collected and compiled by the covered agency and transmitted to
        Congress. Covered agencies may develop such reports on behalf of
        grant recipients to ensure the accuracy and consistency of such
        reports.
            (2) Contents of Reports.--For amounts received under each
        covered program by a grant recipient under this Act, the grant
        recipient shall include in the periodic reports information
        tracking-
                (A) the amount of Federal funds appropriated, allocated,
            obligated, and outlayed under the appropriation;
                (B) the number of projects that have been put out to bid
            under the appropriation and the amount of Federal funds
            associated with such projects;
                (C) the number of projects for which contracts have been
            awarded under the appropriation and the amount of Federal funds
            associated with such contracts;
                (D) the number of projects for which work has begun under
            such contracts and the amount of Federal funds associated with
            such contracts;
                (E) the number of projects for which work has been
            completed under such contracts and the amount of Federal funds
            associated with such contracts;
                (F) the number of direct, on-project jobs created or
            sustained by the Federal funds provided for projects under the
            appropriation and, to the extent possible, the estimated
            indirect jobs created or sustained in the associated supplying
            industries, including the number of job-years created and the
            total increase in employment since the date of enactment of
            this Act; and
                (G) for each covered program report information tracking
            the actual aggregate expenditures by each grant recipient from
            State sources for projects eligible for funding under the
            program during the period beginning on the date of enactment of
            this Act through September 30, 2010, as compared to the level
            of such expenditures that were planned to occur during such
            period as of the date of enactment of this Act.
            (3) Timing of Reports.--Each grant recipient shall submit the
        first of the periodic reports required under this subsection not
        later than 90 days after the date of enactment of this Act and
        shall submit updated reports not later than 180 days, 1 year, 2
        years, and 3 years after such date of enactment.
        (d) Definitions.--In this section, the following definitions apply:
            (1) Covered Agency.--The term ``covered agency'' means the
        Office of the Secretary of Transportation, the Federal Aviation
        Administration, the Federal Highway Administration, the Federal
        Railroad Administration, the Federal Transit Administration and the
        Maritime Administration of the Department of Transportation.
            (2) Covered Program.--The term ``covered program'' means funds
        appropriated in this Act for ``Supplemental Discretionary Grants
        for a National Surface Transportation System'' to the Office of the
        Secretary of Transportation, for ``Supplemental Funding for
        Facilities and Equipment'' and ``Grants-in-Aid for Airports'' to
        the Federal Aviation Administration; for ``Highway Infrastructure
        Investment'' to the Federal Highway Administration; for ``Capital
        Assistance for High Speed Rail Corridors and Intercity Passenger
        Rail Service'' and ``Capital Grants to the National Railroad
        Passenger Corporation'' to the Federal Railroad Administration; for
        ``Transit Capital Assistance'', ``Fixed Guideway Infrastructure
        Investment'', and ``Capital Investment Grants'' to the Federal
        Transit Administration; and ``Supplemental Grants for Assistance to
        Small Shipyards'' to the Maritime Administration.
            (3) Grant recipient.--The term ``grant recipient'' means a
        State or other recipient of assistance provided under a covered
        program in this Act. Such term does not include a Federal
        department or agency.
        (e) Notwithstanding any other provision of law, sections 3501-3521
    of title 44, United States Code, shall not apply to the provisions of
    this section.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                           Public and Indian Housing

                           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''), $4,000,000,000, to remain
    available until September 30, 2011: Provided, That the Secretary of
    Housing and Urban Development shall distribute $3,000,000,000 of this
    amount by the same formula used for amounts made available in fiscal
    year 2008, 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 obligate funds allocated by
    formula within 30 days of enactment of this Act: Provided further, That
    the Secretary shall make available $1,000,000,000 by competition for
    priority investments, including investments that leverage private
    sector funding or financing for renovations and energy conservation
    retrofit investments: Provided further, That the Secretary shall
    obligate competitive funding by September 30, 2009: Provided further,
    That public housing authorities shall give priority to capital projects
    that can award contracts based on bids within 120 days from the date
    the funds are made available to the public housing authorities:
    Provided further, That public housing agencies shall give priority
    consideration to the rehabilitation of vacant rental units: 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
    notwithstanding any other provision of law, (1) funding provided under
    this heading 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 on
    which funds become available to the agency for obligation, 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 the 1-year
    obligation requirement, the Secretary shall recapture all remaining
    unobligated 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
    either the 2-year or the 3-year expenditure requirement, the Secretary
    shall recapture the balance of the funds awarded to the public housing
    agency and reallocate such funds to agencies that are in compliance
    with those requirements: Provided further, That in administering funds
    appropriated or otherwise made available under this heading, the
    Secretary may waive or specify alternative requirements for any
    provision of any statute or regulation in connection with the
    obligation by the Secretary or the use of these funds (except for
    requirements related to fair housing, nondiscrimination, labor
    standards, and the environment), upon a finding that such a waiver is
    necessary to expedite or facilitate the use of such funds: Provided
    further, That, in addition to waivers authorized under the previous
    proviso, the Secretary may direct that requirements relating to the
    procurement of goods and services arising under state and local laws
    and regulations shall not apply to amounts made available under this
    heading: Provided further, That of the funds made available under this
    heading, up to .5 percent shall be available for staffing, training,
    technical assistance, technology, monitoring, travel, enforcement,
    research and evaluation activities: Provided further, That funds set
    aside in the previous proviso shall remain available until September
    30, 2012: Provided further, That any funds made available under this
    heading used by the Secretary for personnel expenses related to
    administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Office of Public and Indian
    Housing'' and shall retain the terms and conditions of this account,
    including reprogramming provisions, except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available
    under this heading used by the Secretary for training or other
    administrative expenses shall be transferred 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 ``Working Capital Fund''.

                      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 the Secretary shall
    obligate funds allocated by formula within 30 days of enactment of this
    Act: Provided further, That the amounts distributed through the formula
    shall be used for new construction, acquisition, rehabilitation
    including energy efficiency and conservation, and infrastructure
    development: Provided further, That in selecting projects to be funded,
    recipients shall give priority to projects for which contracts can be
    awarded within 180 days from the date that funds are available to the
    recipients: Provided further, that the Secretary may 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 the Secretary shall obligate
    competitive funding by September 30, 2009: 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 funds are
    made available to a recipient, expend at least 50 percent of such funds
    within 2 years of the date on which funds become available to such
    recipients 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 the 2-year expenditure requirement, the Secretary shall
    recapture all remaining funds awarded to the recipient and reallocate
    such funds through the funding formula to recipients that are in
    compliance with these 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 originally awarded
    to the recipient: Provided further, That notwithstanding any other
    provision of law, the Secretary may set aside up to 2 percent of funds
    made available under this paragraph for a housing entity eligible to
    receive funding under title VIII of NAHASDA (25 U.S.C. 4221 et seq.):
    Provided further, That in administering funds appropriated or otherwise
    made available under this heading, the Secretary may waive or specify
    alternative requirements for any provision of any statute or regulation
    in connection with the obligation by the Secretary or the use of these
    funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment), upon a
    finding that such a waiver is necessary to expedite or facilitate the
    use of such funds: Provided further, That of the funds made available
    under this heading, up to .5 percent shall be available for staffing,
    training, technical assistance, technology, monitoring, travel,
    enforcement, research and evaluation activities: Provided further, That
    funds set aside in the previous proviso shall remain available until
    September 30, 2012: Provided further, That any funds made available
    under this heading used by the Secretary for personnel expenses related
    to administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Office of Public and Indian
    Housing'' and shall retain the terms and conditions of this account,
    including reprogramming provisions, except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available
    under this heading used by the Secretary for training or other
    administrative expenses shall be transferred 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 ``Working Capital Fund''.

                       Community Planning and Development

                            community development fund

        For an additional amount for ``Community Development Fund''
    $1,000,000,000, to remain available until September 30, 2010 to carry
    out the community development block grant program under title I of the
    Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.):
    Provided, That the amount appropriated in this paragraph shall be
    distributed pursuant to 42 U.S.C. 5306 to grantees that received
    funding in fiscal year 2008: Provided further, That in administering
    the funds appropriated in this paragraph, the Secretary of Housing and
    Urban Development shall establish requirements to expedite the use of
    the funds: Provided further, That in selecting projects to be funded,
    recipients shall give priority to projects that can award contracts
    based on bids within 120 days from the date the funds are made
    available to the recipients: Provided further, That in administering
    funds appropriated or otherwise made available under this heading, the
    Secretary may waive or specify alternative requirements for any
    provision of any statute or regulation in connection with the
    obligation by the Secretary or the use by the recipient of these funds
    (except for requirements related to fair housing, nondiscrimination,
    labor standards, and the environment), upon a finding that such waiver
    is necessary to expedite or facilitate the timely use of such funds and
    would not be inconsistent with the overall purpose of the statute.
        For the provision of emergency assistance for the redevelopment of
    abandoned and foreclosed homes, as authorized under division B, title
    III of the Housing and Economic Recovery Act of 2008 (``the Act'')
    (Public Law 110-289) (42 U.S.C. 5301 note), $2,000,000,000, to remain
    available until September 30, 2010: Provided, That grantees shall
    expend at least 50 percent of allocated funds within 2 years of the
    date funds become available to the grantee for obligation, and 100
    percent of such funds within 3 years of such date: Provided further,
    That unless otherwise noted herein, the provisions of the Act govern
    the use of the additional funds made available under this heading:
    Provided further, That notwithstanding the provisions of sections
    2301(b) and (c)(1) and section 2302 of the Act, funding under this
    paragraph shall be allocated by competitions for which eligible
    entities shall be States, units of general local government, and
    nonprofit entities or consortia of nonprofit entities, which may submit
    proposals in partnership with for profit entities: Provided further,
    That in selecting grantees, the Secretary of Housing and Urban
    Development shall ensure that the grantees are in areas with the
    greatest number and percentage of foreclosures and can expend funding
    within the period allowed under this heading: Provided further, That
    additional award criteria for such competitions shall include
    demonstrated grantee capacity to execute projects, leveraging
    potential, concentration of investment to achieve neighborhood
    stabilization, and any additional factors determined by the Secretary
    of Housing and Urban Development: Provided further, That the Secretary
    may establish a minimum grant size: Provided further, That the
    Secretary shall publish criteria on which to base competition for any
    grants awarded under this heading not later than 75 days after the
    enactment of this Act and applications shall be due to HUD not later
    than 150 days after the enactment of this Act: Provided further, That
    the Secretary shall obligate all funding within 1 year of enactment of
    this Act: Provided further, That section 2301(d)(4) of the Act is
    repealed: Provided further, That section 2301(c)(3)(C) of the Act is
    amended to read ``establish and operate land banks for homes and
    residential properties that have been foreclosed upon'': Provided
    further, That funding used for section 2301(c)(3)(E) of the Act shall
    be available only for the redevelopment of demolished or vacant
    properties as housing: Provided further, That no amounts made available
    from a grant under this heading may be used to demolish any public
    housing (as such term is defined in section 3 of the United States
    Housing Act of 1937 (42 U.S.C. 1437a)): Provided further, That a
    grantee may not use more than 10 percent of its grant under this
    heading for demolition activities under section 2301(c)(3)(C) and (D)
    unless the Secretary determines that such use represents an appropriate
    response to local market conditions: Provided further, That the
    recipient of any grant or loan from amounts made available under this
    heading or, after the date of enactment under division B, title III of
    the Housing and Economic Recovery Act of 2008, may not refuse to lease
    a dwelling unit in housing with such loan or grant to a participant
    under section 8 of the United States Housing Act of 1937 (42 U.S.C
    1437f) because of the status of the prospective tenant as such a
    participant: Provided further, That in addition to the eligible uses in
    section 2301, the Secretary may also use up to 10 percent of the funds
    provided under this heading for grantees for the provision of capacity
    building of and support for local communities receiving funding under
    section 2301 of the Act or under this heading: Provided further, That
    in administering funds appropriated or otherwise made available under
    this section, the Secretary may waive or specify alternative
    requirements for any provision of any statute or regulation in
    connection with the obligation by the Secretary or the use of funds
    except for requirements related to fair housing, nondiscrimination,
    labor standards and the environment, upon a finding that such a waiver
    is necessary to expedite or facilitate the use of such funds: Provided
    further, That in the case of any acquisition of a foreclosed upon
    dwelling or residential real property acquired after the date of
    enactment with any amounts made available under this heading or under
    division B, title III of the Housing and Economic Recovery Act of 2008
    (Public Law 110-289), the initial successor in interest in such
    property pursuant to the foreclosure shall assume such interest subject
    to: (1) the provision by such successor in interest of a notice to
    vacate to any bona fide tenant at least 90 days before the effective
    date of such notice; and (2) the rights of any bona fide tenant, as of
    the date of such notice of foreclosure: (A) under any bona fide lease
    entered into before the notice of foreclosure to occupy the premises
    until the end of the remaining term of the lease, except that a
    successor in interest may terminate a lease effective on the date of
    sale of the unit to a purchaser who will occupy the unit as a primary
    residence, subject to the receipt by the tenant of the 90-day notice
    under this paragraph; or (B) without a lease or with a lease terminable
    at will under State law, subject to the receipt by the tenant of the
    90-day notice under this paragraph, except that nothing in this
    paragraph shall affect the requirements for termination of any Federal-
    or State-subsidized tenancy or of any State or local law that provides
    longer time periods or other additional protections for tenants:
    Provided further, That, for purposes of this paragraph, a lease or
    tenancy shall be considered bona fide only if: (1) the mortgagor under
    the contract is not the tenant; (2) the lease or tenancy was the result
    of an arms-length transaction; and (3) the lease or tenancy requires
    the receipt of rent that is not substantially less than fair market
    rent for the property: Provided further, That the recipient of any
    grant or loan from amounts made available under this heading or, after
    the date of enactment, under division B, title III of the Housing and
    Economic Recovery Act of 2008 (Public Law 110-289) may not refuse to
    lease a dwelling unit in housing assisted with such loan or grant to a
    holder of a voucher or certificate of eligibility under section 8 of
    the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the
    status of the prospective tenant as such a holder: Provided further,
    That in the case of any qualified foreclosed housing for which funds
    made available under this heading or, after the date of enactment,
    under division B, title III of the Housing and Economic Recovery Act of
    2008 (Public Law 110-289) are used and in which a recipient of
    assistance under section 8(o) of the U.S. Housing Act of 1937 resides
    at the time of foreclosure, the initial successor in interest shall be
    subject to the lease and to the housing assistance payments contract
    for the occupied unit: Provided further, That vacating the property
    prior to sale shall not constitute good cause for termination of the
    tenancy unless the property is unmarketable while occupied or unless
    the owner or subsequent purchaser desires the unit for personal or
    family use: Provided further, That if a public housing agency is unable
    to make payments under the contract to the immediate successor in
    interest after foreclosures, due to (1) an action or inaction by the
    successor in interest, including the rejection of payments or the
    failure of the successor to maintain the unit in compliance with
    section 8(o)(8) of the United States Housing Act of 1937 (42
    U.S.C.1437f) or (2) an inability to identify the successor, the agency
    may use funds that would have been used to pay the rental amount on
    behalf of the family--(i) to pay for utilities that are the
    responsibility of the owner under the lease or applicable law, after
    taking reasonable steps to notify the owner that it intends to make
    payments to a utility provider in lieu of payments to the owner, except
    prior notification shall not be required in any case in which the unit
    will be or has been rendered uninhabitable due to the termination or
    threat of termination of service, in which case the public housing
    agency shall notify the owner within a reasonable time after making
    such payment; or (ii) for the family's reasonable moving costs,
    including security deposit costs: Provided further, That this paragraph
    shall not preempt any Federal, State or local law that provides more
    protections for tenants: 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,
    travel, enforcement, research and evaluation activities: Provided
    further, That funds set aside in the previous proviso shall remain
    available until September 30, 2012: Provided further, That any funds
    made available under this heading used by the Secretary for personnel
    expenses related to administering funding under this heading shall be
    transferred to ``Personnel Compensation and Benefits, Community
    Planning and Development'' and shall retain the terms and conditions of
    this account, including reprogramming provisions, except that the
    period of availability set forth in the previous proviso shall govern
    such transferred funds: Provided further, That any funds made available
    under this heading used by the Secretary for training or other
    administrative expenses shall be transferred 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 ``Working Capital Fund''.

                      home investment partnerships program

        For an additional amount for capital investments in low-income
    housing tax credit projects, $2,250,000,000, to remain available until
    September 30, 2011: Provided, That such funds shall be made available
    to State housing credit agencies, as defined in section 42(h) of the
    Internal Revenue Code of 1986, and shall be apportioned among the
    States based on the percentage of HOME funds apportioned to each State
    and the participating jurisdictions therein for Fiscal Year 2008:
    Provided further, That the housing credit agencies in each State shall
    distribute these funds competitively under this heading and pursuant to
    their qualified allocation plan (as defined in section 42(m) of the
    Internal Revenue Code of 1986) to owners of projects who have received
    or receive simultaneously an award of low-income housing tax credits
    under section 42(h) of the Internal Revenue Code of 1986: Provided
    further, That housing credit agencies in each State shall commit not
    less than 75 percent of such funds within one year of the date of
    enactment of this Act, and shall demonstrate that the project owners
    shall have expended 75 percent of the funds made available under this
    heading within two years of the date of enactment of this Act, and
    shall have expended 100 percent of the funds within 3 years of the date
    of enactment of this Act: Provided further, That failure by an owner to
    expend funds within the parameters required within the previous proviso
    shall result in a redistribution of these funds by a housing credit
    agency to a more deserving project in such State, except any funds not
    expended after 3 years from enactment shall be redistributed by the
    Secretary to other States that have fully utilized the funds made
    available to them: Provided further, That projects awarded low income
    housing tax credits under section 42(h) of the IRC of 1986 in fiscal
    years 2007, 2008, or 2009 shall be eligible for funding under this
    heading: Provided further, That housing credit agencies shall give
    priority 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, in lieu of corresponding
    limitations under the HOME program) as required by the state housing
    credit agency with respect to an award of low income housing credits
    under section 42 of the IRC of 1986: Provided further, That the housing
    credit agency shall perform asset management functions, or shall
    contract for the performance of such services, in either case, at the
    owner's expense, to ensure compliance with section 42 of the IRC of
    1986, and the long term viability of buildings funded by assistance
    under this heading: Provided further, That the term eligible 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 be given access
    upon reasonable notice to a State housing credit agency to information
    related to the award of Federal funds from such housing credit agency
    pursuant to this heading and shall establish an Internet site that
    shall identify all projects selected for an award, including the amount
    of the award and such site shall provide linkage to the housing credit
    agency allocation plan which describes the process that was used to
    make the award decision: 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 expedite
    the use of such funds: Provided further, That for purposes of
    environmental compliance review, funds under this heading that are made
    available to State housing credit agencies for distribution to projects
    awarded low income housing tax credits shall be treated as funds under
    the HOME program and shall be subject to Section 288 of the HOME
    Investment Partnership Act.

                          homelessness prevention fund

        For homelessness prevention and rapid re-housing 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,
    moving cost assistance, and case management; or other appropriate
    activities for homelessness prevention and rapid re-housing of persons
    who have become homeless: 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 HUD 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 60 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 this Act and that this notice shall take effect upon
    issuance: Provided further, That of the funds provided under this
    heading, up to .5 percent shall be available for staffing, training,
    technical assistance, technology, monitoring, research and evaluation
    activities: Provided further, That funds set aside under the previous
    proviso shall remain available until September 30, 2012: Provided
    further, That any funds made available under this heading used by the
    Secretary for personnel expenses related to administering funding under
    this heading shall be transferred to ``Community Planning and
    Development Personnel Compensation and Benefits'' and shall retain the
    terms and conditions of this account including reprogramming provisions
    except that the period of availability set forth in the previous
    proviso shall govern such transferred funds: Provided further, That any
    funds made available under this heading used by the Secretary for
    training or other administrative expenses shall be transferred 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 ``Working Capital
    Fund.''

                                Housing Programs

      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
    $2,000,000,000 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
    $250,000,000 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 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, fees to cover investment
    oversight and implementation by said owner, or to encourage job
    creation for low-income or very low-income individuals: Provided
    further, That the Secretary may share in a portion of future property
    utility savings resulting from improvements made by grants or loans
    made available under this heading: 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 in administering funds appropriated or
    otherwise made available under this heading, the Secretary may waive or
    specify alternative requirements for any provision of any statute or
    regulation in connection with the obligation by the Secretary or the
    use of these funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment), upon a
    finding that such a waiver is necessary to expedite or facilitate the
    use of such funds: Provided further, That of the funds provided under
    this heading for grants and loans, up to 1 percent shall be available
    for staffing, training, technical assistance, technology, monitoring,
    research and evaluation activities: Provided further, That funds set
    aside in the previous proviso shall remain available until September
    30, 2012: Provided further, That funding made available under this
    heading and used by the Secretary for personnel expenses related to
    administering funding under this heading shall be transferred to
    ``Housing Personnel Compensation and Benefits'' and shall retain the
    terms and conditions of this account including reprogramming provisos
    except that the period of availability set forth in the previous
    proviso shall govern such transferred funds: Provided further, That any
    funding made available under this heading used by the Secretary for
    training and other administrative expenses shall be transferred 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 ``Working Capital
    Fund.''

                Office of Lead Hazard Control and Healthy Homes

        For an additional amount for the ``Lead Hazard Reduction Program'',
    as authorized by section 1011 of the Residential Lead-Based Paint
    Hazard Reduction Act of 1992, and by sections 501 and 502 of the
    Housing and Urban Development Act of 1974, $100,000,000, to remain
    available until September 30, 2011: Provided, That for purposes of
    environmental review, pursuant to the National Environmental Policy Act
    of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that
    further the purposes of such Act, a grant under the Healthy Homes
    Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead
    Technical Studies program under this heading or under prior
    appropriations Acts for such purposes under this heading, shall be
    considered to be funds for a special project for purposes of section
    305(e) of the Multifamily Housing Property Disposition Reform Act of
    1994: Provided further, That funds shall be awarded first to applicants
    which had applied under the Lead Hazard Reduction Program Notices 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 Hazard Reduction Program Notices of
    Funding Availability for fiscal year 2009: Provided further, That each
    applicant for the Lead Hazard Program Notices 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 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 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 appropriated or otherwise made available
    under this heading, the Secretary may waive or specify alternative
    requirements for any provision of any statute or regulation in
    connection with the obligation by the Secretary or the use of these
    funds (except for requirements related to fair housing,
    nondiscrimination, labor standards and the environment), upon a finding
    that such a waiver is necessary to expedite or facilitate the use of
    such funds: Provided further, That of the funds made available under
    this heading, up to .5 percent shall be available for staffing,
    training, technical assistance, technology, monitoring, travel,
    enforcement, research and evaluation activities: Provided further, That
    funds set aside in the previous proviso shall remain available until
    September 30, 2012: Provided further, That any funds made available
    under this heading used by the Secretary for personnel expenses related
    to administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Office of Lead Hazard Control
    and Healthy Homes'' and shall retain the terms and conditions of this
    account, including reprogramming provisions, except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available
    under this heading used by the Secretary for training or other
    administrative expenses shall be transferred 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 ``Working Capital Fund''.

                         Management and Administration

                          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, $15,000,000, to remain available until
    September 30, 2013: Provided, That the Inspector General shall have
    independent authority over all personnel issues within this office.

        GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        Sec. 1202. FHA Loan Limits for 2009. (a) Loan Limit Floor Based on
    2008 Levels.--For mortgages for which the mortgagee issues credit
    approval for the borrower during calendar year 2009, if the dollar
    amount limitation on the principal obligation of a mortgage determined
    under section 203(b)(2) of the National Housing Act (12 U.S.C.
    1709(b)(2)) for any size residence for any area is less than such
    dollar amount limitation that was in effect for such size residence for
    such area for 2008 pursuant to section 202 of the Economic Stimulus Act
    of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other
    provision of law, the maximum dollar amount limitation on the principal
    obligation of a mortgage for such size residence for such area for
    purposes of such section 203(b)(2) shall be considered (except for
    purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be
    such dollar amount limitation in effect for such size residence for
    such area for 2008.
        (b) Discretionary Authority for Sub-Areas.--Notwithstanding any
    other provision of law, if the Secretary of Housing and Urban
    Development determines, for any geographic area that is smaller than an
    area for which dollar amount limitations on the principal obligation of
    a mortgage are determined under section 203(b)(2) of the National
    Housing Act, that a higher such maximum dollar amount limitation is
    warranted for any particular size or sizes of residences in such sub-
    area by higher median home prices in such sub-area, the Secretary may,
    for mortgages for which the mortgagee issues credit approval for the
    borrower during calendar year 2009, increase the maximum dollar amount
    limitation for such size or sizes of residences for such sub-area that
    is otherwise in effect (including pursuant to subsection (a) of this
    section), but in no case to an amount that exceeds the amount specified
    in section 202(a)(2) of the Economic Stimulus Act of 2008.
        Sec. 1203. GSE Conforming Loan Limits for 2009. (a) Loan Limit
    Floor Based on 2008 Levels.--For mortgages originated during calendar
    year 2009, if the limitation on the maximum original principal
    obligation of a mortgage that may be purchased by the Federal National
    Mortgage Association or the Federal Home Loan Mortgage Corporation
    determined under section 302(b)(2) of the Federal National Mortgage
    Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of
    the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)),
    respectively, for any size residence for any area is less than such
    maximum original principal obligation limitation that was in effect for
    such size residence for such area for 2008 pursuant to section 201 of
    the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 619),
    notwithstanding any other provision of law, the limitation on the
    maximum original principal obligation of a mortgage for such
    Association and Corporation for such size residence for such area shall
    be such maximum limitation in effect for such size residence for such
    area for 2008.
        (b) Discretionary Authority for Sub-Areas.--Notwithstanding any
    other provision of law, if the Director of the Federal Housing Finance
    Agency determines, for any geographic area that is smaller than an area
    for which limitations on the maximum original principal obligation of a
    mortgage are determined for the Federal National Mortgage Association
    or the Federal Home Loan Mortgage Corporation, that a higher such
    maximum original principal obligation limitation is warranted for any
    particular size or sizes of residences in such sub-area by higher
    median home prices in such sub-area, the Director may, for mortgages
    originated during 2009, increase the maximum original principal
    obligation limitation for such size or sizes of residences for such
    sub-area that is otherwise in effect (including pursuant to subsection
    (a) of this section) for such Association and Corporation, but in no
    case to an amount that exceeds the amount specified in the matter
    following the comma in section 201(a)(1)(B) of the Economic Stimulus
    Act of 2008.
        Sec. 1204. FHA Reverse Mortgage Loan Limits for 2009. For mortgages
    for which the mortgagee issues credit approval for the borrower during
    calendar year 2009, the second sentence of section 255(g) of the
    National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to
    require that in no case may the benefits of insurance under such
    section 255 exceed 150 percent of the maximum dollar amount in effect
    under the sixth sentence of section 305(a)(2) of the Federal Home Loan
    Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

                   TITLE XIII--HEALTH INFORMATION TECHNOLOGY

    SEC. 13001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

        (a) Short Title.--This title (and title IV of division B) may be
    cited as the ``Health Information Technology for Economic and Clinical
    Health Act'' or the ``HITECH Act''.
        (b) Table of Contents of Title.--The table of contents of this
    title is as follows:
    Sec. 13001. Short title; table of contents of title.

             Subtitle A--Promotion of Health Information Technology

          Part 1--Improving Health Care Quality, Safety, and Efficiency

    Sec. 13101. ONCHIT; standards development and adoption.

             ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

        ``Sec. 3000. Definitions.

            ``Subtitle A--Promotion of Health Information Technology

        ``Sec. 3001. Office of the National Coordinator for Health
                  Information Technology.
        ``Sec. 3002. HIT Policy Committee.
        ``Sec. 3003. HIT Standards Committee.
        ``Sec. 3004. Process for adoption of endorsed recommendations;
                  adoption of initial set of standards, implementation
                  specifications, and certification criteria.
        ``Sec. 3005. Application and use of adopted standards and
                  implementation specifications by Federal agencies.
        ``Sec. 3006. Voluntary application and use of adopted standards and
                  implementation specifications by private entities.
        ``Sec. 3007. Federal health information technology.
        ``Sec. 3008. Transitions.
        ``Sec. 3009. Miscellaneous provisions.
    Sec. 13102. Technical amendment.

      Part 2--Application and Use of Adopted Health Information Technology
                               Standards; Reports

    Sec. 13111. Coordination of Federal activities with adopted standards
              and implementation specifications.
    Sec. 13112. Application to private entities.
    Sec. 13113. Study and reports.

              Subtitle B--Testing of Health Information Technology

    Sec. 13201. National Institute for Standards and Technology testing.
    Sec. 13202. Research and development programs.

                      Subtitle C--Grants and Loans Funding

    Sec. 13301. Grant, loan, and demonstration programs.

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

        ``Sec. 3011. Immediate funding to strengthen the health information
                  technology infrastructure.
        ``Sec. 3012. Health information technology implementation
                  assistance.
        ``Sec. 3013. State grants to promote health information technology.
        ``Sec. 3014. Competitive grants to States and Indian tribes for the
                  development of loan programs to facilitate the widespread
                  adoption of certified EHR technology.
        ``Sec. 3015. Demonstration program to integrate information
                  technology into clinical education.
        ``Sec. 3016. Information technology professionals in health care.
        ``Sec. 3017. General grant and loan provisions.
        ``Sec. 3018. Authorization for appropriations.

                               Subtitle D--Privacy

    Sec. 13400. Definitions.

           Part 1--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.
    Sec. 13402. Notification in the case of breach.
    Sec. 13403. Education on health information privacy.
    Sec. 13404. Application of privacy provisions and penalties to business
              associates of covered entities.
    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.
    Sec. 13406. Conditions on certain contacts as part of health care
              operations.
    Sec. 13407. Temporary breach notification requirement for vendors of
              personal health records and other non-HIPAA covered entities.
    Sec. 13408. Business associate contracts required for certain entities.
    Sec. 13409. Clarification of application of wrongful disclosures
              criminal penalties.
    Sec. 13410. Improved enforcement.
    Sec. 13411. Audits.

      Part 2--Relationship to Other Laws; Regulatory References; Effective
                                  Date; Reports

    Sec. 13421. Relationship to other laws.
    Sec. 13422. Regulatory references.
    Sec. 13423. Effective date.
    Sec. 13424. Studies, reports, guidance.

             Subtitle A--Promotion of Health Information Technology

         PART 1--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 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'
        includes 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)(1)), 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, 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,
        an ambulatory surgical center described in section 1833(i) of the
        Social Security Act, a therapist (as defined in section
        1848(k)(3)(B)(iii) of the Social Security Act), and any other
        category of health care facility, entity, practitioner, or
        clinician determined appropriate by the Secretary.
            ``(4) Health information.--The term `health information' has
        the meaning given such term in section 1171(4) of the Social
        Security Act.
            ``(5) Health information technology.--The term `health
        information technology' means hardware, software, integrated
        technologies or related licenses, intellectual property, upgrades,
        or packaged solutions sold as services that are designed for or
        support the use by health care entities or patients 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,
        reduces health disparities, 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; and
                ``(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).
            ``(2) HIT policy coordination.--
                ``(A) In general.--The National Coordinator shall
            coordinate health information technology policy and programs of
            the Department with those of other relevant executive branch
            agencies with a goal of avoiding duplication of efforts and of
            helping to ensure that each agency undertakes health
            information technology activities primarily within the areas of
            its greatest expertise and technical capability and in a manner
            towards a coordinated national goal.
                ``(B) HIT policy and standards committees.--The National
            Coordinator shall be a leading member in the establishment and
            operations of the HIT Policy Committee and the HIT Standards
            Committee and shall serve as a liaison among those two
            Committees and the Federal Government.
            ``(3) Strategic plan.--
                ``(A) In general.--The National Coordinator shall, in
            consultation with other appropriate Federal agencies (including
            the National Institute of Standards and Technology), update the
            Federal Health IT Strategic Plan (developed as of June 3, 2008)
            to include specific objectives, milestones, and metrics with
            respect to the following:
                    ``(i) The electronic exchange and use of health
                information and the enterprise integration of such
                information.
                    ``(ii) The utilization of an electronic health record
                for each person in the United States by 2014.
                    ``(iii) The incorporation of privacy and security
                protections for the electronic exchange of an individual's
                individually identifiable health information.
                    ``(iv) Ensuring security methods to ensure appropriate
                authorization and electronic authentication of health
                information and specifying technologies or methodologies
                for rendering health information unusable, unreadable, or
                indecipherable.
                    ``(v) Specifying a framework for coordination and flow
                of recommendations and policies under this subtitle among
                the Secretary, the National Coordinator, the HIT Policy
                Committee, the HIT Standards Committee, and other health
                information exchanges and other relevant entities.
                    ``(vi) Methods to foster the public understanding of
                health information technology.
                    ``(vii) Strategies to enhance the use of health
                information technology in improving the quality of health
                care, reducing medical errors, reducing health disparities,
                improving public health, increasing prevention and
                coordination with community resources, and improving the
                continuity of care among health care settings.
                    ``(viii) Specific plans for ensuring that populations
                with unique needs, such as children, are appropriately
                addressed in the technology design, as appropriate, which
                may include technology that automates enrollment and
                retention for eligible individuals.
                ``(B) Collaboration.--The strategic plan shall be updated
            through collaboration of public and private entities.
                ``(C) Measurable outcome goals.--The strategic plan update
            shall include measurable outcome goals.
                ``(D) Publication.--The National Coordinator shall
            republish the strategic plan, including all updates.
            ``(4) Website.--The National Coordinator shall maintain and
        frequently update an Internet website on which there is posted
        information on the work, schedules, reports, recommendations, and
        other information to ensure transparency in promotion of a
        nationwide health information technology infrastructure.
            ``(5) Certification.--
                ``(A) In general.--The National Coordinator, in
            consultation with the Director of the National Institute of
            Standards and Technology, shall keep or 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 13201(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 a health
                information technology workforce sufficient to support this
                effort (including education programs in medical informatics
                and health information management).
            ``(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, by reducing
                health disparities, by reducing chronic disease, and by
                advancing research and education.
                    ``(vi) Technologies that allow individually
                identifiable health information to be rendered unusable,
                unreadable, or indecipherable to unauthorized individuals
                when such information is transmitted in the nationwide
                health information network or physically transported
                outside of the secured, physical perimeter of a health care
                provider, health plan, or health care clearinghouse.
                    ``(vii) 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.
                    ``(viii) Technologies 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.
                    ``(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 take a
        leading position 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) 3 members shall be appointed by the Secretary, 1 of
            whom shall be appointed to represent the Department of Health
            and Human Services and 1 of whom shall be a public health
            official.
                ``(B) 1 member shall be appointed by the majority leader of
            the Senate.
                ``(C) 1 member shall be appointed by the minority leader of
            the Senate.
                ``(D) 1 member shall be appointed by the Speaker of the
            House of Representatives.
                ``(E) 1 member shall be appointed by the minority leader of
            the House of Representatives.
                ``(F) Such other members as shall be appointed by the
            President as representatives of other relevant Federal
            agencies.
                ``(G) 13 members shall be appointed by the Comptroller
            General of the United States of whom--
                    ``(i) 3 members shall advocates for patients or
                consumers;
                    ``(ii) 2 members shall represent health care providers,
                one of which shall be a physician;
                    ``(iii) 1 member shall be from a labor organization
                representing health care workers;
                    ``(iv) 1 member shall have expertise in health
                information privacy and security;
                    ``(v) 1 member shall have expertise in improving the
                health of vulnerable populations;
                    ``(vi) 1 member shall be from the research community;
                    ``(vii) 1 member shall represent health plans or other
                third-party payers;
                    ``(viii) 1 member shall represent information
                technology vendors;
                    ``(ix) 1 member shall represent purchasers or
                employers; and
                    ``(x) 1 member shall have expertise in health care
                quality measurement and reporting.
            ``(3) 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.
            ``(4) 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.
            ``(5) Outside involvement.--The HIT Policy Committee shall
        ensure an opportunity for the participation in activities of the
        Committee of outside advisors, including individuals with expertise
        in the development of policies for the electronic exchange and use
        of health information, including in the areas of health information
        privacy and security.
            ``(6) Quorum.--A majority of the member of the HIT Policy
        Committee shall constitute a quorum for purposes of voting, but a
        lesser number of members may meet and hold hearings.
            ``(7) 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,
        the Secretary is authorized to appoint such members.
            ``(8) Consideration.--The National Coordinator shall ensure
        that the relevant and available 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) Standards 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(a)(2)(B). Such
            recommendations shall be consistent with the latest
            recommendations made by the HIT Policy Committee.
                ``(B) Harmonization.--The HIT Standards Committee recognize
            harmonized or updated standards from 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.
                ``(C) 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 13201(a)
            of the Health Information Technology for Economic and Clinical
            Health Act.
                ``(D) 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 and available 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 take a
        leading position 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) Participation.--The members of the HIT Standards
        Committee appointed under this subsection shall represent a balance
        among various sectors of the health care system so that no single
        sector unduly influences the recommendations of such Committee.
            ``(4) Outside involvement.--The HIT Policy Committee shall
        ensure an opportunity for the participation in activities of the
        Committee of outside advisors, including individuals with expertise
        in the development of standards for the electronic exchange and use
        of health information, including in the areas of health information
        privacy and security.
            ``(5) 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.
            ``(6) Assistance.--For the purposes of carrying out this
        section, the Secretary may provide or ensure that financial
        assistance is provided by the HIT Standards Committee to defray in
        whole or in part any membership fees or dues charged by such
        Committee to those consumer advocacy groups and not for profit
        entities that work in the public interest as a part of their
        mission.
        ``(d) Application of FACA.--The Federal Advisory Committee Act (5
    U.S.C. App.), other than section 14, shall apply to the HIT Standards
    Committee.
        ``(e) Publication.--The Secretary shall provide for publication in
    the Federal Register and the posting on the Internet website of the
    Office of the National Coordinator for Health Information Technology of
    all recommendations made by the HIT Standards Committee under this
    section.

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

        ``(a) Process for Adoption of Endorsed Recommendations.--
            ``(1) Review of endorsed standards, implementation
        specifications, and certification criteria.--Not later than 90 days
        after the date of receipt of standards, implementation
        specifications, or certification criteria endorsed under section
        3001(c), the Secretary, in consultation with representatives of
        other relevant Federal agencies, shall jointly review such
        standards, implementation specifications, or certification criteria
        and shall determine whether or not to propose adoption of such
        standards, implementation specifications, or certification
        criteria.
            ``(2) Determination to adopt standards, implementation
        specifications, and certification criteria.--If the Secretary
        determines--
                ``(A) to propose adoption of any grouping of such
            standards, implementation specifications, or certification
            criteria, the Secretary shall, by regulation under section 553
            of title 5, United States Code, 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 consistent with
        subsection (a)(2)(A), adopt an initial set of standards,
        implementation specifications, and certification criteria for the
        areas required for consideration under section 3002(b)(2)(B). The
        rulemaking for the initial set of standards, implementation
        specifications, and certification criteria may be issued on an
        interim, final basis.
            ``(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
    HITECH Act, nothing in such Act or in the amendments made by such Act
    shall be construed--
            ``(1) to require a private entity to adopt or comply with a
        standard or implementation specification adopted under section
        3004; or
            ``(2) to provide a Federal agency authority, other than the
        authority such agency may have under other provisions of law, to
        require a private entity to comply with such a standard or
        implementation specification.
        ``(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 determines through an assessment that
    the needs and demands of providers are being substantially and
    adequately met through the marketplace.
        ``(b) Certification.--In making such electronic health record
    technology publicly available, the National Coordinator shall ensure
    that the qualified electronic health record technology described in
    subsection (a) is certified under the program developed under section
    3001(c)(3) to be in compliance with applicable standards adopted under
    section 3003(a).
        ``(c) Authorization To Charge a Nominal Fee.--The National
    Coordinator may impose a nominal fee for the adoption by a health care
    provider of the health information technology system developed or
    approved under subsection (a) and (b). Such fee shall take into account
    the financial circumstances of smaller providers, low income providers,
    and providers located in rural or other medically underserved areas.
        ``(d) Rule of Construction.--Nothing in this section shall be
    construed to require that a private or government entity adopt or use
    the technology provided under this section.

    ``SEC. 3008. TRANSITIONS.

        ``(a) ONCHIT.--To the extent consistent with section 3001, all
    functions, personnel, assets, liabilities, and administrative actions
    applicable to the National Coordinator for Health Information
    Technology appointed under Executive Order No. 13335 or the Office of
    such National Coordinator on the date before the date of the enactment
    of this title shall be transferred to the National Coordinator
    appointed under section 3001(a) and the Office of such National
    Coordinator as of the date of the enactment of this title.
        ``(b) National EHealth Collaborative.--Nothing in sections 3002 or
    3003 or this subsection shall be construed as prohibiting the AHIC
    Successor, Inc. doing business as the National eHealth Collaborative
    from modifying its charter, duties, membership, and any other structure
    or function required to be consistent with section 3002 and 3003 so as
    to allow the Secretary to recognize such AHIC Successor, Inc. as the
    HIT Policy Committee or 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. MISCELLANEOUS PROVISIONS.

        ``(a) Relation to HIPAA Privacy and Security Law.--
            ``(1) In general.--With respect to the relation of this title
        to HIPAA privacy and security law:
                ``(A) This title may not be construed as having any effect
            on the authorities of the Secretary under HIPAA privacy and
            security law.
                ``(B) 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.
            ``(2) Definition.--For purposes of this section, the term
        `HIPAA privacy and security law' means--
                ``(A) 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 title IV of
            the Health Information Technology for Economic and Clinical
            Health Act; and
                ``(B) regulations under such provisions.
        ``(b) Flexibility.--In administering the provisions of this title,
    the Secretary shall have flexibility in applying the definition of
    health care provider under section 3000(3), including the authority to
    omit certain entities listed in such definition when applying such
    definition under this title, where appropriate.''.

    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 2--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 by the Director of the Office of Management and
    Budget, in consultation with the Secretary of Health and Human
    Services) 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 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 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 of the Public
    Health Service Act, as added by section 13101.

    SEC. 13113. STUDY AND REPORTS.

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

              Subtitle B--Testing of Health Information Technology

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

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

    SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

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

                      Subtitle C--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 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. 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 health care 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(b),
        including community health centers receiving assistance under
        section 330, covered entities under section 340B, 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) Improvement and expansion of the use of health
        information technology by public health departments.
        ``(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 health information technology
    activities that are provided for under laws in effect on the date of
    the enactment of this title.
        ``(d) Standards for Acquisition of Health Information Technology.--
    To the greatest extent practicable, the Secretary shall ensure that
    where funds are expended under this section for the acquisition of
    health information technology, such funds shall be used to acquire
    health information technology that meets applicable standards adopted
    under section 3004. Where it is not practicable to expend funds on
    health information technology that meets such applicable standards, the
    Secretary shall ensure that such health information technology meets
    applicable standards otherwise adopted by the Secretary.

    ``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.
            ``(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 title, 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 (f))
    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 (d).
        ``(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 (e) (regardless of whether such plan was
        prepared using amounts awarded under subsection (b); 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 (c) shall be used to conduct activities to facilitate and
    expand the electronic movement and use of health information among
    organizations according to nationally recognized standards through
    activities that include--
            ``(1) enhancing broad and varied participation in the
        authorized and secure nationwide electronic use and exchange of
        health information;
            ``(2) identifying State or local resources available towards a
        nationwide effort to promote health information technology;
            ``(3) complementing other Federal grants, programs, and efforts
        towards the promotion of health information technology;
            ``(4) providing technical assistance for the development and
        dissemination of solutions to barriers to the exchange of
        electronic health information;
            ``(5) promoting effective strategies to adopt and utilize
        health information technology in medically underserved communities;
            ``(6) assisting patients in utilizing health information
        technology;
            ``(7) encouraging clinicians to work with Health Information
        Technology Regional Extension Centers as described in section 3012,
        to the extent they are available and valuable;
            ``(8) supporting public health agencies' authorized use of and
        access to electronic health information;
            ``(9) promoting the use of electronic health records for
        quality improvement including through quality measures reporting;
        and
            ``(10) such other activities as the Secretary may specify.
        ``(e) Plan.--
            ``(1) In general.--A plan described in this subsection is a
        plan that describes the activities to be carried out by a State or
        by the qualified State-designated entity within such State to
        facilitate and expand the electronic movement and use of health
        information among organizations according to nationally recognized
        standards and implementation specifications.
            ``(2) Required elements.--A plan described in paragraph (1)
        shall--
                ``(A) be pursued in the public interest;
                ``(B) be consistent with the strategic plan developed by
            the National Coordinator, (and, as available) under section
            3001;
                ``(C) include a description of the ways the State or
            qualified State-designated entity will carry out the activities
            described in subsection (b); and
                ``(D) contain such elements as the Secretary may require.
        ``(f) Qualified State-Designated Entity.--For purposes of this
    section, to be a qualified State-designated entity, with respect to a
    State, an entity shall--
            ``(1) be designated by the State as eligible to receive awards
        under this section;
            ``(2) be a not-for-profit entity with broad stakeholder
        representation on its governing board;
            ``(3) demonstrate that one of its principal goals is to use
        information technology to improve health care quality and
        efficiency through the authorized and secure electronic exchange
        and use of health information;
            ``(4) adopt nondiscrimination and conflict of interest policies
        that demonstrate a commitment to open, fair, and nondiscriminatory
        participation by stakeholders; and
            ``(5) conform to such other requirements as the Secretary may
        establish.
        ``(g) Required Consultation.--In carrying out activities described
    in subsections (b) and (c), 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 this section
        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 (c) 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 Administrator 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 3004)
            applicable to the exchange of information, improves the quality
            of health care, such as promoting care coordination; and
                ``(C) comply with such other requirements as the entity or
            the Secretary may require;
                ``(D) include a plan on how health care providers involved
            intend to maintain and support the certified EHR technology
            over time;
                ``(E) include a plan on how the health care 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 (h).
        ``(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 (c). 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
    section 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 section 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
            section 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
            section 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 IN 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.

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

        ``(a) Reports.--The Secretary may require that an entity receiving
    assistance under this subtitle 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 the 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 health care
        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 subtitle 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.''.

                              Subtitle D--Privacy

    SEC. 13400. DEFINITIONS.

        In this subtitle, except as specified otherwise:
            (1) Breach.--
                (A) In general.--The term ``breach'' means the unauthorized
            acquisition, access, use, or disclosure of protected health
            information which compromises the security or privacy of such
            information, except where an unauthorized person to whom such
            information is disclosed would not reasonably have been able to
            retain such information.
                (B) Exceptions.--The term ``breach'' does not include--
                    (i) any unintentional acquisition, access, or use of
                protected health information by an employee or individual
                acting under the authority of a covered entity or business
                associate if--

                        (I) such acquisition, access, or use was made in
                    good faith and within the course and scope of the
                    employment or other professional relationship of such
                    employee or individual, respectively, with the covered
                    entity or business associate; and
                        (II) such information is not further acquired,
                    accessed, used, or disclosed by any person; or

                    (ii) any inadvertent disclosure from an individual who
                is otherwise authorized to access protected health
                information at a facility operated by a covered entity or
                business associate to another similarly situated individual
                at same facility; and
                    (iii) any such information received as a result of such
                disclosure is not further acquired, accessed, used, or
                disclosed without authorization by any person.
            (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 160.103 of title 45, Code of Federal
        Regulations.
            (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 PHR identifiable health
        information (as defined in section 13407(f)(2)) on an individual
        that can be drawn from multiple sources and that is managed,
        shared, and controlled by or primarily 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 1--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, after consultation with 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, including the use of standards
    developed under section 3002(b)(2)(B)(vi) of the Public Health Service
    Act, as added by section 13101 of this Act, 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, including the use of
        standards developed under section 3002(b)(2)(B)(vi) of the Public
        Health Service Act, as added by section 13101 of this Act.
        (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 information shall be collected about each disclosure
        referred to in paragraph (1), not later than 6 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 the individuals in learning the circumstances under
        which their protected health information is being disclosed and
        takes into account the administrative burden of accounting for such
        disclosures.
            ``(3) Process.--In response to an request from an individual
        for an accounting, a covered entity shall elect to provide either
        an--
                ``(A) accounting, as specified under paragraph (1), for
            disclosures of protected health information that are made by
            such covered entity and by a business associate acting on
            behalf of the covered entity; or
                ``(B) accounting, as specified under paragraph (1), for
            disclosures that are made by such covered entity and provide a
            list of all business associates acting on behalf of the covered
            entity, including contact information for such associates (such
            as mailing address, phone, and email address).
        A business associate included on a list under subparagraph (B)
        shall provide an accounting of disclosures (as required under
        paragraph (1) for a covered entity) made by the business associate
        upon a request made by an individual directly to the business
        associate for such an accounting.
            ``(4) 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 is
            necessary, but in no case may the date specified under--
                    ``(i) subparagraph (A) be later than 2016; or
                    ``(ii) subparagraph (B) be later than 2013.''
        (d) Prohibition on Sale of Electronic Health Records or Protected
    Health Information.--
            (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 public health
            activities (as described in section 164.512(b) of title 45,
            Code of Federal Regulations).
                (B) The purpose of the exchange is for research (as
            described in sections 164.501 and 164.512(i) of title 45, Code
            of Federal Regulations) and the price charged reflects the
            costs of preparation and transmittal of the data for such
            purpose.
                (C) 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.
                (D) 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.
                (E) 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.
                (F) 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.
                (G) 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 (F).
            (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.
        (e) 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, if the individual chooses, to direct the covered entity to
        transmit such copy directly to an entity or person designated by
        the individual, provided that any such choice is clear,
        conspicuous, and specific; 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)(i) such communication describes only a drug or biologic
            that is currently being prescribed for the recipient of the
            communication; and
                (ii) any payment received by such covered entity in
            exchange for making a communication described in clause (i) is
            reasonable in amount;
                (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 by a business associate
                on behalf of the covered entity; and
                    (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.
            (3) Reasonable in amount defined.--For purposes of paragraph
        (2), the term ``reasonable in amount'' shall have the meaning given
        such term by the Secretary by regulation.
            (4) Direct or indirect payment.--For purposes of paragraph (2),
        the term ``direct or indirect payment'' shall not include any
        payment for treatment (as defined in section 164.501 of title 45,
        Code of Federal Regulations) of an individual.
        (b) Opportunity to Opt Out of Fundraising.--The Secretary shall by
    rule provide that any written fundraising communication that is a
    healthcare operation as defined under section 164.501 of title 45, Code
    of Federal Regulations, shall, in a clear and conspicuous manner,
    provide an opportunity for the recipient of the communications to elect
    not to receive any further such communication. When an individual
    elects not to receive any further such communication, such election
    shall be treated as a revocation of authorization under section 164.508
    of title 45, Code of Federal Regulations.
        (c) Effective Date.--This section shall apply to written
    communications 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), (iii), or (iv) 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), (iii). or (iv) 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 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.--If Congress enacts new legislation establishing
        requirements for notification in the case of a breach of security,
        that apply to entities that are not covered entities or business
        associates, the provisions of this section shall not apply to
        breaches of security discovered on or after the effective date of
        regulations implementing such legislation.

    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.--
            (1) Noncompliance due to willful neglect.--Section 1176 of the
        Social Security Act (42 U.S.C. 1320d-5) is amended--
                (A) 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
                (B) 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.''.
            (2) Enforcement under social security act.--Any violation by a
        covered entity under thus subtitle is subject to enforcement and
        penalties under section 1176 and 1177 of the Social Security Act.
        (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 for 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 for 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 2--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.
        (c) Construction.--Nothing in this subtitle shall constitute a
    waiver of any privilege otherwise applicable to an individual with
    respect to the protected health information of such individual.

    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 5 years 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 this Act on health
    insurance premiums, overall health care costs, adoption of electronic
    health records by providers, and reduction in medical errors and other
    quality improvements.
        (f) Study.--The Secretary shall study the definition of
    ``psychotherapy notes'' in section 164.501 of title 45, Code of Federal
    Regulations, with regard to including 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 in
    such definitions and may, based on such study, issue regulations to
    revise such definition.

                   TITLE XIV--STATE FISCAL STABILIZATION FUND

                            DEPARTMENT OF EDUCATION

                        State Fiscal Stabilization Fund

        For necessary expenses for a State Fiscal Stabilization Fund,
    $53,600,000,000, which shall be administered by the Department of
    Education.

                         GENERAL PROVISIONS--THIS TITLE

    SEC. 14001. ALLOCATIONS.

        (a) Outlying Areas.--From the amount appropriated to carry out this
    title, the Secretary of Education shall first allocate up to one-half
    of 1 percent to the outlying areas on the basis of their respective
    needs, as determined by the Secretary, in consultation with the
    Secretary of the Interior, for activities consistent with this title
    under such terms and conditions as the Secretary may determine.
        (b) Administration and Oversight.--The Secretary may, in addition,
    reserve up to $14,000,000 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
    $5,000,000,000 for grants under sections 14006 and 14007.
        (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 award as
    subgrants or otherwise commit within two years of receiving such funds,
    and the Secretary shall reallocate such funds to the remaining States
    in accordance with subsection (d).

    SEC. 14002. STATE USES OF FUNDS.

        (a) Education Fund.--
            (1) In general.--For each fiscal year, the Governor shall use
        81.8 percent of the State's allocation under section 14001(d) for
        the support of elementary, secondary, and postsecondary education
        and, as applicable, early childhood education programs and
        services.
            (2) Restoring state support for education.--
                (A) In general.--The Governor shall first use the funds
            described in paragraph (1)--
                    (i) to provide the amount of funds, through the State's
                primary elementary and secondary funding formulae, that is
                needed--

                        (I) to restore, in each of fiscal years 2009, 2010,
                    and 2011, the level of State support provided through
                    such formulae to the greater of the fiscal year 2008 or
                    fiscal year 2009 level; and
                        (II) where applicable, to allow existing State
                    formulae increases to support elementary and secondary
                    education for fiscal years 2010 and 2011 to be
                    implemented and allow funding for phasing in State
                    equity and adequacy adjustments, if such increases were
                    enacted pursuant to State law prior to October 1, 2008.

                    (ii) to provide, in each of fiscal years 2009, 2010,
                and 2011, the amount of funds to public institutions of
                higher education in the State that is needed to restore
                State support for such institutions (excluding tuition and
                fees paid by students) to the greater of the fiscal year
                2008 or fiscal year 2009 level.
                (B) Shortfall.--If the Governor determines that the amount
            of funds available under paragraph (1) is insufficient to
            support, in each of fiscal years 2009, 2010, and 2011, public
            elementary, secondary, and higher education at the levels
            described in clauses (i) and (ii) of subparagraph (A), the
            Governor shall allocate those funds between those clauses in
            proportion to the relative shortfall in State support for the
            education sectors described in those clauses.
                (C) Fiscal year.--For purposes of this paragraph, the term
            ``fiscal year'' shall have the meaning given such term under
            State law.
            (3) Subgrants to improve basic programs operated by local
        educational agencies.--After carrying out paragraph (2), the
        Governor shall use any funds remaining under paragraph (1) to
        provide local educational agencies in the State with subgrants
        based on their relative shares of funding under part A of title I
        of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
        6311 et seq.) for the most recent year for which data are
        available.
        (b) Other Government Services.--
            (1) In general.--The Governor shall use 18.2 percent of the
        State's allocation under section 14001 for public safety and other
        government services, which may include assistance for elementary
        and secondary education and public institutions of higher
        education, and for modernization, renovation, or repair of public
        school facilities and institutions of higher education facilities,
        including modernization, renovation, and repairs that are
        consistent with a recognized green building rating system.
            (2) Availability to all institutions of higher education.--A
        Governor shall not consider the type or mission of an institution
        of higher education, and shall consider any institution for funding
        for modernization, renovation, and repairs within the State that--
                (A) qualifies as an institution of higher education, as
            defined in subsection 14013(3); and
                (B) continues to be eligible to participate in the programs
            under title IV of the Higher Education Act of 1965.
        (c) Rule of Construction.--Nothing in this section shall allow a
    local educational agency to engage in school modernization, renovation,
    or repair that is inconsistent with State law.

    SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

        (a) In General.--A local educational agency that receives funds
    under this title may use the funds for any activity authorized by the
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
    (``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C.
    1400 et seq.) (``IDEA''), the Adult and Family Literacy Act (20 U.S.C.
    1400 et seq.), or the Carl D. Perkins Career and Technical Education
    Act of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for
    modernization, renovation, or repair of public school facilities,
    including modernization, renovation, and repairs that are consistent
    with a recognized green building rating system.
        (b) Prohibition.--A local educational agency may not use funds
    received under this title for--
            (1) payment of maintenance costs;
            (2) stadiums or other facilities primarily used for athletic
        contests or exhibitions or other events for which admission is
        charged to the general public;
            (3) purchase or upgrade of vehicles; or
            (4) improvement of stand-alone facilities whose purpose is not
        the education of children, including central office administration
        or operations or logistical support facilities.
        (c) Rule of Construction.--Nothing in this section shall allow a
    local educational agency to engage in school modernization, renovation,
    or repair that is inconsistent with State law.

    SEC. 14004. 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, or for modernization,
    renovation, or repair of institution of higher education facilities
    that are primarily used for instruction, research, or student housing,
    including modernization, renovation, and repairs that are consistent
    with a recognized green building rating system.
        (b) Prohibition.--An institution of higher education may not use
    funds received under this title to increase its endowment.
        (c) Additional Prohibition.--No funds awarded under this title may
    be used for--
            (1) the maintenance of systems, equipment, or facilities;
            (2) modernization, renovation, or repair of stadiums or other
        facilities primarily used for athletic contests or exhibitions or
        other events for which admission is charged to the general public;
        or
            (3) modernization, renovation, or repair of facilities--
                (A) used for sectarian instruction or religious worship; or
                (B) in which a substantial portion of the functions of the
            facilities are subsumed in a religious mission.

    SEC. 14005. STATE APPLICATIONS.

        (a) In General.--The Governor of a State desiring to receive an
    allocation under section 14001 shall submit an application at such
    time, in such manner, and containing such information as the Secretary
    may reasonably require.
        (b) Application.--In such 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,
        including whether the State will use such allocation to meet
        maintenance of effort requirements under the ESEA and IDEA and, in
        such cases, what amount will be used to meet such requirements.
        (c) Incentive Grant Application.--The Governor of a State seeking a
    grant under section 14006 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), and the strategies the State is
        employing to help ensure that students in the subgroups described
        in section 1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C.
        6311(b)(2)(C)(v)(II)) who have not met the State's proficiency
        targets continue making progress toward meeting the State's student
        academic achievement standards;
            (3) describe the achievement and graduation rates (as described
        in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C.
        6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of
        title 34, Code of Federal Regulations) 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 section 1111(b)(2) of the ESEA (20 U.S.C. 6311(b)(2))
        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 local
        educational agencies; and
            (5) include a plan for evaluating the State's 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, 2010, and 2011, 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, 2010, and 2011, maintain State support for public
            institutions of higher education (not including support for
            capital projects or for research and development or tuition and
            fees paid by students) at least at the level of such support in
            fiscal year 2006.
            (2) Achieving equity in teacher distribution.--The State will
        take actions to improve teacher effectiveness and comply with
        section 1111(b)(8)(C) of the ESEA (20 U.S.C. 6311(b)(8)(C)) in
        order to address inequities in the distribution of highly qualified
        teachers between high- and low-poverty schools, and to ensure that
        low-income and minority children are not taught at higher rates
        than other children by inexperienced, unqualified, or out-of-field
        teachers.
            (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 the academic assessments it
            administers pursuant to section 1111(b)(3) of the 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 the ESEA (20 U.S.C.
            6311(b)) and section 612(a)(16) of the 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 section 6401(e)(1)(9)(A)(ii) of the America COMPETES Act.
            (5) Supporting struggling schools.--The State will ensure
        compliance with the requirements of section 1116(a)(7)(C)(iv) and
        section 1116(a)(8)(B) of the ESEA with respect to schools
        identified under such sections.

    SEC. 14006. STATE INCENTIVE GRANTS.

        (a) In General.--
            (1) Reservation.--From the total amount reserved under section
        14001(c) that is not used for section 14007, the Secretary may
        reserve up to 1 percent for technical assistance to States to
        assist them in meeting the objectives of paragraphs (2), (3), (4),
        and (5) of section 14005(d).
            (2) Remainder.--Of the remaining funds, 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 14005(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
    14005 and such other criteria as the Secretary determines appropriate,
    which may include a State's need for assistance to help meet the
    objective of paragraphs (2), (3), (4), and (5) of section 14005(d).
        (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 the ESEA
    (20 U.S.C. 6311 et seq.) for the most recent year.

    SEC. 14007. INNOVATION FUND.

        (a) In General.--
            (1) Eligible entities.--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; or
                    (ii) a consortium of schools.
            (2) Program established.--From the total amount reserved under
        section 14001(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 the 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 the 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.
        (c) Special Rule.--In the case of an eligible entity that includes
    a nonprofit organization, the eligible entity shall be considered to
    have met the eligibility requirements of paragraphs (1), (2), (3) of
    subsection (b) if such nonprofit organization has a record of meeting
    such requirements.

    SEC. 14008. STATE REPORTS.

        For each year of the program under this title, 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 highly qualified teachers, in implementing a State
        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;
            (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; and
            (8) a description of each modernization, renovation and repair
        project funded, which shall include the amounts awarded and project
        costs.

    SEC. 14009. EVALUATION.

        The Comptroller General of the United States shall conduct
    evaluations of the programs under sections 14006 and 14007 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. 14010. 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 State reports, that
    evaluates the information provided in the State reports under section
    14008 and the information required by section 14005(b)(3) including
    State-by-State information.

    SEC. 14011. 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.

    SEC. 14012. FISCAL RELIEF.

        (a) In General.--For the purpose of relieving fiscal burdens on
    States and local educational agencies that have experienced a
    precipitous decline in financial resources, the Secretary of Education
    may waive or modify any requirement of this title relating to
    maintaining fiscal effort.
        (b) Duration.--A waiver or modification under this section shall be
    for any of fiscal year 2009, fiscal year 2010, or fiscal year 2011, as
    determined by the Secretary.
        (c) Criteria.--The Secretary shall not grant a waiver or
    modification under this section unless the Secretary determines that
    the State or local educational agency receiving such waiver or
    modification will not provide for elementary and secondary education,
    for the fiscal year under consideration, a smaller percentage of the
    total revenues available to the State or local educational agency than
    the amount provided for such purpose in the preceding fiscal year.
        (d) Maintenance of Effort.--Upon prior approval from the Secretary,
    a State or local educational agency that receives funds under this
    title may treat any portion of such funds that is used for elementary,
    secondary, or postsecondary education as non-Federal funds for the
    purpose of any requirement to maintain fiscal effort under any other
    program, including part C of the Individuals with Disabilities
    Education Act (20 U.S.C. 1431 et seq.), administered by the Secretary.
        (e) Subsequent Level of Effort.--Notwithstanding (d), the level of
    effort required by a State or local educational agency for the
    following fiscal year shall not be reduced.

    SEC. 14013. DEFINITIONS.

        Except as otherwise provided in this title, as used in this title--
            (1) the terms ``elementary education'' and ``secondary
        education'' have the meaning given such terms under State law;
            (2) the term ``high-need local educational agency'' means a
        local educational agency--
                (A) that serves not fewer than 10,000 children from
            families with incomes below the poverty line; or
                (B) for which not less than 20 percent of the children
            served by the agency are from families with incomes below the
            poverty line;
            (3) 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);
            (4) the term ``Secretary'' means the Secretary of Education;
            (5) the term ``State'' means each of the 50 States, the
        District of Columbia, and the Commonwealth of Puerto Rico; and
            (6) any other term used that is defined in section 9101 of the
        ESEA (20 U.S.C. 7801) shall have the meaning given the term in such
        section.

                   TITLE XV--ACCOUNTABILITY AND TRANSPARENCY

    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 1521.
            (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 from appropriations made under this
        Act.
            (5) Panel.--The term ``Panel'' means the Recovery Independent
        Advisory Panel established in section 1541.

              Subtitle A--Transparency and Oversight Requirements

    SEC. 1511. CERTIFICATIONS.

        With respect to covered funds made available to State or local
    governments for infrastructure investments, 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. Such certification shall include a description of the
    investment, the estimated total cost, and the amount of covered funds
    to be used, and shall be posted on a website and linked to the website
    established by section 1526. A State or local agency may not receive
    infrastructure investment funding from funds made available in this Act
    unless this certification is made and posted.

    SEC. 1512. REPORTS ON USE OF FUNDS.

        (a) Short Title.--This section may be cited as the ``Jobs
    Accountability Act''.
        (b) Definitions.--In this section:
            (1) Recipient.--The term ``recipient''--
                (A) means any entity that receives recovery funds directly
            from the Federal Government (including recovery funds received
            through grant, loan, or contract) other than an individual; and
                (B) includes a State that receives recovery funds.
            (2) Recovery funds.--The term ``recovery funds'' means any
        funds that are made available from appropriations made 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
    a Federal 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;
                (D) an estimate of the number of jobs created and the
            number of jobs retained by the project or activity; and
                (E) for infrastructure investments made by State and local
            governments, the purpose, total cost, and rationale of the
            agency for funding the infrastructure investment with funds
            made available under this Act, and name of the person to
            contact at the agency if there are concerns with the
            infrastructure investment.
            (4) Detailed information on any subcontracts or subgrants
        awarded by the recipient to include the data elements required to
        comply with the Federal Funding Accountability and Transparency Act
        of 2006 (Public Law 109-282), allowing aggregate reporting on
        awards below $25,000 or to individuals, as prescribed by the
        Director of the Office of Management and Budget.
        (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 45 days after such
    reports are submitted.
        (f) Compliance.--Within 180 days of enactment, as a condition of
    receipt of funds under this Act, Federal agencies shall require any
    recipient of such funds to provide the information required under
    subsection (c).
        (g) Guidance.--Federal agencies, in coordination with the Director
    of the Office of Management and Budget, shall provide for user-friendly
    means for recipients of covered funds to meet the requirements of this
    section.
        (h) Registration.--Funding recipients required to report
    information per subsection (c)(4) must register with the Central
    Contractor Registration database or complete other registration
    requirements as determined by the Director of the Office of Management
    and Budget.

    SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.

        (a) In General.--In consultation with the Director of the Office of
    Management and Budget and the Secretary of the Treasury, the
    Chairperson of the Council of Economic Advisers shall submit quarterly
    reports to the Committees on Appropriations of the Senate and House of
    Representatives that detail the 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 1530.

    SEC. 1514. INSPECTOR GENERAL REVIEWS.

        (a) Reviews.--Any inspector general of a Federal department or
    executive agency shall review, as appropriate, any concerns raised by
    the public about specific investments using funds made available in
    this Act. Any findings of such reviews not related to an ongoing
    criminal proceeding shall be relayed immediately to the head of the
    department or agency concerned. In addition, the findings of such
    reviews, along with any audits conducted by any inspector general of
    funds made available in this Act, shall be posted on the inspector
    general's website and linked to the website established by section
    1526, except that portions of reports may be redacted to the extent the
    portions would disclose information that is protected from public
    disclosure under sections 552 and 552a of title 5, United States Code.

    SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN RECORDS
                  AND EMPLOYEES.

        (a) Access.--With respect to each contract or grant awarded using
    covered funds, any representative of an appropriate inspector general
    appointed under section 3 or 8G of the Inspector General Act of 1978 (5
    U.S.C. App.), is authorized--
            (1) to examine any records of the contractor or grantee, any of
        its subcontractors or subgrantees, or any State or local agency
        administering such contract, that pertain to, and involve
        transactions relating to, the contract, subcontract, grant, or
        subgrant; and
            (2) to interview any officer or employee of the contractor,
        grantee, subgrantee, or agency regarding such transactions.
        (b) Relationship to Existing Authority.--Nothing in this section
    shall be interpreted to limit or restrict in any way any existing
    authority of an inspector general.

           Subtitle B--Recovery Accountability and Transparency Board

    SEC. 1521. 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. 1522. 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. 1523. 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 or reviewing covered funds to determine
            whether wasteful spending, poor contract or grant management,
            or other abuses are occurring and referring matters it
            considers appropriate for investigation to the inspector
            general for the agency that disbursed the covered funds;
                (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, including
            coordinating and collaborating to the extent practicable with
            the Inspectors General Council on Integrity and Efficiency
            established by the Inspector General Reform Act of 2008 (Public
            Law 110-409).
        (b) Reports.--
            (1) Flash and other reports.--The Board shall submit to the
        President and Congress, including the Committees on Appropriations
        of the Senate and House of Representatives, reports, to be known as
        ``flash reports'', on potential management and funding problems
        that require immediate attention. The Board also shall submit to
        Congress such other reports as the Board considers appropriate on
        the use and benefits of funds made available in this Act.
            (2) 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.
            (3) Annual reports.--The Board shall submit annual reports to
        the President and Congress, including the Committees on
        Appropriations of the Senate and House of Representatives,
        consolidating applicable quarterly reports on the use of covered
        funds.
            (4) Public availability.--
                (A) In general.--All reports submitted under this
            subsection shall be made publicly available and posted on the
            website established by section 1526.
                (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 sections 552 and 552a of title 5, United
            States Code.
        (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. 1524. POWERS OF THE BOARD.

        (a) In General.--The Board shall conduct audits and reviews of
    spending of covered funds and coordinate on such activities with the
    inspectors general of the relevant agency to avoid duplication and
    overlap of work.
        (b) Audits and Reviews.--The Board may--
            (1) conduct its own independent audits and reviews relating to
        covered funds; and
            (2) collaborate on audits and reviews relating to covered funds
        with any inspector general of an agency.
        (c) Authorities.--
            (1) Audits and reviews.--In conducting audits and reviews, the
        Board shall have the authorities provided under section 6 of the
        Inspector General Act of 1978 (5 U.S.C. App.). Additionally, the
        Board may issue subpoenas to compel the testimony of persons who
        are not Federal officers or employees and may enforce such
        subpoenas in the same manner as provided for inspector general
        subpoenas 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 necessary inquiries. 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 at such public hearings. Any such subpoenas may
    be enforced in the same manner as provided for inspector general
    subpoenas 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, reviews, or other activities related to oversight by the
    Board of covered funds to any office of inspector general, the Office
    of Management and Budget, the General Services Administration, and the
    Panel.

    SEC. 1525. 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 1530.
        (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. 1526. BOARD WEBSITE.

        (a) Establishment.--The Board shall establish and maintain, no
    later than 30 days after enactment of this Act, 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 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 Federal Government that expend covered funds,
        including information about the competitiveness of the contracting
        process, information about the process that was used for the award
        of contracts, and for contracts over $500,000 a summary of the
        contract.
            (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 include detailed information on Federal
        Government contracts and grants that expend covered funds, to
        include the data elements required to comply with the Federal
        Funding Accountability and Transparency Act of 2006 (Public Law
        109-282), allowing aggregate reporting on awards below $25,000 or
        to individuals, as prescribed by the Director of the Office of
        Management and Budget.
            (8) The website shall provide a link to estimates of the jobs
        sustained or created by the Act.
            (9) The website shall provide a link to information about
        announcements of grant competitions and solicitations for contracts
        to be awarded.
            (10) The website shall include appropriate links to other
        government websites with information concerning covered funds,
        including Federal agency and State websites.
            (11) The website shall include a plan from each Federal agency
        for using funds made available in this Act to the agency.
            (12) The website shall provide information on Federal
        allocations of formula grants and awards of competitive grants
        using covered funds.
            (13) The website shall provide information on Federal
        allocations of mandatory and other entitlement programs by State,
        county, or other appropriate geographical unit.
            (14) To the extent practical, the website shall provide,
        organized by the location of the job opportunities involved, links
        to and information about how to access job opportunities,
        including, if possible, links to or information about local
        employment agencies, job banks operated by State workforce
        agencies, the Department of Labor's CareerOneStop website, State,
        local and other public agencies receiving Federal funding, and
        private firms contracted to perform work with Federal funding, in
        order to direct job seekers to job opportunities created by this
        Act.
            (15) 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 or to protect information that is not subject
    to disclosure under sections 552 and 552a of title 5, United States
    Code.

    SEC. 1527. 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. The inspector
    general's decision shall be final.

    SEC. 1528. 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 auditors.

    SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.

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

    SEC. 1530. TERMINATION OF THE BOARD.

        The Board shall terminate on September 30, 2013.

                Subtitle C--Recovery Independent Advisory Panel

    SEC. 1541. 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. 1542. 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. 1543. 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. 1544. 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 Panel with administrative support services, including
    the provision of office space and facilities.

    SEC. 1545. TERMINATION OF THE PANEL.

        The Panel shall terminate on September 30, 2013.

    SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.

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

      Subtitle D--Additional Accountability and Transparency Requirements

    SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.

        Although this Act provides supplemental appropriations for
    programs, projects, and activities in existing Treasury accounts, to
    facilitate tracking these funds through Treasury and agency accounting
    systems, the Secretary of the Treasury shall ensure that all funds
    appropriated in this Act shall be established in separate Treasury
    accounts, unless a waiver from this provision is approved by the
    Director of the Office of Management and Budget.

    SEC. 1552. SET-ASIDE FOR STATE AND LOCAL GOVERNMENT REPORTING AND
                  RECORDKEEPING.

        Federal agencies receiving funds under this Act, may, after
    following the notice and comment rulemaking requirements under the
    Administrative Procedures Act (5 U.S.C. 500), reasonably adjust
    applicable limits on administrative expenditures for Federal awards to
    help award recipients defray the costs of data collection requirements
    initiated pursuant to this Act.

    SEC. 1553. 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, including
    a disclosure made in the ordinary course of an employee's duties, to
    the Board, an inspector general, the Comptroller General, a member of
    Congress, a State or Federal regulatory or law enforcement agency, a
    person with supervisory authority over the employee (or such other
    person working for the employer who has the authority to investigate,
    discover, or terminate misconduct), a court or grand jury, 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 related to the implementation or use of covered funds;
            (4) an abuse of authority related to the implementation or use
        of covered funds; or
            (5) a violation of law, rule, or regulation 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 regarding the reprisal to the appropriate inspector
        general. Except as provided under paragraph (3), unless the
        inspector general determines that the complaint is frivolous, does
        not relate to covered funds, or another Federal or State judicial
        or administrative proceeding has previously been invoked to resolve
        such complaint, 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, not later than 180 days after
            receiving a complaint under paragraph (1)--
                    (i) make a determination that the complaint is
                frivolous, does not relate to covered funds, or another
                Federal or State judicial or administrative proceeding has
                previously been invoked to resolve such complaint; or
                    (ii) submit a report under paragraph (1).
                (B) Extensions.--
                    (i) Voluntary extension agreed to between inspector
                general and complainant.--If the inspector general is
                unable to complete an investigation under this section 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.
                    (ii) Extension granted by inspector general.--If the
                inspector general is unable to complete an investigation
                under this section in time to submit a report within the
                180-day period specified under subparagraph (A), the
                inspector general may extend the period for not more than
                180 days without agreeing with the person submitting the
                complaint to such extension, provided that the inspector
                general provides a written explanation (subject to the
                authority to exclude information under paragraph (4)(C))
                for the decision, which shall be provided to both the
                person submitting the complaint and the non-Federal
                employer.
                    (iii) Semi-annual report on extensions.--The inspector
                general shall include in semi-annual reports to Congress a
                list of those investigations for which the inspector
                general received an extension.
            (3) Discretion not to investigate complaints.--
                (A) In general.--The inspector general may decide not to
            conduct or continue an investigation under this section upon
            providing to the person submitting the complaint and the non-
            Federal employer a written explanation (subject to the
            authority to exclude information under paragraph (4)(C)) for
            such decision.
                (B) Assumption of rights to civil remedy.--Upon receipt of
            an explanation of a decision not to conduct or continue an
            investigation under subparagraph (A), the person submitting a
            complaint shall immediately assume the right to a civil remedy
            under subsection (c)(3) as if the 210-day period specified
            under such subsection has already passed.
                (C) Semi-annual report.--The inspector general shall
            include in semi-annual reports to Congress a list of those
            investigations the inspector general decided not to conduct or
            continue under this paragraph.
            (4) Access to investigative file of inspector general.--
                (A) In general.--The person alleging a reprisal under this
            section shall have access to the investigation file of the
            appropriate inspector general in accordance with section 552a
            of title 5, United States Code (commonly referred to as the
            ``Privacy Act''). The investigation of the inspector general
            shall be deemed closed for purposes of disclosure under such
            section when an employee files an appeal to an agency head or a
            court of competent jurisdiction.
                (B) Civil action.--In the event the person alleging the
            reprisal brings suit under subsection (c)(3), the person
            alleging the reprisal and the non-Federal employer shall have
            access to the investigative file of the inspector general in
            accordance with the Privacy Act.
                (C) Exception.--The inspector general may exclude from
            disclosure--
                    (i) information protected from disclosure by a
                provision of law; and
                    (ii) any additional information the inspector general
                determines disclosure of which would impede a continuing
                investigation, provided that such information is disclosed
                once such disclosure would no longer impede such
                investigation, unless the inspector general determines that
                disclosure of law enforcement techniques, procedures, or
                information could reasonably be expected to risk
                circumvention of the law or disclose the identity of a
                confidential source.
            (5) Privacy of information.--An inspector general investigating
        an alleged reprisal under this section may not respond to any
        inquiry or disclose any information from or about any person
        alleging such reprisal, except in accordance with the provisions of
        section 552a of title 5, United States Code, or as required by any
        other applicable Federal law.
        (c) Remedy and Enforcement Authority.--
            (1) Burden of proof.--
                (A) Disclosure as contributing factor in reprisal.--
                    (i) In general.--A person alleging a reprisal under
                this section shall be deemed to have affirmatively
                established the occurrence of the reprisal if the person
                demonstrates that a disclosure described in subsection (a)
                was a contributing factor in the reprisal.
                    (ii) Use of circumstantial evidence.--A disclosure may
                be demonstrated as a contributing factor in a reprisal for
                purposes of this paragraph by circumstantial evidence,
                including--

                        (I) evidence that the official undertaking the
                    reprisal knew of the disclosure; or
                        (II) evidence that the reprisal occurred within a
                    period of time after the disclosure such that a
                    reasonable person could conclude that the disclosure
                    was a contributing factor in the reprisal.

                (B) Opportunity for rebuttal.--The head of an agency may
            not find the occurrence of a reprisal with respect to a
            reprisal that is affirmatively established under subparagraph
            (A) if the non-Federal employer demonstrates by clear and
            convincing evidence that the non-Federal employer would have
            taken the action constituting the reprisal in the absence of
            the disclosure.
            (2) 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 in whole or in part 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), compensatory
            damages, 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 or a court of competent
            jurisdiction.
            (3) Civil action.--If the head of an agency issues an order
        denying relief in whole or in part under paragraph (1), 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)(i), within 30 days after the expiration of the
        extension of time, or decides under subsection (b)(3) not to
        investigate or to discontinue an investigation, and there is no
        showing that such delay or decision 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.
            (4) Judicial enforcement of order.--Whenever a person fails to
        comply with an order issued under paragraph (2), 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, compensatory and exemplary damages, and
        attorneys fees and costs.
            (5) Judicial review.--Any person adversely affected or
        aggrieved by an order issued under paragraph (2) 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) Nonenforceability of Certain Provisions Waiving Rights and
    Remedies or Requiring Arbitration of Disputes.--
            (1) Waiver of rights and remedies.--Except as provided under
        paragraph (3), the rights and remedies provided for in this section
        may not be waived by any agreement, policy, form, or condition of
        employment, including by any predispute arbitration agreement.
            (2) Predispute arbitration agreements.--Except as provided
        under paragraph (3), no predispute arbitration agreement shall be
        valid or enforceable if it requires arbitration of a dispute
        arising under this section.
            (3) Exception for collective bargaining agreements.--
        Notwithstanding paragraphs (1) and (2), an arbitration provision in
        a collective bargaining agreement shall be enforceable as to
        disputes arising under the collective bargaining agreement.
        (e) Requirement to Post Notice of Rights and Remedies.--Any
    employer receiving covered funds shall post notice of the rights and
    remedies provided under this section.
        (f) Rules of Construction.--
            (1) No implied authority to retaliate for non-protected
        disclosures.--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.
            (2) Relationship to state laws.--Nothing in this section may be
        construed to preempt, preclude, or limit the protections provided
        for public or private employees under State whistleblower laws.
        (g) Definitions.--In this section:
            (1) Abuse of authority.--The term ``abuse of authority'' means
        an arbitrary and capricious exercise of authority by a contracting
        official or employee that adversely affects the rights of any
        person, or that results in personal gain or advantage to the
        official or employee or to preferred other persons.
            (2) Covered funds.--The term ``covered funds'' means any
        contract, grant, or other payment received by any non-Federal
        employer if--
                (A) the Federal Government provides any portion of the
            money or property that is provided, requested, or demanded; and
                (B) at least some of the funds are appropriated or
            otherwise made available by this Act.
            (3) Employee.--The term ``employee''--
                (A) except as provided under subparagraph (B), means an
            individual performing services on behalf of an employer; and
                (B) does not include any Federal employee or member of the
            uniformed services (as that term is defined in section
            101(a)(5) of title 10, United States Code).
            (4) Non-federal employer.--The term ``non-Federal employer''--
                (A) means any employer--
                    (i) with respect to covered funds--

                        (I) the contractor, subcontractor, grantee, or
                    recipient, as the case may be, if the contractor,
                    subcontractor, grantee, or recipient is an employer;
                    and
                        (II) any professional membership organization,
                    certification or other professional body, any agent or
                    licensee of the Federal government, or any person
                    acting directly or indirectly in the interest of an
                    employer receiving covered funds; or

                    (ii) with respect to covered funds received by a State
                or local government, the State or local government
                receiving the funds and any contractor or subcontractor of
                the State or local government; and
                (B) does not mean any department, agency, or other entity
            of the Federal Government.
            (5) State or local government.--The term ``State or local
        government'' means--
                (A) the government of each of the several States, the
            District of Columbia, the Commonwealth of Puerto Rico, Guam,
            American Samoa, the Virgin Islands, the Commonwealth of the
            Northern Mariana Islands, or any other territory or possession
            of the United States; or
                (B) the government of any political subdivision of a
            government listed in subparagraph (A).

    SEC. 1554. SPECIAL CONTRACTING PROVISIONS.

        To the maximum extent possible, contracts funded under this Act
    shall be awarded as fixed-price contracts through the use of
    competitive procedures. A summary of any contract awarded with such
    funds that is not fixed-price and not awarded using competitive
    procedures shall be posted in a special section of the website
    established in section 1526.

                    TITLE XVI--GENERAL PROVISIONS--THIS ACT

                       RELATIONSHIP TO OTHER APPROPRIATIONS

        Sec. 1601.  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).

                      PREFERENCE FOR QUICK-START ACTIVITIES

        Sec. 1602. In using funds made available in this Act for
    infrastructure investment, recipients shall give preference to
    activities that can be started and completed expeditiously, including a
    goal of using at least 50 percent of the funds for activities that can
    be initiated not later than 120 days after the date of the enactment of
    this Act. Recipients shall also use grant funds in a manner that
    maximizes job creation and economic benefit.

                              PERIOD OF AVAILABILITY

        Sec. 1603. All funds appropriated in this Act shall remain
    available for obligation until September 30, 2010, unless expressly
    provided otherwise in this Act.

                                  LIMIT ON FUNDS

        Sec. 1604. None of the funds appropriated or otherwise made
    available in this Act may be used by any State or local government, or
    any private entity, for any casino or other gambling establishment,
    aquarium, zoo, golf course, or swimming pool.

                                   BUY AMERICAN

        Sec. 1605.  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 or category of cases
    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 in 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 justification
    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.

                              WAGE RATE REQUIREMENTS

        Sec. 1606. Notwithstanding any other provision of law and in a
    manner consistent with other provisions in this Act, all laborers and
    mechanics employed by contractors and subcontractors on projects funded
    directly by or assisted in whole or in part by and through the Federal
    Government pursuant to this Act shall be paid wages at rates not less
    than those prevailing on projects of a character similar in the
    locality as determined by the Secretary of Labor in accordance with
    subchapter IV of chapter 31 of title 40, United States Code. With
    respect to the labor standards specified in this section, the Secretary
    of Labor shall have the authority and functions set forth in
    Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.)
    and section 3145 of title 40, United States Code.

       ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF
                                     FUNDS

        Sec. 1607. (a) Certification by Governor.--Not later than 45 days
    after the date of enactment of this Act, for funds provided to any
    State or agency thereof, the Governor of the State shall certify that:
    (1) the State will request and use funds provided by this Act; and (2)
    the funds will be used to create jobs and promote economic growth.
        (b) Acceptance by State Legislature.--If funds provided to any
    State in any division of this Act are not accepted for use by the
    Governor, then acceptance by the State legislature, by means of the
    adoption of a concurrent resolution, shall be sufficient to provide
    funding to such State.
        (c) Distribution.--After the adoption of a State legislature's
    concurrent resolution, funding to the State will be for distribution to
    local governments, councils of government, public entities, and public-
    private entities within the State either by formula or at the State's
    discretion.

                        economic stabilization contracting

        Sec. 1608. 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. 1609. (a) 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.
        (b) 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.
        (c) 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.
        Sec. 1610. (a) None of the funds appropriated or otherwise made
    available by this Act, for projects initiated after the effective date
    of this Act, may be used by an executive agency to enter into any
    Federal contract unless such contract is entered into in accordance
    with the Federal Property and Administrative Services Act (41 U.S.C.
    253) or chapter 137 of title 10, United States Code, and the Federal
    Acquisition Regulation, unless such contract is otherwise authorized by
    statute to be entered into without regard to the above referenced
    statutes.
        (b) All projects to be conducted under the authority of the Indian
    Self-Determination and Education Assistance Act, the Tribally-
    Controlled Schools Act, the Sanitation and Facilities Act, the Native
    American Housing and Self-Determination Assistance Act and the Buy-
    Indian Act shall be identified by the appropriate Secretary and the
    appropriate Secretary shall incorporate provisions to ensure that the
    agreement conforms with the provisions of this Act regarding the timing
    for use of funds and transparency, oversight, reporting, and
    accountability, including review by the Inspectors General, the
    Accountability and Transparency Board, and Government Accountability
    Office, consistent with the objectives of this Act.
        Sec. 1611. 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.
        Sec. 1612. During the current fiscal year not to exceed 1 percent
    of any appropriation made available by this Act may be transferred by
    an agency head between such appropriations funded in this Act of that
    department or agency: Provided, That such appropriations shall be
    merged with and available for the same purposes, and for the same time
    period, as the appropriation to which transferred: Provided further,
    That the agency head shall notify the Committees on Appropriations of
    the Senate and House of Representatives of the transfer 15 days in
    advance: Provided further, That notice of any transfer made pursuant to
    this authority be posted on the website established by the Recovery Act
    Accountability and Transparency Board 15 days following such transfer:
    Provided further, That the authority contained in this section is in
    addition to transfer authorities otherwise available under current law:
    Provided further, That the authority provided in this section shall not
    apply to any appropriation that is subject to transfer provisions
    included elsewhere in 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. Extension of and increase in first-time homebuyer credit;
              waiver of requirement to repay.
    Sec. 1007. Suspension of tax on portion of unemployment compensation.
    Sec. 1008. Additional 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.
    Sec. 1104. Coordination with renewable energy grants.

     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--Modification of Credit for Carbon Dioxide Sequestration

    Sec. 1131. Application of monitoring requirements to carbon dioxide used
              as a tertiary injectant.

                  PART V--Plug-in Electric Drive Motor Vehicles

    Sec. 1141. Credit for new qualified plug-in electric drive motor
              vehicles.
    Sec. 1142. Credit for certain plug-in electric vehicles.
    Sec. 1143. Conversion kits.
    Sec. 1144. Treatment of alternative motor vehicle credit as a personal
              credit allowed against AMT.

               PART VI--Parity for Transportation Fringe Benefits

    Sec. 1151. Increased exclusion amount for commuter transit benefits and
              transit passes.

                     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--Small Business Provisions

    Sec. 1211. 5-year carryback of operating losses of small businesses.
    Sec. 1212. Decreased required estimated tax payments in 2009 for certain
              small businesses.

                        PART III--Incentives for New Jobs

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

                   PART IV--Rules Relating to Debt Instruments

    Sec. 1231. Deferral and ratable inclusion of income arising from
              business indebtedness discharged by the reacquisition of a
              debt instrument.
    Sec. 1232. Modifications of rules for original issue discount on certain
              high yield obligations.

                     PART V--Qualified Small Business Stock

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

                             PART VI--S Corporations

    Sec. 1251. Temporary reduction in recognition period for built-in gains
              tax.

                  PART VII--Rules Relating to Ownership Changes

    Sec. 1261. Clarification of regulations related to limitations on
              certain built-in losses following an ownership change.
    Sec. 1262. Treatment of certain ownership changes for purposes of
              limitations on net operating loss carryforwards and certain
              built-in losses.

                  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. Increase in new markets tax credit.
    Sec. 1404. Coordination of low-income housing credit and low-income
              housing grants.

                   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.

     PART V--Regulated Investment Companies Allowed to Pass-Thru Tax Credit
                                  Bond Credits

    Sec. 1541. Regulated investment companies allowed to pass-thru tax
              credit bond credits.

                          Subtitle G--Other Provisions

    Sec. 1601. Application of certain labor standards to projects financed
              with certain tax-favored bonds.
    Sec. 1602. Grants to States for low-income housing projects in lieu of
              low-income housing credit allocations for 2009.
    Sec. 1603. Grants for specified energy property in lieu of tax credits.
    Sec. 1604. Increase in public debt limit.

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

    Sec. 1701. Prohibition on collection of certain payments made under the
              Continued Dumping and Subsidy Offset Act of 2000.

                     Subtitle I--Trade Adjustment Assistance

    Sec. 1800. Short title.

                 PART I--Trade Adjustment Assistance for Workers

        subpart a--trade adjustment assistance for service sector workers

    Sec. 1801. Extension of trade adjustment assistance to service sector
              and public agency workers; shifts in production.
    Sec. 1802. Separate basis for certification.
    Sec. 1803. Determinations by Secretary of Labor.
    Sec. 1804. Monitoring and reporting relating to service sector.

        subpart b--industry notifications following certain affirmative
                                 determinations

    Sec. 1811. Notifications following certain affirmative determinations.
    Sec. 1812. Notification to Secretary of Commerce.

                           subpart c--program benefits

    Sec. 1821. Qualifying Requirements for Workers.
    Sec. 1822. Weekly amounts.
    Sec. 1823. Limitations on trade readjustment allowances; allowances for
              extended training and breaks in training.
    Sec. 1824. Special rules for calculation of eligibility period.
    Sec. 1825. Application of State laws and regulations on good cause for
              waiver of time limits or late filing of claims.
    Sec. 1826. Employment and case management services.
    Sec. 1827. Administrative expenses and employment and case management
              services.
    Sec. 1828. Training funding.
    Sec. 1829. Prerequisite education; approved training programs.
    Sec. 1830. Pre-layoff and part-time training.
    Sec. 1831. On-the-job training.
    Sec. 1832. Eligibility for unemployment insurance and program benefits
              while in training.
    Sec. 1833. Job search and relocation allowances.

           subpart d--reemployment trade adjustment assistance program

    Sec. 1841. Reemployment trade adjustment assistance program.

                            subpart e--other matters

    Sec. 1851. Office of Trade Adjustment Assistance.
    Sec. 1852. Accountability of State agencies; collection and publication
              of program data; agreements with States.
    Sec. 1853. Verification of eligibility for program benefits.
    Sec. 1854. Collection of data and reports; information to workers.
    Sec. 1855. Fraud and recovery of overpayments.
    Sec. 1856. Sense of Congress on application of trade adjustment
              assistance.
    Sec. 1857. Consultations in promulgation of regulations.
    Sec. 1858. Technical corrections.

                 PART II--Trade Adjustment Assistance for Firms

    Sec. 1861. Expansion to service sector firms.
    Sec. 1862. Modification of requirements for certification.
    Sec. 1863. Basis for determinations.
    Sec. 1864. Oversight and administration; authorization of
              appropriations.
    Sec. 1865. Increased penalties for false statements.
    Sec. 1866. Annual report on trade adjustment assistance for firms.
    Sec. 1867. Technical corrections.

              PART III--Trade Adjustment Assistance for Communities

    Sec. 1871. Purpose.
    Sec. 1872. Trade adjustment assistance for communities.
    Sec. 1873. Conforming amendments.

                PART IV--Trade Adjustment Assistance for Farmers

    Sec. 1881. Definitions.
    Sec. 1882. Eligibility.
    Sec. 1883. Benefits.
    Sec. 1884. Report.
    Sec. 1885. Fraud and recovery of overpayments.
    Sec. 1886. Determination of increases of imports for certain fishermen.
    Sec. 1887. Extension of trade adjustment assistance for farmers.

                           PART V--General Provisions

    Sec. 1891. Effective date.
    Sec. 1892. Extension of trade adjustment assistance programs.
    Sec. 1893. Termination; related provisions.
    Sec. 1894. Government Accountability Office report.
    Sec. 1895. Emergency designation.

                      PART VI--Health Coverage Improvement

    Sec. 1899. Short title.
    Sec. 1899A. Improvement of the affordability of the credit.
    Sec. 1899B. Payment for monthly premiums paid prior to commencement of
              advance payments of credit.
    Sec. 1899C. TAA recipients not enrolled in training programs eligible
              for credit.
    Sec. 1899D. TAA pre-certification period rule for purposes of
              determining whether there is a 63-day lapse in creditable
              coverage.
    Sec. 1899E. Continued qualification of family members after certain
              events.
    Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible
              individuals and PBGC recipients.
    Sec. 1899G. Addition of coverage through voluntary employees'
              beneficiary associations.
    Sec. 1899H. Notice requirements.
    Sec. 1899I. Survey and report on enhanced health coverage tax credit
              program.
    Sec. 1899J. Authorization of appropriations.
    Sec. 1899K. Extension of national emergency grants.
    Sec. 1899L. GAO study and report.

              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) $400 ($800 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 2 percent of so much of the taxpayer's modified
        adjusted gross income as exceeds $75,000 ($150,000 in the case of a
        joint return).
            ``(2) Modified adjusted gross income.--For purposes of
        subparagraph (A), the term `modified adjusted gross income' means
        the adjusted gross income of the taxpayer for the taxable year
        increased by any amount excluded from gross income under section
        911, 931, or 933.
        ``(c) Reduction for Certain Other Payments.--The credit allowed
    under subsection (a) for any taxable year shall be reduced by the
    amount of any payments received by the taxpayer during such taxable
    year under section 2201, and any credit allowed to the taxpayer under
    section 2202, of the American Recovery and Reinvestment Tax Act of
    2009.
        ``(d) Definitions and Special Rules.--For purposes of this
    section--
            ``(1) Eligible individual.--
                ``(A) In general.--The term `eligible individual' means any
            individual other than--
                    ``(i) any nonresident alien individual,
                    ``(ii) 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
                    ``(iii) an estate or trust.
                ``(B) Identification number requirement.--Such term shall
            not include any individual who does not include on the return
            of tax for the taxable year--
                    ``(i) such individual's social security account number,
                and
                    ``(ii) in the case of a joint return, the social
                security account number of one of the taxpayers on such
                return.
            For purposes of the preceding sentence, the social security
            account number shall not include a TIN issued by the Internal
            Revenue Service.
            ``(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 social security account number
            required under section 36A(d)(1)(B).''.
        (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 $3,000.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.

    SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

        (a) In General.--Section 25A (relating to Hope scholarship credit)
    is amended by redesignating subsection (i) as subsection (j) and by
    inserting after subsection (h) the following new subsection:
        ``(i) American Opportunity Tax Credit.--In the case of any taxable
    year beginning in 2009 or 2010--
            ``(1) Increase in credit.--The Hope Scholarship Credit shall be
        an amount equal to the sum of--
                ``(A) 100 percent of so much of the qualified tuition and
            related expenses paid by the taxpayer during the taxable year
            (for education furnished to the eligible student during any
            academic period beginning in such taxable year) as does not
            exceed $2,000, plus
                ``(B) 25 percent of such expenses so paid as exceeds $2,000
            but does not exceed $4,000.
            ``(2) Credit allowed for first 4 years of post-secondary
        education.--Subparagraphs (A) and (C) of subsection (b)(2) shall be
        applied by substituting `4' for `2'.
            ``(3) Qualified tuition and related expenses to include
        required course materials.--Subsection (f)(1)(A) shall be applied
        by substituting `tuition, fees, and course materials' for `tuition
        and fees'.
            ``(4) Increase in agi limits for hope scholarship credit.--In
        lieu of applying subsection (d) with respect to the Hope
        Scholarship Credit, such credit (determined without regard to this
        paragraph) shall be reduced (but not below zero) by the amount
        which bears the same ratio to such credit (as so determined) as--
                ``(A) the excess of--
                    ``(i) the taxpayer's modified adjusted gross income (as
                defined in subsection (d)(3)) for such taxable year, over
                    ``(ii) $80,000 ($160,000 in the case of a joint
                return), bears to
                ``(B) $10,000 ($20,000 in the case of a joint return).
            ``(5) Credit allowed against alternative minimum tax.--In the
        case of a taxable year to which section 26(a)(2) does not apply, so
        much of the credit allowed under subsection (a) as is attributable
        to the Hope Scholarship Credit shall not exceed the excess of--
                ``(A) the sum of the regular tax liability (as defined in
            section 26(b)) plus the tax imposed by section 55, over
                ``(B) the sum of the credits allowable under this subpart
            (other than this subsection and sections 23, 25D, and 30D) and
            section 27 for the taxable year.
        Any reference in this section or section 24, 25, 26, 25B, 904, or
        1400C to a credit allowable under this subsection shall be treated
        as a reference to so much of the credit allowable under subsection
        (a) as is attributable to the Hope Scholarship Credit.
            ``(6) Portion of credit made refundable.--40 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 6211(b)(4)(A) is amended by inserting ``25A by
        reason of subsection (i)(6) thereof,'' after ``24(d),''.
            (8) Section 1324(b)(2) of title 31, United States Code, is
        amended by inserting ``25A,'' before ``35''.
        (c) 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 application of section 25A(i)(6) of the Internal
            Revenue Code of 1986 (as added 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 application of section 25A(i)(6) of such Code (as
            so added) 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.--Section 25A(i)(6) of such Code (as added by this
        section) shall not apply to a bona fide resident of any possession
        of the United States.
            (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 25A of the Internal
            Revenue Code of 1986 by reason of subsection (i)(6) of such
            section (as added by this section).
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.
        (e) 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.
        (f) Treasury Studies Regarding Education Incentives.--
            (1) Study regarding coordination with non-tax student financial
        assistance.--The Secretary of the Treasury and the Secretary of
        Education, or their delegates, shall--
                (A) 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 to maximize their effectiveness at
            promoting college affordability, and
                (B) examine ways to expedite the delivery of the tax
            credit.
            (2) Study regarding inclusion of community service
        requirements.--The Secretary of the Treasury and the Secretary of
        Education, or their delegates, shall study the feasibility of
        requiring including community service as a condition of taking
        their tuition and related expenses into account under section 25A
        of the Internal Revenue Code of 1986.
            (3) Report.--Not later than 1 year after the date of the
        enactment of this Act, the Secretary of the Treasury, or the
        Secretary's delegate, shall report to Congress on the results of
        the studies conducted under this paragraph.

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

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

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

        (a) Extension.--
            (1) In general.--Section 36(h) is amended by striking ``July 1,
        2009'' and inserting ``December 1, 2009''.
            (2) Conforming amendment.--Section 36(g) is amended by striking
        ``July 1, 2009'' and inserting ``December 1, 2009''.
        (b) Increase.--
            (1) In general.--Section 36(b) is amended by striking
        ``$7,500'' each place it appears and inserting ``$8,000''.
            (2) Conforming amendment.--Section 36(b)(1)(B) is amended by
        striking ``$3,750'' and inserting ``$4,000''.
        (c) Waiver of Recapture.--
            (1) In general.--Paragraph (4) of section 36(f) is amended by
        adding at the end the following new subparagraph:
                ``(D) Waiver of recapture for purchases in 2009.--In the
            case of any credit allowed with respect to the purchase of a
            principal residence after December 31, 2008, and before
            December 1, 2009--
                    ``(i) paragraph (1) shall not apply, and
                    ``(ii) paragraph (2) shall apply only if the
                disposition or cessation described in paragraph (2) with
                respect to such residence occurs during the 36-month period
                beginning on the date of the purchase of such residence by
                the taxpayer.''.
            (2) Conforming amendment.--Subsection (g) of section 36 is
        amended by striking ``subsection (c)'' and inserting ``subsections
        (c) and (f)(4)(D)''.
        (d) Coordination With First-Time Homebuyer Credit for District of
    Columbia.--
            (1) In general.--Subsection (e) of section 1400C is amended by
        adding at the end the following new paragraph:
            ``(4) Coordination with national first-time homebuyers
        credit.--No credit shall be allowed under this section to any
        taxpayer with respect to the purchase of a residence after December
        31, 2008, and before December 1, 2009, if a credit under section 36
        is allowable to such taxpayer (or the taxpayer's spouse) with
        respect to such purchase.''.
            (2) Conforming amendment.--Section 36(d) is amended by striking
        paragraph (1).
        (e) Removal of Prohibition on Financing by Mortgage Revenue
    Bonds.--Section 36(d), as amended by subsection (c)(2), is amended by
    striking paragraph (2) and by redesignating paragraphs (3) and (4) as
    paragraphs (1) and (2), respectively.
        (f) Effective Date.--The amendments made by this section shall
    apply to residences purchased after December 31, 2008.

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

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

    SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON
                  THE PURCHASE OF CERTAIN MOTOR VEHICLES.

        (a) In General.--Subsection (a) of section 164 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
    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.
                ``(B) Limitation based on vehicle price.--The amount of any
            State or local sales or excise tax imposed on the purchase of a
            qualified motor vehicle taken into account under subparagraph
            (A) shall not exceed the portion of such tax attributable to so
            much of the purchase price as does not exceed $49,500.
                ``(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 (determined without regard to
            sections 911, 931, and 933).
                ``(D) Qualified motor vehicle.--For purposes of this
            paragraph--
                    ``(i) In general.--The term `qualified motor vehicle'
                means--

                        ``(I) a passenger automobile or light truck which
                    is treated as a motor vehicle for purposes of title II
                    of the Clean Air Act, the gross vehicle weight rating
                    of which is not more than 8,500 pounds, and the
                    original use of which commences with the taxpayer,
                        ``(II) a motorcycle the gross vehicle weight rating
                    of which is not more than 8,500 pounds and the original
                    use of which commences with the taxpayer, and
                        ``(III) a motor home the original use of which
                    commences with the taxpayer.

                    ``(ii) Other terms.--The terms `motorcycle' and `motor
                home' have the meanings given such terms under section
                571.3 of title 49, Code of Federal Regulations (as in
                effect on the date of the enactment of this paragraph).
                ``(E) 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.
                ``(F) 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.
                ``(G) Termination.--This paragraph shall not apply to
            purchases after December 31, 2009.''.
        (c) Deduction Allowed to Nonitemizers.--
            (1) In general.--Paragraph (1) of section 63(c) is amended by
        striking ``and'' at the end of subparagraph (C), by striking the
        period at the end of subparagraph (D) and inserting ``, and'', and
        by adding at the end the following new subparagraph:
                ``(E) the motor vehicle sales tax deduction.''.
            (2) Definition.--Section 63(c) is amended by adding at the end
        the following new paragraph:
            ``(9) Motor vehicle sales tax deduction.--For purposes of
        paragraph (1), the term `motor vehicle sales tax deduction' means
        the amount allowable as a deduction under section 164(a)(6). Such
        term shall not include any amount taken into account under section
        62(a).''.
        (d) Treatment of Deduction Under Alternative Minimum Tax.--The last
    sentence of section 56(b)(1)(E) is amended by striking ``section
    63(c)(1)(D)'' and inserting ``subparagraphs (D) and (E) of section
    63(c)(1)''.
        (e) Effective Date.--The amendments made by this section shall
    apply to purchases on or after the date of the enactment of this Act in
    taxable years ending after such date.

                    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 property
            which is part of a qualified investment credit facility--
                    ``(i) such property 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 qualified facility (within
                the meaning of section 45) 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 qualified facility
                (within the meaning of section 45) 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.
                ``(D) Qualified property.--For purposes of this paragraph,
            the term `qualified property' means property--
                    ``(i) which is--

                        ``(I) tangible personal property, or
                        ``(II) other tangible property (not including a
                    building or its structural components), but only if
                    such property is used as an integral part of the
                    qualified investment credit facility, and

                    ``(ii) with respect to which depreciation (or
                amortization in lieu of depreciation) is allowable.''.
        (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
        subparagraphs (A) and (B) of subsection (b)(2) shall apply to
        taxable years beginning after December 31, 2008.

    SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.

        Section 48 is amended by adding at the end the following new
    subsection:
        ``(d) Coordination With Department of Treasury Grants.--In the case
    of any property with respect to which the Secretary makes a grant under
    section 1603 of the American Recovery and Reinvestment Tax Act of
    2009--
            ``(1) Denial of production and investment credits.--No credit
        shall be determined under this section or section 45 with respect
        to such property for the taxable year in which such grant is made
        or any subsequent taxable year.
            ``(2) Recapture of credits for progress expenditures made
        before grant.--If a credit was determined under this section with
        respect to such property for any taxable year ending before such
        grant is made--
                ``(A) the tax imposed under subtitle A on the taxpayer for
            the taxable year in which such grant is made shall be increased
            by so much of such credit as was allowed under section 38,
                ``(B) the general business carryforwards under section 39
            shall be adjusted so as to recapture the portion of such credit
            which was not so allowed, and
                ``(C) the amount of such grant shall be determined without
            regard to any reduction in the basis of such property by reason
            of such credit.
            ``(3) Treatment of grants.--Any such grant shall--
                ``(A) not be includible in the gross income of the
            taxpayer, but
                ``(B) shall be taken into account in determining the basis
            of the property to which such grant relates, except that the
            basis of such property shall be reduced under section 50(c) in
            the same manner as a credit allowed under subsection (a).''.

    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.--
            (1) In general.--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''.
            (2) Special rules for bonds for implementing green community
        programs.--Subsection (e) of section 54D is amended by adding at
        the end the following new paragraph:
            ``(4) Special rules for bonds to implement green community
        programs.--In the case of any bond issued for the purpose of
        providing loans, grants, or other repayment mechanisms for capital
        expenditures to implement green community programs, such bond shall
        not be treated as a private activity bond for purposes of paragraph
        (3).''.

                    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:
                ``(D) 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 the date of the
        enactment of this Act.

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

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

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

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

        PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

    SEC. 1131. 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(a)(1)(B) is amended by inserting ``and not used
        by the taxpayer as described in paragraph (2)(B)'' after
        ``storage''.
            (3) 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 V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

    SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
                  VEHICLES.

        (a) In General.--Section 30D is amended to read as follows:

    ``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

        ``(a) Allowance of Credit.--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 credit amounts determined under subsection (b)
    with respect to each new qualified plug-in electric drive motor vehicle
    placed in service by the taxpayer during the taxable year.
        ``(b) Per Vehicle Dollar Limitation.--
            ``(1) In general.--The amount determined under this subsection
        with respect to any new qualified plug-in electric drive motor
        vehicle is the sum of the amounts determined under paragraphs (2)
        and (3) with respect to such vehicle.
            ``(2) Base amount.--The amount determined under this paragraph
        is $2,500.
            ``(3) Battery capacity.--In the case of a vehicle which draws
        propulsion energy from a battery with not less than 5 kilowatt
        hours of capacity, the amount determined under this paragraph is
        $417, plus $417 for each kilowatt hour of capacity in excess of 5
        kilowatt hours. The amount determined under this paragraph shall
        not exceed $5,000.
        ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business
        credit.--So much of the credit which would be allowed under
        subsection (a) for any taxable year (determined without regard to
        this subsection) that is attributable to property of a character
        subject to an allowance for depreciation shall be treated as a
        credit listed in section 38(b) for such taxable year (and not
        allowed under subsection (a)).
            ``(2) Personal credit.--
                ``(A) In general.--For purposes of this title, the credit
            allowed under subsection (a) for any taxable year (determined
            after application of paragraph (1)) shall be treated as a
            credit allowable under subpart A for such taxable year.
                ``(B) 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
            (determined after application of paragraph (1)) shall not
            exceed the excess of--
                    ``(i) the sum of the regular tax liability (as defined
                in section 26(b)) plus the tax imposed by section 55, over
                    ``(ii) the sum of the credits allowable under subpart A
                (other than this section and sections 23 and 25D) and
                section 27 for the taxable year.
        ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For
    purposes of this section--
            ``(1) In general.--The term `new qualified plug-in electric
        drive motor vehicle' means a motor vehicle--
                ``(A) the original use of which commences with the
            taxpayer,
                ``(B) which is acquired for use or lease by the taxpayer
            and not for resale,
                ``(C) which is made by a manufacturer,
                ``(D) which is treated as a motor vehicle for purposes of
            title II of the Clean Air Act,
                ``(E) which has a gross vehicle weight rating of less than
            14,000 pounds, and
                ``(F) which is propelled to a significant extent by an
            electric motor which draws electricity from a battery which--
                    ``(i) has a capacity of not less than 4 kilowatt hours,
                and
                    ``(ii) is capable of being recharged from an external
                source of electricity.
            ``(2) Motor vehicle.--The term `motor vehicle' means any
        vehicle which is manufactured primarily for use on public streets,
        roads, and highways (not including a vehicle operated exclusively
        on a rail or rails) and which has at least 4 wheels.
            ``(3) Manufacturer.--The term `manufacturer' has the meaning
        given such term in regulations prescribed by the Administrator of
        the Environmental Protection Agency for purposes of the
        administration of title II of the Clean Air Act (42 U.S.C. 7521 et
        seq.).
            ``(4) Battery capacity.--The term `capacity' means, with
        respect to any battery, the quantity of electricity which the
        battery is capable of storing, expressed in kilowatt hours, as
        measured from a 100 percent state of charge to a 0 percent state of
        charge.
        ``(e) Limitation on Number of New Qualified Plug-in Electric Drive
    Motor Vehicles Eligible for Credit.--
            ``(1) In general.--In the case of a new qualified plug-in
        electric drive motor vehicle sold during the phaseout period, only
        the applicable percentage of the credit otherwise allowable under
        subsection (a) shall be allowed.
            ``(2) Phaseout period.--For purposes of this subsection, the
        phaseout period is the period beginning with the second calendar
        quarter following the calendar quarter which includes the first
        date on which the number of new qualified plug-in electric drive
        motor vehicles manufactured by the manufacturer of the vehicle
        referred to in paragraph (1) sold for use in the United States
        after December 31, 2009, is at least 200,000.
            ``(3) Applicable percentage.--For purposes of paragraph (1),
        the applicable percentage is--
                ``(A) 50 percent for the first 2 calendar quarters of the
            phaseout period,
                ``(B) 25 percent for the 3d and 4th calendar quarters of
            the phaseout period, and
                ``(C) 0 percent for each calendar quarter thereafter.
            ``(4) Controlled groups.--Rules similar to the rules of section
        30B(f)(4) shall apply for purposes of this subsection.
        ``(f) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, the
        basis of any property for which a credit is allowable under
        subsection (a) shall be reduced by the amount of such credit so
        allowed.
            ``(2) No double benefit.--The amount of any deduction or other
        credit allowable under this chapter for a new qualified plug-in
        electric drive motor vehicle shall be reduced by the amount of
        credit allowed under subsection (a) for such vehicle.
            ``(3) Property used by tax-exempt entity.--In the case of a
        vehicle the use of which is described in paragraph (3) or (4) of
        section 50(b) and which is not subject to a lease, the person who
        sold such vehicle to the person or entity using such vehicle shall
        be treated as the taxpayer that placed such vehicle in service, but
        only if such person clearly discloses to such person or entity in a
        document the amount of any credit allowable under subsection (a)
        with respect to such vehicle (determined without regard to
        subsection (c)).
            ``(4) Property used outside united states not qualified.--No
        credit shall be allowable under subsection (a) with respect to any
        property referred to in section 50(b)(1).
            ``(5) Recapture.--The Secretary shall, by regulations, provide
        for recapturing the benefit of any credit allowable under
        subsection (a) with respect to any property which ceases to be
        property eligible for such credit.
            ``(6) Election not to take credit.--No credit shall be allowed
        under subsection (a) for any vehicle if the taxpayer elects to not
        have this section apply to such vehicle.
            ``(7) Interaction with air quality and motor vehicle safety
        standards.--A motor vehicle shall not be considered eligible for a
        credit under this section unless such vehicle is in compliance
        with--
                ``(A) the applicable provisions of the Clean Air Act for
            the applicable make and model year of the vehicle (or
            applicable air quality provisions of State law in the case of a
            State which has adopted such provision under a waiver under
            section 209(b) of the Clean Air Act), and
                ``(B) the motor vehicle safety provisions of sections 30101
            through 30169 of title 49, United States Code.''.
        (b) Conforming Amendments.--
            (1) Section 30B(d)(3)(D) is amended by striking ``subsection
        (d) thereof'' and inserting ``subsection (c) thereof''.
            (2) Section 38(b)(35) is amended by striking ``30D(d)(1)'' and
        inserting ``30D(c)(1)''.
            (3) Section 1016(a)(25) is amended by striking ``section
        30D(e)(4)'' and inserting ``section 30D(f)(1)''.
            (4) Section 6501(m) is amended by striking ``section
        30D(e)(9)'' and inserting ``section 30D(e)(4)''.
        (c) Effective Date.--The amendments made by this section shall
    apply to vehicles acquired after December 31, 2009.

    SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

        (a) In General.--Section 30 is amended to read as follows:

    ``SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES.

        ``(a) Allowance of Credit.--There shall be allowed as a credit
    against the tax imposed by this chapter for the taxable year an amount
    equal to 10 percent of the cost of any qualified plug-in electric
    vehicle placed in service by the taxpayer during the taxable year.
        ``(b) Per Vehicle Dollar Limitation.--The amount of the credit
    allowed under subsection (a) with respect to any vehicle shall not
    exceed $2,500.
        ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business
        credit.--So much of the credit which would be allowed under
        subsection (a) for any taxable year (determined without regard to
        this subsection) that is attributable to property of a character
        subject to an allowance for depreciation shall be treated as a
        credit listed in section 38(b) for such taxable year (and not
        allowed under subsection (a)).
            ``(2) Personal credit.--
                ``(A) In general.--For purposes of this title, the credit
            allowed under subsection (a) for any taxable year (determined
            after application of paragraph (1)) shall be treated as a
            credit allowable under subpart A for such taxable year.
                ``(B) 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
            (determined after application of paragraph (1)) shall not
            exceed the excess of--
                    ``(i) the sum of the regular tax liability (as defined
                in section 26(b)) plus the tax imposed by section 55, over
                    ``(ii) the sum of the credits allowable under subpart A
                (other than this section and sections 23, 25D, and 30D) and
                section 27 for the taxable year.
        ``(d) Qualified Plug-in Electric Vehicle.--For purposes of this
    section--
            ``(1) In general.--The term `qualified plug-in electric
        vehicle' means a specified vehicle--
                ``(A) the original use of which commences with the
            taxpayer,
                ``(B) which is acquired for use or lease by the taxpayer
            and not for resale,
                ``(C) which is made by a manufacturer,
                ``(D) which is manufactured primarily for use on public
            streets, roads, and highways,
                ``(E) which has a gross vehicle weight rating of less than
            14,000 pounds, and
                ``(F) which is propelled to a significant extent by an
            electric motor which draws electricity from a battery which--
                    ``(i) has a capacity of not less than 4 kilowatt hours
                (2.5 kilowatt hours in the case of a vehicle with 2 or 3
                wheels), and
                    ``(ii) is capable of being recharged from an external
                source of electricity.
            ``(2) Specified vehicle.--The term `specified vehicle' means
        any vehicle which--
                ``(A) is a low speed vehicle within the meaning of section
            571.3 of title 49, Code of Federal Regulations (as in effect on
            the date of the enactment of the American Recovery and
            Reinvestment Tax Act of 2009), or
                ``(B) has 2 or 3 wheels.
            ``(3) Manufacturer.--The term `manufacturer' has the meaning
        given such term in regulations prescribed by the Administrator of
        the Environmental Protection Agency for purposes of the
        administration of title II of the Clean Air Act (42 U.S.C. 7521 et
        seq.).
            ``(4) Battery capacity.--The term `capacity' means, with
        respect to any battery, the quantity of electricity which the
        battery is capable of storing, expressed in kilowatt hours, as
        measured from a 100 percent state of charge to a 0 percent state of
        charge.
        ``(e) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, the
        basis of any property for which a credit is allowable under
        subsection (a) shall be reduced by the amount of such credit so
        allowed.
            ``(2) No double benefit.--The amount of any deduction or other
        credit allowable under this chapter for a new qualified plug-in
        electric drive motor vehicle shall be reduced by the amount of
        credit allowable under subsection (a) for such vehicle.
            ``(3) Property used by tax-exempt entity.--In the case of a
        vehicle the use of which is described in paragraph (3) or (4) of
        section 50(b) and which is not subject to a lease, the person who
        sold such vehicle to the person or entity using such vehicle shall
        be treated as the taxpayer that placed such vehicle in service, but
        only if such person clearly discloses to such person or entity in a
        document the amount of any credit allowable under subsection (a)
        with respect to such vehicle (determined without regard to
        subsection (c)).
            ``(4) Property used outside united states not qualified.--No
        credit shall be allowable under subsection (a) with respect to any
        property referred to in section 50(b)(1).
            ``(5) Recapture.--The Secretary shall, by regulations, provide
        for recapturing the benefit of any credit allowable under
        subsection (a) with respect to any property which ceases to be
        property eligible for such credit.
            ``(6) Election not to take credit.--No credit shall be allowed
        under subsection (a) for any vehicle if the taxpayer elects to not
        have this section apply to such vehicle.
        ``(f) Termination.--This section shall not apply to any vehicle
    acquired after December 31, 2011.''.
        (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B) is amended by inserting ``30,''
        after ``25D,''.
            (B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,''
        after ``25D,''.
            (C) Section 25B(g)(2) is amended by inserting ``30,'' after
        ``25D,''.
            (D) Section 26(a)(1) is amended by inserting ``30,'' after
        ``25D,''.
            (E) Section 904(i) is amended by striking ``and 25B'' and
        inserting ``25B, 30, and 30D''.
            (F) Section 1400C(d)(2) is amended by striking ``and 25D'' and
        inserting ``25D, and 30''.
            (2) Paragraph (1) of section 30B(h) is amended to read as
        follows:
            ``(1) Motor vehicle.--The term `motor vehicle' means any
        vehicle which is manufactured primarily for use on public streets,
        roads, and highways (not including a vehicle operated exclusively
        on a rail or rails) and which has at least 4 wheels.''.
            (3) Section 30C(d)(2)(A) is amended by striking ``, 30,''.
            (4)(A) Section 53(d)(1)(B) is amended by striking clause (iii)
        and redesignating clause (iv) as clause (iii).
            (B) Subclause (II) of section 53(d)(1)(B)(iii), as so
        redesignated, is amended by striking ``increased in the manner
        provided in clause (iii)''.
            (5) Section 55(c)(3) is amended by striking ``30(b)(3),''.
            (6) Section 1016(a)(25) is amended by striking ``section
        30(d)(1)'' and inserting ``section 30(e)(1)''.
            (7) Section 6501(m) is amended by striking ``section 30(d)(4)''
        and inserting ``section 30(e)(6)''.
            (8) The item in the table of sections for subpart B of part IV
        of subchapter A of chapter 1 is amended to read as follows:
    ``Sec. 30. Certain plug-in electric vehicles.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to vehicles acquired after the date of the enactment of this Act.
        (d) Transitional Rule.--In the case of a vehicle acquired after the
    date of the enactment of this Act and before January 1, 2010, no credit
    shall be allowed under section 30 of the Internal Revenue Code of 1986,
    as added by this section, if credit is allowable under section 30D of
    such Code with respect to such vehicle.
        (e) Application of EGTRRA Sunset.--The amendment made by subsection
    (b)(1)(A) 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.

    SEC. 1143. 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) Qualified plug-in electric drive motor vehicle.--For
        purposes of this subsection, the term `qualified plug-in electric
        drive motor vehicle' means any new qualified plug-in electric drive
        motor vehicle (as defined in section 30D, determined without regard
        to whether such vehicle is made by a manufacturer or whether the
        original use of such vehicle commences with the taxpayer).
            ``(3) 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.
            ``(4) Termination.--This subsection shall not apply to
        conversions made after December 31, 2011.''.
        (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 the date of the enactment of
    this Act.

    SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL
                  CREDIT ALLOWED AGAINST AMT.

        (a) In General.--Paragraph (2) of section 30B(g) is amended to read
    as follows:
            ``(2) Personal credit.--
                ``(A) In general.--For purposes of this title, the credit
            allowed under subsection (a) for any taxable year (determined
            after application of paragraph (1)) shall be treated as a
            credit allowable under subpart A for such taxable year.
                ``(B) 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
            (determined after application of paragraph (1)) shall not
            exceed the excess of--
                    ``(i) the sum of the regular tax liability (as defined
                in section 26(b)) plus the tax imposed by section 55, over
                    ``(ii) the sum of the credits allowable under subpart A
                (other than this section and sections 23, 25D, 30, and 30D)
                and section 27 for the taxable year.''.
        (b) Conforming Amendments.--
            (1)(A) Section 24(b)(3)(B), as amended by this Act, is amended
        by inserting ``30B,'' after ``30,''.
            (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended
        by inserting ``30B,'' after ``30,''.
            (C) Section 25B(g)(2), as amended by this Act, is amended by
        inserting ``30B,'' after ``30,''.
            (D) Section 26(a)(1), as amended by this Act, is amended by
        inserting ``30B,'' after ``30,''.
            (E) Section 904(i), as amended by this Act, is amended by
        inserting ``30B,'' after ``30''.
            (F) Section 1400C(d)(2), as amended by this Act, is amended by
        striking ``and 30'' and inserting ``30, and 30B''.
            (2) Section 30C(d)(2)(A), as amended by this Act, is amended by
        striking ``sections 27 and 30B'' and inserting ``section 27''.
            (3) Section 55(c)(3) is amended by striking ``30B(g)(2),''.
        (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)(A) 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.

               PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

    SEC. 1151. 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 in effect for such month under subparagraph
        (B).''.
        (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.

                    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 amendments.--
                (A) Subparagraph (D) of section 168(k)(4) is amended--
                    (i) by striking ``and'' at the end of clause (i),
                    (ii) by redesignating clause (ii) as clause (iii), and
                    (iii) 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) Subparagraph (A) of section 6211(b)(4) is amended by
            inserting ``168(k)(4),'' after ``53(e),''.
        (b) Extension of Election to Accelerate the Amt and Research
    Credits in Lieu of Bonus Depreciation.--
            (1) In general.--Section 168(k)(4) (relating to election to
        accelerate the AMT and research credits in lieu of bonus
        depreciation) is amended--
                (A) by striking ``2009'' and inserting ``2010''in
            subparagraph (D)(iii) (as redesignated by subsection (a)(3)),
            and
                (B) 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).''.
            (2) Technical amendment.--Section 6211(b)(4)(A) is amended by
        inserting ``168(k)(4),'' after ``53(e),''.
        (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 amendments.--The amendments made by subsections
        (a)(3) and (b)(2) 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--SMALL BUSINESS PROVISIONS

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

        (a) In General.--Subparagraph (H) of section 172(b)(1) is amended
    to read as follows:
                ``(H) Carryback for 2008 net operating losses of small
            businesses.--
                    ``(i) In general.--If an eligible small business elects
                the application of this subparagraph with respect to an
                applicable 2008 net operating loss--

                        ``(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 (I) for
                    `2', and
                        ``(III) subparagraph (F) shall not apply.

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

                        ``(I) the taxpayer's net operating loss for any
                    taxable year ending in 2008, 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.

                    ``(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. Any election under this
                subparagraph may be made only with respect to 1 taxable
                year.
                    ``(iv) Eligible small business.--For purposes of this
                subparagraph, the term `eligible small business' has the
                meaning given such term by subparagraph (F)(iii), except
                that in applying such subparagraph, section 448(c) shall be
                applied by substituting `$15,000,000' for `$5,000,000' each
                place it appears.''.
        (b) Conforming Amendment.--Section 172 is amended by striking
    subsection (k) and by redesignating subsection (l) as subsection (k).
        (c) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's
    designee shall prescribe such rules as are necessary to prevent the
    abuse of the purposes of the amendments made by this section, including
    anti-stuffing rules, anti-churning rules (including rules relating to
    sale-leasebacks), and rules similar to the rules under section 1091 of
    the Internal Revenue Code of 1986 relating to losses from wash sales.
        (d) 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) Transitional rule.--In the case of a net operating loss for
        a taxable year ending before the date of the enactment of this
        Act--
                (A) any election made under section 172(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(b)(1)(H) 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. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR
                  CERTAIN SMALL BUSINESSES.

        Paragraph (1) of section 6654(d) is amended by adding at the end
    the following new subparagraph:
                ``(D) Special rule for 2009.--
                    ``(i) In general.--Notwithstanding subparagraph (C), in
                the case of any taxable year beginning in 2009, clause (ii)
                of subparagraph (B) shall be applied to any qualified
                individual by substituting `90 percent' for `100 percent'.
                    ``(ii) Qualified individual.--For purposes of this
                subparagraph, the term `qualified individual' means any
                individual if--

                        ``(I) the adjusted gross income shown on the return
                    of such individual for the preceding taxable year is
                    less than $500,000, and
                        ``(II) such individual certifies that more than 50
                    percent of the gross income shown on the return of such
                    individual for the preceding taxable year was income
                    from a small business.

                A certification under subclause (II) shall be in such form
                and manner and filed at such time as the Secretary may by
                regulations prescribe.
                    ``(iii) Income from a small business.--For purposes of
                clause (ii), income from a small business means, with
                respect to any individual, income from a trade or business
                the average number of employees of which was less than 500
                employees for the calendar year ending with or within the
                preceding taxable year of the individual.
                    ``(iv) Separate returns.--In the case of a married
                individual (within the meaning of section 7703) who files a
                separate return for the taxable year for which the amount
                of the installment is being determined, clause (ii)(I)
                shall be applied by substituting `$250,000' for `$500,000'.
                    ``(v) Estates and trusts.--In the case of an estate or
                trust, adjusted gross income shall be determined as
                provided in section 67(e).''.

                       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 at any time during the
                    5-year period ending on the hiring date, 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--RULES RELATING TO DEBT INSTRUMENTS

    SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM
                  BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION 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
    Business Indebtedness Discharged by the Reacquisition of a Debt
    Instrument.--
            ``(1) In general.--At the election of the taxpayer, income from
        the discharge of indebtedness in connection with the reacquisition
        after December 31, 2008, and before January 1, 2011, of an
        applicable debt instrument shall be includible in gross income
        ratably over the 5-taxable-year period beginning with--
                ``(A) in the case of a reacquisition occurring in 2009, the
            fifth taxable year following the taxable year in which the
            reacquisition occurs, and
                ``(B) in the case of a reacquisition occurring in 2010, the
            fourth taxable year following the taxable year in which the
            reacquisition occurs.
            ``(2) Deferral of deduction for original issue discount in debt
        for debt exchanges.--
                ``(A) In general.--If, as part of a reacquisition to which
            paragraph (1) applies, any debt instrument is issued for the
            applicable debt instrument being reacquired (or is treated as
            so issued under subsection (e)(4) and the regulations
            thereunder) and there is any original issue discount determined
            under subpart A of part V of subchapter P of this chapter with
            respect to the debt instrument so issued--
                    ``(i) except as provided in clause (ii), no deduction
                otherwise allowable under this chapter shall be allowed to
                the issuer of such debt instrument with respect to the
                portion of such original issue discount which--

                        ``(I) accrues before the 1st taxable year in the 5-
                    taxable-year period in which income from the discharge
                    of indebtedness attributable to the reacquisition of
                    the debt instrument is includible under paragraph (1),
                    and
                        ``(II) does not exceed the income from the
                    discharge of indebtedness with respect to the debt
                    instrument being reacquired, and

                    ``(ii) the aggregate amount of deductions disallowed
                under clause (i) shall be allowed as a deduction ratably
                over the 5-taxable-year period described in clause (i)(I).
            If the amount of the original issue discount accruing before
            such 1st taxable year exceeds the income from the discharge of
            indebtedness with respect to the applicable debt instrument
            being reacquired, the deductions shall be disallowed in the
            order in which the original issue discount is accrued.
                ``(B) Deemed debt for debt exchanges.--For purposes of
            subparagraph (A), if any debt instrument is issued by an issuer
            and the proceeds of such debt instrument are used directly or
            indirectly by the issuer to reacquire an applicable debt
            instrument of the issuer, the debt instrument so issued shall
            be treated as issued for the debt instrument being reacquired.
            If only a portion of the proceeds from a debt instrument are so
            used, the rules of subparagraph (A) shall apply to the portion
            of any original issue discount on the newly issued debt
            instrument which is equal to the portion of the proceeds from
            such instrument used to reacquire the outstanding instrument.
            ``(3) Applicable debt instrument.--For purposes of this
        subsection--
                ``(A) Applicable debt instrument.--The term `applicable
            debt instrument' means any debt instrument which was issued
            by--
                    ``(i) a C corporation, or
                    ``(ii) any other person in connection with the conduct
                of a trade or business by such person.
                ``(B) Debt instrument.--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)).
            ``(4) Reacquisition.--For purposes of this subsection--
                ``(A) In general.--The term `reacquisition' means, with
            respect to any applicable debt instrument, any acquisition of
            the debt instrument by--
                    ``(i) the debtor which issued (or is otherwise the
                obligor under) the debt instrument, or
                    ``(ii) a related person to such debtor.
                ``(B) Acquisition.--The term `acquisition' shall, with
            respect to any applicable debt instrument, include an
            acquisition of the debt instrument for cash, the exchange of
            the debt instrument for another debt instrument (including an
            exchange resulting from a modification of the debt instrument),
            the exchange of the debt instrument for corporate stock or a
            partnership interest, and the contribution of the debt
            instrument to capital. Such term shall also include the
            complete forgiveness of the indebtedness by the holder of the
            debt instrument.
            ``(5) Other definitions and rules.--For purposes of this
        subsection--
                ``(A) Related person.--The determination of whether a
            person is related to another person shall be made in the same
            manner as under subsection (e)(4).
                ``(B) Election.--
                    ``(i) In general.--An election under this subsection
                with respect to any applicable debt instrument shall be
                made by including with the return of tax imposed by chapter
                1 for the taxable year in which the reacquisition of the
                debt instrument occurs a statement which--

                        ``(I) clearly identifies such instrument, and
                        ``(II) includes the amount of income to which
                    paragraph (1) applies and such other information as the
                    Secretary may prescribe.

                    ``(ii) Election irrevocable.--Such election, once made,
                is irrevocable.
                    ``(iii) Pass-thru entities.--In the case of a
                partnership, S corporation, or other pass-thru entity, the
                election under this subsection shall be made by the
                partnership, the S corporation, or other entity involved.
                ``(C) Coordination with other exclusions.--If a taxpayer
            elects to have this subsection apply to an applicable debt
            instrument, subparagraphs (A), (B), (C), and (D) of subsection
            (a)(1) shall not apply to the income from the discharge of such
            indebtedness for the taxable year of the election or any
            subsequent taxable year.
                ``(D) Acceleration of deferred items.--
                    ``(i) In general.--In the case of the death of the
                taxpayer, the liquidation or sale of substantially all the
                assets of the taxpayer (including in a title 11 or similar
                case), the cessation of business by the taxpayer, or
                similar circumstances, any item of income or deduction
                which is deferred under this subsection (and has not
                previously been taken into account) shall be taken into
                account in the taxable year in which such event occurs (or
                in the case of a title 11 or similar case, the day before
                the petition is filed).
                    ``(ii) Special rule for pass-thru entities.--The rule
                of clause (i) shall also apply in the case of the sale or
                exchange or redemption of an interest in a partnership, S
                corporation, or other pass- thru entity by a partner,
                shareholder, or other person holding an ownership interest
                in such entity.
            ``(6) Special rule for partnerships.--In the case of a
        partnership, any income deferred under this subsection shall be
        allocated to the partners in the partnership immediately before the
        discharge in the manner such amounts would have been included in
        the distributive shares of such partners under section 704 if such
        income were recognized at such time. Any decrease in a partner's
        share of partnership liabilities as a result of such discharge
        shall not be taken into account for purposes of section 752 at the
        time of the discharge to the extent it would cause the partner to
        recognize gain under section 731. Any decrease in partnership
        liabilities deferred under the preceding sentence shall be taken
        into account by such partner at the same time, and to the extent
        remaining in the same amount, as income deferred under this
        subsection is recognized.
            ``(7) Secretarial authority.--The Secretary may prescribe such
        regulations, rules, or other guidance as may be necessary or
        appropriate for purposes of applying this subsection, including--
                ``(A) extending the application of the rules of paragraph
            (5)(D) to other circumstances where appropriate,
                ``(B) requiring reporting of the election (and such other
            information as the Secretary may require) on returns of tax for
            subsequent taxable years, and
                ``(C) rules for the application of this subsection to
            partnerships, S corporations, and other pass-thru entities,
            including for the allocation of deferred deductions.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to discharges in taxable years ending after December 31, 2008.

    SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON
                  CERTAIN HIGH YIELD OBLIGATIONS.

        (a) Suspension of Special Rules.--Section 163(e)(5) (relating to
    special rules for original issue discount on certain high yield
    obligations) is amended by redesignating subparagraph (F) as
    subparagraph (G) and by inserting after subparagraph (E) the following
    new subparagraph:
                ``(F) Suspension of application of paragraph.--
                    ``(i) Temporary suspension.--This paragraph shall not
                apply to any applicable high yield discount obligation
                issued during the period beginning on September 1, 2008,
                and ending on December 31, 2009, in exchange (including an
                exchange resulting from a modification of the debt
                instrument) for an obligation which is not an applicable
                high yield discount obligation and the issuer (or obligor)
                of which is the same as the issuer (or obligor) of such
                applicable high yield discount obligation. The preceding
                sentence shall not apply to any obligation the interest on
                which is interest described in section 871(h)(4) (without
                regard to subparagraph (D) thereof) or to any obligation
                issued to a related person (within the meaning of section
                108(e)(4)).
                    ``(ii) Successive application.--Any obligation to which
                clause (i) applies shall not be treated as an applicable
                high yield discount obligation for purposes of applying
                this subparagraph to any other obligation issued in
                exchange for such obligation.
                    ``(iii) Secretarial authority to suspend application.--
                The Secretary may apply this paragraph with respect to debt
                instruments issued in periods following the period
                described in clause (i) if the Secretary determines that
                such application is appropriate in light of distressed
                conditions in the debt capital markets.''.
        (b) Interest Rate Used in Determining High Yield Obligations.--The
    last sentence of section 163(i)(1) is amended--
            (1) by inserting ``(i)'' after ``regulation'', and
            (2) by inserting ``, or (ii) permit, on a temporary basis, a
        rate to be used with respect to any debt instrument which is higher
        than the applicable Federal rate if the Secretary determines that
        such rate is appropriate in light of distressed conditions in the
        debt capital markets'' before the period at the end.
        (c) Effective Date.--
            (1) Suspension.--The amendments made by subsection (a) shall
        apply to obligations issued after August 31, 2008, in taxable years
        ending after such date.
            (2) Interest rate authority.--The amendments made by subsection
        (b) shall apply to obligations issued after December 31, 2009, in
        taxable years ending after such date.

                     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--S CORPORATIONS

    SEC. 1251. 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 recognized 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 VII--RULES RELATING TO OWNERSHIP CHANGES

    SEC. 1261. 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.

    SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF
                  LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND
                  CERTAIN BUILT-IN LOSSES.

        (a) In General.--Section 382 is amended by adding at the end the
    following new subsection:
        ``(n) Special Rule for Certain Ownership Changes.--
            ``(1) In general.--The limitation contained in subsection (a)
        shall not apply in the case of an ownership change which is
        pursuant to a restructuring plan of a taxpayer which--
                ``(A) is required under a loan agreement or a commitment
            for a line of credit entered into with the Department of the
            Treasury under the Emergency Economic Stabilization Act of
            2008, and
                ``(B) is intended to result in a rationalization of the
            costs, capitalization, and capacity with respect to the
            manufacturing workforce of, and suppliers to, the taxpayer and
            its subsidiaries.
            ``(2) Subsequent acquisitions.--Paragraph (1) shall not apply
        in the case of any subsequent ownership change unless such
        ownership change is described in such paragraph.
            ``(3) Limitation based on control in corporation.--
                ``(A) In general.--Paragraph (1) shall not apply in the
            case of any ownership change if, immediately after such
            ownership change, any person (other than a voluntary employees'
            beneficiary association under section 501(c)(9)) owns stock of
            the new loss corporation possessing 50 percent or more of the
            total combined voting power of all classes of stock entitled to
            vote, or of the total value of the stock of such corporation.
                ``(B) Treatment of related persons.--
                    ``(i) In general.--Related persons shall be treated as
                a single person for purposes of this paragraph.
                    ``(ii) Related persons.--For purposes of clause (i), a
                person shall be treated as related to another person if--

                        ``(I) such person bears a relationship to such
                    other person described in section 267(b) or 707(b), or
                        ``(II) such persons are members of a group of
                    persons acting in concert.''.

        (b) Effective Date.--The amendment made by this section shall apply
    to ownership changes after the date of the enactment of this Act.

                 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 obligations 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.
            ``(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--

                        ``(I) property 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) fuel cells, microturbines, or an energy
                    storage system for use with electric or hybrid-electric
                    motor vehicles,
                        ``(III) electric grids to support the transmission
                    of intermittent sources of renewable energy, including
                    storage of such energy,
                        ``(IV) property designed to capture and sequester
                    carbon dioxide emissions,
                        ``(V) property designed to refine or blend
                    renewable fuels or to produce energy conservation
                    technologies (including energy-conserving lighting
                    technologies and smart grid technologies),
                        ``(VI) new qualified plug-in electric drive motor
                    vehicles (as defined by section 30D), qualified plug-in
                    electric vehicles (as defined by section 30(d)), or
                    components which are designed specifically for use with
                    such vehicles, including electric motors, generators,
                    and power control units, or
                        ``(VII) 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--
                ``(A) which is necessary for the production of property
            described in paragraph (1)(A)(i),
                ``(B) which is--
                    ``(i) tangible personal property, or
                    ``(ii) other tangible property (not including a
                building or its structural components), but only if such
                property is used as an integral part of the qualified
                investment credit facility, and
                ``(C) with respect to which depreciation (or amortization
            in lieu of depreciation) is allowable.
        ``(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 $2,300,000,000.
            ``(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 2-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 1 year 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 3 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 potential for technological
                innovation and commercial deployment,
                    ``(iv) 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
                    ``(v) have the shortest project time from certification
                to completion.
            ``(4) Review and redistribution.--
                ``(A) Review.--Not later than 4 years after the date of
            enactment of this section, the Secretary shall review the
            credits allocated under this section as of such date.
                ``(B) Redistribution.--The Secretary may reallocate credits
            awarded under this section if the Secretary determines that--
                    ``(i) there is an insufficient quantity of qualifying
                applications for certification pending at the time of the
                review, or
                    ``(ii) any certification made pursuant to paragraph (2)
                has been revoked pursuant to paragraph (2)(B) because the
                project subject to the certification has been delayed as a
                result of third party opposition or litigation to the
                proposed project.
                ``(C) Reallocation.--If the Secretary determines that
            credits under this section are available for reallocation
            pursuant to the requirements set forth in paragraph (2), the
            Secretary is authorized to conduct an additional program for
            applications for certification.
            ``(5) Disclosure of allocations.--The Secretary shall, upon
        making a certification under this subsection, publicly disclose the
        identity of the applicant and the amount of the credit with respect
        to such applicant.
        ``(e) Denial of Double Benefit.--A credit shall not be allowed
    under this section for any qualified investment for which a credit is
    allowed under section 48, 48A, or 48B.''.
        (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) is amended by striking ``and'' at the
        end of clause (iii), by striking the period at the end of clause
        (iv) and inserting ``, and'', and by adding after clause (iv) the
        following new clause:
                    ``(v) the basis of any property which is part of a
                qualifying advanced energy project under section 48C.''.
            (2) The table of sections for subpart E of part IV of
        subchapter A of chapter 1 is amended by inserting after the item
        relating to section 48B the following new item:
    ``48C. Qualifying advanced energy project credit.''.
        (d) Effective Date.--The amendments made by this section shall
    apply to periods after the date of the enactment of this Act, under
    rules similar to the rules of section 48(m) of the Internal Revenue
    Code of 1986 (as in effect on the day before the date of the enactment
    of the Revenue Reconciliation Act of 1990).

                      Subtitle E--Economic Recovery Tools

    SEC. 1401. RECOVERY ZONE BONDS.

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

                        ``PART III--RECOVERY ZONE BONDS

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

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

        ``(a) Allocations.--
            ``(1) In general.--
                ``(A) General allocation.--The Secretary shall allocate the
            national recovery zone economic development bond limitation and
            the national recovery zone facility bond limitation among the
            States in the proportion that each such State's 2008 State
            employment decline bears to the aggregate of the 2008 State
            employment declines for all of the States.
                ``(B) Minimum allocation.--The Secretary shall adjust the
            allocations under subparagraph (A) for any calendar year for
            each State to the extent necessary to ensure that no State
            receives less than 0.9 percent of the national recovery zone
            economic development bond limitation and 0.9 percent of the
            national recovery zone facility bond limitation.
            ``(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 to 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. A county or municipality may waive any portion of
            an allocation made under this subparagraph.
                ``(B) Large municipalities.--For purposes of subparagraph
            (A), the term `large municipality' means a municipality with a
            population of more than 100,000.
                ``(C) Determination of local employment declines.--For
            purposes of this paragraph, the employment decline of any
            municipality or county shall be determined in the same manner
            as determining the State employment decline under paragraph
            (2), except that in the case of a municipality any portion of
            which is in a county, such portion shall be treated as part of
            such municipality and not part of such county.
            ``(4) National limitations.--
                ``(A) Recovery zone economic development bonds.--There is a
            national recovery zone economic development bond limitation of
            $10,000,000,000.
                ``(B) Recovery zone facility bonds.--There is a national
            recovery zone facility bond limitation of $15,000,000,000.
        ``(b) Recovery Zone.--For purposes of this part, the term `recovery
    zone' means--
            ``(1) any area designated by the issuer as having significant
        poverty, unemployment, rate of home foreclosures, or general
        distress,
            ``(2) any area designated by the issuer as economically
        distressed by reason of the closure or realignment of a military
        installation pursuant to the Defense Base Closure and Realignment
        Act of 1990, and
            ``(3) 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 `45 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 excess of--
                    ``(i) the available project proceeds (as defined in
                section 54A) of such issue, over
                    ``(ii) the amounts in a reasonably required reserve
                (within the meaning of section 150(a)(3)) with respect to
                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 constructed, reconstructed,
            renovated, or acquired by purchase (as defined in section
            179(d)(2)) by the taxpayer 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.--Such term 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. INCREASE IN NEW MARKETS TAX CREDIT.

        (a) In General.--Section 45D(f)(1) is amended--
            (1) by striking ``and'' at the end of subparagraph (C),
            (2) by striking ``, 2007, 2008, and 2009.'' in subparagraph
        (D), and inserting ``and 2007,'', and
            (3) by adding at the end the following new subparagraphs:
                ``(E) $5,000,000,000 for 2008, and
                ``(F) $5,000,000,000 for 2009.''.
        (b) 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--
            (1) submitted an allocation application with respect to
        calendar year 2008, and
            (2)(A) did not receive an allocation for such calendar year, or
            (B) received an allocation for such calendar year in an amount
        less than the amount requested in the allocation application.

    SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME
                  HOUSING GRANTS.

        Subsection (i) of section 42 is amended by adding at the end the
    following new paragraph:
            ``(9) Coordination with low-income housing grants.--
                ``(A) Reduction in state housing credit ceiling for low-
            income housing grants received in 2009.--For purposes of this
            section, the amounts described in clauses (i) through (iv) of
            subsection (h)(3)(C) with respect to any State for 2009 shall
            each be reduced by so much of such amount as is taken into
            account in determining the amount of any grant to such State
            under section 1602 of the American Recovery and Reinvestment
            Tax Act of 2009.
                ``(B) Special rule for basis.--Basis of a qualified low-
            income building shall not be reduced by the amount of any grant
            described in subparagraph (A).''.

                   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.--

                        ``(I) In general.--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.
                        ``(II) Treatment of refunding bonds.--For purposes
                    of subclause (I), 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).
                        ``(III) Exception for certain refunding bonds.--
                    Subclause (II) shall not apply to any refunding bond
                    which is issued to refund any bond which was issued
                    after December 31, 2003, and before January 1, 2009.''.

        (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.--

                        ``(I) In general.--Clause (i) shall not apply in
                    the case of any interest on a bond issued after
                    December 31, 2008, and before January 1, 2011.
                        ``(II) Treatment of refunding bonds.--For purposes
                    of subclause (I), 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).
                        ``(III) Exception for certain refunding bonds.--
                    Subclause (II) shall not apply to any refunding bond
                    which is issued to refund any bond which was issued
                    after December 31, 2003, and before January 1, 2009.''.

        (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 obligations 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) $11,000,000,000 for 2009,
            ``(2) $11,000,000,000 for 2010, and
            ``(3) except as provided in subsection (e), zero after 2010.
        ``(d) Allocation of Limitation.--
            ``(1) Allocation among states.--Except as provided in paragraph
        (2)(C), the limitation applicable under subsection (c) for any
        calendar year shall be allocated by the Secretary among the States
        in proportion to the respective amounts each such State is eligible
        to receive under section 1124 of the Elementary and Secondary
        Education Act of 1965 (20 U.S.C. 6333) 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) 40 percent of limitation allocated among largest school
        districts.--
                ``(A) In general.--40 percent of the limitation applicable
            under subsection (c) for any calendar year shall be allocated
            under subparagraph (B) by the Secretary among local educational
            agencies which are large local educational agencies for such
            year.
                ``(B) Allocation formula.--The amount to be allocated under
            subparagraph (A) for any calendar year shall be allocated among
            large local educational agencies in proportion to the
            respective amounts each such agency received under section 1124
            of the Elementary and Secondary Education Act of 1965 (20
            U.S.C. 6333) for the most recent fiscal year ending before such
            calendar year.
                ``(C) Reduction in state allocation.--The allocation to any
            State under paragraph (1) shall be reduced by the aggregate
            amount of the allocations under this paragraph to large local
            educational agencies within such State.
                ``(D) Allocation of unused limitation to state.--The amount
            allocated under this paragraph to a large local educational
            agency for any calendar year may be reallocated by such agency
            to the State in which such agency is located for such calendar
            year. Any amount reallocated to a State under the preceding
            sentence may be allocated as provided in paragraph (1).
                ``(E) Large local educational agency.--For purposes of this
            paragraph, the term `large local educational agency' means,
            with respect to a calendar year, any local educational agency
            if such agency is--
                    ``(i) among the 100 local educational agencies with the
                largest numbers of children aged 5 through 17 from families
                living below the poverty level, as determined by the
                Secretary using the most recent data available from the
                Department of Commerce that are satisfactory to the
                Secretary, or
                    ``(ii) 1 of not more than 25 local educational agencies
                (other than those described in clause (i)) that the
                Secretary of Education determines (based on the most recent
                data available satisfactory to the Secretary) are in
                particular need of assistance, based on a low level of
                resources for school construction, a high level of
                enrollment growth, or such other factors as the Secretary
                deems appropriate.
            ``(3) Allocations to certain possessions.--The amount to be
        allocated under paragraph (1) to any possession of the United
        States other than Puerto Rico shall be the amount which would have
        been allocated if all allocations under paragraph (1) were made on
        the basis of respective populations of individuals below the
        poverty line (as defined by the Office of Management and Budget).
        In making other allocations, the amount to be allocated under
        paragraph (1) shall be reduced by the aggregate amount allocated
        under this paragraph to possessions of the United States.
            ``(4) Allocations for indian schools.--In addition to the
        amounts otherwise allocated under this subsection, $200,000,000 for
        calendar year 2009, and $200,000,000 for calendar year 2010, shall
        be allocated by the Secretary of the Interior for purposes of the
        construction, rehabilitation, and repair of schools funded by the
        Bureau of Indian Affairs. In the case of amounts allocated under
        the preceding sentence, Indian tribal governments (as defined in
        section 7701(a)(40)) shall be treated as qualified issuers for
        purposes of this subchapter.
        ``(e) Carryover of Unused Limitation.--If for any calendar year--
            ``(1) the amount allocated under subsection (d) to any State,
        exceeds
            ``(2) the amount of bonds issued during such year which are
        designated under subsection (a) pursuant to such allocation,
    the limitation amount under such subsection for such State for the
    following calendar year shall be increased by the amount of such
    excess. A similar rule shall apply to the amounts allocated under
    subsection (d)(4).''.
        (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended by striking
        ``or'' at the end of subparagraph (C), by inserting ``or'' at the
        end of subparagraph (D), and by inserting after subparagraph (D)
        the following new subparagraph:
                ``(E) a qualified school construction bond,''.
            (2) Subparagraph (C) of section 54A(d)(2) is amended by
        striking ``and'' at the end of clause (iii), by striking the period
        at the end of clause (iv) and inserting ``, and'', and by adding at
        the end the following new clause:
                    ``(v) in the case of a qualified school construction
                bond, a purpose specified in section 54F(a)(1).''.
            (3) The table of sections for subpart I of part IV of
        subchapter A of chapter 1 is amended by adding at the end the
        following new item:
    ``Sec. 54F. Qualified school construction bonds.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to obligations issued after the date of the enactment of this
    Act.

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

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

                          PART IV--BUILD AMERICA BONDS

    SEC. 1531. BUILD AMERICA BONDS.

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

                        ``Subpart J--Build America Bonds

    ``Sec. 54AA. Build America bonds.

    ``SEC. 54AA. BUILD AMERICA BONDS.

        ``(a) In General.--If a taxpayer holds a build America bond on one
    or more interest payment dates of the bond during any taxable year,
    there shall be allowed as a credit against the tax imposed by this
    chapter for the taxable year an amount equal to the sum of the credits
    determined under subsection (b) with respect to such dates.
        ``(b) Amount of Credit.--The amount of the credit determined under
    this subsection with respect to any interest payment date for a build
    America bond is 35 percent of the amount of interest payable by the
    issuer with respect to such date .
        ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) for
        any taxable year shall not exceed the excess of--
                ``(A) the sum of the regular tax liability (as defined in
            section 26(b)) plus the tax imposed by section 55, over
                ``(B) the sum of the credits allowable under this part
            (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable
        under subsection (a) exceeds the limitation imposed by paragraph
        (1) for such taxable year, such excess shall be carried to the
        succeeding taxable year and added to the credit allowable under
        subsection (a) for such taxable year (determined before the
        application of paragraph (1) for such succeeding taxable year).
        ``(d) Build America Bond.--
            ``(1) In general.--For purposes of this section, the term
        `build America bond' means any obligation (other than a private
        activity bond) if--
                ``(A) the interest on such obligation would (but for this
            section) be excludable from gross income under section 103,
                ``(B) such obligation is issued before January 1, 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 excess of--
                    ``(i) the available project proceeds (as defined in
                section 54A) of such issue, over
                    ``(ii) the amounts in a reasonably required reserve
                (within the meaning of section 150(a)(3)) with respect to
                such issue,
            are to be used for capital expenditures, and
                ``(B) the issuer makes an irrevocable election to have this
            subsection apply.
        ``(h) Regulations.--The Secretary may prescribe such regulations
    and other guidance as may be necessary or appropriate to carry out this
    section and section 6431.''.
        (b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of
    chapter 65 is amended by adding at the end the following new section:

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

        ``(a) In General.--In the case of a qualified bond issued before
    January 1, 2011, the issuer of such bond shall be allowed a credit with
    respect to each interest payment under such bond which shall be payable
    by the Secretary as provided in subsection (b).
        ``(b) Payment of Credit.--The Secretary shall pay
    (contemporaneously with each interest payment date under such bond) to
    the issuer of such bond (or to any person who makes such interest
    payments on behalf of the issuer) 35 percent of the interest payable
    under such bond on such date.
        ``(c) Application of Arbitrage Rules.--For purposes of section 148,
    the yield on a qualified bond shall be reduced by the credit allowed
    under this section.
        ``(d) Interest Payment Date.--For purposes of this subsection, the
    term `interest payment date' means each date on which interest is
    payable by the issuer under the terms of the bond.
        ``(e) Qualified Bond.--For purposes of this subsection, the term
    `qualified bond' has the meaning given such term in section 54AA(g).''.
        (c) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is
        amended by striking ``or 6428'' and inserting ``6428, or 6431,''.
            (2) Section 54A(c)(1)(B) is amended by striking ``subpart C''
        and inserting ``subparts C and J''.
            (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each
        amended by striking ``and I'' and inserting ``, I, and J''.
            (4) Section 6211(b)(4)(A) is amended by striking ``and 6428''
        and inserting ``6428, and 6431''.
            (5) Section 6401(b)(1) is amended by striking ``and I'' and
        inserting ``I, and J''.
            (6) 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.''.

            (7) 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.

    PART V--REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT
                                  BOND CREDITS

    SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX
                  CREDIT BOND CREDITS.

        (a) In General.--Part I of subchapter M of chapter 1 is amended by
    inserting after section 853 the following new section:

    ``SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.

        ``(a) General Rule.--A regulated investment company--
            ``(1) which holds (directly or indirectly) one or more tax
        credit bonds on one or more applicable dates during the taxable
        year, and
            ``(2) which meets the requirements of section 852(a) for the
        taxable year,
    may elect the application of this section with respect to credits
    allowable to the investment company during such taxable year with
    respect to such bonds.
        ``(b) Effect of Election.--If the election provided in subsection
    (a) is in effect for any taxable year--
            ``(1) the regulated investment company shall not be allowed any
        credits to which subsection (a) applies for such taxable year,
            ``(2) the regulated investment company shall--
                ``(A) include in gross income (as interest) for such
            taxable year an amount equal to the amount that such investment
            company would have included in gross income with respect to
            such credits if this section did not apply, and
                ``(B) increase the amount of the dividends paid deduction
            for such taxable year by the amount of such income, and
            ``(3) each shareholder of such investment company shall--
                ``(A) include in gross income an amount equal to such
            shareholder's proportionate share of the interest income
            attributable to such credits, and
                ``(B) be allowed the shareholder's proportionate share of
            such credits against the tax imposed by this chapter.
        ``(c) Notice to Shareholders.--For purposes of subsection (b)(3),
    the shareholder's proportionate share of--
            ``(1) credits described in subsection (a), and
            ``(2) gross income in respect of such credits,
    shall not exceed the amounts so designated by the regulated investment
    company in a written notice mailed to its shareholders not later than
    60 days after the close of its taxable year.
        ``(d) Manner of Making Election and Notifying Shareholders.--The
    election provided in subsection (a) and the notice to shareholders
    required by subsection (c) shall be made in such manner as the
    Secretary may prescribe.
        ``(e) Definitions and Special Rules.--
            ``(1) Definitions.--For purposes of this subsection--
                ``(A) Tax credit bond.--The term `tax credit bond' means--
                    ``(i) a qualified tax credit bond (as defined in
                section 54A(d)),
                    ``(ii) a build America bond (as defined in section
                54AA(d)), and
                    ``(iii) any bond for which a credit is allowable under
                subpart H of part IV of subchapter A of this chapter.
                ``(B) Applicable date.--The term `applicable date' means--
                    ``(i) in the case of a qualified tax credit bond or a
                bond described in subparagraph (A)(iii), any credit
                allowance date (as defined in section 54A(e)(1)), and
                    ``(ii) in the case of a build America bond (as defined
                in section 54AA(d)), any interest payment date (as defined
                in section 54AA(e)).
            ``(2) Stripped tax credit bonds.--If the ownership of a tax
        credit bond is separated from the credit with respect to such bond,
        subsection (a) shall be applied by reference to the instruments
        evidencing the entitlement to the credit rather than the tax credit
        bond.
        ``(f) Regulations, etc.--The Secretary shall prescribe such
    regulations or other guidance as may be necessary or appropriate to
    carry out the purposes of this section, including methods for
    determining a shareholder's proportionate share of credits.''.
        (b) Conforming Amendments.--
            (1) Section 54(l) is amended by striking paragraph (4) and by
        redesignating paragraphs (5) and (6) as paragraphs (4) and (5),
        respectively.
            (2) Section 54A(h) is amended to read as follows:
        ``(h) Bonds Held by Real Estate Investment Trusts.--If any
    qualified tax credit bond is held by a real estate investment trust,
    the credit determined under subsection (a) shall be allowed to
    beneficiaries of such trust (and any gross income included under
    subsection (f) with respect to such credit shall be distributed to such
    beneficiaries) under procedures prescribed by the Secretary.''.
            (3) The table of sections for part I of subchapter M of chapter
        1 is amended by inserting after the item relating to section 853
        the following new item:
    ``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years ending after the date of the enactment of this
    Act.

                          Subtitle G--Other Provisions

    SEC. 1601. 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. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF
                  LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.

        (a) In General.--The Secretary of the Treasury shall make a grant
    to the housing credit agency of each State in an amount equal to such
    State's low-income housing grant election amount.
        (b) Low-Income Housing Grant Election Amount.--For purposes of this
    section, the term ``low-income housing grant election amount'' means,
    with respect to any State, such amount as the State may elect which
    does not exceed 85 percent of the product of--
            (1) the sum of--
                (A) 100 percent of the State housing credit ceiling for
            2009 which is attributable to amounts described in clauses (i)
            and (iii) of section 42(h)(3)(C) of the Internal Revenue Code
            of 1986, and
                (B) 40 percent of the State housing credit ceiling for 2009
            which is attributable to amounts described in clauses (ii) and
            (iv) of such section, multiplied by
            (2) 10.
        (c) Subawards for Low-Income Buildings.--
            (1) In general.--A State housing credit agency receiving a
        grant under this section shall use such grant to make subawards to
        finance the construction or acquisition and rehabilitation of
        qualified low-income buildings. A subaward under this section may
        be made to finance a qualified low-income building with or without
        an allocation under section 42 of the Internal Revenue Code of
        1986, except that a State housing credit agency may make subawards
        to finance qualified low-income buildings without an allocation
        only if it makes a determination that such use will increase the
        total funds available to the State to build and rehabilitate
        affordable housing. In complying with such determination
        requirement, a State housing credit agency shall establish a
        process in which applicants that are allocated credits are required
        to demonstrate good faith efforts to obtain investment commitments
        for such credits before the agency makes such subawards.
            (2) Subawards subject to same requirements as low-income
        housing credit allocations.--Any such subaward with respect to any
        qualified low-income building shall be made in the same manner and
        shall be subject to the same limitations (including rent, income,
        and use restrictions on such building) as an allocation of housing
        credit dollar amount allocated by such State housing credit agency
        under section 42 of the Internal Revenue Code of 1986, except that
        such subawards shall not be limited by, or otherwise affect (except
        as provided in subsection (h)(3)(J) of such section), the State
        housing credit ceiling applicable to such agency.
            (3) Compliance and asset management.--The State housing credit
        agency shall perform asset management functions to ensure
        compliance with section 42 of the Internal Revenue Code of 1986 and
        the long-term viability of buildings funded by any subaward under
        this section. The State housing credit agency may collect
        reasonable fees from a subaward recipient to cover expenses
        associated with the performance of its duties under this paragraph.
        The State housing credit agency may retain an agent or other
        private contractor to satisfy the requirements of this paragraph.
            (4) Recapture.--The State housing credit agency shall impose
        conditions or restrictions, including a requirement providing for
        recapture, on any subaward under this section so as to assure that
        the building with respect to which such subaward is made remains a
        qualified low-income building during the compliance period. Any
        such recapture shall be payable to the Secretary of the Treasury
        for deposit in the general fund of the Treasury and may be enforced
        by means of liens or such other methods as the Secretary of the
        Treasury determines appropriate.
        (d) Return of Unused Grant Funds.--Any grant funds not used to make
    subawards under this section before January 1, 2011, shall be returned
    to the Secretary of the Treasury on such date. Any subawards returned
    to the State housing credit agency on or after such date shall be
    promptly returned to the Secretary of the Treasury. Any amounts
    returned to the Secretary of the Treasury under this subsection shall
    be deposited in the general fund of the Treasury.
        (e) Definitions.--Any term used in this section which is also used
    in section 42 of the Internal Revenue Code of 1986 shall have the same
    meaning for purposes of this section as when used in such section 42.
    Any reference in this section to the Secretary of the Treasury shall be
    treated as including the Secretary's delegate.
        (f) Appropriations.--There is hereby appropriated to the Secretary
    of the Treasury such sums as may be necessary to carry out this
    section.

    SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

        (a) In General.--Upon application, the Secretary of the Treasury
    shall, subject to the requirements of this section, provide a grant to
    each person who places in service specified energy property to
    reimburse such person for a portion of the expense of such property as
    provided in subsection (b). No grant shall be made under this section
    with respect to any property unless such property--
            (1) is placed in service during 2009 or 2010, or
            (2) is placed in service after 2010 and before the credit
        termination date with respect to such property, but only if the
        construction of such property began during 2009 or 2010.
        (b) Grant Amount.--
            (1) In general.--The amount of the grant under subsection (a)
        with respect to any specified energy property shall be the
        applicable percentage of the basis of such property.
            (2) Applicable percentage.--For purposes of paragraph (1), the
        term ``applicable percentage'' means--
                (A) 30 percent in the case of any property described in
            paragraphs (1) through (4) of subsection (d), and
                (B) 10 percent in the case of any other property.
            (3) Dollar limitations.--In the case of property described in
        paragraph (2), (6), or (7) of subsection (d), the amount of any
        grant under this section with respect to such property shall not
        exceed the limitation described in section 48(c)(1)(B),
        48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986,
        respectively, with respect to such property.
        (c) Time for Payment of Grant.--The Secretary of the Treasury shall
    make payment of any grant under subsection (a) during the 60-day period
    beginning on the later of--
            (1) the date of the application for such grant, or
            (2) the date the specified energy property for which the grant
        is being made is placed in service.
        (d) Specified Energy Property.--For purposes of this section, the
    term ``specified energy property'' means any of the following:
            (1) Qualified facilities.--Any qualified property (as defined
        in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which
        is part of a qualified facility (within the meaning of section 45
        of such Code) described in paragraph (1), (2), (3), (4), (6), (7),
        (9), or (11) of section 45(d) of such Code.
            (2) Qualified fuel cell property.--Any qualified fuel cell
        property (as defined in section 48(c)(1) of such Code).
            (3) Solar property.--Any property described in clause (i) or
        (ii) of section 48(a)(3)(A) of such Code.
            (4) Qualified small wind energy property.--Any qualified small
        wind energy property (as defined in section 48(c)(4) of such Code).
            (5) Geothermal property.--Any property described in clause
        (iii) of section 48(a)(3)(A) of such Code.
            (6) Qualified microturbine property.--Any qualified
        microturbine property (as defined in section 48(c)(2) of such
        Code).
            (7) Combined heat and power system property.--Any combined heat
        and power system property (as defined in section 48(c)(3) of such
        Code).
            (8) Geothermal heat pump property.--Any property described in
        clause (vii) of section 48(a)(3)(A) of such Code.
    Such term shall not include any property unless depreciation (or
    amortization in lieu of depreciation) is allowable with respect to such
    property.
        (e) Credit Termination Date.--For purposes of this section, the
    term ``credit termination date'' means--
            (1) in the case of any specified energy property which is part
        of a facility described in paragraph (1) of section 45(d) of the
        Internal Revenue Code of 1986, January 1, 2013,
            (2) in the case of any specified energy property which is part
        of a facility described in paragraph (2), (3), (4), (6), (7), (9),
        or (11) of section 45(d) of such Code, January 1, 2014, and
            (3) in the case of any specified energy property described in
        section 48 of such Code, January 1, 2017.
    In the case of any property which is described in paragraph (3) and
    also in another paragraph of this subsection, paragraph (3) shall apply
    with respect to such property.
        (f) Application of Certain Rules.--In making grants under this
    section, the Secretary of the Treasury shall apply rules similar to the
    rules of section 50 of the Internal Revenue Code of 1986. In applying
    such rules, if the property is disposed of, or otherwise ceases to be
    specified energy property, the Secretary of the Treasury shall provide
    for the recapture of the appropriate percentage of the grant amount in
    such manner as the Secretary of the Treasury determines appropriate.
        (g) Exception for Certain Non-Taxpayers.--The Secretary of the
    Treasury shall not make any grant under this section to--
            (1) any Federal, State, or local government (or any political
        subdivision, agency, or instrumentality thereof),
            (2) any organization described in section 501(c) of the
        Internal Revenue Code of 1986 and exempt from tax under section
        501(a) of such Code,
            (3) any entity referred to in paragraph (4) of section 54(j) of
        such Code, or
            (4) any partnership or other pass-thru entity any partner (or
        other holder of an equity or profits interest) of which is
        described in paragraph (1), (2) or (3).
        (h) Definitions.--Terms used in this section which are also used in
    section 45 or 48 of the Internal Revenue Code of 1986 shall have the
    same meaning for purposes of this section as when used in such section
    45 or 48. Any reference in this section to the Secretary of the
    Treasury shall be treated as including the Secretary's delegate.
        (i) Appropriations.--There is hereby appropriated to the Secretary
    of the Treasury such sums as may be necessary to carry out this
    section.
        (j) Termination.--The Secretary of the Treasury shall not make any
    grant to any person under this section unless the application of such
    person for such grant is received before October 1, 2011.

    SEC. 1604. 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 ``$12,104,000,000,000''.

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

    SEC. 1701. 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 I--Trade Adjustment Assistance

    SEC. 1800. SHORT TITLE.

        This subtitle may be cited as the ``Trade and Globalization
    Adjustment Assistance Act of 2009''.

                PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

       Subpart A--Trade Adjustment Assistance for Service Sector Workers

    SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR
                  AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION.

        (a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
    2319) is amended--
            (1) in paragraph (1)--
                (A) by striking ``or appropriate subdivision of a firm'';
            and
                (B) by striking ``or subdivision'';
            (2) in paragraph (2), by striking ``employment--'' and all that
        follows and inserting ``employment, has been totally or partially
        separated from such employment.'';
            (3) by inserting after paragraph (2) the following:
            ``(3) Subject to section 222(d)(5), the term `firm' means--
                ``(A) a firm, including an agricultural firm, service
            sector firm, or public agency; or
                ``(B) an appropriate subdivision thereof.'';
            (4) by inserting after paragraph (6) the following:
            ``(7) The term `public agency' means a department or agency of
        a State or local government or of the Federal Government, or a
        subdivision thereof.'';
            (5) in paragraph (11), by striking ``, or in a subdivision of
        which,''; and
            (6) by adding at the end the following:
            ``(18) The term `service sector firm' means a firm engaged in
        the business of supplying services.''.
        (b) Group Eligibility Requirements.--Section 222 of the Trade Act
    of 1974 (19 U.S.C. 2272) is amended--
            (1) in subsection (a)(2)--
                (A) by amending subparagraph (A)(ii) to read as follows:
            ``(ii)(I) imports of articles or services like or directly
        competitive with articles produced or services supplied by such
        firm have increased;
            ``(II) imports of articles like or directly competitive with
        articles--
                ``(aa) into which one or more component parts produced by
            such firm are directly incorporated, or
                ``(bb) which are produced directly using services supplied
            by such firm,
        have increased; or
            ``(III) imports of articles directly incorporating one or more
        component parts produced outside the United States that are like or
        directly competitive with imports of articles incorporating one or
        more component parts produced by such firm have increased; and'';
        and
                (B) by amending subparagraph (B) to read as follows:
            ``(B)(i)(I) there has been a shift by such workers' firm to a
        foreign country in the production of articles or the supply of
        services like or directly competitive with articles which are
        produced or services which are supplied by such firm; or
            ``(II) such workers' firm has acquired from a foreign country
        articles or services that are like or directly competitive with
        articles which are produced or services which are supplied by such
        firm; and
            ``(ii) the shift described in clause (i)(I) or the acquisition
        of articles or services described in clause (i)(II) contributed
        importantly to such workers' separation or threat of separation.'';
            (2) by redesignating subsections (b) and (c) as subsections (c)
        and (d), respectively; and
            (3) by inserting after subsection (a) the following:
        ``(b) Adversely Affected Workers in Public Agencies.--A group of
    workers in a public agency shall be certified by the Secretary as
    eligible to apply for adjustment assistance under this chapter pursuant
    to a petition filed under section 221 if the Secretary determines
    that--
            ``(1) a significant number or proportion of the workers in the
        public agency have become totally or partially separated, or are
        threatened to become totally or partially separated;
            ``(2) the public agency has acquired from a foreign country
        services like or directly competitive with services which are
        supplied by such agency; and
            ``(3) the acquisition of services described in paragraph (2)
        contributed importantly to such workers' separation or threat of
        separation.''.
        (c) Basis for Secretary's Determinations.--Section 222 of the Trade
    Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding
    at the end the following:
        ``(e) Basis for Secretary's Determinations.--
            ``(1) In general.--The Secretary shall, in determining whether
        to certify a group of workers under section 223, obtain from the
        workers' firm, or a customer of the workers' firm, information the
        Secretary determines to be necessary to make the certification,
        through questionnaires and in such other manner as the Secretary
        determines appropriate.
            ``(2) Additional information.--The Secretary may seek
        additional information to determine whether to certify a group of
        workers under subsection (a), (b), or (c)--
                ``(A) by contacting--
                    ``(i) officials or employees of the workers' firm;
                    ``(ii) officials of customers of the workers' firm;
                    ``(iii) officials of certified or recognized unions or
                other duly authorized representatives of the group of
                workers; or
                    ``(iv) one-stop operators or one-stop partners (as
                defined in section 101 of the Workforce Investment Act of
                1998 (29 U.S.C. 2801)); or
                ``(B) by using other available sources of information.
            ``(3) Verification of information.--
                ``(A) Certification.--The Secretary shall require a firm or
            customer to certify--
                    ``(i) all information obtained under paragraph (1) from
                the firm or customer (as the case may be) through
                questionnaires; and
                    ``(ii) all other information obtained under paragraph
                (1) from the firm or customer (as the case may be) on which
                the Secretary relies in making a determination under
                section 223, unless the Secretary has a reasonable basis
                for determining that such information is accurate and
                complete without being certified.
                ``(B) Use of subpoenas.--The Secretary shall require the
            workers' firm or a customer of the workers' firm to provide
            information requested by the Secretary under paragraph (1) by
            subpoena pursuant to section 249 if the firm or customer (as
            the case may be) fails to provide the information within 20
            days after the date of the Secretary's request, unless the firm
            or customer (as the case may be) demonstrates to the
            satisfaction of the Secretary that the firm or customer (as the
            case may be) will provide the information within a reasonable
            period of time.
                ``(C) Protection of confidential information.--The
            Secretary may not release information obtained under paragraph
            (1) that the Secretary considers to be confidential business
            information unless the firm or customer (as the case may be)
            submitting the confidential business information had notice, at
            the time of submission, that the information would be released
            by the Secretary, or the firm or customer (as the case may be)
            subsequently consents to the release of the information.
            Nothing in this subparagraph shall be construed to prohibit the
            Secretary from providing such confidential business information
            to a court in camera or to another party under a protective
            order issued by a court.''.
        (d) Penalties.--Section 244 of the Trade Act of 1974 (19 U.S.C.
    2316) is amended to read as follows:

    ``SEC. 244. PENALTIES.

        ``Any person who--
            ``(1) makes a false statement of a material fact knowing it to
        be false, or knowingly fails to disclose a material fact, for the
        purpose of obtaining or increasing for that person or for any other
        person any payment authorized to be furnished under this chapter or
        pursuant to an agreement under section 239, or
            ``(2) makes a false statement of a material fact knowing it to
        be false, or knowingly fails to disclose a material fact, when
        providing information to the Secretary during an investigation of a
        petition under section 221,
    shall be imprisoned for not more than one year, or fined under title
    18, United States Code, or both.''.
        (e) Conforming Amendments.--
            (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a))
        is amended--
                (A) in paragraph (1)--
                    (i) in the matter preceding subparagraph (A)--

                        (I) by striking ``Secretary'' and inserting
                    ``Secretary of Labor''; and
                        (II) by striking ``or subdivision'' and inserting
                    ``(as defined in section 247)''; and

                    (ii) in subparagraph (A), by striking ``(including
                workers in an agricultural firm or subdivision of any
                agricultural firm)'';
                (B) in paragraph (2)(A), by striking ``rapid response
            assistance'' and inserting ``rapid response activities''; and
                (C) in paragraph (3), by inserting ``and on the website of
            the Department of Labor'' after ``Federal Register''.
            (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as
        amended, is further amended--
                (A) by striking ``(including workers in any agricultural
            firm or subdivision of an agricultural firm)'' each place it
            appears;
                (B) in subsection (a)--
                    (i) in paragraph (1), by striking ``, or an appropriate
                subdivision of the firm,''; and
                    (ii) in paragraph (2), by striking ``or subdivision''
                each place it appears;
                (C) in subsection (c) (as redesignated)--
                    (i) in paragraph (2)--

                        (I) by striking ``(or subdivision)'' each place it
                    appears;
                        (II) by inserting ``or service'' after ``the
                    article''; and
                        (III) by striking ``(c) (3)'' and inserting ``(d)
                    (3)''; and

                    (ii) in paragraph (3), by striking ``(or subdivision)''
                each place it appears; and
                (D) in subsection (d) (as redesignated)--
                    (i) by striking ``For purposes'' and inserting
                ``Definitions.--For purposes'';
                    (ii) in paragraph (2), by striking ``, or appropriate
                subdivision of a firm,'' each place it appears;
                    (iii) by amending paragraph (3) to read as follows:
            ``(3) Downstream producer.--
                ``(A) In general.--The term `downstream producer' means a
            firm that performs additional, value-added production processes
            or services directly for another firm for articles or services
            with respect to which a group of workers in such other firm has
            been certified under subsection (a).
                ``(B) Value-added production processes or services.--For
            purposes of subparagraph (A), value-added production processes
            or services include final assembly, finishing, testing,
            packaging, or maintenance or transportation services.'';
                    (iv) in paragraph (4)--

                        (I) by striking ``(or subdivision)''; and
                        (II) by inserting ``, or services, used in the
                    production of articles or in the supply of services, as
                    the case may be,'' after ``for articles''; and

                    (v) by adding at the end the following:
            ``(5) Reference to firm.--For purposes of subsection (a), the
        term `firm' does not include a public agency.''.
            (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C.
        2291(a)(2)) is amended--
                (A) in the matter preceding subparagraph (A), by striking
            ``or subdivision of a firm''; and
                (B) in subparagraph (C), by striking ``or subdivision''.

    SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.

        Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended,
    is further amended by adding at the end the following:
        ``(f) Firms Identified by the International Trade Commission.--
    Notwithstanding any other provision of this chapter, a group of workers
    covered by a petition filed under section 221 shall be certified under
    subsection (a) as eligible to apply for adjustment assistance under
    this chapter if--
            ``(1) the workers' firm is publicly identified by name by the
        International Trade Commission as a member of a domestic industry
        in an investigation resulting in--
                ``(A) an affirmative determination of serious injury or
            threat thereof under section 202(b)(1);
                ``(B) an affirmative determination of market disruption or
            threat thereof under section 421(b)(1); or
                ``(C) an affirmative final determination of material injury
            or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of
            the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and
            1673d(b)(1)(A));
            ``(2) the petition is filed during the one-year period
        beginning on the date on which--
                ``(A) a summary of the report submitted to the President by
            the International Trade Commission under section 202(f)(1) with
            respect to the affirmative determination described in paragraph
            (1)(A) is published in the Federal Register under section
            202(f)(3); or
                ``(B) notice of an affirmative determination described in
            subparagraph (B) or (C) of paragraph (1) is published in the
            Federal Register; and
            ``(3) the workers have become totally or partially separated
        from the workers' firm within--
                ``(A) the one-year period described in paragraph (2); or
                ``(B) notwithstanding section 223(b), the one-year period
            preceding the one-year period described in paragraph (2).''.

    SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.

        Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
            (1) in subsection (b), by striking ``or appropriate subdivision
        of the firm before his application'' and all that follows and
        inserting ``before the worker's application under section 231
        occurred more than one year before the date of the petition on
        which such certification was granted.'';
            (2) in subsection (c), by striking ``together with his
        reasons'' and inserting ``and on the website of the Department of
        Labor, together with the Secretary's reasons'';
            (3) in subsection (d)--
                (A) by striking ``or subdivision of the firm'' and all that
            follows through ``he shall'' and inserting ``, that total or
            partial separations from such firm are no longer attributable
            to the conditions specified in section 222, the Secretary
            shall''; and
                (B) by striking ``together with his reasons'' and inserting
            ``and on the website of the Department of Labor, together with
            the Secretary's reasons''; and
            (4) by adding at the end the following:
        ``(e) Standards for Investigations and Determinations.--
            ``(1) In general.--The Secretary shall establish standards,
        including data requirements, for investigations of petitions filed
        under section 221 and criteria for making determinations under
        subsection (a).
            ``(2) Consultations.--Not less than 90 days before issuing a
        final rule with respect to the standards required under paragraph
        (1), the Secretary shall consult with the Committee on Finance of
        the Senate and the Committee on Ways and Means of the House of
        Representatives with respect to such rule.''.

    SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.

        (a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C.
    2393) is amended--
            (1) in the heading, by striking ``system'' and inserting ``and
        data collection'';
            (2) in the first sentence--
                (A) by striking ``The Secretary'' and inserting ``(a)
            Monitoring Programs.--The Secretary'';
                (B) by inserting ``and services'' after ``imports of
            articles'';
                (C) by inserting ``and domestic supply of services'' after
            ``domestic production'';
                (D) by inserting ``or supplying services'' after
            ``producing articles''; and
                (E) by inserting ``, or supply of services,'' after
            ``changes in production''; and
            (3) by adding at the end the following:
        ``(b) Collection of Data and Reports on Service Sector.--
            ``(1) Secretary of labor.--Not later than 90 days after the
        date of the enactment of this subsection, the Secretary of Labor
        shall implement a system to collect data on adversely affected
        workers employed in the service sector that includes the number of
        workers by State and industry, and by the cause of the dislocation
        of each worker, as identified in the certification.
            ``(2) Secretary of commerce.--Not later than 1 year after such
        date of enactment, the Secretary of Commerce shall, in consultation
        with the Secretary of Labor, conduct a study and submit to the
        Committee on Finance of the Senate and the Committee on Ways and
        Means of the House of Representatives a report on ways to improve
        the timeliness and coverage of data on trade in services, including
        methods to identify increased imports due to the relocation of
        United States firms to foreign countries, and increased imports due
        to United States firms acquiring services from firms in foreign
        countries.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 282 and
    inserting the following:
    ``Sec. 282. Trade monitoring and data collection.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act.

        Subpart B--Industry Notifications Following Certain Affirmative
                                 Determinations

    SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.

        (a) In General.--Section 224 of the Trade Act of 1974 (19 U.S.C.
    2274) is amended--
            (1) by amending the heading to read as follows:

    ``SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE
                  DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.'';

            (2) in subsection (a), by striking ``Whenever'' and inserting
        ``Study of Domestic Industry.--Whenever'';
            (3) in subsection (b)--
                (A) by striking ``The report'' and inserting ``Report by
            the Secretary.--The report''; and
                (B) by inserting ``and on the website of the Department of
            Labor'' after ``Federal Register''; and
            (4) by adding at the end the following:
        ``(c) Notifications Following Affirmative Global Safeguard
    Determinations.--Upon making an affirmative determination under section
    202(b)(1), the Commission shall promptly notify the Secretary of Labor
    and the Secretary of Commerce and, in the case of a determination with
    respect to an agricultural commodity, the Secretary of Agriculture, of
    the determination.
        ``(d) Notifications Following Affirmative Bilateral or Plurilateral
    Safeguard Determinations.--
            ``(1) Notifications of determinations of market disruption.--
        Upon making an affirmative determination under section 421(b)(1),
        the Commission shall promptly notify the Secretary of Labor and the
        Secretary of Commerce and, in the case of a determination with
        respect to an agricultural commodity, the Secretary of Agriculture,
        of the determination.
            ``(2) Notifications regarding trade agreement safeguards.--Upon
        making an affirmative determination in a proceeding initiated under
        an applicable safeguard provision (other than a provision described
        in paragraph (3)) that is enacted to implement a trade agreement to
        which the United States is a party, the Commission shall promptly
        notify the Secretary of Labor and the Secretary of Commerce and, in
        the case of a determination with respect to an agricultural
        commodity, the Secretary of Agriculture, of the determination.
            ``(3) Notifications regarding textile and apparel safeguards.--
        Upon making an affirmative determination in a proceeding initiated
        under any safeguard provision relating to textile and apparel
        articles that is enacted to implement a trade agreement to which
        the United States is a party, the President shall promptly notify
        the Secretary of Labor and the Secretary of Commerce of the
        determination.
        ``(e) Notifications Following Certain Affirmative Determinations
    Under Title Vii of the Tariff Act of 1930.--Upon making an affirmative
    determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff
    Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the
    Commission shall promptly notify the Secretary of Labor and the
    Secretary of Commerce and, in the case of a determination with respect
    to an agricultural commodity, the Secretary of Agriculture, of the
    determination.
        ``(f) Industry Notification of Assistance.--Upon receiving a
    notification of a determination under subsection (c), (d), or (e) with
    respect to a domestic industry--
            ``(1) the Secretary of Labor shall--
                ``(A) notify the representatives of the domestic industry
            affected by the determination, firms publicly identified by
            name during the course of the proceeding relating to the
            determination, and any certified or recognized union or, to the
            extent practicable, other duly authorized representative of
            workers employed by such representatives of the domestic
            industry, of--
                    ``(i) the allowances, training, employment services,
                and other benefits available under this chapter;
                    ``(ii) the manner in which to file a petition and apply
                for such benefits; and
                    ``(iii) the availability of assistance in filing such
                petitions;
                ``(B) notify the Governor of each State in which one or
            more firms in the industry described in subparagraph (A) are
            located of the Commission's determination and the identity of
            the firms; and
                ``(C) upon request, provide any assistance that is
            necessary to file a petition under section 221;
            ``(2) the Secretary of Commerce shall--
                ``(A) notify the representatives of the domestic industry
            affected by the determination and any firms publicly identified
            by name during the course of the proceeding relating to the
            determination of--
                    ``(i) the benefits available under chapter 3;
                    ``(ii) the manner in which to file a petition and apply
                for such benefits; and
                    ``(iii) the availability of assistance in filing such
                petitions; and
                ``(B) upon request, provide any assistance that is
            necessary to file a petition under section 251; and
            ``(3) in the case of an affirmative determination based upon
        imports of an agricultural commodity, the Secretary of Agriculture
        shall--
                ``(A) notify representatives of the domestic industry
            affected by the determination and any agricultural commodity
            producers publicly identified by name during the course of the
            proceeding relating to the determination of--
                    ``(i) the benefits available under chapter 6;
                    ``(ii) the manner in which to file a petition and apply
                for such benefits; and
                    ``(iii) the availability of assistance in filing such
                petitions; and
                ``(B) upon request, provide any assistance that is
            necessary to file a petition under section 292.
        ``(g) Representatives of the Domestic Industry.--For purposes of
    subsection (f), the term `representatives of the domestic industry'
    means the persons that petitioned for relief in connection with--
            ``(1) a proceeding under section 202 or 421 of this Act;
            ``(2) a proceeding under section 702(b) or 732(b) of the Tariff
        Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or
            ``(3) any safeguard investigation described in subsection
        (d)(2) or (d)(3).''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 224 and
    inserting the following:
    ``Sec. 224. Study and notifications regarding certain affirmative
              determinations; industry notification of assistance.''.

    SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.

        Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by
    adding at the end the following:
        ``(c) Upon issuing a certification under section 223, the Secretary
    shall notify the Secretary of Commerce of the identity of each firm
    covered by the certification.''.

                          Subpart C--Program Benefits

    SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.

        (a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act of 1974
    (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
            (1) by striking subclauses (I) and (II) and inserting the
        following:
                    ``(I) in the case of a worker whose most recent total
                separation from adversely affected employment that meets
                the requirements of paragraphs (1) and (2) occurs after the
                date on which the Secretary issues a certification covering
                the worker, the last day of the 26th week after such total
                separation,
                    ``(II) in the case of a worker whose most recent total
                separation from adversely affected employment that meets
                the requirements of paragraphs (1) and (2) occurs before
                the date on which the Secretary issues a certification
                covering the worker, the last day of the 26th week after
                the date of such certification,'';
            (2) in subclause (III)--
                (A) by striking ``later of the dates specified in subclause
            (I) or (II)'' and inserting ``date specified in subclause (I)
            or (II), as the case may be''; and
                (B) by striking ``or'' at the end;
            (3) by redesignating subclause (IV) as subclause (V); and
            (4) by inserting after subclause (III) the following:
                    ``(IV) in the case of a worker who fails to enroll by
                the date required by subclause (I), (II), or (III), as the
                case may be, due to the failure to provide the worker with
                timely information regarding the date specified in such
                subclause, the last day of a period determined by the
                Secretary, or''.
        (b) Waivers of Training Requirements.--Section 231(c) of the Trade
    Act of 1974 (19 U.S.C. 2291(c)) is amended--
            (1) in paragraph (1)(B)--
                (A) by striking ``The worker possesses'' and inserting the
            following:
                    ``(i) In general.--The worker possesses''; and
                (B) by adding at the end the following:
                    ``(ii) Marketable skills defined.--For purposes of
                clause (i), the term `marketable skills' may include the
                possession of a postgraduate degree from an institution of
                higher education (as defined in section 102 of the Higher
                Education Act of 1965 (20 U.S.C. 1002)) or an equivalent
                institution, or the possession of an equivalent
                postgraduate certification in a specialized field.'';
            (2) in paragraph (2)(A), by striking ``A waiver'' and inserting
        ``Except as provided in paragraph (3)(B), a waiver''; and
            (3) in paragraph (3)--
                (A) in subparagraph (A), by striking ``Pursuant to an
            agreement under section 239, the Secretary may authorize a''
            and inserting ``An agreement under section 239 shall authorize
            a'';
                (B) by redesignating subparagraph (B) as subparagraph (C);
            and
                (C) by inserting after subparagraph (A) the following:
                ``(B) Review of waivers.--An agreement under section 239
            shall require a cooperating State to review each waiver issued
            by the State under subparagraph (A), (B), (D), (E), or (F) of
            paragraph (1)--
                    ``(i) 3 months after the date on which the State issues
                the waiver; and
                    ``(ii) on a monthly basis thereafter.''.
        (c) Conforming Amendments.--
            (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as
        amended, is further amended--
                (A) in subsection (a), in the matter preceding paragraph
            (1), by striking ``more than 60 days'' and all that follows
            through ``section 221'' and inserting ``on or after the date of
            such certification''; and
                (B) in subsection (b)--
                    (i) by striking paragraph (2); and
                    (ii) in paragraph (1)--

                        (I) by striking ``(1)'';
                        (II) by redesignating subparagraphs (A) and (B) as
                    paragraphs (1) and (2), respectively;
                        (III) by redesignating clauses (i) and (ii) as
                    subparagraphs (A) and (B), respectively; and
                        (IV) by redesignating subclauses (I) and (II) as
                    clauses (i) and (ii), respectively.

            (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
        amended--
                (A) by striking subsection (b); and
                (B) by redesignating subsections (c) through (g) as
            subsections (b) through (f), respectively.

    SEC. 1822. WEEKLY AMOUNTS.

        Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended--
            (1) in subsection (a)--
                (A) by striking ``subsections (b) and (c)'' and inserting
            ``subsections (b), (c), and (d)'';
                (B) by striking ``total unemployment'' the first place it
            appears and inserting ``unemployment''; and
                (C) in paragraph (2), by inserting before the period the
            following: ``, except that in the case of an adversely affected
            worker who is participating in training under this chapter,
            such income shall not include earnings from work for such week
            that are equal to or less than the most recent weekly benefit
            amount of the unemployment insurance payable to the worker for
            a week of total unemployment preceding the worker's first
            exhaustion of unemployment insurance (as determined for
            purposes of section 231(a)(3)(B))''; and
            (2) by adding at the end the following:
        ``(d) Election of Trade Readjustment Allowance or Unemployment
    Insurance.--Notwithstanding section 231(a)(3)(B), an adversely affected
    worker may elect to receive a trade readjustment allowance instead of
    unemployment insurance during any week with respect to which the
    worker--
            ``(1) is entitled to receive unemployment insurance as a result
        of the establishment by the worker of a new benefit year under
        State law, based in whole or in part upon part-time or short-term
        employment in which the worker engaged after the worker's most
        recent total separation from adversely affected employment; and
            ``(2) is otherwise entitled to a trade readjustment
        allowance.''.

    SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR
                  EXTENDED TRAINING AND BREAKS IN TRAINING.

        Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is
    amended--
            (1) in paragraph (2), by inserting ``under paragraph (1)''
        after ``trade readjustment allowance''; and
            (2) in paragraph (3)--
                (A) in the matter preceding subparagraph (A)--
                    (i) by striking ``training approved for him'' and
                inserting ``a training program approved for the worker'';
                    (ii) by striking ``52 additional weeks'' and inserting
                ``78 additional weeks''; and
                    (iii) by striking ``52-week'' and inserting ``91-
                week''; and
                (B) in the matter following subparagraph (B), by striking
            ``52-week'' and inserting ``91-week''.

    SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.

        Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended,
    is further amended by adding at the end the following:
        ``(g) Special Rule for Calculating Separation.--Notwithstanding any
    other provision of this chapter, any period during which a judicial or
    administrative appeal is pending with respect to the denial by the
    Secretary of a petition under section 223 shall not be counted for
    purposes of calculating the period of separation under subsection
    (a)(2).
        ``(h) Special Rule for Justifiable Cause.--If the Secretary
    determines that there is justifiable cause, the Secretary may extend
    the period during which trade readjustment allowances are payable to an
    adversely affected worker under paragraphs (2) and (3) of subsection
    (a) (but not the maximum amounts of such allowances that are payable
    under this section).
        ``(i) Special Rule With Respect to Military Service.--
            ``(1) In general.--Notwithstanding any other provision of this
        chapter, the Secretary may waive any requirement of this chapter
        that the Secretary determines is necessary to ensure that an
        adversely affected worker who is a member of a reserve component of
        the Armed Forces and serves a period of duty described in paragraph
        (2) is eligible to receive a trade readjustment allowance,
        training, and other benefits under this chapter in the same manner
        and to the same extent as if the worker had not served the period
        of duty.
            ``(2) Period of duty described.--An adversely affected worker
        serves a period of duty described in this paragraph if, before
        completing training under section 236, the worker--
                ``(A) serves on active duty for a period of more than 30
            days under a call or order to active duty of more than 30 days;
            or
                ``(B) in the case of a member of the Army National Guard of
            the United States or Air National Guard of the United States,
            performs full-time National Guard duty under section 502(f) of
            title 32, United States Code, for 30 consecutive days or more
            when authorized by the President or the Secretary of Defense
            for the purpose of responding to a national emergency declared
            by the President and supported by Federal funds.''.

    SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR
                  WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.

        Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
            (1) by striking ``Except where inconsistent'' and inserting
        ``(a) In General.--Except where inconsistent''; and
            (2) by adding at the end the following:
        ``(b) Special Rule With Respect to State Laws and Regulations on
    Good Cause for Waiver of Time Limits or Late Filing of Claims.--Any
    law, regulation, policy, or practice of a cooperating State that allows
    for a waiver for good cause of any time limitation relating to the
    administration of the State unemployment insurance law shall, in the
    administration of the program under this chapter by the State, apply to
    any time limitation with respect to an application for a trade
    readjustment allowance or enrollment in training under this chapter.''.

    SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

        (a) In General.--Section 235 of the Trade Act of 1974 (19 U.S.C.
    2295) is amended to read as follows:

    ``SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

        ``The Secretary shall make available, directly or through
    agreements with States under section 239, to adversely affected workers
    and adversely affected incumbent workers covered by a certification
    under subchapter A of this chapter the following employment and case
    management services:
            ``(1) Comprehensive and specialized assessment of skill levels
        and service needs, including through--
                ``(A) diagnostic testing and use of other assessment tools;
            and
                ``(B) in-depth interviewing and evaluation to identify
            employment barriers and appropriate employment goals.
            ``(2) Development of an individual employment plan to identify
        employment goals and objectives, and appropriate training to
        achieve those goals and objectives.
            ``(3) Information on training available in local and regional
        areas, information on individual counseling to determine which
        training is suitable training, and information on how to apply for
        such training.
            ``(4) Information on how to apply for financial aid, including
        referring workers to educational opportunity centers described in
        section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a-
        16), where applicable, and notifying workers that the workers may
        request financial aid administrators at institutions of higher
        education (as defined in section 102 of such Act (20 U.S.C. 1002))
        to use the administrators' discretion under section 479A of such
        Act (20 U.S.C. 1087tt) to use current year income data, rather than
        preceding year income data, for determining the amount of need of
        the workers for Federal financial assistance under title IV of such
        Act (20 U.S.C. 1070 et seq.).
            ``(5) Short-term prevocational services, including development
        of learning skills, communications skills, interviewing skills,
        punctuality, personal maintenance skills, and professional conduct
        to prepare individuals for employment or training.
            ``(6) Individual career counseling, including job search and
        placement counseling, during the period in which the individual is
        receiving a trade adjustment allowance or training under this
        chapter, and after receiving such training for purposes of job
        placement.
            ``(7) Provision of employment statistics information, including
        the provision of accurate information relating to local, regional,
        and national labor market areas, including--
                ``(A) job vacancy listings in such labor market areas;
                ``(B) information on jobs skills necessary to obtain jobs
            identified in job vacancy listings described in subparagraph
            (A);
                ``(C) information relating to local occupations that are in
            demand and earnings potential of such occupations; and
                ``(D) skills requirements for local occupations described
            in subparagraph (C).
            ``(8) Information relating to the availability of supportive
        services, including services relating to child care,
        transportation, dependent care, housing assistance, and need-
        related payments that are necessary to enable an individual to
        participate in training.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 235 and
    inserting the following:
    ``235. Employment and case management services.''.

    SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT
                  SERVICES.

        (a) In General.--Part II of subchapter B of chapter 2 of title II
    of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by
    inserting after section 235 the following:

    ``SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND
                  CASE MANAGEMENT SERVICES.

        ``(a) Funding for Administrative Expenses and Employment and Case
    Management Services.--
            ``(1) In general.--In addition to any funds made available to a
        State to carry out section 236 for a fiscal year, the State shall
        receive for the fiscal year a payment in an amount that is equal to
        15 percent of the amount of such funds.
            ``(2) Use of funds.--A State that receives a payment under
        paragraph (1) shall--
                ``(A) use not more than \2/3\ of such payment for the
            administration of the trade adjustment assistance for workers
            program under this chapter, including for--
                    ``(i) processing waivers of training requirements under
                section 231;
                    ``(ii) collecting, validating, and reporting data
                required under this chapter; and
                    ``(iii) providing reemployment trade adjustment
                assistance under section 246; and
                ``(B) use not less than \1/3\ of such payment for
            employment and case management services under section 235.
        ``(b) Additional Funding for Employment and Case Management
    Services.--
            ``(1) In general.--In addition to any funds made available to a
        State to carry out section 236 and the payment under subsection
        (a)(1) for a fiscal year, the Secretary shall provide to the State
        for the fiscal year a payment in the amount of $350,000.
            ``(2) Use of funds.--A State that receives a payment under
        paragraph (1) shall use such payment for the purpose of providing
        employment and case management services under section 235.
            ``(3) Voluntary return of funds.--A State that receives a
        payment under paragraph (1) may decline or otherwise return such
        payment to the Secretary.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 235 the
    following:
    ``Sec. 235A. Funding for administrative expenses and employment and case
              management services.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act.

    SEC. 1828. TRAINING FUNDING.

        (a) In General.--Section 236(a)(2) of the Trade Act of 1974 (19
    U.S.C. 2296(a)(2)) is amended to read as follows:
        ``(2)(A) The total amount of payments that may be made under
    paragraph (1) shall not exceed--
            ``(i) for each of the fiscal years 2009 and 2010, $575,000,000;
        and
            ``(ii) for the period beginning October 1, 2010, and ending
        December 31, 2010, $143,750,000.
        ``(B)(i) The Secretary shall, as soon as practicable after the
    beginning of each fiscal year, make an initial distribution of the
    funds made available to carry out this section, in accordance with the
    requirements of subparagraph (C).
        ``(ii) The Secretary shall ensure that not less than 90 percent of
    the funds made available to carry out this section for a fiscal year
    are distributed to the States by not later than July 15 of that fiscal
    year.
        ``(C)(i) In making the initial distribution of funds pursuant to
    subparagraph (B)(i) for a fiscal year, the Secretary shall hold in
    reserve 35 percent of the funds made available to carry out this
    section for that fiscal year for additional distributions during the
    remainder of the fiscal year.
        ``(ii) Subject to clause (iii), in determining how to apportion the
    initial distribution of funds pursuant to subparagraph (B)(i) in a
    fiscal year, the Secretary shall take into account, with respect to
    each State--
            ``(I) the trend in the number of workers covered by
        certifications of eligibility under this chapter during the most
        recent 4 consecutive calendar quarters for which data are
        available;
            ``(II) the trend in the number of workers participating in
        training under this section during the most recent 4 consecutive
        calendar quarters for which data are available;
            ``(III) the number of workers estimated to be participating in
        training under this section during the fiscal year;
            ``(IV) the amount of funding estimated to be necessary to
        provide training approved under this section to such workers during
        the fiscal year; and
            ``(V) such other factors as the Secretary considers appropriate
        relating to the provision of training under this section.
        ``(iii) In no case may the amount of the initial distribution to a
    State pursuant to subparagraph (B)(i) in a fiscal year be less than 25
    percent of the initial distribution to the State in the preceding
    fiscal year.
        ``(D) The Secretary shall establish procedures for the distribution
    of the funds that remain available for the fiscal year after the
    initial distribution required under subparagraph (B)(i). Such
    procedures may include the distribution of funds pursuant to requests
    submitted by States in need of such funds.
        ``(E) If, during a fiscal year, the Secretary estimates that the
    amount of funds necessary to pay the costs of training approved under
    this section will exceed the dollar amount limitation specified in
    subparagraph (A), the Secretary shall decide how the amount of funds
    made available to carry out this section that have not been distributed
    at the time of the estimate will be apportioned among the States for
    the remainder of the fiscal year.''.
        (b) Determinations Regarding Training.--Section 236(a)(9) of the
    Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
            (1) by striking ``The Secretary'' and inserting ``(A) Subject
        to subparagraph (B), the Secretary''; and
            (2) by adding at the end the following:
        ``(B)(i) In determining under paragraph (1)(E) whether a worker is
    qualified to undertake and complete training, the Secretary may approve
    training for a period longer than the worker's period of eligibility
    for trade readjustment allowances under part I if the worker
    demonstrates a financial ability to complete the training after the
    expiration of the worker's period of eligibility for such trade
    readjustment allowances.
        ``(ii) In determining the reasonable cost of training under
    paragraph (1)(F) with respect to a worker, the Secretary may consider
    whether other public or private funds are reasonably available to the
    worker, except that the Secretary may not require a worker to obtain
    such funds as a condition of approval of training under paragraph
    (1).''.
        (c) Regulations.--Section 236 of the Trade Act of 1974 (19 U.S.C.
    2296) is amended by adding at the end the following:
        ``(g) Regulations With Respect to Apportionment of Training Funds
    to States.--
            ``(1) In general.--Not later than 1 year after the date of the
        enactment of this subsection, the Secretary shall issue such
        regulations as may be necessary to carry out the provisions of
        subsection (a)(2).
            ``(2) Consultations.--The Secretary shall consult with the
        Committee on Finance of the Senate and the Committee on Ways and
        Means of the House of Representatives not less than 90 days before
        issuing any regulation pursuant to paragraph (1).''.
        (d) Effective Date.--This section and the amendments made by this
    section shall take effect upon the expiration of the 90-day period
    beginning on the date of the enactment of this Act, except that--
            (1) subparagraph (A) of section 236(a)(2) of the Trade Act of
        1974, as amended by subsection (a) of this section, shall take
        effect on the date of the enactment of this Act; and
            (2) subparagraphs (B), (C), and (D) of such section 236(a)(2)
        shall take effect on October 1, 2009.

    SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.

        (a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19
    U.S.C. 2296(a)(5)) is amended--
            (1) in subparagraph (A)--
                (A) by striking ``and'' at the end of clause (i);
                (B) by adding ``and'' at the end of clause (ii); and
                (C) by inserting after clause (ii) the following:
                ``(iii) apprenticeship programs registered under the Act of
            August 16, 1937 (commonly known as the `National Apprenticeship
            Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),'';
            (2) by redesignating subparagraphs (E) and (F) as subparagraphs
        (F) and (G), respectively;
            (3) by inserting after subparagraph (D) the following:
            ``(E) any program of prerequisite education or coursework
        required to enroll in training that may be approved under this
        section,'';
            (4) in subparagraph (F)(ii), as redesignated by paragraph (2),
        by striking ``and'' at the end;
            (5) in subparagraph (G), as redesignated by paragraph (2), by
        striking the period at the end and inserting ``, and''; and
            (6) by adding at the end the following:
            ``(H) any training program or coursework at an accredited
        institution of higher education (described in section 102 of the
        Higher Education Act of 1965 (20 U.S.C. 1002)), including a
        training program or coursework for the purpose of--
                ``(i) obtaining a degree or certification; or
                ``(ii) completing a degree or certification that the worker
            had previously begun at an accredited institution of higher
            education.
    The Secretary may not limit approval of a training program under
    paragraph (1) to a program provided pursuant to title I of the
    Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).''.
        (b) Conforming Amendments.--Section 233 of the Trade Act of 1974
    (19 U.S.C. 2293) is amended--
            (1) in subsection (a)(2), by inserting ``prerequisite education
        or'' after ``requires a program of''; and
            (2) in subsection (f) (as redesignated by section 1821(c) of
        this subtitle), by inserting ``prerequisite education or'' after
        ``includes a program of''.
        (c) Technical Corrections.--Section 236 of the Trade Act of 1974
    (19 U.S.C. 2296) is amended--
            (1) in subsection (a)--
                (A) in paragraph (1), in the flush text, by striking ``his
            behalf'' and inserting ``the worker's behalf''; and
                (B) in paragraph (3), by striking ``this paragraph (1)''
            and inserting ``paragraph (1)''; and
            (2) in subsection (b)(2), by striking ``, and'' and inserting a
        period.

    SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING.

        (a) Pre-Layoff Training.--
            (1) In general.--Section 236(a) of the Trade Act of 1974 (19
        U.S.C. 2296(a)) is amended--
                (A) in paragraph (1), by inserting after ``determines'' the
            following: ``, with respect to an adversely affected worker or
            an adversely affected incumbent worker,'';
                (B) in paragraph (4)--
                    (i) in subparagraphs (A) and (B), by inserting ``or an
                adversely affected incumbent worker'' after ``an adversely
                affected worker'' each place it appears; and
                    (ii) in subparagraph (C), by inserting ``or adversely
                affected incumbent worker'' after ``adversely affected
                worker'' each place it appears;
                (C) in paragraph (5), in the matter preceding subparagraph
            (A), by striking ``The training programs'' and inserting
            ``Except as provided in paragraph (10), the training
            programs'';
                (D) in paragraph (6)(B), by inserting ``or adversely
            affected incumbent worker'' after ``adversely affected
            worker'';
                (E) in paragraph (7)(B), by inserting ``or adversely
            affected incumbent worker'' after ``adversely affected
            worker''; and
                (F) by inserting after paragraph (9) the following:
        ``(10) In the case of an adversely affected incumbent worker, the
    Secretary may not approve--
            ``(A) on-the-job training under paragraph (5)(A)(i); or
            ``(B) customized training under paragraph (5)(A)(ii), unless
        such training is for a position other than the worker's adversely
        affected employment.
        ``(11) If the Secretary determines that an adversely affected
    incumbent worker for whom the Secretary approved training under this
    section is no longer threatened with a total or partial separation, the
    Secretary shall terminate the approval of such training.''.
            (2) Definitions.--Section 247 of the Trade Act of 1974 (19
        U.S.C. 2319), as amended, is further amended by adding at the end
        the following:
            ``(19) The term `adversely affected incumbent worker' means a
        worker who--
                ``(A) is a member of a group of workers who have been
            certified as eligible to apply for adjustment assistance under
            subchapter A;
                ``(B) has not been totally or partially separated from
            adversely affected employment; and
                ``(C) the Secretary determines, on an individual basis, is
            threatened with total or partial separation.''.
        (b) Part-Time Training.--Section 236 of the Trade Act of 1974 (19
    U.S.C. 2296), as amended, is further amended by adding at the end the
    following:
        ``(h) Part-Time Training.--
            ``(1) In general.--The Secretary may approve full-time or part-
        time training for a worker under subsection (a).
            ``(2) Limitation.--Notwithstanding paragraph (1), a worker
        participating in part-time training approved under subsection (a)
        may not receive a trade readjustment allowance under section
        231.''.

    SEC. 1831. ON-THE-JOB TRAINING.

        (a) In General.--Section 236(c) of the Trade Act of 1974 (19 U.S.C.
    2296(c)) is amended--
            (1) by redesignating paragraphs (1) through (10) as
        subparagraphs (A) through (J) and moving such subparagraphs 2 ems
        to the right;
            (2) by striking ``(c) The Secretary shall'' and all that
        follows through ``such costs,'' and inserting the following:
        ``(c) On-the-Job Training Requirements.--
            ``(1) In general.--The Secretary may approve on-the-job
        training for any adversely affected worker if--
                ``(A) the worker meets the requirements for training to be
            approved under subsection (a)(1);
                ``(B) the Secretary determines that on-the-job training--
                    ``(i) can reasonably be expected to lead to suitable
                employment with the employer offering the on-the-job
                training;
                    ``(ii) is compatible with the skills of the worker;
                    ``(iii) includes a curriculum through which the worker
                will gain the knowledge or skills to become proficient in
                the job for which the worker is being trained; and
                    ``(iv) can be measured by benchmarks that indicate that
                the worker is gaining such knowledge or skills; and
                ``(C) the State determines that the on-the-job training
            program meets the requirements of clauses (iii) and (iv) of
            subparagraph (B).
            ``(2) Monthly payments.--The Secretary shall pay the costs of
        on-the-job training approved under paragraph (1) in monthly
        installments.
            ``(3) Contracts for on-the-job training.--
                ``(A) In general.--The Secretary shall ensure, in entering
            into a contract with an employer to provide on-the-job training
            to a worker under this subsection, that the skill requirements
            of the job for which the worker is being trained, the academic
            and occupational skill level of the worker, and the work
            experience of the worker are taken into consideration.
                ``(B) Term of contract.--Training under any such contract
            shall be limited to the period of time required for the worker
            receiving on-the-job training to become proficient in the job
            for which the worker is being trained, but may not exceed 104
            weeks in any case.
            ``(4) Exclusion of certain employers.--The Secretary shall not
        enter into a contract for on-the-job training with an employer that
        exhibits a pattern of failing to provide workers receiving on-the-
        job training from the employer with--
                ``(A) continued, long-term employment as regular employees;
            and
                ``(B) wages, benefits, and working conditions that are
            equivalent to the wages, benefits, and working conditions
            provided to regular employees who have worked a similar period
            of time and are doing the same type of work as workers
            receiving on-the-job training from the employer.
            ``(5) Labor standards.--The Secretary may pay the costs of on-
        the-job training,''; and
            (3) in paragraph (5), as redesignated--
                (A) in subparagraph (I), as redesignated by paragraph (1)
            of this section, by striking ``paragraphs (1), (2), (3), (4),
            (5), and (6)'' and inserting ``subparagraphs (A), (B), (C),
            (D), (E), and (F)''; and
                (B) in subparagraph (J), as redesignated by paragraph (1)
            of this section, by striking ``paragraph (8)'' and inserting
            ``subparagraph (H)''.
        (b) Repeal of Preference for Training on the Job.--Section
    236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by
    striking the last sentence.

    SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS
                  WHILE IN TRAINING.

        Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is
    amended to read as follows:
        ``(d) Eligibility.--An adversely affected worker may not be
    determined to be ineligible or disqualified for unemployment insurance
    or program benefits under this subchapter--
            ``(1) because the worker--
                ``(A) is enrolled in training approved under subsection
            (a);
                ``(B) left work--
                    ``(i) that was not suitable employment in order to
                enroll in such training; or
                    ``(ii) that the worker engaged in on a temporary basis
                during a break in such training or a delay in the
                commencement of such training; or
                ``(C) left on-the-job training not later than 30 days after
            commencing such training because the training did not meet the
            requirements of subsection (c)(1)(B); or
            ``(2) because of the application to any such week in training
        of the provisions of State law or Federal unemployment insurance
        law relating to availability for work, active search for work, or
        refusal to accept work.''.

    SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.

        (a) Job Search Allowances.--Section 237 of the Trade Act of 1974
    (19 U.S.C. 2297) is amended--
            (1) in subsection (a)(2)(C)(ii), by striking ``, unless the
        worker received a waiver under section 231(c)''; and
            (2) in subsection (b)--
                (A) in paragraph (1), by striking ``90 percent of the cost
            of'' and inserting ``all''; and
                (B) in paragraph (2), by striking ``$1,250'' and inserting
            ``$1,500''.
        (b) Relocation Allowances.--Section 238 of the Trade Act of 1974
    (19 U.S.C. 2298) is amended--
            (1) in subsection (a)(2)(E)(ii), by striking ``, unless the
        worker received a waiver under section 231(c)''; and
            (2) in subsection (b)--
                (A) in paragraph (1), by striking ``90 percent of the'' and
            inserting ``all''; and
                (B) in paragraph (2), by striking ``$1,250'' and inserting
            ``$1,500''.

          Subpart D--Reemployment Trade Adjustment Assistance Program

    SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.

        (a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C.
    2318) is amended--
            (1) by amending the heading to read as follows:

    ``SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.'';

            (2) in subsection (a)--
                (A) in paragraph (1)--
                    (i) by striking ``Not later than'' and all that follows
                through ``2002, the Secretary'' and inserting ``The
                Secretary''; and
                    (ii) by striking ``an alternative trade adjustment
                assistance program for older workers'' and inserting ``a
                reemployment trade adjustment assistance program'';
                (B) in paragraph (2)--
                    (i) in subparagraph (A)--

                        (I) in the matter preceding clause (i), by striking
                    ``for a period not to exceed 2 years'' and inserting
                    ``for the eligibility period under subparagraph (A) or
                    (B) of paragraph (4) (as the case may be)''; and
                        (II) by striking clauses (i) and (ii) and inserting
                    the following:

                    ``(i) the wages received by the worker at the time of
                separation; and
                    ``(ii) the wages received by the worker from
                reemployment.'';
                    (ii) in subparagraph (B)--

                        (I) by striking ``for a period not to exceed 2
                    years'' and inserting ``for the eligibility period
                    under subparagraph (A) or (B) of paragraph (4) (as the
                    case may be)''; and
                        (II) by striking ``, as added by section 201 of the
                    Trade Act of 2002''; and

                    (iii) by adding at the end the following:
                ``(C) Training and other services.--A worker described in
            paragraph (3)(B) participating in the program established under
            paragraph (1) is eligible to receive training approved under
            section 236 and employment and case management services under
            section 235.''; and
                (C) by striking paragraphs (3) through (5) and inserting
            the following:
            ``(3) Eligibility.--
                ``(A) In general.--A group of workers certified under
            subchapter A as eligible for adjustment assistance under
            subchapter A is eligible for benefits described in paragraph
            (2) under the program established under paragraph (1).
                ``(B) Individual eligibility.--A worker in a group of
            workers described in subparagraph (A) may elect to receive
            benefits described in paragraph (2) under the program
            established under paragraph (1) if the worker--
                    ``(i) is at least 50 years of age;
                    ``(ii) earns not more than $55,000 each year in wages
                from reemployment;
                    ``(iii)(I) is employed on a full-time basis as defined
                by the law of the State in which the worker is employed and
                is not enrolled in a training program approved under
                section 236; or
                    ``(II) is employed at least 20 hours per week and is
                enrolled in a training program approved under section 236;
                and
                    ``(iv) is not employed at the firm from which the
                worker was separated.
            ``(4) Eligibility period for payments.--
                ``(A) Worker who has not received trade readjustment
            allowance.--In the case of a worker described in paragraph
            (3)(B) who has not received a trade readjustment allowance
            under part I of subchapter B pursuant to the certification
            described in paragraph (3)(A), the worker may receive benefits
            described in paragraph (2) for a period not to exceed 2 years
            beginning on the earlier of--
                    ``(i) the date on which the worker exhausts all rights
                to unemployment insurance based on the separation of the
                worker from the adversely affected employment that is the
                basis of the certification; or
                    ``(ii) the date on which the worker obtains
                reemployment described in paragraph (3)(B).
                ``(B) Worker who has received trade readjustment
            allowance.--In the case of a worker described in paragraph
            (3)(B) who has received a trade readjustment allowance under
            part I of subchapter B pursuant to the certification described
            in paragraph (3)(A), the worker may receive benefits described
            in paragraph (2) for a period of 104 weeks beginning on the
            date on which the worker obtains reemployment described in
            paragraph (3)(B), reduced by the total number of weeks for
            which the worker received such trade readjustment allowance.
            ``(5) Total amount of payments.--
                ``(A) In general.--The payments described in paragraph
            (2)(A) made to a worker may not exceed--
                    ``(i) $12,000 per worker during the eligibility period
                under paragraph (4)(A); or
                    ``(ii) the amount described in subparagraph (B) per
                worker during the eligibility period under paragraph
                (4)(B).
                ``(B) Amount described.--The amount described in this
            subparagraph is the amount equal to the product of--
                    ``(i) $12,000, and
                    ``(ii) the ratio of--

                        ``(I) the total number of weeks in the eligibility
                    period under paragraph (4)(B) with respect to the
                    worker, to
                        ``(II) 104 weeks.

            ``(6) Calculation of amount of payments for certain workers.--
                ``(A) In general.--In the case of a worker described in
            paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by
            substituting the percentage described in subparagraph (B) for
            `50 percent'.
                ``(B) Percentage described.--The percentage described in
            this subparagraph is the percentage--
                    ``(i) equal to \1/2\ of the ratio of--

                        ``(I) the number of weekly hours of employment of
                    the worker referred to in paragraph (3)(B)(iii)(II), to
                        ``(II) the number of weekly hours of employment of
                    the worker at the time of separation, but

                    ``(ii) in no case more than 50 percent.
            ``(7) Limitation on other benefits.--A worker described in
        paragraph (3)(B) may not receive a trade readjustment allowance
        under part I of subchapter B pursuant to the certification
        described in paragraph (3)(A) during any week for which the worker
        receives a payment described in paragraph (2)(A).''; and
            (3) in subsection (b)(2), by striking ``subsection (a)(3)(B)''
        and inserting ``subsection (a)(3)''.
        (b) Extension of Program.--Section 246(b)(1) of the Trade Act of
    1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the date that is 5
    years'' and all that follows through the end period and inserting
    ``December 31, 2010.''.
        (c) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 246 and
    inserting the following:
    ``Sec. 246. Reemployment trade adjustment assistance program.''.

                            Subpart E--Other Matters

    SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

        (a) In General.--Subchapter C of chapter 2 of title II of the Trade
    Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end
    the following:

    ``SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

        ``(a) Establishment.--There is established in the Department of
    Labor an office to be known as the Office of Trade Adjustment
    Assistance (in this section referred to as the `Office').
        ``(b) Head of Office.--The head of the Office shall be an
    administrator, who shall report directly to the Deputy Assistant
    Secretary for Employment and Training.
        ``(c) Principal Functions.--The principal functions of the
    administrator of the Office shall be--
            ``(1) to oversee and implement the administration of trade
        adjustment assistance program under this chapter; and
            ``(2) to carry out functions delegated to the Secretary of
        Labor under this chapter, including--
                ``(A) making determinations under section 223;
                ``(B) providing information under section 225 about trade
            adjustment assistance to workers and assisting such workers to
            prepare petitions or applications for program benefits;
                ``(C) providing assistance to employers of groups of
            workers that have filed petitions under section 221 in
            submitting information required by the Secretary relating to
            the petitions;
                ``(D) ensuring workers covered by a certification of
            eligibility under subchapter A receive the employment and case
            management services described in section 235;
                ``(E) ensuring that States fully comply with agreements
            entered into under section 239;
                ``(F) advocating for workers applying for benefits
            available under this chapter;
                ``(G) establishing and overseeing a hotline that workers,
            employers, and other entities may call to obtain information
            regarding eligibility criteria, procedural requirements, and
            benefits available under this chapter; and
                ``(H) carrying out such other duties with respect to this
            chapter as the Secretary specifies for purposes of this
            section.
        ``(d) Administration.--
            ``(1) Designation.--The administrator shall designate an
        employee of the Department of Labor with appropriate experience and
        expertise to carry out the duties described in paragraph (2).
            ``(2) Duties.--The employee designated under paragraph (1)
        shall--
                ``(A) receive complaints and requests for assistance
            related to the trade adjustment assistance program under this
            chapter;
                ``(B) resolve such complaints and requests for assistance,
            in coordination with other employees of the Office;
                ``(C) compile basic information concerning such complaints
            and requests for assistance; and
                ``(D) carry out such other duties with respect to this
            chapter as the Secretary specifies for purposes of this
            section.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 249 the
    following:
    ``Sec. 249A. Office of Trade Adjustment Assistance.''.

    SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION
                  OF PROGRAM DATA; AGREEMENTS WITH STATES.

        (a) In General.--Section 239(a) of the Trade Act of 1974 (19 U.S.C.
    2311(a)) is amended--
            (1) by amending clause (2) to read as follows: ``(2) in
        accordance with subsection (f), shall make available to adversely
        affected workers and adversely affected incumbent workers covered
        by a certification under subchapter A the employment and case
        management services described in section 235,''; and
            (2) by striking ``will'' each place it appears and inserting
        ``shall''.
        (b) Form and Manner of Data.--Section 239 of the Trade Act of 1974
    (19 U.S.C. 2311) is amended--
            (1) by redesignating subsections (c) through (g) as subsections
        (d) through (h), respectively; and
            (2) by inserting after subsection (b) the following:
        ``(c) Form and Manner of Data.--Each agreement under this
    subchapter shall--
            ``(1) provide the Secretary with the authority to collect any
        data the Secretary determines necessary to meet the requirements of
        this chapter; and
            ``(2) specify the form and manner in which any such data
        requested by the Secretary shall be reported.''.
        (c) State Activities.--Section 239(g) of the Trade Act of 1974 (as
    redesignated) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) by amending paragraph (4) to read as follows:
            ``(4) perform outreach to, intake of, and orientation for
        adversely affected workers and adversely affected incumbent workers
        covered by a certification under subchapter A with respect to
        assistance and benefits available under this chapter, and''; and
            (3) by adding at the end the following:
            ``(5) make employment and case management services described in
        section 235 available to adversely affected workers and adversely
        affected incumbent workers covered by a certification under
        subchapter A and, if funds provided to carry out this chapter are
        insufficient to make such services available, make arrangements to
        make such services available through other Federal programs.''.
        (d) Reporting Requirement.--Section 239(h) of the Trade Act of 1974
    (as redesignated) is amended by striking ``1998.'' and inserting ``1998
    (29 U.S.C. 2822(b)) and a description of the State's rapid response
    activities under section 221(a)(2)(A).''.
        (e) Control Measures.--Section 239 of the Trade Act of 1974 (19
    U.S.C. 2311), as amended, is further amended by adding at the end the
    following:
        ``(i) Control Measures.--
            ``(1) In general.--The Secretary shall require each cooperating
        State and cooperating State agency to implement effective control
        measures and to effectively oversee the operation and
        administration of the trade adjustment assistance program under
        this chapter, including by means of monitoring the operation of
        control measures to improve the accuracy and timeliness of the data
        being collected and reported.
            ``(2) Definition.--For purposes of paragraph (1), the term
        `control measures' means measures that--
                ``(A) are internal to a system used by a State to collect
            data; and
                ``(B) are designed to ensure the accuracy and verifiability
            of such data.
        ``(j) Data Reporting.--
            ``(1) In general.--Any agreement entered into under this
        section shall require the cooperating State or cooperating State
        agency to report to the Secretary on a quarterly basis
        comprehensive performance accountability data, to consist of--
                ``(A) the core indicators of performance described in
            paragraph (2)(A);
                ``(B) the additional indicators of performance described in
            paragraph (2)(B), if any; and
                ``(C) a description of efforts made to improve outcomes for
            workers under the trade adjustment assistance program.
            ``(2) Core indicators described.--
                ``(A) In general.--The core indicators of performance
            described in this paragraph are--
                    ``(i) the percentage of workers receiving benefits
                under this chapter who are employed during the second
                calendar quarter following the calendar quarter in which
                the workers cease receiving such benefits;
                    ``(ii) the percentage of such workers who are employed
                in each of the third and fourth calendar quarters following
                the calendar quarter in which the workers cease receiving
                such benefits; and
                    ``(iii) the earnings of such workers in each of the
                third and fourth calendar quarters following the calendar
                quarter in which the workers cease receiving such benefits.
                ``(B) Additional indicators.--The Secretary and a
            cooperating State or cooperating State agency may agree upon
            additional indicators of performance for the trade adjustment
            assistance program under this chapter, as appropriate.
            ``(3) Standards with respect to reliability of data.--In
        preparing the quarterly report required by paragraph (1), each
        cooperating State or cooperating State agency shall establish
        procedures that are consistent with guidelines to be issued by the
        Secretary to ensure that the data reported are valid and
        reliable.''.

    SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.

        Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended,
    is further amended by adding at the end the following:
        ``(k) Verification of Eligibility for Program Benefits.--
            ``(1) In general.--An agreement under this subchapter shall
        provide that the State shall periodically redetermine that a worker
        receiving benefits under this subchapter who is not a citizen or
        national of the United States remains in a satisfactory immigration
        status. Once satisfactory immigration status has been initially
        verified through the immigration status verification system
        described in section 1137(d) of the Social Security Act (42 U.S.C.
        1320b-7(d)) for purposes of establishing a worker's eligibility for
        unemployment compensation, the State shall reverify the worker's
        immigration status if the documentation provided during initial
        verification will expire during the period in which that worker is
        potentially eligible to receive benefits under this subchapter. The
        State shall conduct such redetermination in a timely manner,
        utilizing the immigration status verification system described in
        section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)).
            ``(2) Procedures.--The Secretary shall establish procedures to
        ensure the uniform application by the States of the requirements of
        this subsection.''.

    SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.

        (a) In General.--Subchapter C of chapter 2 of title II of the Trade
    Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by
    adding at the end the following:

    ``SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS;
                  INFORMATION TO WORKERS.

        ``(a) In General.--Not later than 180 days after the date of the
    enactment of this section, the Secretary shall implement a system to
    collect and report the data described in subsection (b), as well as any
    other information that the Secretary considers appropriate to
    effectively carry out this chapter.
        ``(b) Data to Be Included.--The system required under subsection
    (a) shall include collection of and reporting on the following data for
    each fiscal year:
            ``(1) Data on petitions filed, certified, and denied.--
                ``(A) The number of petitions filed, certified, and denied
            under this chapter.
                ``(B) The number of workers covered by petitions filed,
            certified, and denied.
                ``(C) The number of petitions, classified by--
                    ``(i) the basis for certification, including increased
                imports, shifts in production, and other bases of
                eligibility; and
                    ``(ii) congressional district of the United States.
                ``(D) The average time for processing such petitions.
            ``(2) Data on benefits received.--
                ``(A) The number of workers receiving benefits under this
            chapter.
                ``(B) The number of workers receiving each type of benefit,
            including training, trade readjustment allowances, employment
            and case management services, and relocation and job search
            allowances, and, to the extent feasible, credits for health
            insurance costs under section 35 of the Internal Revenue Code
            of 1986.
                ``(C) The average time during which such workers receive
            each such type of benefit.
            ``(3) Data on training.--
                ``(A) The number of workers enrolled in training approved
            under section 236, classified by major types of training,
            including classroom training, training through distance
            learning, on-the-job training, and customized training.
                ``(B) The number of workers enrolled in full-time training
            and part-time training.
                ``(C) The average duration of training.
                ``(D) The number of training waivers granted under section
            231(c), classified by type of waiver.
                ``(E) The number of workers who complete training and the
            duration of such training.
                ``(F) The number of workers who do not complete training.
            ``(4) Data on outcomes.--
                ``(A) A summary of the quarterly reports required under
            section 239(j).
                ``(B) The sectors in which workers are employed after
            receiving benefits under this chapter.
            ``(5) Data on rapid response activities.--Whether rapid
        response activities were provided with respect to each petition
        filed under section 221.
        ``(c) Classification of Data.--To the extent possible, in
    collecting and reporting the data described in subsection (b), the
    Secretary shall classify the data by industry, State, and national
    totals.
        ``(d) Report.--Not later than December 15 of each year, the
    Secretary shall submit to the Committee on Finance of the Senate and
    the Committee on Ways and Means of the House of Representatives a
    report that includes--
            ``(1) a summary of the information collected under this section
        for the preceding fiscal year;
            ``(2) information on the distribution of funds to each State
        pursuant to section 236(a)(2); and
            ``(3) any recommendations of the Secretary with respect to
        changes in eligibility requirements, benefits, or training funding
        under this chapter based on the data collected under this section.
        ``(e) Availability of Data.--
            ``(1) In general.--The Secretary shall make available to the
        public, by publishing on the website of the Department of Labor and
        by other means, as appropriate--
                ``(A) the report required under subsection (d);
                ``(B) the data collected under this section, in a
            searchable format; and
                ``(C) a list of cooperating States and cooperating State
            agencies that failed to submit the data required by this
            section to the Secretary in a timely manner.
            ``(2) Updates.--The Secretary shall update the data under
        paragraph (1) on a quarterly basis.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 249A
    the following:
    ``Sec. 249B. Collection and publication of data and reports; information
              to workers.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act.

    SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.

        Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1))
    is amended--
            (1) in the matter preceding subparagraph (A)--
                (A) by striking ``may waive'' and inserting ``shall
            waive''; and
                (B) by striking ``, in accordance with guidelines
            prescribed by the Secretary,''; and
            (2) in subparagraph (B), by striking ``would be contrary to
        equity and good conscience'' and inserting ``would cause a
        financial hardship for the individual (or the individual's
        household, if applicable) when taking into consideration the income
        and resources reasonably available to the individual (or household)
        and other ordinary living expenses of the individual (or
        household)''.

    SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT
                  ASSISTANCE.

        (a) In General.--Chapter 5 of title II of the Trade Act of 1974 (19
    U.S.C. 2391 et seq.) is amended by adding at the end the following:

    ``SEC. 288. SENSE OF CONGRESS.

        ``It is the sense of Congress that the Secretaries of Labor,
    Commerce, and Agriculture should apply the provisions of chapter 2
    (relating to adjustment assistance for workers), chapter 3 (relating to
    adjustment assistance for firms), chapter 4 (relating to adjustment
    assistance for communities), and chapter 6 (relating to adjustment
    assistance for farmers), respectively, with the utmost regard for the
    interests of workers, firms, communities, and farmers petitioning for
    benefits under such chapters.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 287 the
    following:
    ``Sec. 288. Sense of Congress.''.

    SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.

        Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended--
            (1) by striking ``The Secretary shall'' and inserting the
        following:
        ``(a) In General.--The Secretary shall''; and
            (2) by adding at the end the following:
        ``(b) Consultations.--Not later than 90 days before issuing a
    regulation under subsection (a), the Secretary shall consult with the
    Committee on Finance of the Senate and the Committee on Ways and Means
    of the House of Representatives with respect to the regulation.''.

    SEC. 1858. TECHNICAL CORRECTIONS.

        (a) Determinations by Secretary of Labor.--Section 223(c) of the
    Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking ``his
    determination'' and inserting ``a determination''.
        (b) Qualifying Requirements for Workers.--Section 231(a) of the
    Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
            (1) in paragraph (1)--
                (A) in the matter preceding subparagraph (A), by striking
            ``his application'' and inserting ``the worker's application'';
            and
                (B) in subparagraph (A), by striking ``he is covered'' and
            inserting ``the worker is covered'';
            (2) in paragraph (2)--
                (A) in subparagraph (A), by striking the period and
            inserting a comma; and
                (B) in subparagraph (D), by striking ``5 U.S.C.
            8521(a)(1)'' and inserting ``section 8521(a)(1) of title 5,
            United States Code''; and
            (3) in paragraph (3)--
                (A) by striking ``he'' each place it appears and inserting
            ``the worker''; and
                (B) in subparagraph (C), by striking ``him'' and inserting
            ``the worker''.
        (c) Subpoena Power.--Section 249 of the Trade Act of 1974 (19
    U.S.C. 2321) is amended--
            (1) in the section heading, by striking ``subpena'' and
        inserting ``subpoena'';
            (2) by striking ``subpena'' and inserting ``subpoena'' each
        place it appears; and
            (3) in subsection (a), by striking ``him'' and inserting ``the
        Secretary''.
        (d) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 249 and
    inserting the following:
    ``Sec. 249. Subpoena power.''.

                 PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

    SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.

        (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
    2341) is amended by inserting ``or service sector firm'' after
    ``agricultural firm'' each place it appears.
        (b) Definition of Service Sector Firm.--Section 261 of the Trade
    Act of 1974 (19 U.S.C. 2351) is amended--
            (1) by striking ``chapter,'' and inserting ``chapter:'';
            (2) by striking ``the term `firm''' and inserting the
        following:
            ``(1) Firm.--The term `firm'''; and
            (3) by adding at the end the following:
            ``(2) Service sector firm.--The term `service sector firm'
        means a firm engaged in the business of supplying services.''.
        (c) Conforming Amendments.--
            (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C.
        2341(c)(1)(C)) is amended--
                (A) by inserting ``or services'' after ``articles'' the
            first place it appears; and
                (B) by inserting ``or services which are supplied'' after
            ``produced''.
            (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as
        follows:
            ``(ii) Any firm that engages in exploration or drilling for oil
        or natural gas, or otherwise produces oil or natural gas, shall be
        considered to be producing articles directly competitive with
        imports of oil and with imports of natural gas.''.

    SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.

        Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C.
    2341(c)(1)(B)) is amended to read as follows:
            ``(B) that--
                ``(i) sales or production, or both, of the firm have
            decreased absolutely,
                ``(ii) sales or production, or both, of an article or
            service that accounted for not less than 25 percent of the
            total sales or production of the firm during the 12-month
            period preceding the most recent 12-month period for which date
            are available have decreased absolutely,
                ``(iii) sales or production, or both, of the firm during
            the most recent 12-month period for which data are available
            have decreased compared to--
                    ``(I) the average annual sales or production for the
                firm during the 24-month period preceding that 12-month
                period, or
                    ``(II) the average annual sales or production for the
                firm during the 36-month period preceding that 12-month
                period, and
                ``(iv) sales or production, or both, of an article or
            service that accounted for not less than 25 percent of the
            total sales or production of the firm during the most recent
            12-month period for which data are available have decreased
            compared to--
                    ``(I) the average annual sales or production for the
                article or service during the 24-month period preceding
                that 12-month period, or
                    ``(II) the average annual sales or production for the
                article or service during the 36-month period preceding
                that 12-month period, and''.

    SEC. 1863. BASIS FOR DETERMINATIONS.

        Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended,
    is further amended by adding at the end the following:
        ``(e) Basis for Secretary's Determinations.--For purposes of
    subsection (c)(1)(C), the Secretary may determine that there are
    increased imports of like or directly competitive articles or services,
    if customers accounting for a significant percentage of the decrease in
    the sales or production of the firm certify to the Secretary that such
    customers have increased their imports of such articles or services
    from a foreign country, either absolutely or relative to their
    acquisition of such articles or services from suppliers located in the
    United States.
        ``(f) Notification to Firms of Availability of Benefits.--Upon
    receiving notice from the Secretary of Labor under section 225 of the
    identity of a firm that is covered by a certification issued under
    section 223, the Secretary of Commerce shall notify the firm of the
    availability of adjustment assistance under this chapter.''.

    SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF
                  APPROPRIATIONS.

        (a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19
    U.S.C. 2341 et seq.) is amended--
            (1) by striking sections 254, 255, 256, and 257;
            (2) by redesignating sections 258, 259, 260, 261, 262, 264, and
        265, as sections 256, 257, 258, 259, 260, 261, and 262,
        respectively; and
            (3) by inserting after section 253 the following:

    ``SEC. 254. OVERSIGHT AND ADMINISTRATION.

        ``(a) In General.--The Secretary shall, to such extent and in such
    amounts as are provided in appropriations Acts, provide grants to
    intermediary organizations (referred to in section 253(b)(1))
    throughout the United States pursuant to agreements with such
    intermediary organizations. Each such agreement shall require the
    intermediary organization to provide benefits to firms certified under
    section 251. The Secretary shall, to the maximum extent practicable,
    provide by October 1, 2010, that contracts entered into with
    intermediary organizations be for a 12-month period and that all such
    contracts have the same beginning date and the same ending date.
        ``(b) Distribution of Funds.--
            ``(1) In general.--Not later than 90 days after the date of the
        enactment of this subsection, the Secretary shall develop a
        methodology for the distribution of funds among the intermediary
        organizations described in subsection (a).
            ``(2) Prompt initial distribution.--The methodology described
        in paragraph (1) shall ensure the prompt initial distribution of
        funds and establish additional criteria governing the apportionment
        and distribution of the remainder of such funds among the
        intermediary organizations.
            ``(3) Criteria.--The methodology described in paragraph (1)
        shall include criteria based on the data in the annual report on
        the trade adjustment assistance for firms program described in
        section 1866 of the Trade and Globalization Adjustment Assistance
        Act of 2009.
        ``(c) Requirements for Contracts.--An agreement with an
    intermediary organization described in subsection (a) shall require the
    intermediary organization to contract for the supply of services to
    carry out grants under this chapter in accordance with terms and
    conditions that are consistent with guidelines established by the
    Secretary.
        ``(d) Consultations.--
            ``(1) Consultations regarding methodology.--The Secretary shall
        consult with the Committee on Finance of the Senate and the
        Committee on Ways and Means of the House of Representatives--
                ``(A) not less than 30 days before finalizing the
            methodology described in subsection (b); and
                ``(B) not less than 60 days before adopting any changes to
            such methodology.
            ``(2) Consultations regarding guidelines.--The Secretary shall
        consult with the Committee on Finance of the Senate and the
        Committee on Ways and Means of the House of Representatives not
        less than 60 days before finalizing the guidelines described in
        subsection (c) or adopting any subsequent changes to such
        guidelines.

    ``SEC. 255. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There are authorized to be appropriated to the
    Secretary $50,000,000 for each of the fiscal years 2009 through 2010,
    and $12,501,000 for the period beginning October 1, 2010, and ending
    December 31, 2010, to carry out the provisions of this chapter. Amounts
    appropriated pursuant to this subsection shall--
            ``(1) be available to provide adjustment assistance to firms
        that file a petition for such assistance pursuant to this chapter
        on or before December 31, 2010; and
            ``(2) otherwise remain available until expended.
        ``(b) Personnel.--Of the amounts appropriated pursuant to this
    section for each fiscal year, $350,000 shall be available for full-time
    positions in the Department of Commerce to administer the provisions of
    this chapter. Of such funds the Secretary shall make available to the
    Economic Development Administration such sums as may be necessary to
    establish the position of Director of Adjustment Assistance for Firms
    and such other full-time positions as may be appropriate to administer
    the provisions of this chapter.''.
        (b) Residual Authority.--The Secretary of Commerce shall have the
    authority to modify, terminate, resolve, liquidate, or take any other
    action with respect to a loan, guarantee, contract, or any other
    financial assistance that was extended under section 254, 255, 256, or
    257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as
    in effect on the day before the effective date set forth in section
    1891.
        (c) Conforming Amendments.--
            (1) Section 256 of the Trade Act of 1974, as redesignated by
        subsection (a) of this section, is amended by striking subsection
        (d).
            (2) Section 258 of the Trade Act of 1974, as redesignated by
        subsection (a) of this section, is amended--
                (A) in the first sentence, by striking ``and financial'';
            and
                (B) in the last sentence--
                    (i) by striking ``sections 253 and 254'' and inserting
                ``section 253''; and
                    (ii) by striking ``title 28 of the United States Code''
                and inserting ``title 28, United States Code''.
        (d) Clerical Amendments.--The table of contents of the Trade Act of
    1974 is amended by striking the items relating to sections 254, 255,
    256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the
    following:
    ``Sec. 254. Oversight and administration.
    ``Sec. 255. Authorization of appropriations.
    ``Sec. 256. Protective provisions.
    ``Sec. 257. Penalties.
    ``Sec. 258. Civil actions.
    ``Sec. 259. Definitions.
    ``Sec. 260. Regulations.
    ``Sec. 261. Study by Secretary of Commerce when International Trade
              Commission begins investigation; action where there is
              affirmative finding.
    ``Sec. 262. Assistance to industries.''.
        (e) Effective Date.--This section and the amendments made by this
    section shall take effect upon the expiration of the 90-day period
    beginning on the date of the enactment of this Act, except that
    subsections (b) and (d) of section 254 of the Trade Act of 1974 (as
    added by subsection (a) of this section) shall take effect on such date
    of enactment.

    SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.

        Section 257 of the Trade Act of 1974, as redesignated by section
    1864(a), is amended to read as follows:

    ``SEC. 257. PENALTIES.

        ``Any person who--
            ``(1) makes a false statement of a material fact knowing it to
        be false, or knowingly fails to disclose a material fact, or
        willfully overvalues any security, for the purpose of influencing
        in any way a determination under this chapter, or for the purpose
        of obtaining money, property, or anything of value under this
        chapter, or
            ``(2) makes a false statement of a material fact knowing it to
        be false, or knowingly fails to disclose a material fact, when
        providing information to the Secretary during an investigation of a
        petition under this chapter,
    shall be imprisoned for not more than 2 years, or fined under title 18,
    United States Code, or both.''.

    SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

        (a) In General.--Not later than December 15, 2009, and each year
    thereafter, the Secretary of Commerce shall prepare a report containing
    data regarding the trade adjustment assistance for firms program
    provided for in chapter 3 of title II of the Trade Act of 1974 (19
    U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall
    include the following:
            (1) The number of firms that inquired about the program.
            (2) The number of petitions filed under section 251.
            (3) The number of petitions certified and denied.
            (4) The average time for processing petitions.
            (5) The number of petitions filed and firms certified for each
        congressional district of the United States.
            (6) The number of firms that received assistance in preparing
        their petitions.
            (7) The number of firms that received assistance developing
        business recovery plans.
            (8) The number of business recovery plans approved and denied
        by the Secretary of Commerce.
            (9) Sales, employment, and productivity at each firm
        participating in the program at the time of certification.
            (10) Sales, employment, and productivity at each firm upon
        completion of the program and each year for the 2-year period
        following completion.
            (11) The financial assistance received by each firm
        participating in the program.
            (12) The financial contribution made by each firm participating
        in the program.
            (13) The types of technical assistance included in the business
        recovery plans of firms participating in the program.
            (14) The number of firms leaving the program before completing
        the project or projects in their business recovery plans and the
        reason the project was not completed.
        (b) Classification of Data.--To the extent possible, in collecting
    and reporting the data described in subsection (a), the Secretary shall
    classify the data by intermediary organization, State, and national
    totals.
        (c) Report to Congress; Publication.--The Secretary of Commerce
    shall--
            (1) submit the report described in subsection (a) to the
        Committee on Finance of the Senate and the Committee on Ways and
        Means of the House of Representatives; and
            (2) publish the report in the Federal Register and on the
        website of the Department of Commerce.
        (d) Protection of Confidential Information.--The Secretary of
    Commerce may not release information described in subsection (a) that
    the Secretary considers to be confidential business information unless
    the person submitting the confidential business information had notice,
    at the time of submission, that such information would be released by
    the Secretary, or such person subsequently consents to the release of
    the information. Nothing in this subsection shall be construed to
    prohibit the Secretary from providing such confidential business
    information to a court in camera or to another party under a protective
    order issued by a court.

    SEC. 1867. TECHNICAL CORRECTIONS.

        (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
    2341), as amended, is further amended--
            (1) in subsection (a), by striking ``he has'' and inserting
        ``the Secretary has''; and
            (2) in subsection (d), by striking ``60 days'' and inserting
        ``40 days''.
        (b) Technical Assistance.--Section 253(a)(3) of the Trade Act of
    1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of a certified
    firm'' and inserting ``to a certified firm''.

             PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

    SEC. 1871. PURPOSE.

        The purpose of the amendments made by this part is to assist
    communities impacted by trade with economic adjustment through the
    coordination of Federal, State, and local resources, the creation of
    community-based development strategies, and the development and
    provision of programs that meet the training needs of workers covered
    by certifications under section 223.

    SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

        (a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19
    U.S.C. 2371 et seq.) is amended to read as follows:

            ``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

          ``Subchapter A--Trade Adjustment Assistance for Communities

    ``SEC. 271. DEFINITIONS.

        ``In this subchapter:
            ``(1) Agricultural commodity producer.--The term `agricultural
        commodity producer' has the meaning given that term in section 291.
            ``(2) Community.--The term `community' means a city, county, or
        other political subdivision of a State or a consortium of political
        subdivisions of a State.
            ``(3) Community impacted by trade.--The term `community
        impacted by trade' means a community described in section
        273(b)(2).
            ``(4) Eligible community.--The term `eligible community' means
        a community that the Secretary has determined under section
        273(b)(1) is eligible to apply for assistance under this
        subchapter.
            ``(5) Secretary.--The term `Secretary' means the Secretary of
        Commerce.

    ``SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR
                  COMMUNITIES PROGRAM.

        ``Not later than August 1, 2009, the Secretary shall establish a
    trade adjustment assistance for communities program at the Department
    of Commerce under which the Secretary shall--
            ``(1) provide technical assistance under section 274 to
        communities impacted by trade to facilitate the economic adjustment
        of those communities; and
            ``(2) award grants to communities impacted by trade to carry
        out strategic plans developed under section 276.

    ``SEC. 273. ELIGIBILITY; NOTIFICATION.

        ``(a) Petition.--
            ``(1) In general.--A community may submit a petition to the
        Secretary for an affirmative determination under subsection (b)(1)
        that the community is eligible to apply for assistance under this
        subchapter if--
                ``(A) on or after August 1, 2009, one or more
            certifications described in subsection (b)(3) are made with
            respect to the community; and
                ``(B) the community submits the petition not later than 180
            days after the date of the most recent certification.
            ``(2) Special rule with respect to certain communities.--In the
        case of a community with respect to which one or more
        certifications described in subsection (b)(3) were made on or after
        January 1, 2007, and before August 1, 2009, the community may
        submit not later than February 1, 2010, a petition to the Secretary
        for an affirmative determination under subsection (b)(1).
        ``(b) Affirmative Determination.--
            ``(1) In general.--The Secretary shall make an affirmative
        determination that a community is eligible to apply for assistance
        under this subchapter if the Secretary determines that the
        community is a community impacted by trade.
            ``(2) Community impacted by trade.--A community is a community
        impacted by trade if--
                ``(A) one or more certifications described in paragraph (3)
            are made with respect to the community; and
                ``(B) the Secretary determines that the community is
            significantly affected by the threat to, or the loss of, jobs
            associated with any such certification.
            ``(3) Certification described.--A certification described in
        this paragraph is a certification--
                ``(A) by the Secretary of Labor that a group of workers in
            the community is eligible to apply for assistance under section
            223;
                ``(B) by the Secretary of Commerce that a firm located in
            the community is eligible to apply for adjustment assistance
            under section 251; or
                ``(C) by the Secretary of Agriculture that a group of
            agricultural commodity producers in the community is eligible
            to apply for adjustment assistance under section 293.
        ``(c) Notifications.--
            ``(1) Notification to the governor.--The Governor of a State
        shall be notified promptly--
                ``(A) by the Secretary of Labor, upon making a
            determination that a group of workers in the State is eligible
            for assistance under section 223;
                ``(B) by the Secretary of Commerce, upon making a
            determination that a firm in the State is eligible for
            assistance under section 251; and
                ``(C) by the Secretary of Agriculture, upon making a
            determination that a group of agricultural commodity producers
            in the State is eligible for assistance under section 293.
            ``(2) Notification to community.--Upon making an affirmative
        determination under subsection (b)(1) that a community is eligible
        to apply for assistance under this subchapter, the Secretary shall
        promptly notify the community and the Governor of the State in
        which the community is located--
                ``(A) of the affirmative determination;
                ``(B) of the applicable provisions of this subchapter; and
                ``(C) of the means for obtaining assistance under this
            subchapter and other appropriate economic assistance that may
            be available to the community.

    ``SEC. 274. TECHNICAL ASSISTANCE.

        ``(a) In General.--The Secretary shall provide comprehensive
    technical assistance to an eligible community to assist the community
    to--
            ``(1) diversify and strengthen the economy in the community;
            ``(2) identify significant impediments to economic development
        that result from the impact of trade on the community; and
            ``(3) develop a strategic plan under section 276 to address
        economic adjustment and workforce dislocation in the community,
        including unemployment among agricultural commodity producers.
        ``(b) Coordination of Federal Response.--The Secretary shall
    coordinate the Federal response to an eligible community by--
            ``(1) identifying Federal, State, and local resources that are
        available to assist the community in responding to economic
        distress; and
            ``(2) assisting the community in accessing available Federal
        assistance and ensuring that such assistance is provided in a
        targeted, integrated manner.
        ``(c) Interagency Community Assistance Working Group.--
            ``(1) In general.--The Secretary shall establish an interagency
        Community Assistance Working Group, to be chaired by the Secretary
        or the Secretary's designee, which shall assist the Secretary with
        the coordination of the Federal response pursuant to subsection
        (b).
            ``(2) Membership.--The Working Group shall consist of
        representatives of any Federal department or agency with
        responsibility for providing economic adjustment assistance,
        including the Department of Agriculture, the Department of Defense,
        the Department of Education, the Department of Labor, the
        Department of Housing and Urban Development, the Department of
        Health and Human Services, the Small Business Administration, the
        Department of the Treasury, and any other Federal, State, or
        regional public department or agency the Secretary determines to be
        appropriate.

    ``SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES.

        ``(a) In General.--The Secretary may award a grant under this
    section to an eligible community to assist the community in carrying
    out any project or program that is included in a strategic plan
    developed by the community under section 276.
        ``(b) Application.--
            ``(1) In general.--An eligible community seeking to receive a
        grant under this section shall submit a grant application to the
        Secretary that contains--
                ``(A) the strategic plan developed by the community under
            section 276(a)(1)(A) and approved by the Secretary under
            section 276(a)(1)(B); and
                ``(B) a description of the project or program included in
            the strategic plan with respect to which the community seeks
            the grant.
            ``(2) Coordination among grant programs.--If an entity in an
        eligible community is seeking or plans to seek a Community College
        and Career Training Grant under section 278 or a Sector Partnership
        Grant under section 279A while the eligible community is seeking a
        grant under this section, the eligible community shall include in
        the grant application a description of how the eligible community
        will integrate any projects or programs carried out using a grant
        under this section with any projects or programs that may be
        carried out using such other grants.
        ``(c) Limitation.--An eligible community may not be awarded more
    than $5,000,000 under this section.
        ``(d) Cost-Sharing.--
            ``(1) Federal share.--The Federal share of a project or program
        for which a grant is awarded under this section may not exceed 95
        percent of the cost of such project or program.
            ``(2) Community share.--The Secretary shall require, as a
        condition of awarding a grant to an eligible community under this
        section, that the eligible community contribute not less than an
        amount equal to 5 percent of the amount of the grant toward the
        cost of the project or program for which the grant is awarded.
        ``(e) Grants to Small- and Medium-Sized Communities.--The Secretary
    shall give priority to grant applications submitted under this section
    by eligible communities that are small- and medium-sized communities.
        ``(f) Annual Report.--Not later than December 15 in each of the
    calendar years 2009 through 2011, the Secretary shall submit to the
    Committee on Finance of the Senate and the Committee on Ways and Means
    of the House of Representatives a report--
            ``(1) describing each grant awarded under this section during
        the preceding fiscal year; and
            ``(2) assessing the impact on the eligible community of each
        such grant awarded in a fiscal year before the fiscal year referred
        to in paragraph (1).

    ``SEC. 276. STRATEGIC PLANS.

        ``(a) In General.--
            ``(1) Development.--An eligible community that intends to apply
        for a grant under section 275 shall--
                ``(A) develop a strategic plan for the community's economic
            adjustment to the impact of trade; and
                ``(B) submit the plan to the Secretary for evaluation and
            approval.
            ``(2) Involvement of private and public entities.--
                ``(A) In general.--To the extent practicable, an eligible
            community shall consult with entities described in subparagraph
            (B) in developing a strategic plan under paragraph (1).
                ``(B) Entities described.--Entities described in this
            subparagraph are public and private entities within the
            eligible community, including--
                    ``(i) local, county, or State government agencies
                serving the community;
                    ``(ii) firms, including small- and medium-sized firms,
                within the community;
                    ``(iii) local workforce investment boards established
                under section 117 of the Workforce Investment Act of 1998
                (29 U.S.C. 2832);
                    ``(iv) labor organizations, including State labor
                federations and labor-management initiatives, representing
                workers in the community; and
                    ``(v) educational institutions, local educational
                agencies, or other training providers serving the
                community.
        ``(b) Contents.--The strategic plan shall, at a minimum, contain
    the following:
            ``(1) A description and analysis of the capacity of the
        eligible community to achieve economic adjustment to the impact of
        trade.
            ``(2) An analysis of the economic development challenges and
        opportunities facing the community as well as the strengths and
        weaknesses of the economy of the community.
            ``(3) An assessment of the commitment of the eligible community
        to the strategic plan over the long term and the participation and
        input of members of the community affected by economic dislocation.
            ``(4) A description of the role and the participation of the
        entities described in subsection (a)(2)(B) in developing the
        strategic plan.
            ``(5) A description of the projects to be undertaken by the
        eligible community under the strategic plan.
            ``(6) A description of how the strategic plan and the projects
        to be undertaken by the eligible community will facilitate the
        community's economic adjustment.
            ``(7) A description of the educational and training programs
        available to workers in the eligible community and the future
        employment needs of the community.
            ``(8) An assessment of the cost of implementing the strategic
        plan, the timing of funding required by the eligible community to
        implement the strategic plan, and the method of financing to be
        used to implement the strategic plan.
            ``(9) A strategy for continuing the economic adjustment of the
        eligible community after the completion of the projects described
        in paragraph (5).
        ``(c) Grants to Develop Strategic Plans.--
            ``(1) In general.--The Secretary, upon receipt of an
        application from an eligible community, may award a grant to the
        community to assist the community in developing a strategic plan
        under subsection (a)(1). A grant awarded under this paragraph shall
        not exceed 75 percent of the cost of developing the strategic plan.
            ``(2) Funds to be used.--Of the funds appropriated pursuant to
        section 277(c), the Secretary may make available not more than
        $25,000,000 for each of the fiscal years 2009 and 2010, and
        $6,250,000 for the period beginning October 1, 2010, and ending
        December 31, 2010, to provide grants to eligible communities under
        paragraph (1).

    ``SEC. 277. GENERAL PROVISIONS.

        ``(a) Regulations.--
            ``(1) In general.--The Secretary shall prescribe such
        regulations as are necessary to carry out the provisions of this
        subchapter, including--
                ``(A) establishing specific guidelines for the submission
            and evaluation of strategic plans under section 276;
                ``(B) establishing specific guidelines for the submission
            and evaluation of grant applications under section 275; and
                ``(C) administering the grant programs established under
            sections 275 and 276.
            ``(2) Consultations.--The Secretary shall consult with the
        Committee on Finance of the Senate and the Committee on Ways and
        Means of the House of Representatives not less than 90 days prior
        to promulgating any final rule or regulation pursuant to paragraph
        (1).
        ``(b) Personnel.--The Secretary shall designate such staff as may
    be necessary to carry out the responsibilities described in this
    subchapter.
        ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated to
        the Secretary $150,000,000 for each of the fiscal years 2009 and
        2010, and $37,500,000 for the period beginning October 1, 2010, and
        ending December 31, 2010, to carry out this subchapter.
            ``(2) Availability.--Amounts appropriated pursuant to this
        subchapter--
                ``(A) shall be available to provide adjustment assistance
            to communities that have been approved for assistance pursuant
            to this chapter on or before December 31, 2010; and
                ``(B) shall otherwise remain available until expended.
            ``(3) Supplement not supplant.--Funds appropriated pursuant to
        this subchapter shall be used to supplement and not supplant other
        Federal, State, and local public funds expended to provide economic
        development assistance for communities.

      ``Subchapter B--Community College and Career Training Grant Program

    ``SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM.

        ``(a) Grants Authorized.--
            ``(1) In general.--Beginning August 1, 2009, the Secretary may
        award Community College and Career Training Grants to eligible
        institutions for the purpose of developing, offering, or improving
        educational or career training programs for workers eligible for
        training under section 236.
            ``(2) Limitations.--An eligible institution may not be
        awarded--
                ``(A) more than one grant under this section; or
                ``(B) a grant under this section in excess of $1,000,000.
        ``(b) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible institution'
        means an institution of higher education (as defined in section 102
        of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only
        with respect to a program offered by the institution that can be
        completed in not more than 2 years.
            ``(2) Secretary.--The term `Secretary' means the Secretary of
        Labor.
        ``(c) Grant Proposals.--
            ``(1) In general.--An eligible institution seeking to receive a
        grant under this section shall submit a grant proposal to the
        Secretary at such time, in such manner, and containing such
        information as the Secretary may require.
            ``(2) Guidelines.--Not later than June 1, 2009, the Secretary
        shall--
                ``(A) promulgate guidelines for the submission of grant
            proposals under this section; and
                ``(B) publish and maintain such guidelines on the website
            of the Department of Labor.
            ``(3) Assistance.--The Secretary shall offer assistance in
        preparing a grant proposal to any eligible institution that
        requests such assistance.
            ``(4) General requirements for grant proposals.--
                ``(A) In general.--A grant proposal submitted to the
            Secretary under this section shall include a detailed
            description of--
                    ``(i) the specific project for which the grant proposal
                is submitted, including the manner in which the grant will
                be used to develop, offer, or improve an educational or
                career training program that is suited to workers eligible
                for training under section 236;
                    ``(ii) the extent to which the project for which the
                grant proposal is submitted will meet the educational or
                career training needs of workers in the community served by
                the eligible institution who are eligible for training
                under section 236;
                    ``(iii) the extent to which the project for which the
                grant proposal is submitted fits within any overall
                strategic plan developed by an eligible community under
                section 276;
                    ``(iv) the extent to which the project for which the
                grant proposal is submitted relates to any project funded
                by a Sector Partnership Grant awarded under section 279A;
                and
                    ``(v) any previous experience of the eligible
                institution in providing educational or career training
                programs to workers eligible for training under section
                236.
                ``(B) Absence of experience.--The absence of any previous
            experience in providing educational or career training programs
            described in subparagraph (A)(v) shall not automatically
            disqualify an eligible institution from receiving a grant under
            this section.
            ``(5) Community outreach required.--In order to be considered
        by the Secretary, a grant proposal submitted by an eligible
        institution under this section shall--
                ``(A) demonstrate that the eligible institution--
                    ``(i) reached out to employers, and other entities
                described in section 276(a)(2)(B) to identify--

                        ``(I) any shortcomings in existing educational and
                    career training opportunities available to workers in
                    the community; and
                        ``(II) any future employment opportunities within
                    the community and the educational and career training
                    skills required for workers to meet the future
                    employment demand;

                    ``(ii) reached out to other similarly situated
                institutions in an effort to benefit from any best
                practices that may be shared with respect to providing
                educational or career training programs to workers eligible
                for training under section 236; and
                    ``(iii) reached out to any eligible partnership in the
                community that has sought or received a Sector Partnership
                Grant under section 279A to enhance the effectiveness of
                each grant and avoid duplication of efforts; and
                ``(B) include a detailed description of--
                    ``(i) the extent and outcome of the outreach conducted
                under subparagraph (A);
                    ``(ii) the extent to which the project for which the
                grant proposal is submitted will contribute to meeting any
                shortcomings identified under subparagraph (A)(i)(I) or any
                educational or career training needs identified under
                subparagraph (A)(i)(II); and
                    ``(iii) the extent to which employers, including small-
                and medium-sized firms within the community, have
                demonstrated a commitment to employing workers who would
                benefit from the project for which the grant proposal is
                submitted.
        ``(d) Criteria for Award of Grants.--
            ``(1) In general.--Subject to the appropriation of funds, the
        Secretary shall award a grant under this section based on--
                ``(A) a determination of the merits of the grant proposal
            submitted by the eligible institution to develop, offer, or
            improve educational or career training programs to be made
            available to workers eligible for training under section 236;
                ``(B) an evaluation of the likely employment opportunities
            available to workers who complete an educational or career
            training program that the eligible institution proposes to
            develop, offer, or improve; and
                ``(C) an evaluation of prior demand for training programs
            by workers eligible for training under section 236 in the
            community served by the eligible institution, as well as the
            availability and capacity of existing training programs to meet
            future demand for training programs.
            ``(2) Priority for certain communities.--In awarding grants
        under this section, the Secretary shall give priority to an
        eligible institution that serves a community that the Secretary of
        Commerce has determined under section 273 is eligible to apply for
        assistance under subchapter A within the 5-year period preceding
        the date on which the grant proposal is submitted to the Secretary
        under this section.
            ``(3) Matching requirements.--A grant awarded under this
        section may not be used to satisfy any private matching requirement
        under any other provision of law.
        ``(e) Annual Report.--Not later than December 15 in each of the
    calendar years 2009 through 2011, the Secretary shall submit to the
    Committee on Finance of the Senate and the Committee on Ways and Means
    of the House of Representatives a report--
            ``(1) describing each grant awarded under this section during
        the preceding fiscal year; and
            ``(2) assessing the impact of each award of a grant under this
        section in a fiscal year preceding the fiscal year referred to in
        paragraph (1) on workers receiving training under section 236.

    ``SEC. 279. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary of Labor $40,000,000 for each of the
    fiscal years 2009 and 2010, and $10,000,000 for the period beginning
    October 1, 2010, and ending December 31, 2010, to fund the Community
    College and Career Training Grant Program. Funds appropriated pursuant
    to this section shall remain available until expended.
        ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
    section shall be used to supplement and not supplant other Federal,
    State, and local public funds expended to support community college and
    career training programs.

       ``Subchapter C--Industry or Sector Partnership Grant Program for
                         Communities Impacted by Trade

    ``SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR
                  COMMUNITIES IMPACTED BY TRADE.

        ``(a) Purpose.--The purpose of this subchapter is to facilitate
    efforts by industry or sector partnerships to strengthen and revitalize
    industries and create employment opportunities for workers in
    communities impacted by trade.
        ``(b) Definitions.--In this subchapter:
            ``(1) Community impacted by trade.--The term `community
        impacted by trade' has the meaning given that term in section 271.
            ``(2) Dislocated worker.--The term `dislocated worker' means a
        worker who has been totally or partially separated, or is
        threatened with total or partial separation, from employment in an
        industry or sector in a community impacted by trade.
            ``(3) Eligible partnership.--The term `eligible partnership'
        means a voluntary partnership composed of public and private
        persons, firms, or other entities within a community impacted by
        trade, that shall include representatives of--
                ``(A) an industry or sector within the community, including
            an industry association;
                ``(B) local, county, or State government;
                ``(C) multiple firms in the industry or sector, including
            small- and medium-sized firms, within the community;
                ``(D) local workforce investment boards established under
            section 117 of the Workforce Investment Act of 1998 (29 U.S.C.
            2832);
                ``(E) labor organizations, including State labor
            federations and labor-management initiatives, representing
            workers in the community; and
                ``(F) educational institutions, local educational agencies,
            or other training providers serving the community.
            ``(4) Lead entity.--The term `lead entity' means--
                ``(A) an entity designated by the eligible partnership to
            be responsible for submitting a grant proposal under subsection
            (e) and serving as the eligible partnership's fiscal agent in
            expending any Sector Partnership Grant awarded under this
            section; or
                ``(B) a State agency designated by the Governor of the
            State to carry out the responsibilities described in
            subparagraph (A).
            ``(5) Secretary.--The term `Secretary' means the Secretary of
        Labor.
            ``(6) Targeted industry or sector.--The term `targeted industry
        or sector' means the industry or sector represented by an eligible
        partnership.
        ``(c) Sector Partnership Grants Authorized.--Beginning on August 1,
    2009, and subject to the appropriation of funds, the Secretary shall
    award Sector Partnership Grants to eligible partnerships to assist the
    eligible partnerships in carrying out projects, over periods of not
    more than 3 years, to strengthen and revitalize industries and sectors
    and create employment opportunities for dislocated workers.
        ``(d) Use of Sector Partnership Grants.--An eligible partnership
    may use a Sector Partnership Grant to carry out any project that the
    Secretary determines will further the purpose of this subchapter, which
    may include--
            ``(1) identifying the skill needs of the targeted industry or
        sector and any gaps in the available supply of skilled workers in
        the community impacted by trade, and developing strategies for
        filling the gaps, including by--
                ``(A) developing systems to better link firms in the
            targeted industry or sector to available skilled workers;
                ``(B) helping firms in the targeted industry or sector to
            obtain access to new sources of qualified job applicants;
                ``(C) retraining dislocated and incumbent workers; or
                ``(D) facilitating the training of new skilled workers by
            aligning the instruction provided by local suppliers of
            education and training services with the needs of the targeted
            industry or sector;
            ``(2) analyzing the skills and education levels of dislocated
        and incumbent workers and developing training to address skill gaps
        that prevent such workers from obtaining jobs in the targeted
        industry or sector;
            ``(3) helping firms, especially small- and medium-sized firms,
        in the targeted industry or sector increase their productivity and
        the productivity of their workers;
            ``(4) helping such firms retain incumbent workers;
            ``(5) developing learning consortia of small- and medium-sized
        firms in the targeted industry or sector with similar training
        needs to enable the firms to combine their purchases of training
        services, and thereby lower their training costs;
            ``(6) providing information and outreach activities to firms in
        the targeted industry or sector regarding the activities of the
        eligible partnership and other local service suppliers that could
        assist the firms in meeting needs for skilled workers;
            ``(7) seeking, applying, and disseminating best practices
        learned from similarly situated communities impacted by trade in
        the development and implementation of economic growth and
        revitalization strategies; and
            ``(8) identifying additional public and private resources to
        support the activities described in this subsection, which may
        include the option to apply for a community grant under section 275
        or a Community College and Career Training Grant under section 278
        (subject to meeting any additional requirements of those sections).
        ``(e) Grant Proposals.--
            ``(1) In general.--The lead entity of an eligible partnership
        seeking to receive a Sector Partnership Grant under this section
        shall submit a grant proposal to the Secretary at such time, in
        such manner, and containing such information as the Secretary may
        require.
            ``(2) General requirements of grant proposals.--A grant
        proposal submitted under paragraph (1) shall, at a minimum--
                ``(A) identify the members of the eligible partnership;
                ``(B) identify the targeted industry or sector for which
            the eligible partnership intends to carry out projects using
            the Sector Partnership Grant;
                ``(C) describe the goals that the eligible partnership
            intends to achieve to promote the targeted industry or sector;
                ``(D) describe the projects that the eligible partnership
            will undertake to achieve such goals;
                ``(E) demonstrate that the eligible partnership has the
            organizational capacity to carry out the projects described in
            subparagraph (D);
                ``(F) explain--
                    ``(i) whether--

                        ``(I) the community impacted by trade has sought or
                    received a community grant under section 275;
                        ``(II) an eligible institution in the community has
                    sought or received a Community College and Career
                    Training Grant under section 278; or
                        ``(III) any other entity in the community has
                    received funds pursuant to any other federally funded
                    training project; and

                    ``(ii) how the eligible partnership will coordinate its
                use of a Sector Partnership Grant with the use of such
                other grants or funds in order to enhance the effectiveness
                of each grant and any such funds and avoid duplication of
                efforts; and
                ``(G) include performance measures, developed based on the
            performance measures issued by the Secretary under subsection
            (g)(2), and a timeline for measuring progress toward achieving
            the goals described in subparagraph (C).
        ``(f) Award of Grants.--
            ``(1) In general.--Upon application by the lead entity of an
        eligible partnership, the Secretary may award a Sector Partnership
        Grant to the eligible partnership to assist the partnership in
        carrying out any of the projects in the grant proposal that the
        Secretary determines will further the purposes of this subchapter.
            ``(2) Limitations.--An eligible partnership may not be
        awarded--
                ``(A) more than one Sector Partnership Grant; or
                ``(B) a total grant award under this subchapter in excess
            of--
                    ``(i) except as provided in clause (ii), $2,500,000; or
                    ``(ii) in the case of an eligible partnership located
                within a community impacted by trade that is not served by
                an institution receiving a Community College and Career
                Training Grant under section 278, $3,000,000.
        ``(g) Administration by the Secretary.--
            ``(1) Technical assistance and oversight.--
                ``(A) In general.--The Secretary shall provide technical
            assistance to, and oversight of, the lead entity of an eligible
            partnership in applying for and administering Sector
            Partnership Grants awarded under this section.
                ``(B) Technical assistance.--Technical assistance provided
            under subparagraph (A) shall include providing conferences and
            such other methods of collecting and disseminating information
            on best practices developed by eligible partnerships as the
            Secretary determines appropriate.
                ``(C) Grants or contracts for technical assistance.--The
            Secretary may award a grant or contract to one or more national
            or State organizations to provide technical assistance to
            foster the planning, formation, and implementation of eligible
            partnerships.
            ``(2) Performance measures.--The Secretary shall issue a range
        of performance measures, with quantifiable benchmarks, and
        methodologies that eligible partnerships may use to measure
        progress toward the goals described in subsection (e). In
        developing such measures, the Secretary shall consider the benefits
        of the eligible partnership and its activities for workers, firms,
        industries, and communities.
        ``(h) Reports.--
            ``(1) Progress report.--Not later than 1 year after receiving a
        Sector Partnership Grant, and 3 years thereafter, the lead entity
        shall submit to the Secretary, on behalf of the eligible
        partnership, a report containing--
                ``(A) a detailed description of the progress made toward
            achieving the goals described in subsection (e)(2)(C), using
            the performance measures required under subsection (e)(2)(G);
                ``(B) a detailed evaluation of the impact of the grant
            award on workers and employers in the community impacted by
            trade; and
                ``(C) a detailed description of all expenditures of funds
            awarded to the eligible partnership under the Sector
            Partnership Grant approved by the Secretary under this
            subchapter.
            ``(2) Annual report.--Not later than December 15 in each of the
        calendar years 2009 through 2011, the Secretary shall submit to the
        Committee on Finance of the Senate and the Committee on Ways and
        Means of the House of Representatives a report--
                ``(A) describing each Sector Partnership Grant awarded to
            an eligible partnership during the preceding fiscal year; and
                ``(B) assessing the impact of each Sector Partnership Grant
            awarded in a fiscal year preceding the fiscal year referred to
            in subparagraph (A) on workers and employers in communities
            impacted by trade.

    ``SEC. 279B. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There are authorized to be appropriated to the
    Secretary of Labor $40,000,000 for each of the fiscal years 2009 and
    2010, and $10,000,000 for the period beginning October 1, 2010, and
    ending December 31, 2010, to carry out the Sector Partnership Grant
    program under section 279A. Funds appropriated pursuant to this section
    shall remain available until expended.
        ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
    section shall be used to supplement and not supplant other Federal,
    State, and local public funds expended to support the economic
    development of local communities.
        ``(c) Administrative Costs.--The Secretary may retain not more than
    5 percent of the funds appropriated pursuant to this section for each
    fiscal year to administer the Sector Partnership Grant program under
    section 279A.

                       ``Subchapter D--General Provisions

    ``SEC. 279C. RULE OF CONSTRUCTION.

        ``Nothing in this chapter prevents a worker from receiving trade
    adjustment assistance under chapter 2 of this title at the same time
    the worker is receiving assistance in any manner from--
            ``(1) a community receiving a community grant under subchapter
        A;
            ``(2) an eligible institution receiving a Community College and
        Career Training Grant under subchapter B; or
            ``(3) an eligible partnership receiving a Sector Partnership
        Grant under subchapter C.''.

    SEC. 1873. CONFORMING AMENDMENTS.

        (a) Table of Contents.--The table of contents of the Trade Act of
    1974 is amended by striking the items relating to chapter 4 of title II
    and inserting the following:

            ``Chapter 4--Trade Adjustment Assistance for Communities

           ``Subchapter A--Trade Adjustment Assistance for Communities

    ``Sec. 271. Definitions.
    ``Sec. 272. Establishment of trade adjustment assistance for communities
              program.
    ``Sec. 273. Eligibility; notification.
    ``Sec. 274. Technical assistance.
    ``Sec. 275. Grants for eligible communities.
    ``Sec. 276. Strategic plans.
    ``Sec. 277. General provisions.

       ``Subchapter B--Community College and Career Training Grant Program

    ``Sec. 278. Community college and career training grant program.
    ``Sec. 279. Authorization of appropriations.

        ``Subchapter C--Industry or Sector Partnership Grant Program for
                          Communities Impacted by Trade

    ``Sec. 279A. Industry or sector partnership grant program for
              communities impacted by trade.
    ``Sec. 279B. Authorization of appropriations.

                       ``Subchapter D--General Provisions

    ``Sec. 279C. Rule of construction.''
        (b) Judicial Review.--
            (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a))
        is amended--
                (A) by inserting ``or 296'' after ``section 293'';
                (B) by striking ``or any other interested domestic party''
            and inserting ``or authorized representative of a community'';
            and
                (C) by striking ``section 271'' and inserting ``section
            273''.
            (2) Section 1581(d) of title 28, United States Code, is
        amended--
                (A) in paragraph (2), by striking ``; and'' and inserting a
            semicolon;
                (B) in paragraph (3)--
                    (i) by striking ``271'' and inserting ``273''; and
                    (ii) by striking the period and inserting ``; and'';
                and
                (C) by adding at the end the following:
            ``(4) any final determination of the Secretary of Agriculture
        under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b)
        with respect to the eligibility of a group of agricultural
        commodity producers for adjustment assistance under such Act.''.

                PART IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

    SEC. 1881. DEFINITIONS.

        Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Agricultural commodity.--The term `agricultural
        commodity' includes--
                ``(A) any agricultural commodity (including livestock) in
            its raw or natural state;
                ``(B) any class of goods within an agricultural commodity;
            and
                ``(C) in the case of an agricultural commodity producer
            described in paragraph (2)(B), wild-caught aquatic species.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) Agricultural commodity producer.--The term `agricultural
        commodity producer' means--
                ``(A) a person that shares in the risk of producing an
            agricultural commodity and that is entitled to a share of the
            commodity for marketing, including an operator, a sharecropper,
            or a person that owns or rents the land on which the commodity
            is produced; or
                ``(B) a person that reports gain or loss from the trade or
            business of fishing on the person's annual Federal income tax
            return for the taxable year that most closely corresponds to
            the marketing year with respect to which a petition is filed
            under section 292.''; and
            (3) by adding at the end the following:
            ``(7) Marketing year.--The term `marketing year' means--
                ``(A) a marketing year designated by the Secretary with
            respect to an agricultural commodity; or
                ``(B) in the case of an agricultural commodity with respect
            to which the Secretary does not designate a marketing year, a
            calendar year.''.

    SEC. 1882. ELIGIBILITY.

        (a) In General.--Section 292 of the Trade Act of 1974 (19 U.S.C.
    2401a) is amended by striking subsections (c) through (e) and inserting
    the following:
        ``(c) Group Eligibility Requirements.--The Secretary shall certify
    a group of agricultural commodity producers as eligible to apply for
    adjustment assistance under this chapter if the Secretary determines
    that--
            ``(1)(A) the national average price of the agricultural
        commodity produced by the group during the most recent marketing
        year for which data are available is less than 85 percent of the
        average of the national average price for the commodity in the 3
        marketing years preceding such marketing year;
            ``(B) the quantity of production of the agricultural commodity
        produced by the group during such marketing year is less than 85
        percent of the average of the quantity of production of the
        commodity produced by the group in the 3 marketing years preceding
        such marketing year;
            ``(C) the value of production of the agricultural commodity
        produced by the group during such marketing year is less than 85
        percent of the average value of production of the commodity
        produced by the group in the 3 marketing years preceding such
        marketing year; or
            ``(D) the cash receipts for the agricultural commodity produced
        by the group during such marketing year are less than 85 percent of
        the average of the cash receipts for the commodity produced by the
        group in the 3 marketing years preceding such marketing year;
            ``(2) the volume of imports of articles like or directly
        competitive with the agricultural commodity produced by the group
        in the marketing year with respect to which the group files the
        petition increased compared to the average volume of such imports
        during the 3 marketing years preceding such marketing year; and
            ``(3) the increase in such imports contributed importantly to
        the decrease in the national average price, quantity of production,
        or value of production of, or cash receipts for, the agricultural
        commodity, as described in paragraph (1).
        ``(d) Eligibility of Certain Other Producers.--An agricultural
    commodity producer or group of producers that resides outside of the
    State or region identified in the petition filed under subsection (a)
    may file a request to become a party to that petition not later than 15
    days after the date the notice is published in the Federal Register
    under subsection (a) with respect to that petition.
        ``(e) Treatment of Classes of Goods Within a Commodity.--In any
    case in which there are separate classes of goods within an
    agricultural commodity, the Secretary shall treat each class as a
    separate commodity in determining under subsection (c)--
            ``(1) group eligibility;
            ``(2) the national average price, quantity of production, or
        value of production, or cash receipts; and
            ``(3) the volume of imports.''.
        (b) Conforming Amendments.--Section 293 of the Trade Act of 1974
    (19 U.S.C. 2401b) is amended--
            (1) in subsection (a), by striking ``section 292 (c) or (d), as
        the case may be,'' and inserting ``section 292(c)''; and
            (2) in subsection (c), by striking ``decline in price for'' and
        inserting ``decrease in the national average price, quantity of
        production, or value of production of, or cash receipts for,''.

    SEC. 1883. BENEFITS.

        (a) In General.--Section 296 of the Trade Act of 1974 (19 U.S.C.
    2401e) is amended to read as follows:

    ``SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL
                  COMMODITY PRODUCERS.

        ``(a) In General.--
            ``(1) Requirements.--
                ``(A) In general.--Benefits under this chapter shall be
            available to an agricultural commodity producer covered by a
            certification under this chapter who files an application for
            such benefits not later than 90 days after the date on which
            the Secretary makes a determination and issues a certification
            of eligibility under section 293, if the producer submits to
            the Secretary sufficient information to establish that--
                    ``(i) the producer produced the agricultural commodity
                covered by the application filed under this subsection in
                the marketing year with respect to which the petition is
                filed and in at least 1 of the 3 marketing years preceding
                that marketing year;
                    ``(ii)(I) the quantity of the agricultural commodity
                that was produced by the producer in the marketing year
                with respect to which the petition is filed has decreased
                compared to the most recent marketing year preceding that
                marketing year for which data are available; or
                    ``(II)(aa) the price received for the agricultural
                commodity by the producer during the marketing year with
                respect to which the petition is filed has decreased
                compared to the average price for the commodity received by
                the producer in the 3 marketing years preceding that
                marketing year; or
                    ``(bb) the county level price maintained by the
                Secretary for the agricultural commodity on the date on
                which the petition is filed has decreased compared to the
                average county level price for the commodity in the 3
                marketing years preceding the date on which the petition is
                filed; and
                    ``(iii) the producer is not receiving--

                        ``(I) cash benefits under chapter 2 or 3; or
                        ``(II) benefits based on the production of an
                    agricultural commodity covered by another petition
                    filed under this chapter.

                ``(B) Special rule with respect to crops not grown every
            year.--For purposes of subparagraph (A)(ii)(II)(aa), if a
            petition is filed with respect to an agricultural commodity
            that is not produced by the producer every year, an
            agricultural commodity producer producing that commodity may
            establish the average price received for the commodity by the
            producer in the 3 marketing years preceding the year with
            respect to which the petition is filed by using average price
            data for the 3 most recent marketing years in which the
            producer produced the commodity and for which data are
            available.
            ``(2) Limitations based on adjusted gross income.--
                ``(A) In general.--Notwithstanding any other provision of
            this chapter, an agricultural commodity producer shall not be
            eligible for assistance under this chapter in any year in which
            the average adjusted gross income (as defined in section
            1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-
            3a(a))) of the producer exceeds the level set forth in
            subparagraph (A) or (B) of section 1001D(b)(1) of the Food
            Security Act of 1985 (7 U.S.C. 1308-3a(b)(1)), whichever is
            applicable.
                ``(B) Demonstration of compliance.--An agricultural
            commodity producer shall provide to the Secretary such
            information as the Secretary determines necessary to
            demonstrate that the producer is in compliance with the
            limitation under subparagraph (A).
                ``(C) Counter-cyclical and acre payments.--The total amount
            of payments made to an agricultural commodity producer under
            this chapter during any crop year may not exceed the
            limitations on payments set forth in subsections (b)(2),
            (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security
            Act of 1985 (7 U.S.C. 1308).
        ``(b) Technical Assistance.--
            ``(1) Initial technical assistance.--
                ``(A) In general.--An agricultural commodity producer that
            files an application and meets the requirements under
            subsection (a)(1) shall be entitled to receive initial
            technical assistance designed to improve the competitiveness of
            the production and marketing of the agricultural commodity with
            respect to which the producer was certified under this chapter.
            Such assistance shall include information regarding--
                    ``(i) improving the yield and marketing of that
                agricultural commodity; and
                    ``(ii) the feasibility and desirability of substituting
                one or more alternative agricultural commodities for that
                agricultural commodity.
                ``(B) Transportation and subsistence expenses.--
                    ``(i) In general.--The Secretary may authorize
                supplemental assistance necessary to defray reasonable
                transportation and subsistence expenses incurred by an
                agricultural commodity producer in connection with initial
                technical assistance under subparagraph (A) if such
                assistance is provided at facilities that are not within
                normal commuting distance of the regular place of residence
                of the producer.
                    ``(ii) Exceptions.--The Secretary may not authorize
                payments to an agricultural commodity producer under clause
                (i)--

                        ``(I) for subsistence expenses that exceed the
                    lesser of--

                            ``(aa) the actual per diem expenses for
                        subsistence incurred by the producer; or
                            ``(bb) the prevailing per diem allowance rate
                        authorized under Federal travel regulations; or

                        ``(II) for travel expenses that exceed the
                    prevailing mileage rate authorized under the Federal
                    travel regulations.

            ``(2) Intensive technical assistance.--A producer that has
        completed initial technical assistance under paragraph (1) shall be
        eligible to participate in intensive technical assistance. Such
        assistance shall consist of--
                ``(A) a series of courses to further assist the producer in
            improving the competitiveness of the producer in producing--
                    ``(i) the agricultural commodity with respect to which
                the producer was certified under this chapter; or
                    ``(ii) another agricultural commodity; and
                ``(B) assistance in developing an initial business plan
            based on the courses completed under subparagraph (A).
            ``(3) Initial business plan.--
                ``(A) Approval by secretary.--The Secretary shall approve
            an initial business plan developed under paragraph (2)(B) if
            the plan--
                    ``(i) reflects the skills gained by the producer
                through the courses described in paragraph (2)(A); and
                    ``(ii) demonstrates how the producer will apply those
                skills to the circumstances of the producer.
                ``(B) Financial assistance for implementing initial
            business plan.--Upon approval of the producer's initial
            business plan by the Secretary under subparagraph (A), a
            producer shall be entitled to an amount not to exceed $4,000
            to--
                    ``(i) implement the initial business plan; or
                    ``(ii) develop a long-term business adjustment plan
                under paragraph (4).
            ``(4) Long-term business adjustment plan.--
                ``(A) In general.--A producer that has completed intensive
            technical assistance under paragraph (2) and whose initial
            business plan has been approved under paragraph (3)(A) shall be
            eligible for, in addition to the amount under subparagraph (C),
            assistance in developing a long-term business adjustment plan.
                ``(B) Approval of long-term business adjustment plans.--The
            Secretary shall approve a long-term business adjustment plan
            developed under subparagraph (A) if the Secretary determines
            that the plan--
                    ``(i) includes steps reasonably calculated to
                materially contribute to the economic adjustment of the
                producer to changing market conditions;
                    ``(ii) takes into consideration the interests of the
                workers employed by the producer; and
                    ``(iii) demonstrates that the producer will have
                sufficient resources to implement the business plan.
                ``(C) Plan implementation.--Upon approval of the producer's
            long-term business adjustment plan under subparagraph (B), a
            producer shall be entitled to an amount not to exceed $8,000 to
            implement the long-term business adjustment plan.
        ``(c) Maximum Amount of Assistance.--An agricultural commodity
    producer may receive not more than $12,000 under paragraphs (3) and (4)
    of subsection (b) in the 36-month period following certification under
    section 293.
        ``(d) Limitations on Other Assistance.--An agricultural commodity
    producer that receives benefits under this chapter (other than initial
    technical assistance under subsection (b)(1)) shall not be eligible for
    cash benefits under chapter 2 or 3.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 296 and
    inserting the following:
    ``Sec. 296. Qualifying requirements and benefits for agricultural
              commodity producers.''.

    SEC. 1884. REPORT.

        Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended
    by adding at the end the following:
        ``(d) Report by the Secretary.--Not later than January 30, 2010,
    and annually thereafter, the Secretary of Agriculture shall submit to
    the Committee on Finance of the Senate and the Committee on Ways and
    Means of the House of Representatives a report containing the following
    information with respect to adjustment assistance provided under this
    chapter during the preceding fiscal year:
            ``(1) A list of the agricultural commodities covered by a
        certification under this chapter.
            ``(2) The States or regions in which such commodities are
        produced and the aggregate amount of such commodities produced in
        each such State or region.
            ``(3) The total number of agricultural commodity producers, by
        congressional district, receiving benefits under this chapter.
            ``(4) The total number of agricultural commodity producers, by
        congressional district, receiving technical assistance under this
        chapter.''.

    SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.

        Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1))
    is amended by inserting ``or has expended funds received under this
    chapter for a purpose that was not approved by the Secretary,'' after
    ``entitled,''.

    SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.

        For purposes of chapters 2 and 6 of title II of the Trade Act of
    1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity
    producer that--
            (1) is a fisherman or aquaculture producer, and
            (2) is otherwise eligible for adjustment assistance under
        chapter 2 or 6, as the case may be,
    the increase in imports of articles like or directly competitive with
    the agricultural commodity produced by such producer may be based on
    imports of wild-caught seafood, farm-raised seafood, or both.

    SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

        Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is
    amended by striking ``fiscal years 2003 through 2007'' and all that
    follows through the end period and inserting ``fiscal years 2009 and
    2010, and $22,500,000 for the period beginning October 1, 2010, and
    ending December 31, 2010, to carry out the purposes of this chapter,
    including administrative costs, and salaries and expenses of employees
    of the Department of Agriculture.''.

                           PART V--GENERAL PROVISIONS

    SEC. 1891. EFFECTIVE DATE.

        (a) In General.--Except as otherwise provided in this subtitle, and
    subsection (b) of this section, this subtitle and the amendments made
    by this subtitle--
            (1) shall take effect upon the expiration of the 90-day period
        beginning on the date of the enactment of this Act; and
            (2) shall apply to--
                (A) petitions for certification filed under chapter 2, 3,
            or 6 of title II of the Trade Act of 1974 on or after the
            effective date described in paragraph (1); and
                (B) petitions for assistance and proposals for grants filed
            under chapter 4 of title II of the Trade Act of 1974 on or
            after such effective date.
        (b) Certifications Made Before Effective Date.--Notwithstanding
    subsection (a)--
            (1) a worker shall continue to receive (or be eligible to
        receive) trade adjustment assistance and other benefits under
        subchapter B of chapter 2 of title II of the Trade Act of 1974, as
        in effect on the day before the effective date described in
        subsection (a)(1), for any week for which the worker meets the
        eligibility requirements of such chapter 2 as in effect on the day
        before such effective date, if the worker--
                (A) is certified as eligible for trade adjustment
            assistance benefits under such chapter 2 pursuant to a petition
            filed under section 221 of the Trade Act of 1974 on or before
            such effective date; and
                (B) would otherwise be eligible to receive trade adjustment
            assistance benefits under such chapter as in effect on the day
            before such effective date;
            (2) a worker shall continue to receive (or be eligible to
        receive) benefits under section 246(a)(2) of the Trade Act of 1974,
        as in effect on the day before the effective date described in
        subsection (a)(1), for such period for which the worker meets the
        eligibility requirements of section 246 of that Act as in effect on
        the day before such effective date, if the worker--
                (A) is certified as eligible for benefits under such
            section 246 pursuant to a petition filed under section 221 of
            the Trade Act of 1974 on or before such effective date; and
                (B) would otherwise be eligible to receive benefits under
            such section 246(a)(2) as in effect on the day before such
            effective date; and
            (3) a firm shall continue to receive (or be eligible to
        receive) adjustment assistance under chapter 3 of title II of the
        Trade Act of 1974, as in effect on the day before the effective
        date described in subsection (a)(1), for such period for which the
        firm meets the eligibility requirements of such chapter 3 as in
        effect on the day before such effective date, if the firm--
                (A) is certified as eligible for benefits under such
            chapter 3 pursuant to a petition filed under section 251 of the
            Trade Act of 1974 on or before such effective date; and
                (B) would otherwise be eligible to receive benefits under
            such chapter 3 as in effect on the day before such effective
            date.

    SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS.

        (a) For Workers.--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''.
        (b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C.
    2271 note prec.) is amended--
            (1) in subsection (a), by striking ``December 31, 2007'' each
        place it appears and inserting ``December 31, 2010''; and
            (2) by amending subsection (b) to read as follows:
        ``(b) Other Assistance.--
            ``(1) Assistance for firms.--
                ``(A) In general.--Except as provided in subparagraph (B),
            technical assistance and grants may not be provided under
            chapter 3 after December 31, 2010.
                ``(B) Exception.--Notwithstanding subparagraph (A), any
            technical assistance or grant approved under chapter 3 on or
            before December 31, 2010, may be provided--
                    ``(i) to the extent funds are available pursuant to
                such chapter for such purpose; and
                    ``(ii) to the extent the recipient of the technical
                assistance or grant is otherwise eligible to receive such
                technical assistance or grant, as the case may be.
            ``(2) Farmers.--
                ``(A) In general.--Except as provided in subparagraph (B),
            technical assistance and financial assistance may not be
            provided under chapter 6 after December 31, 2010.
                ``(B) Exception.--Notwithstanding subparagraph (A), any
            technical or financial assistance approved under chapter 6 on
            or before December 31, 2010, may be provided--
                    ``(i) to the extent funds are available pursuant to
                such chapter for such purpose; and
                    ``(ii) to the extent the recipient of the technical or
                financial assistance is otherwise eligible to receive such
                technical or financial assistance, as the case may be.
            ``(3) Assistance for communities.--
                ``(A) In general.--Except as provided in subparagraph (B),
            technical assistance and grants may not be provided under
            chapter 4 after December 31, 2010.
                ``(B) Exception.--Notwithstanding subparagraph (A), any
            technical assistance or grant approved under chapter 4 on or
            before December 31, 2010, may be provided--
                    ``(i) to the extent funds are available pursuant to
                such chapter for such purpose; and
                    ``(ii) to the extent the recipient of the technical
                assistance or grant is otherwise eligible to receive such
                technical assistance or grant, as the case may be.''.

    SEC. 1893. TERMINATION; RELATED PROVISIONS.

        (a) Sunset.--
            (1) In general.--Subject to paragraph (2), the amendments made
        by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the
        Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or
        after January 1, 2011.
            (2) Exception.--The amendments made by this subtitle to section
        285 of the Trade Act of 1974 shall continue to apply on and after
        January 1, 2011, with respect to--
                (A) workers certified as eligible for trade adjustment
            assistance benefits under chapter 2 of title II of that Act
            pursuant to petitions filed under section 221 of that Act
            before January 1, 2011;
                (B) firms certified as eligible for technical assistance or
            grants under chapter 3 of title II of that Act pursuant to
            petitions filed under section 251 of that Act before January 1,
            2011;
                (C) recipients approved for technical assistance or grants
            under chapter 4 of title II of that Act pursuant to petitions
            for assistance or proposals for grants (as the case may be)
            filed pursuant to such chapter before January 1, 2011; and
                (D) agricultural commodity producers certified as eligible
            for technical or financial assistance under chapter 6 of title
            II of that Act pursuant to petitions filed under section 292 of
            that Act before January 1, 2011.
        (b) Application of Prior Law.--Chapters 2, 3, 4, 5, and 6 of title
    II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied
    and administered beginning January 1, 2011, as if the amendments made
    by this subtitle (other than part VI) had never been enacted, except
    that in applying and administering such chapters--
            (1) section 245 of that Act shall be applied and administered
        by substituting ``2011'' for ``2007'';
            (2) section 246(b) of that Act shall be applied and
        administered by substituting ``December 31, 2011'' for ``the date
        that is 5 years'' and all that follows through ``State'';
            (3) section 256(b) of that Act shall be applied and
        administered by substituting ``the 1-year period beginning January
        1, 2011'' for ``each of fiscal years 2003 through 2007, and
        $4,000,000 for the 3-month period beginning October 1, 2007'';
            (4) section 298(a) of that Act shall be applied and
        administered by substituting ``the 1-year period beginning January
        1, 2011'' for ``each of the fiscal years'' and all that follows
        through ``October 1, 2007''; and
            (5) subject to subsection (a)(2), section 285 of that Act shall
        be applied and administered--
                (A) in subsection (a), by substituting ``2011'' for
            ``2007'' each place it appears; and
                (B) by applying and administering subsection (b) as if it
            read as follows:
        ``(b) Other Assistance.--
            ``(1) Assistance for firms.--
                ``(A) In general.--Except as provided in subparagraph (B),
            assistance may not be provided under chapter 3 after December
            31, 2011.
                ``(B) Exception.--Notwithstanding subparagraph (A), any
            assistance approved under chapter 3 on or before December 31,
            2011, may be provided--
                    ``(i) to the extent funds are available pursuant to
                such chapter for such purpose; and
                    ``(ii) to the extent the recipient of the assistance is
                otherwise eligible to receive such assistance.
            ``(2) Farmers.--
                ``(A) In general.--Except as provided in subparagraph (B),
            assistance may not be provided under chapter 6 after December
            31, 2011.
                ``(B) Exception.--Notwithstanding subparagraph (A), any
            assistance approved under chapter 6 on or before December 31,
            2011, may be provided--
                    ``(i) to the extent funds are available pursuant to
                such chapter for such purpose; and
                    ``(ii) to the extent the recipient of the assistance is
                otherwise eligible to receive such assistance.''.

    SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

        Not later than September 30, 2012, the Comptroller General of the
    United States shall prepare and submit to the Committee on Finance of
    the Senate and the Committee on Ways and Means of the House of
    Representatives a comprehensive report on the operation and
    effectiveness of the amendments made by this subtitle to chapters 2, 3,
    4, and 6 of the Trade Act of 1974.

    SEC. 1895. EMERGENCY DESIGNATION.

        Amounts appropriated pursuant to this subtitle are 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.

                      PART VI--HEALTH COVERAGE IMPROVEMENT

    SEC. 1899. SHORT TITLE.

        This part may be cited as the ``TAA Health Coverage Improvement Act
    of 2009''.

    SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

        (a) Improvement of Affordability.--
            (1) In general.--Section 35(a) of the Internal Revenue Code of
        1986 (relating to credit for health insurance costs of eligible
        individuals) is amended by inserting ``(80 percent in the case of
        eligible coverage months beginning before January 1, 2011)'' after
        ``65 percent''.
            (2) Conforming amendment.--Section 7527(b) of such Code
        (relating to advance payment of credit for health insurance costs
        of eligible individuals) is amended by inserting ``(80 percent in
        the case of eligible coverage months beginning before January 1,
        2011)'' after ``65 percent''.
        (b) Effective Date.--The amendments made by this section shall
    apply to coverage months beginning on or after the first day of the
    first month beginning 60 days after the date of the enactment of this
    Act.

    SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF
                  ADVANCE PAYMENTS OF CREDIT.

        (a) Payment for Premiums Due Prior to Commencement of Advance
    Payments of Credit.--Section 7527 of the Internal Revenue Code of 1986
    (relating to advance payment of credit for health insurance costs of
    eligible individuals) is amended by adding at the end the following new
    subsection:
        ``(e) Payment for Premiums Due Prior to Commencement of Advance
    Payments.--In the case of eligible coverage months beginning before
    January 1, 2011--
            ``(1) In general.--The program established under subsection (a)
        shall provide that the Secretary shall make 1 or more retroactive
        payments on behalf of a certified individual in an aggregate amount
        equal to 80 percent of the premiums for coverage of the taxpayer
        and qualifying family members under qualified health insurance for
        eligible coverage months (as defined in section 35(b)) occurring
        prior to the first month for which an advance payment is made on
        behalf of such individual under subsection (a).
            ``(2) Reduction of payment for amounts received under national
        emergency grants.--The amount of any payment determined under
        paragraph (1) shall be reduced by the amount of any payment made to
        the taxpayer for the purchase of qualified health insurance under a
        national emergency grant pursuant to section 173(f) of the
        Workforce Investment Act of 1998 for a taxable year including the
        eligible coverage months described in paragraph (1).''.
        (b) Effective Date.--The amendments made by this section shall
    apply to coverage months beginning after December 31, 2008.
        (c) Transitional Rule.--The Secretary of the Treasury shall not be
    required to make any payments under section 7527(e) of the Internal
    Revenue Code of 1986, as added by this section, until after the date
    that is 6 months after the date of the enactment of this Act.

    SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE
                  FOR CREDIT.

        (a) In General.--Paragraph (2) of section 35(c) of the Internal
    Revenue Code of 1986 (defining eligible TAA recipient) is amended to
    read as follows:
            ``(2) Eligible taa recipient.--
                ``(A) In general.--Except as provided in subparagraph (B),
            the term `eligible TAA recipient' means, with respect to any
            month, any individual who is receiving for any day of such
            month a trade readjustment allowance under chapter 2 of title
            II of the Trade Act of 1974 or who would be eligible to receive
            such allowance if section 231 of such Act were applied without
            regard to subsection (a)(3)(B) of such section. An individual
            shall continue to be treated as an eligible TAA recipient
            during the first month that such individual would otherwise
            cease to be an eligible TAA recipient by reason of the
            preceding sentence.
                ``(B) Special rule.--In the case of any eligible coverage
            month beginning after the date of the enactment of this
            paragraph and before January 1, 2011, the term `eligible TAA
            recipient' means, with respect to any month, any individual
            who--
                    ``(i) is receiving for any day of such month a trade
                readjustment allowance under chapter 2 of title II of the
                Trade Act of 1974,
                    ``(ii) would be eligible to receive such allowance
                except that such individual is in a break in training
                provided under a training program approved under section
                236 of such Act that exceeds the period specified in
                section 233(e) of such Act, but is within the period for
                receiving such allowances provided under section 233(a) of
                such Act, or
                    ``(iii) is receiving unemployment compensation (as
                defined in section 85(b)) for any day of such month and who
                would be eligible to receive such allowance for such month
                if section 231 of such Act were applied without regard to
                subsections (a)(3)(B) and (a)(5) thereof.
            An individual shall continue to be treated as an eligible TAA
            recipient during the first month that such individual would
            otherwise cease to be an eligible TAA recipient by reason of
            the preceding sentence.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to coverage months beginning after the date of the enactment of this
    Act.

    SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF
                  DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE
                  COVERAGE.

        (a) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code
    of 1986 (relating to not counting periods before significant breaks in
    creditable coverage) is amended by adding at the end the following new
    subparagraph:
                ``(D) TAA-eligible individuals.--In the case of plan years
            beginning before January 1, 2011--
                    ``(i) TAA pre-certification period rule.--In the case
                of a TAA-eligible individual, the period beginning on the
                date the individual has a TAA-related loss of coverage and
                ending on the date which is 7 days after the date of the
                issuance by the Secretary (or by any person or entity
                designated by the Secretary) of a qualified health
                insurance costs credit eligibility certificate for such
                individual for purposes of section 7527 shall not be taken
                into account in determining the continuous period under
                subparagraph (A).
                    ``(ii) Definitions.--The terms `TAA-eligible
                individual' and `TAA-related loss of coverage' have the
                meanings given such terms in section 4980B(f)(5)(C)(iv).''.
        (b) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding
    at the end the following new subparagraph:
                ``(C) TAA-eligible individuals.--In the case of plan years
            beginning before January 1, 2011--
                    ``(i) TAA pre-certification period rule.--In the case
                of a TAA-eligible individual, the period beginning on the
                date the individual has a TAA-related loss of coverage and
                ending on the date that is 7 days after the date of the
                issuance by the Secretary (or by any person or entity
                designated by the Secretary) of a qualified health
                insurance costs credit eligibility certificate for such
                individual for purposes of section 7527 of the Internal
                Revenue Code of 1986 shall not be taken into account in
                determining the continuous period under subparagraph (A).
                    ``(ii) Definitions.--The terms `TAA-eligible
                individual' and `TAA-related loss of coverage' have the
                meanings given such terms in section 605(b)(4).''.
        (c) PHSA Amendment.--Section 2701(c)(2) of the Public Health
    Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the
    following new subparagraph:
                ``(C) TAA-eligible individuals.--In the case of plan years
            beginning before January 1, 2011--
                    ``(i) TAA pre-certification period rule.--In the case
                of a TAA-eligible individual, the period beginning on the
                date the individual has a TAA-related loss of coverage and
                ending on the date that is 7 days after the date of the
                issuance by the Secretary (or by any person or entity
                designated by the Secretary) of a qualified health
                insurance costs credit eligibility certificate for such
                individual for purposes of section 7527 of the Internal
                Revenue Code of 1986 shall not be taken into account in
                determining the continuous period under subparagraph (A).
                    ``(ii) Definitions.--The terms `TAA-eligible
                individual' and `TAA-related loss of coverage' have the
                meanings given such terms in section 2205(b)(4).''.
        (d) Effective Date.--The amendments made by this section shall
    apply to plan years beginning after the date of the enactment of this
    Act.

    SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN
                  EVENTS.

        (a) In General.--Subsection (g) of section 35 of such Code is
    amended by redesignating paragraph (9) as paragraph (10) and inserting
    after paragraph (8) the following new paragraph:
            ``(9) Continued qualification of family members after certain
        events.--In the case of eligible coverage months beginning before
        January 1, 2011--
                ``(A) Medicare eligibility.--In the case of any month which
            would be an eligible coverage month with respect to an eligible
            individual but for subsection (f)(2)(A), such month shall be
            treated as an eligible coverage month with respect to such
            eligible individual solely for purposes of determining the
            amount of the credit under this section with respect to any
            qualifying family members of such individual (and any advance
            payment of such credit under section 7527). This subparagraph
            shall only apply with respect to the first 24 months after such
            eligible individual is first entitled to the benefits described
            in subsection (f)(2)(A).
                ``(B) Divorce.--In the case of the finalization of a
            divorce between an eligible individual and such individual's
            spouse, such spouse shall be treated as an eligible individual
            for purposes of this section and section 7527 for a period of
            24 months beginning with the date of such finalization, except
            that the only qualifying family members who may be taken into
            account with respect to such spouse are those individuals who
            were qualifying family members immediately before such
            finalization.
                ``(C) Death.--In the case of the death of an eligible
            individual--
                    ``(i) any spouse of such individual (determined at the
                time of such death) shall be treated as an eligible
                individual for purposes of this section and section 7527
                for a period of 24 months beginning with the date of such
                death, except that the only qualifying family members who
                may be taken into account with respect to such spouse are
                those individuals who were qualifying family members
                immediately before such death, and
                    ``(ii) any individual who was a qualifying family
                member of the decedent immediately before such death (or,
                in the case of an individual to whom paragraph (4) applies,
                the taxpayer to whom the deduction under section 151 is
                allowable) shall be treated as an eligible individual for
                purposes of this section and section 7527 for a period of
                24 months beginning with the date of such death, except
                that in determining the amount of such credit only such
                qualifying family member may be taken into account.''.
        (b) Conforming Amendment.--Section 173(f) of the Workforce
    Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the
    end the following:
            ``(8) Continued qualification of family members after certain
        events.--In the case of eligible coverage months beginning before
        January 1, 2011--
                ``(A) Medicare eligibility.--In the case of any month which
            would be an eligible coverage month with respect to an eligible
            individual but for paragraph (7)(B)(i), such month shall be
            treated as an eligible coverage month with respect to such
            eligible individual solely for purposes of determining the
            eligibility of qualifying family members of such individual
            under this subsection. This subparagraph shall only apply with
            respect to the first 24 months after such eligible individual
            is first entitled to the benefits described in paragraph
            (7)(B)(i).
                ``(B) Divorce.--In the case of the finalization of a
            divorce between an eligible individual and such individual's
            spouse, such spouse shall be treated as an eligible individual
            for purposes of this subsection for a period of 24 months
            beginning with the date of such finalization, except that the
            only qualifying family members who may be taken into account
            with respect to such spouse are those individuals who were
            qualifying family members immediately before such finalization.
                ``(C) Death.--In the case of the death of an eligible
            individual--
                    ``(i) any spouse of such individual (determined at the
                time of such death) shall be treated as an eligible
                individual for purposes of this subsection for a period of
                24 months beginning with the date of such death, except
                that the only qualifying family members who may be taken
                into account with respect to such spouse are those
                individuals who were qualifying family members immediately
                before such death, and
                    ``(ii) any individual who was a qualifying family
                member of the decedent immediately before such death shall
                be treated as an eligible individual for purposes this
                subsection for a period of 24 months beginning with the
                date of such death, except that no qualifying family
                members may be taken into account with respect to such
                individual.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to months beginning after December 31, 2009.

    SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE
                  INDIVIDUALS AND PBGC RECIPIENTS.

        (a) ERISA Amendments.--Section 602(2)(A) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
            (1) by moving clause (v) to after clause (iv) and before the
        flush left sentence beginning with ``In the case of a qualified
        beneficiary'';
            (2) by striking ``In the case of a qualified beneficiary'' and
        inserting the following:
                    ``(vi) Special rule for disability.--In the case of a
                qualified beneficiary''; and
            (3) by redesignating clauses (v) and (vi), as amended by
        paragraphs (1) and (2), as clauses (vii) and (viii), respectively,
        and by inserting after clause (iv) the following new clauses:
                    ``(v) Special rule for pbgc recipients.--In the case of
                a qualifying event described in section 603(2) with respect
                to a covered employee who (as of such qualifying event) has
                a nonforfeitable right to a benefit any portion of which is
                to be paid by the Pension Benefit Guaranty Corporation
                under title IV, notwithstanding clause (i) or (ii), the
                date of the death of the covered employee, or in the case
                of the surviving spouse or dependent children of the
                covered employee, 24 months after the date of the death of
                the covered employee. The preceding sentence shall not
                require any period of coverage to extend beyond December
                31, 2010.
                    ``(vi) Special rule for taa-eligible individuals.--In
                the case of a qualifying event described in section 603(2)
                with respect to a covered employee who is (as of the date
                that the period of coverage would, but for this clause or
                clause (vii), otherwise terminate under clause (i) or (ii))
                a TAA-eligible individual (as defined in section
                605(b)(4)(B)), the period of coverage shall not terminate
                by reason of clause (i) or (ii), as the case may be, before
                the later of the date specified in such clause or the date
                on which such individual ceases to be such a TAA-eligible
                individual. The preceding sentence shall not require any
                period of coverage to extend beyond December 31, 2010.''.
        (b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the
    Internal Revenue Code of 1986 is amended--
            (1) by striking ``In the case of a qualified beneficiary'' and
        inserting the following:

                        ``(VI) Special rule for disability.--In the case of
                    a qualified beneficiary'', and

            (2) by redesignating subclauses (V) and (VI), as amended by
        paragraph (1), as subclauses (VII) and (VIII), respectively, and by
        inserting after clause (IV) the following new subclauses:

                        ``(V) Special rule for pbgc recipients.--In the
                    case of a qualifying event described in paragraph
                    (3)(B) with respect to a covered employee who (as of
                    such qualifying event) has a nonforfeitable right to a
                    benefit any portion of which is to be paid by the
                    Pension Benefit Guaranty Corporation under title IV of
                    the Employee Retirement Income Security Act of 1974,
                    notwithstanding subclause (I) or (II), the date of the
                    death of the covered employee, or in the case of the
                    surviving spouse or dependent children of the covered
                    employee, 24 months after the date of the death of the
                    covered employee. The preceding sentence shall not
                    require any period of coverage to extend beyond
                    December 31, 2010.
                        ``(VI) Special rule for taa-eligible individuals.--
                    In the case of a qualifying event described in
                    paragraph (3)(B) with respect to a covered employee who
                    is (as of the date that the period of coverage would,
                    but for this subclause or subclause (VII), otherwise
                    terminate under subclause (I) or (II)) a TAA-eligible
                    individual (as defined in paragraph (5)(C)(iv)(II)),
                    the period of coverage shall not terminate by reason of
                    subclause (I) or (II), as the case may be, before the
                    later of the date specified in such subclause or the
                    date on which such individual ceases to be such a TAA-
                    eligible individual. The preceding sentence shall not
                    require any period of coverage to extend beyond
                    December 31, 2010.''.

        (c) PHSA Amendments.--Section 2202(2)(A) of the Public Health
    Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
            (1) by striking ``In the case of a qualified beneficiary'' and
        inserting the following:
                    ``(v) Special rule for disability.--In the case of a
                qualified beneficiary''; and
            (2) by redesignating clauses (iv) and (v), as amended by
        paragraph (1), as clauses (v) and (vi), respectively, and by
        inserting after clause (iii) the following new clause:
                    ``(iv) Special rule for taa-eligible individuals.--In
                the case of a qualifying event described in section 2203(2)
                with respect to a covered employee who is (as of the date
                that the period of coverage would, but for this clause or
                clause (v), otherwise terminate under clause (i) or (ii)) a
                TAA-eligible individual (as defined in section
                2205(b)(4)(B)), the period of coverage shall not terminate
                by reason of clause (i) or (ii), as the case may be, before
                the later of the date specified in such clause or the date
                on which such individual ceases to be such a TAA-eligible
                individual. The preceding sentence shall not require any
                period of coverage to extend beyond December 31, 2010.''.
        (d) Effective Date.--The amendments made by this section shall
    apply to periods of coverage which would (without regard to the
    amendments made by this section) end on or after the date of the
    enactment of this Act.

    SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES'
                  BENEFICIARY ASSOCIATIONS.

        (a) In General.--Paragraph (1) of section 35(e) of the Internal
    Revenue Code of 1986 is amended by adding at the end the following new
    subparagraph:
                ``(K) In the case of eligible coverage months beginning
            before January 1, 2011, coverage under an employee benefit plan
            funded by a voluntary employees' beneficiary association (as
            defined in section 501(c)(9)) established pursuant to an order
            of a bankruptcy court, or by agreement with an authorized
            representative, as provided in section 1114 of title 11, United
            States Code.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to coverage months beginning after the date of the enactment of
    this Act.

    SEC. 1899H. NOTICE REQUIREMENTS.

        (a) In General.--Subsection (d) of section 7527 of the Internal
    Revenue Code of 1986 (relating to qualified health insurance costs
    credit eligibility certificate) is amended to read as follows:
        ``(d) Qualified Health Insurance Costs Eligibility Certificate.--
            ``(1) In general.--For purposes of this section, the term
        `qualified health insurance costs eligibility certificate' means
        any written statement that an individual is an eligible individual
        (as defined in section 35(c)) if such statement provides such
        information as the Secretary may require for purposes of this
        section and--
                ``(A) in the case of an eligible TAA recipient (as defined
            in section 35(c)(2)) or an eligible alternative TAA recipient
            (as defined in section 35(c)(3)), is certified by the Secretary
            of Labor (or by any other person or entity designated by the
            Secretary), or
                ``(B) in the case of an eligible PBGC pension recipient (as
            defined in section 35(c)(4)), is certified by the Pension
            Benefit Guaranty Corporation (or by any other person or entity
            designated by the Secretary).
            ``(2) Inclusion of certain information.--In the case of any
        statement described in paragraph (1) which is issued before January
        1, 2011, such statement shall not be treated as a qualified health
        insurance costs credit eligibility certificate unless such
        statement includes--
                ``(A) the name, address, and telephone number of the State
            office or offices responsible for providing the individual with
            assistance with enrollment in qualified health insurance (as
            defined in section 35(e)),
                ``(B) a list of the coverage options that are treated as
            qualified health insurance (as so defined) by the State in
            which the individual resides, and
                ``(C) in the case of a TAA-eligible individual (as defined
            in section 4980B(f)(5)(C)(iv)(II)), a statement informing the
            individual that the individual has 63 days from the date that
            is 7 days after the date of the issuance of such certificate to
            enroll in such insurance without a lapse in creditable coverage
            (as defined in section 9801(c)).''.
        (b) Effective Date.--The amendment made by this section shall apply
    to certificates issued after the date that is 6 months after the date
    of the enactment of this Act.

    SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT
                  PROGRAM.

        (a) Survey.--
            (1) In general.--The Secretary of the Treasury shall conduct a
        biennial survey of eligible individuals (as defined in section
        35(c) of the Internal Revenue Code of 1986) relating to the health
        coverage tax credit under section 35 of the Internal Revenue Code
        of 1986 (hereinafter in this section referred to as the ``health
        coverage tax credit'').
            (2) Information obtained.--The survey conducted under
        subsection (a) shall obtain the following information:
                (A) HCTC participants.--In the case of eligible individuals
            receiving the health coverage tax credit (including individuals
            participating in the health coverage tax credit program under
            section 7527 of such Code, hereinafter in this section referred
            to as the ``HCTC program'')--
                    (i) demographic information of such individuals,
                including income and education levels,
                    (ii) satisfaction of such individuals with the
                enrollment process in the HCTC program,
                    (iii) satisfaction of such individuals with available
                health coverage options under the credit, including level
                of premiums, benefits, deductibles, cost-sharing
                requirements, and the adequacy of provider networks, and
                    (iv) any other information that the Secretary
                determines is appropriate.
                (B) Non-HCTC participants.--In the case of eligible
            individuals not receiving the health coverage tax credit--
                    (i) demographic information of each individual,
                including income and education levels,
                    (ii) whether the individual was aware of the health
                coverage tax credit or the HCTC program,
                    (iii) the reasons the individual has not enrolled in
                the HCTC program, including whether such reasons include
                the burden of the process of enrollment and the
                affordability of coverage,
                    (iv) whether the individual has health insurance
                coverage, and, if so, the source of such coverage, and
                    (v) any other information that the Secretary determines
                is appropriate.
            (3) Report.--Not later than December 31 of each year in which a
        survey is conducted under paragraph (1) (beginning in 2010), the
        Secretary of the Treasury shall report to the Committee on Finance
        and the Committee on Health, Education, Labor, and Pensions of the
        Senate and the Committee on Ways and Means, the Committee on
        Education and Labor, and the Committee on Energy and Commerce of
        the House of Representatives the findings of the most recent survey
        conducted under paragraph (1).
        (b) Report.--Not later than October 1 of each year (beginning in
    2010), the Secretary of the Treasury (after consultation with the
    Secretary of Health and Human Services, and, in the case of the
    information required under paragraph (7), the Secretary of Labor) shall
    report to the Committee on Finance and the Committee on Health,
    Education, Labor, and Pensions of the Senate and the Committee on Ways
    and Means, the Committee on Education and Labor, and the Committee on
    Energy and Commerce of the House of Representatives the following
    information with respect to the most recent taxable year ending before
    such date:
            (1) In each State and nationally--
                (A) the total number of eligible individuals (as defined in
            section 35(c) of the Internal Revenue Code of 1986) and the
            number of eligible individuals receiving the health coverage
            tax credit,
                (B) the total number of such eligible individuals who
            receive an advance payment of the health coverage tax credit
            through the HCTC program,
                (C) the average length of the time period of the
            participation of eligible individuals in the HCTC program, and
                (D) the total number of participating eligible individuals
            in the HCTC program who are enrolled in each category of
            coverage as described in section 35(e)(1) of such Code,
        with respect to each category of eligible individuals described in
        section 35(c)(1) of such Code.
            (2) In each State and nationally, an analysis of--
                (A) the range of monthly health insurance premiums, for
            self-only coverage and for family coverage, for individuals
            receiving the health coverage tax credit, and
                (B) the average and median monthly health insurance
            premiums, for self-only coverage and for family coverage, for
            individuals receiving the health coverage tax credit,
        with respect to each category of coverage as described in section
        35(e)(1) of such Code.
            (3) In each State and nationally, an analysis of the following
        information with respect to the health insurance coverage of
        individuals receiving the health coverage tax credit who are
        enrolled in coverage described in subparagraphs (B) through (H) of
        section 35(e)(1) of such Code:
                (A) Deductible amounts.
                (B) Other out-of-pocket cost-sharing amounts.
                (C) A description of any annual or lifetime limits on
            coverage or any other significant limits on coverage services,
            or benefits.
        The information required under this paragraph shall be reported
        with respect to each category of coverage described in such
        subparagraphs.
            (4) In each State and nationally, the gender and average age of
        eligible individuals (as defined in section 35(c) of such Code) who
        receive the health coverage tax credit, in each category of
        coverage described in section 35(e)(1) of such Code, with respect
        to each category of eligible individuals described in such section.
            (5) The steps taken by the Secretary of the Treasury to
        increase the participation rates in the HCTC program among eligible
        individuals, including outreach and enrollment activities.
            (6) The cost of administering the HCTC program by function,
        including the cost of subcontractors, and recommendations on ways
        to reduce administrative costs, including recommended statutory
        changes.
            (7) The number of States applying for and receiving national
        emergency grants under section 173(f) of the Workforce Investment
        Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such
        grants on a State-by-State basis, and the time necessary for
        application approval of such grants.

    SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.

        There is authorized to be appropriated $80,000,000 for the period
    of fiscal years 2009 through 2010 to implement the amendments made by,
    and the provisions of, sections 1899 through 1899I of this part.

    SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS.

        (a) In General.--Section 173(f) of the Workforce Investment Act of
    1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended--
            (1) by striking paragraph (1) and inserting the following new
        paragraph:
            ``(1) Use of funds.--
                ``(A) Health insurance coverage for eligible individuals in
            order to obtain qualified health insurance that has guaranteed
            issue and other consumer protections.--Funds made available to
            a State or entity under paragraph (4)(A) of subsection (a) may
            be used to provide an eligible individual described in
            paragraph (4)(C) and such individual's qualifying family
            members with health insurance coverage for the 3-month period
            that immediately precedes the first eligible coverage month (as
            defined in section 35(b) of the Internal Revenue Code of 1986)
            in which such eligible individual and such individual's
            qualifying family members are covered by qualified health
            insurance that meets the requirements described in clauses (i)
            through (v) of section 35(e)(2)(A) of the Internal Revenue Code
            of 1986 (or such longer minimum period as is necessary in order
            for such eligible individual and such individual's qualifying
            family members to be covered by qualified health insurance that
            meets such requirements).
                ``(B) Additional uses.--Funds made available to a State or
            entity under paragraph (4)(A) of subsection (a) may be used by
            the State or entity for the following:
                    ``(i) Health insurance coverage.--To assist an eligible
                individual and such individual's qualifying family members
                with enrolling in health insurance coverage and qualified
                health insurance or paying premiums for such coverage or
                insurance.
                    ``(ii) Administrative expenses and start-up expenses to
                establish group health plan coverage options for qualified
                health insurance.--To pay the administrative expenses
                related to the enrollment of eligible individuals and such
                individuals' qualifying family members in health insurance
                coverage and qualified health insurance, including--

                        ``(I) eligibility verification activities;
                        ``(II) the notification of eligible individuals of
                    available health insurance and qualified health
                    insurance options;
                        ``(III) processing qualified health insurance costs
                    credit eligibility certificates provided for under
                    section 7527 of the Internal Revenue Code of 1986;
                        ``(IV) providing assistance to eligible individuals
                    in enrolling in health insurance coverage and qualified
                    health insurance;
                        ``(V) the development or installation of necessary
                    data management systems; and
                        ``(VI) any other expenses determined appropriate by
                    the Secretary, including start-up costs and on going
                    administrative expenses, in order for the State to
                    treat the coverage described in subparagraphs (C)
                    through (H) of section 35(e)(1) of the Internal Revenue
                    Code of 1986 as qualified health insurance under that
                    section.

                    ``(iii) Outreach.--To pay for outreach to eligible
                individuals to inform such individuals of available health
                insurance and qualified health insurance options, including
                outreach consisting of notice to eligible individuals of
                such options made available after the date of enactment of
                this clause and direct assistance to help potentially
                eligible individuals and such individual's qualifying
                family members qualify and remain eligible for the credit
                established under section 35 of the Internal Revenue Code
                of 1986 and advance payment of such credit under section
                7527 of such Code.
                    ``(iv) Bridge funding.--To assist potentially eligible
                individuals to purchase qualified health insurance coverage
                prior to issuance of a qualified health insurance costs
                credit eligibility certificate under section 7527 of the
                Internal Revenue Code of 1986 and commencement of advance
                payment, and receipt of expedited payment, under
                subsections (a) and (e), respectively, of that section.
                ``(C) Rule of construction.--The inclusion of a permitted
            use under this paragraph shall not be construed as prohibiting
            a similar use of funds permitted under subsection (g).''; and
            (2) by striking paragraph (2) and inserting the following new
        paragraph:
            ``(2) Qualified health insurance.--For purposes of this
        subsection and subsection (g), the term `qualified health
        insurance' has the meaning given that term in section 35(e) of the
        Internal Revenue Code of 1986.''.
        (b) Funding.--Section 174(c)(1) of the Workforce Investment Act of
    1998 (29 U.S.C. 2919(c)(1)) is amended--
            (1) in the paragraph heading, by striking ``Authorization and
        appropriation for fiscal year 2002'' and inserting
        ``Appropriations''; and
            (2) by striking subparagraph (A) and inserting the following
        new subparagraph:
                ``(A) to carry out subsection (a)(4)(A) of section 173--
                    ``(i) $10,000,000 for fiscal year 2002; and
                    ``(ii) $150,000,000 for the period of fiscal years 2009
                through 2010; and''.

    SEC. 1899L. GAO STUDY AND REPORT.

        (a) Study.--The Comptroller General of the United States shall
    conduct a study regarding the health insurance tax credit allowed under
    section 35 of the Internal Revenue Code of 1986.
        (b) Report.--Not later than March 1, 2010, the Comptroller General
    shall submit a report to Congress regarding the results of the study
    conducted under subsection (a). Such report shall include an analysis
    of--
            (1) the administrative costs--
                (A) of the Federal Government with respect to such credit
            and the advance payment of such credit under section 7527 of
            such Code, and
                (B) of providers of qualified health insurance with respect
            to providing such insurance to eligible individuals and their
            qualifying family members,
            (2) the health status and relative risk status of eligible
        individuals and qualifying family members covered under such
        insurance,
            (3) participation in such credit and the advance payment of
        such credit by eligible individuals and their qualifying family
        members, including the reasons why such individuals did or did not
        participate and the effect of the amendments made by this part on
        such participation, and
            (4) the extent to which eligible individuals and their
        qualifying family members--
                (A) obtained health insurance other than qualifying health
            insurance, or
                (B) went without health insurance coverage.
        (c) Access to Records.--For purposes of conducting the study
    required under this section, the Comptroller General and any of his
    duly authorized representatives shall have access to, and the right to
    examine and copy, all documents, records, and other recorded
    information--
            (1) within the possession or control of providers of qualified
        health insurance, and
            (2) determined by the Comptroller General (or any such
        representative) to be relevant to the study.
    The Comptroller General shall not disclose the identity of any provider
    of qualified health insurance or any eligible individual in making any
    information obtained under this section available to the public.
        (d) Definitions.--Any term which is defined in section 35 of the
    Internal Revenue Code of 1986 shall have the same meaning when used in
    this section.

      TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

    SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

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

       TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

    Sec. 2000. Short title; table of contents of title.

                       Subtitle A--Unemployment Insurance

    Sec. 2001. Extension of emergency unemployment compensation program.
    Sec. 2002. Increase in unemployment compensation benefits.
    Sec. 2003. Special transfers for unemployment compensation
              modernization.
    Sec. 2004. Temporary assistance for states with advances.
    Sec. 2005. Full Federal funding of extended unemployment compensation
              for a limited period.
    Sec. 2006. Temporary increase in extended unemployment benefits under
              the Railroad Unemployment Insurance Act.

                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 resumption of prior child support law.

          Subtitle C--Economic Recovery Payments to Certain Individuals

    Sec. 2201. Economic recovery payment to recipients of social security,
              supplemental security income, railroad retirement benefits,
              and veterans disability compensation or pension benefits.
    Sec. 2202. Special credit for certain government retirees.

                       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.--The monthly equivalent of any additional compensation paid
    under this section shall be disregarded in considering the amount of
    income of an individual for any purposes under title XIX and title XXI
    of the Social Security 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. SPECIAL TRANSFERS FOR 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 in Fiscal Years 2009, 2010, and 2011 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 work
        (as defined by the Secretary of Labor), 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 (as so defined).
            ``(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 those terms are 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)(i) 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, except that such
        compensation is not required to be paid to an individual who is
        receiving similar stipends or other training allowances for non-
        training costs.
            ``(ii) Each State-approved training program or job training
        program referred to in clause (i) 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.
            ``(iii) The amount of unemployment compensation payable under
        this subparagraph to an individual for a week of unemployment shall
        be equal to--
                ``(I) the individual's average weekly benefit amount
            (including dependents' allowances) for the most recent benefit
            year, less
                ``(II) any deductible income, as determined under State
            law.
        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),
        except that a State law may provide for a reasonable reduction in
        the amount of any such allowance for a week of less than total
        unemployment.
        ``(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, 2011.
        ``(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 during such period on any
        advance or advances made under section 1201 to a State.
        ``(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.''.

    SEC. 2005. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION
                  FOR A LIMITED PERIOD.

        (a) In General.--In the case of sharable extended compensation and
    sharable regular compensation paid for weeks of unemployment beginning
    after the date of the enactment of this section and before January 1,
    2010, section 204(a)(1) of the Federal-State Extended Unemployment
    Compensation Act of 1970 (26 U.S.C. 3304 note) shall be applied by
    substituting ``100 percent of'' for ``one-half of''.
        (b) Special Rule.--At the option of a State, for any weeks of
    unemployment beginning after the date of the enactment of this section
    and before January 1, 2010, an individual's eligibility period (as
    described in section 203(c) of the Federal-State Extended Unemployment
    Compensation Act of 1970) shall, for purposes of any determination of
    eligibility for extended compensation under the State law of such
    State, be considered to include any week which begins--
            (1) after the date as of which such individual exhausts all
        rights to emergency unemployment compensation; and
            (2) during an extended benefit period that began on or before
        the date described in paragraph (1).
        (c) Limited Extension.--In the case of an individual who receives
    extended compensation with respect to 1 or more weeks of unemployment
    beginning after the date of the enactment of this Act and before
    January 1, 2010, the provisions of subsections (a) and (b) shall, at
    the option of a State, be applied by substituting ``ending before June
    1, 2010'' for ``before January 1, 2010''.
        (d) Extension of Temporary Federal Matching for the First Week of
    Extended Benefits for States With No Waiting Week.--
            (1) In general.--Section 5 of the Unemployment Compensation
        Extension Act of 2008 (Public Law 110-449) is amended by striking
        ``December 8, 2009'' and inserting ``May 30, 2010''.
            (2) Effective date.--The amendment made by paragraph (1) shall
        take effect as if included in the enactment of the Unemployment
        Compensation Extension Act of 2008 (Public Law 110-449).
        (e) Definitions.--For purposes of this section--
            (1) the terms ``sharable extended compensation'' and ``sharable
        regular compensation'' have the respective meanings given such
        terms under section 204 of the Federal-State Extended Unemployment
        Compensation Act of 1970;
            (2) the terms ``extended compensation'', ``State'', ``State
        law'', and ``week'' have the respective meanings given such terms
        under section 205 of the Federal-State Extended Unemployment
        Compensation Act of 1970;
            (3) the term ``emergency unemployment compensation'' means
        benefits payable to individuals under title IV of the Supplemental
        Appropriations Act, 2008 with respect to their unemployment; and
            (4) the term ``extended benefit period'' means an extended
        benefit period as determined in accordance with applicable
        provisions of the Federal-State Extended Unemployment Compensation
        Act of 1970.
        (f) Regulations.--The Secretary of Labor may prescribe any
    operating instructions or regulations necessary to carry out this
    section.

    SEC. 2006. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT BENEFITS UNDER
                  THE RAILROAD UNEMPLOYMENT INSURANCE ACT.

        (a) In General.--Section 2(c)(2) of the Railroad Unemployment
    Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the
    following:
                ``(D) Temporary increase in extended unemployment
            benefits.--
                    ``(i) Employees with 10 or more years of service.--
                Subject to clause (iii), in the case of an employee who has
                10 or more years of service (as so defined), with respect
                to extended unemployment benefits--

                        ``(I) subparagraph (A) shall be applied by
                    substituting `130 days of unemployment' for `65 days of
                    unemployment'; and
                        ``(II) subparagraph (B) shall be applied by
                    inserting `(or, in the case of unemployment benefits,
                    13 consecutive 14-day periods)' after `7 consecutive
                    14-day periods'.

                    ``(ii) Employees with less than 10 years of service.--
                Subject to clause (iii), in the case of an employee who has
                less than 10 years of service (as so defined), with respect
                to extended unemployment benefits, this paragraph shall
                apply to such an employee in the same manner as this
                paragraph would apply to an employee described in clause
                (i) if such clause had not been enacted.
                    ``(iii) Application.--The provisions of clauses (i) and
                (ii) shall apply to an employee who received normal
                benefits for days of unemployment under this Act during the
                period beginning July 1, 2008, and ending on June 30, 2009,
                except that no extended benefit period under this paragraph
                shall begin after December 31, 2009. Notwithstanding the
                preceding sentence, no benefits shall be payable under this
                subparagraph and clauses (i) and (ii) shall no longer be
                applicable upon the exhaustion of the funds appropriated
                under clause (iv) for payment of benefits under this
                subparagraph.
                    ``(iv) Appropriation.--Out of any funds in the Treasury
                not otherwise appropriated, there are appropriated
                $20,000,000 to cover the cost of additional extended
                unemployment benefits provided under this subparagraph, to
                remain available until expended.''.
        (b) Funding for Administration.--Out of any funds in the Treasury
    not otherwise appropriated, there are appropriated to the Railroad
    Retirement Board $80,000 to cover the administrative expenses
    associated with the payment of additional extended unemployment
    benefits under section 2(c)(2)(D) of the Railroad Unemployment
    Insurance Act, as added by subsection (a), to remain available until
    expended.

               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, $5,000,000,000 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 an amount equal to 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
                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 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, on a
        State-by-State basis, to ensure that the data are comparable with
        respect to the groups of families served and the types of aid
        provided. 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 fiscal years 2009 and
        2010 combined shall not exceed 50 percent of the annual 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) Application to indian tribes.--This subsection shall
        apply to an Indian tribe with an approved tribal family assistance
        plan under section 412 in the same manner as this subsection
        applies to a State.
            ``(9) 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, except that paragraph (9) of such
        subsection shall remain in effect until October 1, 2011, but only
        with respect to section 407(b)(3)(A)(i) of such Act.
        (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)(9)), 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) Sunset of Other Temporary Provisions.--
            (1) Disregard from limitation on total payments to
        territories.--Effective October 1, 2010, section 1108(a)(2) of the
        Social Security Act (42 U.S.C. 1308(a)(2)) is amended by striking
        ``403(c)(3),'' (as added by subsection (c)).
            (2) Caseload reduction credit.--Effective October 1, 2011,
        section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is
        amended by striking ``(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)(9)), 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))''
        (as added by subsection (b)).

    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 RESUMPTION OF PRIOR CHILD SUPPORT LAW.

        During the period that begins on October 1, 2008, and ends on
    September 30, 2010, section 455(a)(1) of the Social Security Act (42
    U.S.C. 655(a)(1)) shall be applied and administered as if the phrase
    ``from amounts paid to the State under section 458 or'' does not appear
    in such section.

         Subtitle C--Economic Recovery Payments to Certain Individuals

    SEC. 2201. 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 disburse a $250 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 disbursing 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 disburse 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 disbursed 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 through 2011, to remain available
    until expended, to carry out this section:
            (1) For the Secretary of the Treasury, $131,000,000 for
        administrative costs incurred in carrying out this section, section
        2202, section 36A of the Internal Revenue Code of 1986 (as added by
        this Act), and other provisions of this Act or the amendments made
        by this Act relating to the Internal Revenue Code of 1986.
            (2) For the Commissioner of Social Security--
                (A) such sums as may be necessary for payments to
            individuals certified by the Commissioner of Social Security as
            entitled to receive a payment under this section; and
                (B) $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--
                (A) such sums as may be necessary for payments to
            individuals certified by the Railroad Retirement Board as
            entitled to receive a payment under this section; and
                (B) $1,400,000 to the Railroad Retirement Board's
            Limitation on Administration for administrative costs incurred
            in carrying out this section.
            (4)(A) For the Secretary of Veterans Affairs--
                    (i) such sums as may be necessary for the Compensation
                and Pensions account, for payments to individuals certified
                by the Secretary of Veterans Affairs as entitled to receive
                a payment under this section; and
                    (ii) $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.
            (B) The Department of Veterans Affairs Compensation and
        Pensions account shall hereinafter be available for payments
        authorized under subsection (a)(1)(A) to individuals entitled to a
        benefit payment described in subsection (a)(1)(B)(iii).

    SEC. 2202. SPECIAL CREDIT FOR CERTAIN GOVERNMENT RETIREES.

        (a) In General.--In the case of an eligible individual, there shall
    be allowed as a credit against the tax imposed by subtitle A of the
    Internal Revenue Code of 1986 for the first taxable year beginning in
    2009 an amount equal $250 ($500 in the case of a joint return where
    both spouses are eligible individuals).
        (b) Eligible Individual.--For purposes of this section--
            (1) In general.--The term ``eligible individual'' means any
        individual--
                (A) who receives during the first taxable year beginning in
            2009 any amount as a pension or annuity for service performed
            in the employ of the United States or any State, or any
            instrumentality thereof, which is not considered employment for
            purposes of chapter 21 of the Internal Revenue Code of 1986,
            and
                (B) who does not receive a payment under section 2201
            during such taxable year.
            (2) Identification number requirement.--Such term shall not
        include any individual who does not include on the return of tax
        for the taxable year--
                (A) such individual's social security account number, and
                (B) in the case of a joint return, the social security
            account number of one of the taxpayers on such return.
        For purposes of the preceding sentence, the social security account
        number shall not include a TIN (as defined in section 7701(a)(41)
        of the Internal Revenue Code of 1986) issued by the Internal
        Revenue Service. Any omission of a correct social security account
        number required under this subparagraph shall be treated as a
        mathematical or clerical error for purposes of applying section
        6213(g)(2) of such Code to such omission.
        (c) Treatment of Credit.--
            (1) Refundable credit.--
                (A) In general.--The credit allowed by subsection (a) shall
            be treated as allowed by subpart C of part IV of subchapter A
            of chapter 1 of the Internal Revenue Code of 1986.
                (B) Appropriations.--For purposes of section 1324(b)(2) of
            title 31, United States Code, the credit allowed by subsection
            (a) shall be treated in the same manner a refund from the
            credit allowed under section 36A of the Internal Revenue Code
            of 1986 (as added by this Act).
            (2) Deficiency rules.--For purposes of section 6211(b)(4)(A) of
        the Internal Revenue Code of 1986, the credit allowable by
        subsection (a) shall be treated in the same manner as the credit
        allowable under section 36A of the Internal Revenue Code of 1986
        (as added by this Act).
        (d) 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 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.

                TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

    SEC. 3000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

                TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

    Sec. 3000. Table of contents.
    Sec. 3001. Premium assistance for COBRA benefits.

    SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.

        (a) Premium Assistance for COBRA Continuation Coverage for
    Individuals and Their Families.--
            (1) Provision of premium assistance.--
                (A) Reduction of premiums payable.--In the case of any
            premium for a period of coverage beginning on or after the date
            of the enactment of this 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 (or a person other than such
            individual's employer pays on behalf of such individual) 35
            percent of the amount of such premium (as determined without
            regard to this subsection).
                (B) Plan enrollment option.--
                    (i) In general.--Notwithstanding the COBRA continuation
                provisions, an assistance eligible individual may, not
                later than 90 days after the date of notice of the plan
                enrollment option described in this subparagraph, elect to
                enroll in coverage under a plan offered by the employer
                involved, or the employee organization involved (including,
                for this purpose, a joint board of trustees of a
                multiemployer trust affiliated with one or more
                multiemployer plans), that is different than coverage under
                the plan in which such individual was enrolled at the time
                the qualifying event occurred, and such coverage shall be
                treated as COBRA continuation coverage for purposes of the
                applicable COBRA continuation coverage provision.
                    (ii) Requirements.--An assistance eligible individual
                may elect to enroll in different coverage as described in
                clause (i) only if--

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

                            (aa) coverage that provides only dental,
                        vision, counseling, or referral services (or a
                        combination of such services);
                            (bb) a flexible spending arrangement (as
                        defined in section 106(c)(2) of the Internal
                        Revenue Code of 1986); 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 flexible spending arrangement (as defined in
                section 106(c)(2) of the Internal Revenue Code of 1986), or
                coverage of treatment that is furnished in an on-site
                medical facility maintained by the employer and that
                consists primarily of first-aid services, prevention and
                wellness care, or similar care (or a combination thereof))
                or is eligible for benefits under title XVIII of the Social
                Security Act, or
                    (ii) the earliest of--

                        (I) the date which is 9 months after the first day
                    of the 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.--For purposes of applying 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 does not have an election of COBRA continuation
            coverage in effect on the date of the enactment of this Act but
            who would be an assistance eligible individual if such election
            were so in effect, such individual may elect the COBRA
            continuation coverage under the COBRA continuation coverage
            provisions containing such sections during the period beginning
            on the date of the enactment of this Act and ending 60 days
            after 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 with the first period of coverage
                beginning on or after 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 beginning of the period described
                in subparagraph (B)(i),
            shall be disregarded for purposes of determining the 63-day
            periods referred to in section 701(c)(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, 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
        15 business days after receipt of such individual's application for
        review under this paragraph. Either Secretary's determination upon
        review of the denial shall be de novo and shall be the final
        determination of such Secretary. A reviewing court shall grant
        deference to such Secretary's determination. The provisions of this
        paragraph, paragraphs (1) through (4), and paragraph (7) shall be
        treated as provisions of title I of the Employee Retirement Income
        Security Act of 1974 for purposes of part 5 of subtitle B of such
        title.
            (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(a)(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, the requirements of such
                sections shall not be treated as met unless such notices
                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
                    the employer 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
                consultation 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 under section 6720C
                of the Internal Revenue Code of 1986 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 in connection with extended election periods.--
            In the case of any assistance eligible individual (or any
            individual described in paragraph (4)(A)) who became entitled
            to elect COBRA continuation coverage before the date of the
            enactment of this Act, the administrator of the group health
            plan (or other entity) 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) and
            failure to provide such notice shall be treated as a failure to
            meet the notice requirements under the applicable COBRA
            continuation provision.
                (D) Model notices.--Not later than 30 days after the date
            of enactment of this Act--
                    (i) 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
                (other than the additional notification described in clause
                (ii)), and
                    (ii) in the case of any additional notification
                provided pursuant to subparagraph (A) under section
                8905a(f)(2)(A) of title 5, United States Code, the Office
                of Personnel Management shall prescribe a model for such
                additional notification.
            (8) Regulations.--The Secretary of the Treasury may prescribe
        such regulations or other guidance as may be necessary or
        appropriate to carry out the provisions of this subsection,
        including the prevention of fraud and abuse under this subsection,
        except that the Secretary of Labor and the Secretary of Health and
        Human Services may prescribe such regulations (including interim
        final regulations) or other guidance as may be necessary or
        appropriate to carry out the provisions of paragraphs (5), (7), and
        (9).
            (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 websites of the
        Departments of Labor, Treasury, and Health and Human Services.
            (10) Definitions.--For purposes of this section--
                (A) Administrator.--The term ``administrator'' has the
            meaning given such term in section 3(16)(A) 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 comparable
            continuation coverage. Such term does not include coverage
            under a health flexible spending arrangement under a cafeteria
            plan within the meaning of section 125 of the Internal Revenue
            Code of 1986.
                (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.
                (H) Period of coverage.--Any reference in this subsection
            to a period of coverage shall be treated as a reference to a
            monthly or shorter period of coverage with respect to which
            premiums are charged with respect to such coverage.
            (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, as amended by this Act, 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 as provided in
    subsection (c) for the amount of premiums not paid by assistance
    eligible individuals by reason of section 3002(a) of the Health
    Insurance Assistance for the Unemployed Act of 2009.
        ``(b) Person Entitled to Reimbursement.--For purposes of subsection
    (a), except as otherwise provided by the Secretary, the person to whom
    premiums are payable under COBRA continuation coverage shall be treated
    as being--
            ``(1) in the case of any group health plan which is a
        multiemployer plan (as defined in section 3(37) of the Employee
        Retirement Income Security Act of 1974), the plan,
            ``(2) in the case of any group health plan not described in
        paragraph (1)--
                ``(A) which is subject to the COBRA continuation provisions
            contained in--
                    ``(i) the Internal Revenue Code of 1986,
                    ``(ii) the Employee Retirement Income Security Act of
                1974,
                    ``(iii) the Public Health Service Act, or
                    ``(iv) title 5, United States Code, or
                ``(B) under which some or all of the coverage is not
            provided by insurance,
        the employer maintaining the plan, and
            ``(3) in the case of any group health plan not described in
        paragraph (1) or (2), the insurer providing the coverage under the
        group health plan.
        ``(c) Method of Reimbursement.--Except as otherwise provided by the
    Secretary--
            ``(1) Treatment as payment of payroll taxes.--Each person
        entitled to reimbursement under subsection (a) (and filing a claim
        for such reimbursement at such time and in such manner as the
        Secretary may require) shall be treated for purposes of this title
        and section 1324(b)(2) of title 31, United States Code, as having
        paid to the Secretary, on the date that the assistance eligible
        individual's premium payment is received, payroll taxes in an
        amount equal to the portion of such reimbursement which relates to
        such premium. To the extent that the amount treated as paid under
        the preceding sentence exceeds the amount of such person's
        liability for such taxes, the Secretary shall credit or refund such
        excess in the same manner as if it were an overpayment of such
        taxes.
            ``(2) Overstatements.--Any overstatement of the reimbursement
        to which a person is entitled under this section (and any amount
        paid by the Secretary as a result of such overstatement) shall be
        treated as an underpayment of payroll taxes by such person and may
        be assessed and collected by the Secretary in the same manner as
        payroll taxes.
            ``(3) Reimbursement contingent on payment of remaining
        premium.--No reimbursement may be made under this section to a
        person with respect to any assistance eligible individual until
        after the reduced premium required under section 3002(a)(1)(A) of
        such Act with respect to such individual has been received.
        ``(d) Definitions.--For purposes of this section--
            ``(1) Payroll taxes.--The term `payroll taxes' means--
                ``(A) amounts required to be deducted and withheld for the
            payroll period under section 3402 (relating to wage
            withholding),
                ``(B) amounts required to be deducted for the payroll
            period under section 3102 (relating to FICA employee taxes),
            and
                ``(C) amounts of the taxes imposed for the payroll period
            under section 3111 (relating to FICA employer taxes).
            ``(2) Person.--The term `person' includes any governmental
        entity.
        ``(e) Reporting.--Each person entitled to reimbursement under
    subsection (a) for any period shall submit such reports (at such time
    and in such manner) as the Secretary may require, including--
            ``(1) 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),
            ``(2) 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), and
            ``(3) a report containing the TINs of all covered employees,
        the amount of subsidy reimbursed with respect to each covered
        employee and qualified beneficiaries, and a designation with
        respect to each covered employee as to whether the subsidy
        reimbursement is for coverage of 1 individual or 2 or more
        individuals.
        ``(f) Regulations.--The Secretary shall issue such regulations or
    other guidance as may be necessary or appropriate to carry out this
    section, including--
            ``(1) the requirement to report information or the
        establishment of other methods for verifying the correct amounts of
        reimbursements under this section, and
            ``(2) the application of this section to group health plans
        that are multiemployer plans (as defined in section 3(37) of the
        Employee Retirement Income Security Act of 1974).''.
                (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, with respect to the first period of
                COBRA continuation coverage to which subsection (a)(1)(A)
                applies or the immediately subsequent period, the full
                premium amount for such coverage, the person to whom such
                payment is payable 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 (a)(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 3002(a)(2)(C)) of the Health Insurance Assistance
    for the Unemployed 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 3002(a) of the Health Insurance
        Assistance for the Unemployed 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 3002 of the Health Insurance Assistance for the Unemployed 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.
        (b) Elimination of Premium Subsidy for High-Income Individuals.--
            (1) Recapture of subsidy for high-income individuals.--If--
                (A) premium assistance is provided under this section with
            respect to any COBRA continuation coverage which covers the
            taxpayer, the taxpayer's spouse, or any dependent (within the
            meaning of section 152 of the Internal Revenue Code of 1986,
            determined without regard to subsections (b)(1), (b)(2), and
            (d)(1)(B) thereof) of the taxpayer during any portion of the
            taxable year, and
                (B) the taxpayer's modified adjusted gross income for such
            taxable year exceeds $125,000 ($250,000 in the case of a joint
            return),
        then the tax imposed by chapter 1 of such Code with respect to the
        taxpayer for such taxable year shall be increased by the amount of
        such assistance.
            (2) Phase-in of recapture.--
                (A) In general.--In the case of a taxpayer whose modified
            adjusted gross income for the taxable year does not exceed
            $145,000 ($290,000 in the case of a joint return), the increase
            in the tax imposed under paragraph (1) shall not exceed the
            phase-in percentage of such increase (determined without regard
            to this paragraph).
                (B) Phase-in percentage.--For purposes of this subsection,
            the term ``phase-in percentage'' means the ratio (expressed as
            a percentage) obtained by dividing--
                    (i) the excess of described in subparagraph (B) of
                paragraph (1), by
                    (ii) $20,000 ($40,000 in the case of a joint return).
            (3) Option for high-income individuals to waive assistance and
        avoid recapture.--Notwithstanding subsection (a)(3), an individual
        shall not be treated as an assistance eligible individual for
        purposes of this section and section 6432 of the Internal Revenue
        Code of 1986 if such individual--
                (A) makes a permanent election (at such time and in such
            form and manner as the Secretary of the Treasury may prescribe)
            to waive the right to the premium assistance provided under
            this section, and
                (B) notifies the entity to whom premiums are reimbursed
            under section 6432(a) of such Code of such election.
            (4) Modified adjusted gross income.--For purposes of this
        subsection, the term ``modified adjusted gross income'' means the
        adjusted gross income (as defined in section 62 of the Internal
        Revenue Code of 1986) of the taxpayer for the taxable year
        increased by any amount excluded from gross income under section
        911, 931, or 933 of such Code.
            (5) Credits not allowed against tax, etc.--For purposes
        determining regular tax liability under section 26(b) of such Code,
        the increase in tax under this subsection shall not be treated as a
        tax imposed under chapter 1 of such Code.
            (6) Regulations.--The Secretary of the Treasury shall issue
        such regulations or other guidance as are necessary or appropriate
        to carry out this subsection, including requirements that the
        entity to whom premiums are reimbursed under section 6432(a) of the
        Internal Revenue Code of 1986 report to the Secretary, and to each
        assistance eligible individual, the amount of premium assistance
        provided under subsection (a) with respect to each such individual.
            (7) Effective date.--The provisions of this subsection shall
        apply to taxable years ending after the date of the enactment of
        this Act.

        TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
                       MISCELLANEOUS MEDICARE PROVISIONS

    SEC. 4001. TABLE OF CONTENTS OF TITLE.

        The table of contents of this title is as follows:

         TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
                        MISCELLANEOUS MEDICARE PROVISIONS

    Sec. 4001. Table of contents of title.

                         Subtitle A--Medicare Incentives

    Sec. 4101. Incentives for eligible professionals.
    Sec. 4102. Incentives for hospitals.
    Sec. 4103. Treatment of payments and savings; implementation funding.
    Sec. 4104. Studies and reports on health information technology.

                         Subtitle B--Medicaid Incentives

    Sec. 4201. Medicaid provider HIT adoption and operation payments;
              implementation funding.

                  Subtitle C--Miscellaneous Medicare Provisions

    Sec. 4301. Moratoria on certain Medicare regulations.
    Sec. 4302. Long-term care hospital technical corrections.

                        Subtitle A--Medicare Incentives

    SEC. 4101. 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 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 EHR 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 2016.--No incentive payments may be made under this
                subsection with respect to a year after 2016.
                ``(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 after 2013.--If the first payment year for an
                eligible professional is after 2013, 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 eligible professionals.--In
                the case of an eligible professional who predominantly
                furnishes services under this part in an 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 10
                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
                EHR 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. The determination of whether an eligible
                professional is a hospital-based eligible professional
                shall be made on the basis of the site of service (as
                defined by the Secretary) and without regard to any
                employment or billing arrangement between the eligible
                professional and any other provider.
                ``(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. 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 an EHR reporting period for a payment year (or, for
            purposes of subsection (a)(7), for an EHR 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--
                    ``(i) the methodology and standards for determining
                payment amounts under this subsection and payment
                adjustments under subsection (a)(7)(A), including the
                limitation under paragraph (1)(B) and coordination under
                clauses (ii) and (iii) of paragraph (1)(D);
                    ``(ii) the methodology and standards for determining a
                meaningful EHR user under paragraph (2), including
                selection of measures under paragraph (2)(B), specification
                of the means of demonstrating meaningful EHR use under
                paragraph (2)(C), and the hardship exception under
                subsection (a)(7)(B);
                    ``(iii) the methodology and standards for determining a
                hospital-based eligible professional under paragraph
                (1)(C); and
                    ``(iv) the specification of reporting periods under
                paragraph (5) and the selection of the form of payment
                under paragraph (1)(D)(i).
                ``(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 section 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) EHR reporting period.--The term `EHR reporting
            period' means, with respect to a payment year, any period (or
            periods) as specified by the Secretary.
                ``(C) Eligible professional.--The term `eligible
            professional' means a physician, as defined in section
            1861(r).''.
        (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 an EHR 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) EHR reporting period.--The term `EHR reporting
                period' means, with respect to a year, a period (or
                periods) specified by the Secretary.
                    ``(iii) Eligible professional.--The term `eligible
                professional' means a physician, as defined in section
                1861(r).''.
        (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 Medicare patient care services to
            enrollees of such organization; and
                ``(II) furnishes at least 80 percent of the professional
            services of the eligible professional covered under this title
            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.--In the case of an eligible
                professional described in paragraph (2)--

                        ``(I) that 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;
                    and
                        ``(II) that is eligible for less than such maximum
                    incentive payment for the same payment period, the
                    payment incentive shall be made only under this
                    subsection and not under section 1848(o)(1)(A).

                    ``(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.
            ``(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) the number of percentage points by which the
                applicable percent (under section 1848(a)(7)(A)(ii)) for
                the year is less than 100 percent; and
                    ``(ii) the Medicare physician expenditure proportion
                specified in subparagraph (C) for the year.
                ``(C) Medicare physician expenditure proportion.--The
            Medicare physician 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 physicians' services.
                ``(D) 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
            such eligible professionals of the organization that are not
            meaningful EHR users for such year.
            ``(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.
            ``(8) Limitation on review.--There shall be no administrative
        or judicial review under section 1869, section 1878, or otherwise,
        of--
                ``(A) the methodology and standards for determining payment
            amounts and payment adjustments under this subsection,
            including avoiding duplication of payments under paragraph
            (3)(B) and the specification of rules for the fixed schedule
            for application of limitation on incentive payments for all
            eligible professionals under paragraph (3)(C);
                ``(B) the methodology and standards for determining
            eligible professionals under paragraph (2); and
                ``(C) the methodology and standards for determining a
            meaningful EHR user under section 1848(o)(2), including
            specification of the means of demonstrating meaningful EHR use
            under section 1848(o)(3)(C) and selection of measures under
            section 1848(o)(3)(B).''.
        (d) Study and Report Relating to MA Organizations.--
            (1) Study.--The Secretary of Health and Human Services shall
        conduct a study on the extent to which and manner in which payment
        incentives and adjustments (such as under sections 1848(o) and
        1848(a)(7) of the Social Security Act) could be made available to
        professionals, as defined in 1861(r), who are not eligible for HIT
        incentive payments under section 1848(o) and receive payments for
        Medicare patient services nearly-exclusively through contractual
        arrangements with one or more Medicare Advantage organizations, or
        an intermediary organization or organizations with contracts with
        Medicare Advantage organizations. Such study shall assess
        approaches for measuring meaningful use of qualified EHR technology
        among such professionals and mechanisms for delivering incentives
        and adjustments to those professionals, including through incentive
        payments and adjustments through Medicare Advantage organizations
        or intermediary organizations.
            (2) Report.--Not later than 120 days after the date of the
        enactment of this Act, the Secretary of Health and Human Services
        shall submit to Congress a report on the findings and the
        conclusions of the study conducted under paragraph (1), together
        with recommendations for such legislation and administrative action
        as the Secretary determines appropriate.
        (e) 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''.
        (f) 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 EHR
            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.''.

    SEC. 4102. INCENTIVES FOR HOSPITALS.

        (a) Incentive Payment.--
            (1) In general.--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 EHR 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 eligible 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 eligible 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, estimated based upon total discharges for the eligible
            hospital (regardless of any source of payment) for the period,
            for each discharge up to the 23,000th discharge as follows:
                    ``(i) For the first through 1,149th discharge, $0.
                    ``(ii) For the 1,150th through the 23,000th discharge,
                $200.
                    ``(iii) For any discharge greater than the 23,000th,
                $0.
                ``(D) Medicare share.--The Medicare share specified under
            this subparagraph for an eligible 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 eligible hospital) of--

                        ``(I) the estimated 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 estimated 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 estimated total number of inpatient-bed-
                    days with respect to the eligible hospital during such
                    period; and
                        ``(II) the estimated total amount of the eligible
                    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 estimated
                    total amount of the hospital's charges during such
                    period.

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

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

                    ``(ii) Phase down for eligible hospitals first adopting
                ehr after 2013.--If the first payment year for an eligible
                hospital is after 2013, then the transition factor
                specified in this subparagraph for a payment year for such
                hospital is the same as the amount specified in clause (i)
                for such payment year for an eligible hospital for which
                the first payment year is 2013. If the first payment year
                for an eligible hospital is after 2015 then the transition
                factor specified in this subparagraph for such hospital and
                for such year and any subsequent year shall be 0.
                ``(F) Form of payment.--The payment under this subsection
            for a payment year may be in the form of a single consolidated
            payment or in the form of such periodic installments as the
            Secretary may specify.
                ``(G) Payment year defined.--
                    ``(i) In general.--For purposes of this subsection, the
                term `payment year' means a fiscal year beginning with
                fiscal year 2011.
                    ``(ii) First, second, etc. payment year.--The term
                `first payment year' means, with respect to inpatient
                hospital services furnished by an eligible hospital, the
                first fiscal year for which an incentive payment is made
                for such services under this subsection. The terms `second
                payment year', `third payment year', and `fourth payment
                year' mean, with respect to an eligible hospital, each
                successive year immediately following the first payment
                year for that hospital.
            ``(3) Meaningful ehr user.--
                ``(A) In general.--For purposes of paragraph (1), an
            eligible hospital shall be treated as a meaningful EHR user for
            an EHR reporting period for a payment year (or, for purposes of
            subsection (b)(3)(B)(ix), for an EHR 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.--An eligible 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--
                    ``(i) the methodology and standards for determining
                payment amounts under this subsection and payment
                adjustments under subsection (b)(3)(B)(ix), including
                selection of periods under paragraph (2) for determining,
                and making estimates or using proxies of, discharges under
                paragraph (2)(C) and inpatient-bed-days, hospital charges,
                charity charges, and Medicare share under paragraph (2)(D);
                    ``(ii) the methodology and standards for determining a
                meaningful EHR user under paragraph (3), including
                selection of measures under paragraph (3)(B), specification
                of the means of demonstrating meaningful EHR use under
                paragraph (3)(C), and the hardship exception under
                subsection (b)(3)(B)(ix)(II); and
                    ``(iii) the specification of EHR reporting periods
                under paragraph (6)(B) and the selection of the form of
                payment under paragraph (2)(F).
                ``(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 a list
            of the names of critical access hospitals to which paragraph
            (3) or (4) of section 1814(l) applies), and other relevant data
            as determined appropriate by the Secretary. The Secretary shall
            ensure that an eligible hospital (or critical access hospital)
            has the opportunity to review the other relevant data that are
            to be made public with respect to the hospital (or critical
            access 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) EHR reporting period.--The term `EHR reporting
            period' means, with respect to a payment year, any period (or
            periods) as specified by the Secretary.
                ``(B) Eligible hospital.--The term `eligible hospital'
            means a subsection (d) hospital.''.
            (2) Critical access hospitals.--Section 1814(l) of the Social
        Security Act (42 U.S.C. 1395f(l)) is amended--
                (A) in paragraph (1), by striking ``paragraph (2)'' and
            inserting ``the subsequent paragraphs of this subsection''; and
                (B) by adding at the end the following new paragraph:
        ``(3)(A) The following rules shall apply in determining payment and
    reasonable costs under paragraph (1) for costs described in
    subparagraph (C) for a critical access hospital that would be a
    meaningful EHR user (as would be determined under paragraph (3) of
    section 1886(n)) for an EHR reporting period for a cost reporting
    period beginning during a payment year if such critical access hospital
    was treated as an eligible hospital under such section:
            ``(i) The Secretary shall compute reasonable costs by expensing
        such costs in a single payment year and not depreciating such costs
        over a period of years (and shall include as costs with respect to
        cost reporting periods beginning during a payment year costs from
        previous cost reporting periods to the extent they have not been
        fully depreciated as of the period involved).
            ``(ii) There shall be substituted for the Medicare share that
        would otherwise be applied under paragraph (1) a percent (not to
        exceed 100 percent) equal to the sum of--
                ``(I) the Medicare share (as would be specified under
            paragraph (2)(D) of section 1886(n)) for such critical access
            hospital if such critical access hospital was treated as an
            eligible hospital under such section; and
                ``(II) 20 percentage points.
        ``(B) The payment under this paragraph with respect to a critical
    access hospital shall be paid through a prompt interim payment (subject
    to reconciliation) after submission and review of such information (as
    specified by the Secretary) necessary to make such payment, including
    information necessary to apply this paragraph. In no case may payment
    under this paragraph be made with respect to a cost reporting period
    beginning during a payment year after 2015 and in no case may a
    critical access hospital receive payment under this paragraph with
    respect to more than 4 consecutive payment years.
        ``(C) The costs described in this subparagraph are costs for the
    purchase of certified EHR technology to which purchase depreciation
    (excluding interest) would apply if payment was made under paragraph
    (1) and not under this paragraph.
        ``(D) For purposes of this paragraph, paragraph (4), and paragraph
    (5), the terms `certified EHR technology', `eligible hospital', `EHR
    reporting period', and `payment year' have the meanings given such
    terms in sections 1886(n).''.
        (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 2015, 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 an EHR 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 `EHR reporting period'
    means, with respect to a fiscal year, any period (or periods) as
    specified by the Secretary.''.
            (2) Critical access hospitals.--Section 1814(l) of the Social
        Security Act (42 U.S.C. 1395f(l)), as amended by subsection (a)(2),
        is further amended by adding at the end the following new
        paragraphs:
        ``(4)(A) Subject to subparagraph (C), for cost reporting periods
    beginning in fiscal year 2015 or a subsequent fiscal year, in the case
    of a critical access hospital that is not a meaningful EHR user (as
    would be determined under paragraph (3) of section 1886(n) if such
    critical access hospital was treated as an eligible hospital under such
    section) for an EHR reporting period with respect to such fiscal year,
    paragraph (1) shall be applied by substituting the applicable percent
    under subparagraph (B) for the percent described in such paragraph (1).
        ``(B) 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) The provisions of subclause (II) of section 1886(b)(3)(B)(ix)
    shall apply with respect to subparagraph (A) for a critical access
    hospital with respect to a cost reporting period beginning in a fiscal
    year in the same manner as such subclause applies with respect to
    subclause (I) of such section for a subsection (d) hospital with
    respect to such fiscal year.
        ``(5) There shall be no administrative or judicial review under
    section 1869, section 1878, or otherwise, of--
            ``(A) the methodology and standards for determining the amount
        of payment and reasonable cost under paragraph (3) and payment
        adjustments under paragraph (4), including selection of periods
        under section 1886(n)(2) for determining, and making estimates or
        using proxies of, inpatient-bed-days, hospital charges, charity
        charges, and Medicare share under subparagraph (D) of section
        1886(n)(2);
            ``(B) the methodology and standards for determining a
        meaningful EHR user under section 1886(n)(3) as would apply if the
        hospital was treated as an eligible hospital under section 1886(n),
        and the hardship exception under paragraph (4)(C);
            ``(C) the specification of EHR reporting periods under section
        1886(n)(6)(B) as applied under paragraphs (3) and (4); and
            ``(D) the identification of costs for purposes of paragraph
        (3)(C).''.
        (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 4101(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
        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 estimated 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.
            ``(6) Limitations on review.--There shall be no administrative
        or judicial review under section 1869, section 1878, or otherwise,
        of--
                ``(A) the methodology and standards for determining payment
            amounts and payment adjustments under this subsection,
            including avoiding duplication of payments under paragraph
            (3)(B);
                ``(B) the methodology and standards for determining
            eligible hospitals under paragraph (2); and
                ``(C) the methodology and standards for determining a
            meaningful EHR user under section 1886(n)(3), including
            specification of the means of demonstrating meaningful EHR use
            under subparagraph (C) of such section and selection of
            measures under subparagraph (B) of such section.''.
        (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 4101(d), 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. 4103. TREATMENT OF PAYMENTS AND SAVINGS; 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) Medicare Improvement Fund.--Section 1898 of the Social Security
    Act (42 U.S.C. 1395iii), as added by section 7002(a) of the
    Supplemental Appropriations Act, 2008 (Public Law 110-252) and as
    amended by section 188(a)(2) of the Medicare Improvements for Patients
    and Providers Act of 2008 (Public Law 110-275; 122 Stat. 2589) and by
    section 6 of the QI Program Supplemental Funding Act of 2008, is
    amended--
            (1) in subsection (a)--
                (A) by inserting ``medicare'' before ``fee-for-service'';
            and
                (B) by inserting before the period at the end the
            following: ``including, but not limited to, an increase in the
            conversion factor under section 1848(d) to address, in whole or
            in part, any projected shortfall in the conversion factor for
            2014 relative to the conversion factor for 2008 and adjustments
            to payments for items and services furnished by providers of
            services and suppliers under such original medicare fee-for-
            service program''; and
            (2) in subsection (b)--
                (A) in paragraph (1), by striking ``during fiscal year
            2014,'' and all that follows and inserting the following:
            ``during--
                ``(A) fiscal year 2014, $22,290,000,000; and
                ``(B) fiscal year 2020 and each subsequent fiscal year, the
            Secretary's estimate, as of July 1 of the fiscal year, of the
            aggregate reduction in expenditures under this title during the
            preceding fiscal year directly resulting from the reduction in
            payment amounts under sections 1848(a)(7), 1853(l)(4),
            1853(m)(4), and 1886(b)(3)(B)(ix).''; and
                (B) by adding at the end the following new paragraph:
            ``(4) No effect on payments in subsequent years.--In the case
        that expenditures from the Fund are applied to, or otherwise
        affect, a payment rate for an item or service under this title for
        a year, the payment rate for such item or service shall be computed
        for a subsequent year as if such application or effect had never
        occurred.''.
        (c) 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 fiscal year 2016, which shall be available for purposes
    of carrying out the provisions of (and amendments made by) this
    subtitle. Amounts appropriated under this subsection for a fiscal year
    shall be available until expended.

    SEC. 4104. STUDIES AND REPORTS ON HEALTH INFORMATION TECHNOLOGY.

        (a) Study and Report on Application of EHR Payment Incentives for
    Providers Not Receiving Other Incentive Payments.--
            (1) Study.--
                (A) 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 4101(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 XIII of
            division A, under title XVIII or XIX of such Act, or otherwise,
            for such purposes.
                (B) Details of study.--Such study shall include an
            examination of--
                    (i) the adoption rates of certified EHR technology by
                such health care providers;
                    (ii) the clinical utility of such technology by such
                health care providers;
                    (iii) whether the services furnished by such health
                care providers are appropriate for or would benefit from
                the use of such technology;
                    (iv) the extent to which such health care providers
                work in settings that might otherwise receive an incentive
                payment or other funding under this Act, under title XIII
                of division A, under title XVIII or XIX of the Social
                Security Act, or otherwise;
                    (v) the potential costs and the potential benefits of
                making payment incentives and other funding available to
                such health care providers; and
                    (vi) any other issues the Secretary deems to be
                appropriate.
            (2) 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 paragraph (1).
        (b) Study and Report on Availability of Open Source Health
    Information Technology Systems.--
            (1) Study.--
                (A) In general.--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--
                    (i) the current availability of open source health
                information technology systems to Federal safety net
                providers (including small, rural providers);
                    (ii) the total cost of ownership of such systems in
                comparison to the cost of proprietary commercial products
                available;
                    (iii) the ability of such systems to respond to the
                needs of, and be applied to, various populations (including
                children and disabled individuals); and
                    (iv) the capacity of such systems to facilitate
                interoperability.
                (B) Considerations.--In conducting the study under
            subparagraph (A), 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.
            (2) 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 paragraph
        (1), together with recommendations for such legislation and
        administrative action as the Secretary determines appropriate.

                        Subtitle B--Medicaid Incentives

    SEC. 4201. MEDICAID PROVIDER HIT 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 to Medicaid
            providers described in subsection (t)(1) to encourage the
            adoption and use of certified EHR technology; 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) For purposes of subsection (a)(3)(F), the payments
    described in this paragraph to encourage the adoption and use of
    certified EHR technology are payments made by the State in accordance
    with this subsection --
            ``(A) to Medicaid providers described in paragraph (2)(A) not
        in excess of 85 percent of net average allowable costs (as defined
        in paragraph (3)(E)) 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) with
        respect to such providers; and
            ``(B) to Medicaid providers described in paragraph (2)(B) not
        in excess of the maximum amount permitted under paragraph (5) for
        the provider involved.
        ``(2) In this subsection and subsection (a)(3)(F), the term
    `Medicaid provider' means--
            ``(A) an eligible professional (as defined in paragraph
        (3)(B))--
                ``(i) who is not hospital-based and has at least 30 percent
            of the professional's patient volume (as estimated in
            accordance with a methodology established by the Secretary)
            attributable to individuals who are receiving medical
            assistance under this title;
                ``(ii) who is not described in clause (i), who is a
            pediatrician, who is not hospital-based, and who has at least
            20 percent of the professional's patient volume (as estimated
            in accordance with a methodology established by the Secretary)
            attributable to individuals who are receiving medical
            assistance under this title; and
                ``(iii) who practices predominantly in a Federally
            qualified health center or rural health clinic and has at least
            30 percent of the professional's patient volume (as estimated
            in accordance with a methodology established by the Secretary)
            attributable to needy individuals (as defined in paragraph
            (3)(F)); and
            ``(B)(i) a children's hospital, or
            ``(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 a methodology 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 any right to payment under sections 1848(o) and
    1853(l) with respect to the eligible professional has been waived in a
    manner specified by the Secretary. For purposes of calculating patient
    volume under subparagraph (A)(iii), insofar as it is related to
    uncompensated care, the Secretary may require the adjustment of such
    uncompensated care data so that it would be an appropriate proxy for
    charity care, including a downward adjustment to eliminate bad debt
    data from uncompensated care. In applying subparagraphs (A) and
    (B)(ii), the methodology 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--
                ``(i) physician;
                ``(ii) dentist;
                ``(iii) certified nurse mid-wife;
                ``(iv) nurse practitioner; and
                ``(v) physician assistant insofar as the assistant is
            practicing in a rural health clinic that is led by a physician
            assistant or is practicing in a Federally qualified health
            center that is so led.
            ``(C) The term `average allowable costs' means, with respect to
        certified EHR technology of Medicaid providers described in
        paragraph (2)(A) for--
                ``(i) the first year of payment with respect to such a
            provider, the average costs for the purchase and initial
            implementation or upgrade of such technology (and support
            services including training that is for, or is necessary for
            the adoption and initial operation of, such technology) for
            such providers, as determined by the Secretary based upon
            studies conducted under paragraph (4)(C); and
                ``(ii) a subsequent year of payment with respect to such a
            provider, the average costs not described in clause (i)
            relating to the operation, maintenance, and use of such
            technology for such providers, as determined by the Secretary
            based upon studies conducted under paragraph (4)(C).
            ``(D) 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. The determination of whether an
        eligible professional is a hospital-based eligible professional
        shall be made on the basis of the site of service (as defined by
        the Secretary) and without regard to any employment or billing
        arrangement between the eligible professional and any other
        provider.
            ``(E) The term `net average allowable costs' means, with
        respect to a Medicaid provider described in paragraph (2)(A),
        average allowable costs reduced by any payment that is made to such
        Medicaid provider from any other source (other than under this
        subsection or by a State or local government) that is directly
        attributable to payment for certified EHR technology or support
        services described in subparagraph (C).
            ``(F) The term `needy individual' means, with respect to a
        Medicaid provider, an individual--
                ``(i) who is receiving assistance under this title;
                ``(ii) who is receiving assistance under title XXI;
                ``(iii) who is furnished uncompensated care by the
            provider; or
                ``(iv) for whom charges are reduced by the provider on a
            sliding scale basis based on an individual's ability to pay.
        ``(4)(A) With respect to a Medicaid provider described in paragraph
    (2)(A), subject to subparagraph (B), in no case shall--
                ``(i) the net average allowable costs under this subsection
            for the first year of payment (which may not be later than
            2016), which is intended to cover the costs described in
            paragraph (3)(C)(i), exceed $25,000 (or such lesser amount as
            the Secretary determines based on studies conducted under
            subparagraph (C));
                ``(ii) the net average allowable costs under this
            subsection for a subsequent year of payment, which is intended
            to cover costs described in paragraph (3)(C)(ii), exceed
            $10,000; and
                ``(iii) payments be made for costs described in clause (ii)
            after 2021 or over a period of longer than 5 years.
        ``(B) In the case of Medicaid provider described in paragraph
    (2)(A)(ii), the dollar amounts specified in subparagraph (A) shall be
    \2/3\ of the dollar amounts otherwise specified.
        ``(C) For the purposes of determining average allowable costs under
    this subsection, the Secretary shall study the average costs to
    Medicaid providers described in paragraph (2)(A) of purchase and
    initial implementation and upgrade of certified EHR technology
    described in paragraph (3)(C)(i) and the average costs to such
    providers of operations, maintenance, and use of such technology
    described in paragraph (3)(C)(ii). In determining such costs for such
    providers, the Secretary may utilize studies of such amounts submitted
    by States.
        ``(5)(A) In no case shall the payments described in paragraph
    (1)(B) with respect to a Medicaid provider described in paragraph
    (2)(B) exceed--
            ``(i) in the aggregate the product of--
                    ``(I) the overall hospital EHR amount for the provider
                computed under subparagraph (B); and
                    ``(II) the Medicaid share for such provider computed
                under subparagraph (C);
            ``(ii) in any year 50 percent of the product described in
        clause (i); and
            ``(iii) in any 2-year period 90 percent of such product.
        ``(B) For purposes of this paragraph, the overall hospital EHR
    amount, with respect to a Medicaid provider, is the sum of the
    applicable amounts specified in section 1886(n)(2)(A) for such provider
    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 establish, in consultation with the
    State, the overall hospital EHR amount for each such Medicaid provider
    eligible for payments under paragraph (1)(B). For purposes of this
    subparagraph in computing the amounts under section 1886(n)(2)(C) 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 3 years for which discharge
    data are available per year.
        ``(C) The Medicaid share computed under this subparagraph, for a
    Medicaid provider 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).
        ``(D) In no case may the payments described in paragraph (1)(B)
    with respect to a Medicaid provider described in paragraph (2)(B) be
    paid--
            ``(i) for any year beginning after 2016 unless the provider has
        been provided payment under paragraph (1)(B) for the previous year;
        and
            ``(ii) over a period of more than 6 years of payment.
        ``(6) Payments described in paragraph (1) are not in accordance
    with this subsection unless the following requirements are met:
            ``(A)(i) The State provides assurances satisfactory to the
        Secretary that amounts received under subsection (a)(3)(F) with
        respect to payments to a Medicaid provider are paid, subject to
        clause (ii), directly to such provider (or to an employer or
        facility to which such provider has assigned payments) without any
        deduction or rebate.
            ``(ii) Amounts described in clause (i) may also be paid to an
        entity promoting the adoption of certified EHR technology, as
        designated by the State, if participation in such a payment
        arrangement is voluntary for the eligible professional involved and
        if such entity does not retain more than 5 percent of such payments
        for costs not related to certified EHR technology (and support
        services including maintenance and training) that is for, or is
        necessary for the operation of, such technology.
            ``(B) A Medicaid provider described in paragraph (2)(A) is
        responsible for payment of the remaining 15 percent of the net
        average allowable cost.
            ``(C)(i) Subject to clause (ii), with respect to payments to a
        Medicaid provider--
                ``(I) for the first year of payment to the Medicaid
            provider under this subsection, the Medicaid provider
            demonstrates that it is engaged in efforts to adopt, implement,
            or upgrade certified EHR technology; and
                ``(II) for a year of payment, other than the first year of
            payment to the Medicaid provider under this subsection, 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).
            ``(ii) In the case of a Medicaid provider who has completed
        adopting, implementing, or upgrading such technology prior to the
        first year of payment to the Medicaid provider under this
        subsection, clause (i)(I) shall not apply and clause (i)(II) shall
        apply to each year of payment to the Medicaid provider under this
        subsection, including the first year of payment.
            ``(D) To the extent specified by the Secretary, the certified
        EHR technology is compatible with State or Federal administrative
        management systems.
    For purposes of subparagraph (B), a Medicaid provider described in
    paragraph (2)(A) may accept payments for the costs described in such
    subparagraph from a State or local government. For purposes of
    subparagraph (C), in establishing the means described in such
    subparagraph, which may include clinical quality reporting to the
    State, the State shall ensure that populations with unique needs, such
    as children, are appropriately addressed.
        ``(7) With respect to Medicaid providers described in paragraph
    (2)(A), the Secretary shall ensure coordination of payment with respect
    to such providers under sections 1848(o) and 1853(l) and under this
    subsection to assure no duplication of funding. Such coordination shall
    include, to the extent practicable, a data matching process between
    State Medicaid agencies and the Centers for Medicare & Medicaid
    Services using national provider identifiers. For such purposes, the
    Secretary may require the submission of such data relating to payments
    to such Medicaid providers as the Secretary may specify.
        ``(8) In carrying out paragraph (6)(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 described in paragraph (1), including steps taken
    to carry out paragraph (7). Such reports shall also describe the extent
    of adoption of certified EHR technology among Medicaid providers
    resulting from the provisions of this subsection and any improvements
    in health outcomes, clinical quality, or efficiency resulting from such
    adoption.''.
        (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 Centers for Medicare & Medicaid Services Program Management
    Account, $40,000,000 for each of fiscal years 2009 through 2015 and
    $20,000,000 for fiscal year 2016, which shall be available for purposes
    of carrying out the provisions of (and the amendments made by) this
    section. Amounts appropriated under this subsection for a fiscal year
    shall be available until expended.

                 Subtitle C--Miscellaneous Medicare Provisions

    SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS.

        (a) Delay in Phase Out of Medicare Hospice Budget Neutrality
    Adjustment Factor During Fiscal Year 2009.--Notwithstanding any other
    provision of law, including the final rule published on August 8, 2008,
    73 Federal Register 46464 et seq., relating to Medicare Program;
    Hospice Wage Index for Fiscal Year 2009, the Secretary of Health and
    Human Services shall not phase out or eliminate the budget neutrality
    adjustment factor in the Medicare hospice wage index before October 1,
    2009, and the Secretary shall recompute and apply the final Medicare
    hospice wage index for fiscal year 2009 as if there had been no
    reduction in the budget neutrality adjustment factor.
        (b) Non-Application of Phased-Out Indirect Medical Education (IME)
    Adjustment Factor for Fiscal Year 2009.--
            (1) 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.
            (2) No effect on subsequent years.--Nothing in paragraph (1)
        shall be construed as having any effect on the application of
        paragraph (d) of section 412.322 of title 42, Code of Federal
        Regulations.
        (c) Funding for Implementation.--In addition to funds otherwise
    available, for purposes of implementing the provisions of subsections
    (a) and (b), including costs incurred in reprocessing claims in
    carrying out such provisions, the Secretary of Health and Human
    Services shall provide for the transfer from the Federal Hospital
    Insurance Trust Fund established under section 1817 of the Social
    Security Act (42 U.S.C. 1395i) to the Centers for Medicare & Medicaid
    Services Program Management Account of $2,000,000 for fiscal year 2009.

    SEC. 4302. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.

        (a) Payment.--Subsection (c) of section 114 of the Medicare,
    Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173) is
    amended--
            (1) in paragraph (1)--
                (A) by amending the heading to read as follows: ``Delay in
            application of 25 percent patient threshold payment
            adjustment'';
                (B) by striking ``the date of the enactment of this Act''
            and inserting ``July 1, 2007,''; and
                (C) in subparagraph (A), by inserting ``or to a long-term
            care hospital, or satellite facility, that as of December 29,
            2007, was co-located with an entity that is a provider-based,
            off-campus location of a subsection (d) hospital which did not
            provide services payable under section 1886(d) of the Social
            Security Act at the off-campus location'' after ``freestanding
            long-term care hospitals''; and
            (2) in paragraph (2)--
                (A) in subparagraph (B)(ii), by inserting ``or that is
            described in section 412.22(h)(3)(i) of such title'' before the
            period; and
                (B) in subparagraph (C), by striking ``the date of the
            enactment of this Act'' and inserting ``October 1, 2007 (or
            July 1, 2007, in the case of a satellite facility described in
            section 412.22(h)(3)(i) of title 42, Code of Federal
            Regulations)''.
        (b) Moratorium.--Subsection (d)(3)(A) of such section is amended by
    striking ``if the hospital or facility'' and inserting ``if the
    hospital or facility obtained a certificate of need for an increase in
    beds that is in a State for which such certificate of need is required
    and that was issued on or after April 1, 2005, and before December 29,
    2007, or if the hospital or facility''.
        (c) Effective Date.--The amendments made by this section shall be
    effective and apply as if included in the enactment of the Medicare,
    Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173).

                          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. Temporary increase in DSH allotments during recession.
    Sec. 5003. Extension of moratoria on certain Medicaid final regulations.
    Sec. 5004. Extension of transitional medical assistance (TMA).
    Sec. 5005. Extension of the qualifying individual (QI) program.
    Sec. 5006. Protections for Indians under Medicaid and CHIP.
    Sec. 5007. Funding for oversight and implementation.
    Sec. 5008. 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 6.2 Percentage Point Increase.--
            (1) In general.--Subject to subsections (e), (f), and (g) and
        paragraph (2), for each State for calendar quarters during the
        recession adjustment period (as defined in subsection (h)(3)), 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 (42 U.S.C. 1396d(b))) by 6.2
        percentage points.
            (2) Special election for territories.--In the case of a State
        that is not one of the 50 States or the District of Columbia,
        paragraph (1) shall only apply if the State makes a one-time
        election, in a form and manner specified by the Secretary and for
        the entire recession adjustment period, to apply the increase in
        FMAP under paragraph (1) and a 15 percent increase under subsection
        (d) instead of applying a 30 percent increase under subsection (d).
        (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--
                (A) 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 subsection (a) and after the
            application of \1/2\ of the increase under subsection (b); and
                (B) the applicable percent determined in paragraph (3) for
            the calendar quarter (or, if greater, for a previous such
            calendar quarter).
            (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) The State unemployment increase percentage (as
                defined in paragraph (4)) for the quarter is at least 1.5
                percentage points but less than 2.5 percentage points.
                    (ii) The State unemployment increase percentage for the
                quarter is at least 2.5 percentage points but less than 3.5
                percentage points.
                    (iii) The State unemployment increase percentage for
                the quarter is at least 3.5 percentage points.
                (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.--
                (A) In general.--For purposes of paragraph (1), subject to
            subparagraph (B), the applicable percent is--
                    (i) 5.5 percent, if the State satisfies the criteria
                described in paragraph (2)(A)(i) for the calendar quarter;
                    (ii) 8.5 percent if the State satisfies the criteria
                described in paragraph (2)(A)(ii) for the calendar quarter;
                and
                    (iii) 11.5 percent if the State satisfies the criteria
                described in paragraph (2)(A)(iii) for the calendar
                quarter.
                (B) Maintenance of higher applicable percent.--
                    (i) Hold harmless period.--If the percent applied to a
                State under subparagraph (A) 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 subparagraph) is less
                than the percent applied for the preceding quarter (as so
                determined), the higher applicable percent shall continue
                in effect for each subsequent calendar quarter ending
                before July 1, 2010.
                    (ii) Notice of lower applicable percent.--The Secretary
                shall notify a State at least 60 days prior to applying any
                lower applicable percent to the State under this paragraph.
            (4) Computation of state unemployment increase percentage.--
                (A) In general.--In this subsection, the ``State
            unemployment increase percentage'' for a State for a calendar
            quarter is equal to the number of percentage points (if any) by
            which--
                    (i) the average monthly unemployment rate for the State
                for months in the most recent previous 3-consecutive-month
                period for which data are available, subject to
                subparagraph (C); exceeds
                    (ii) the lowest average monthly unemployment rate for
                the State for any 3-consecutive-month period preceding the
                period described in clause (i) and beginning on or after
                January 1, 2006.
                (B) Average monthly unemployment rate defined.--In this
            paragraph, the term ``average monthly unemployment rate'' means
            the average of the monthly number unemployed, divided by the
            average of the monthly civilian labor force, seasonally
            adjusted, as determined based on the most recent monthly
            publications of the Bureau of Labor Statistics of the
            Department of Labor.
                (C) Special rule.--With respect to--
                    (i) the first 2 calendar quarters of the recession
                adjustment period, the most recent previous 3-consecutive-
                month period described in subparagraph (A)(i) shall be the
                3-consecutive-month period beginning with October 2008; and
                    (ii) the last 2 calendar quarters of the recession
                adjustment period, the most recent previous 3-consecutive-
                month period described in such subparagraph shall be the 3-
                consecutive-month period beginning with December 2009, or,
                if it results in a higher applicable percent under
                paragraph (3), the 3-consecutive-month period beginning
                with January 2010.
        (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 30 percent (or, in the case
    of an election under subsection (b)(2), 15 percent). In the case of
    such an election by a territory, subsection (a)(1) of such section
    shall be applied without regard to any increase in payment made to the
    territory under part E of title IV of such Act that is attributable to
    the increase in FMAP effected under subsection (b) for the territory.
        (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.) and, for purposes of the application of this section
        to the District of Columbia, payments under such part shall be
        deemed to be made on the basis of the FMAP applied with respect to
        such District for purposes of title XIX and as increased under
        subsection (b));
            (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, (including as such standards were proposed to be in
        effect under a State law enacted but not effective as of such date
        or a State plan amendment or waiver request under title XIX of such
        Act that was pending approval on such date).
        (f) State Ineligibility; Limitation; Special Rules.--
            (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 in effect on July 1, 2008, and
                would have been in effect as of such date, but for a delay
                in the effective date of a waiver under section 1115 of
                such Act with respect to such restriction.
            (2) Compliance with prompt pay requirements.--
                (A) Application to practitioners.--
                    (i) In general.--Subject to the succeeding provisions
                of this subparagraph, no State shall be eligible for an
                increased FMAP rate as provided under this section for any
                claim received by a State from a practitioner subject to
                the terms of section 1902(a)(37)(A) of the Social Security
                Act (42 U.S.C. 1396a(a)(37)(A)) for such days during any
                period in which that State has failed to pay claims in
                accordance with such section as applied under title XIX of
                such Act.
                    (ii) Reporting requirement.--Each State shall report to
                the Secretary, on a quarterly basis, its compliance with
                the requirements of clause (i) as such requirements pertain
                to claims made for covered services during each month of
                the preceding quarter.
                    (iii) Waiver authority.--The Secretary may waive the
                application of clause (i) to a State, or the reporting
                requirement imposed under clause (ii), during any period in
                which there are exigent circumstances, including natural
                disasters, that prevent the timely processing of claims or
                the submission of such a report.
                    (iv) Application to claims.--Clauses (i) and (ii) shall
                only apply to claims made for covered services after the
                date of enactment of this Act.
                (B) Application to nursing facilities and hospitals.--
                    (i) In general.--Subject to clause (ii), the provisions
                of subparagraph (A) shall apply with respect to a nursing
                facility or hospital, insofar as it is paid under title XIX
                of the Social Security Act on the basis of submission of
                claims, in the same or similar manner (but within the same
                timeframe) as such provisions apply to practitioners
                described in such subparagraph.
                    (ii) Grace period.--Notwithstanding clause (i), no
                period of ineligibility shall be imposed against a State
                prior to June 1, 2009, on the basis of the State failing to
                pay a claim in accordance with such clause.
            (3) State's application toward rainy day fund.--A 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 any amounts
        attributable (directly or indirectly) to such increase are
        deposited or credited into any reserve or rainy day fund of the
        State.
            (4) No waiver authority.--Except as provided in paragraph
        (2)(A)(iii), the Secretary may not waive the application of this
        subsection or subsection (g) under section 1115 of the Social
        Security Act or otherwise.
            (5) Limitation of fmap to 100 percent.--In no case shall an
        increase in FMAP under this section result in an FMAP that exceeds
        100 percent.
            (6) Treatment of certain expenditures.--With respect to
        expenditures described in section 2105(a)(1)(B) of the Social
        Security Act (42 U.S.C. 1397ee(a)(1)(B)), as in effect before April
        1, 2009, that are made during the period beginning on October 1,
        2008, and ending on March 31, 2009, any additional Federal funds
        that are paid to a State as a result of this section that are
        attributable to such expenditures shall not be counted against any
        allotment under section 2104 of such Act (42 U.S.C. 1397dd).
        (g) Requirements.--
            (1) 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.
            (2) 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
        in section 1101(a)(1) of the Social Security Act (42 U.S.C.
        1301(a)(1)) 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.
        (j) Limitation on FMAP Change.--The increase in FMAP effected under
    section 614 of the Children's Health Insurance Program Reauthorization
    Act of 2009 shall not apply in the computation of the enhanced FMAP
    under title XXI or XIX of the Social Security Act for any period
    (notwithstanding subsection (i)).

    SEC. 5002. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.

        Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
    4(f)(3)) is amended--
            (1) in subparagraph (A), by striking ``paragraph (6)'' and
        inserting ``paragraph (6) and subparagraph (E)''; and
            (2) by adding at the end the following new subparagraph:
                ``(E) Temporary increase in allotments during recession.--
                    ``(i) In general.--Subject to clause (ii), the DSH
                allotment for any State--

                        ``(I) for fiscal year 2009 is equal to 102.5
                    percent of the DSH allotment that would be determined
                    under this paragraph for the State for fiscal year 2009
                    without application of this subparagraph,
                    notwithstanding subparagraphs (B) and (C);
                        ``(II) for fiscal year 2010 is equal to 102.5
                    percent of the DSH allotment for the State for fiscal
                    year 2009, as determined under subclause (I); and
                        ``(III) for each succeeding fiscal year is equal to
                    the DSH allotment for the State under this paragraph
                    determined without applying subclauses (I) and (II).

                    ``(ii) Application.--Clause (i) shall not apply to a
                State for a year in the case that the DSH allotment for
                such State for such year under this paragraph determined
                without applying clause (i) would grow higher than the DSH
                allotment specified under clause (i) for the State for such
                year.''.

    SEC. 5003. EXTENSION OF MORATORIA ON CERTAIN MEDICAID FINAL
                  REGULATIONS.

        (a) Final Regulations Relating to Optional Case Management Services
    and Allowable Provider Taxes.--Section 7001(a)(3)(A) of the
    Supplemental Appropriations Act, 2008 (Public Law 110-252) is amended
    by striking ``April 1, 2009'' and inserting ``July 1, 2009''.
        (b) Final Regulation Relating to School-Based Administration and
    School-Based Transportation.--Section 206 of the Medicare, Medicaid,
    and SCHIP Extension Act of 2007 (Public Law 110-173), as amended by
    section 7001(a)(2) of the Supplemental Appropriations Act, 2008 (Public
    Law 110-252), is amended by inserting ``(July 1, 2009, in the case of
    the final regulation relating to school-based administration and
    school-based transportation)'' after ``April 1, 2009,''.
        (c) Final Regulation Relating to Outpatient Hospital Facility
    Services.--Notwithstanding any other provision of law, with respect to
    expenditures for services furnished during the period beginning on
    December 8, 2008, and ending on June 30, 2009, the Secretary of Health
    and Human Services shall not take any action (through promulgation of
    regulation, issuance of regulatory guidance, use of Federal payment
    audit procedures, or other administrative action, policy, or practice,
    including a Medical Assistance Manual transmittal or letter to State
    Medicaid directors) to implement the final regulation relating to
    clarification of the definition of outpatient hospital facility
    services under the Medicaid program published on November 7, 2008 (73
    Federal Register 66187).
        (d) Sense of Congress.--It is the sense of Congress that the
    Secretary of Health and Human Services should not promulgate as final
    regulations any of the following proposed Medicaid regulations:
            (1) Cost limits for certain providers.--The proposed regulation
        published on January 18, 2007, (72 Federal Register 2236) (and the
        purported final regulation published on May 29, 2007 (72 Federal
        Register 29748) and determined by the United States District Court
        for the District of Columbia to have been ``improperly
        promulgated'', Alameda County Medical Center, et al., v. Leavitt,
        et al., Civil Action No. 08-0422, Mem. at 4 (D.D.C. May 23, 2008)).
            (2) Payments for graduate medical education.--The proposed
        regulation published on May 23, 2007 (72 Federal Register 28930).
            (3) Rehabilitative services.--The proposed regulation published
        on August 13, 2007 (72 Federal Register 45201).

    SEC. 5004. 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.

    SEC. 5005. 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)''.

    SEC. 5006. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.

        (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:
                    ``(vii) 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:
                    ``(x) 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), as amended by sections 203(c) and 211(a)(1)(A)(ii)
        of the Children's Health Insurance Program Reauthorization Act of
        2009 (Public Law 111-3), is amended by adding at the end the
        following new subsection:
        ``(ff) 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)), as amended by sections 203(a)(2), 203(d)(2),
        214(b), 501(d)(2), and 503(a)(1) of the Children's Health Insurance
        Program Reauthorization Act of 2009 (Public Law 111-3), is
        amended--
                (A) by redesignating subparagraphs (C) through (I), as
            subparagraphs (D) through (J), respectively; and
                (B) by inserting after subparagraph (B), the following new
            subparagraph:
                ``(C) Section 1902(ff) (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.''.
        (d) 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.--
            (1) 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.
            The Secretary shall establish procedures for applying the
            requirements of clause (i) in States where there are no or few
            Indian health providers.
                ``(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 in the same manner as Indian Health Programs may
        restrict the delivery of services to Indians.
            ``(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.''.
            (2) Application to chip.--Section 2107(e)(1) of such Act (42
        U.S.C. 1397gg(1)), as amended by subsection (b)(2), is amended--
                (A) by redesignating subparagraph (J) as subparagraph (K);
            and
                (B) by inserting after subparagraph (I) the following new
            subparagraph:
                ``(J) Subsections (a)(2)(C) and (h) of section 1932.''.
        (e) Consultation on Medicaid, Chip, and Other Health Care Programs
    Funded Under the Social Security Act Involving Indian Health Programs
    and Urban Indian Organizations.--
            (1) 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.
            (2) Solicitation of advice under medicaid and chip.--
                (A) Medicaid state plan amendment.--Section 1902(a) of the
            Social Security Act (42 U.S.C. 1396a(a)), as amended by section
            501(d)(1) of the Children's Health Insurance Program
            Reauthorization Act of 2009 (Public Law 111-3), (42 U.S.C.
            1396a(a)) is amended--
                    (i) in paragraph (71), by striking ``and'' at the end;
                    (ii) in paragraph (72), by striking the period at the
                end and inserting ``; and''; and
                    (iii) by inserting after paragraph (72), the following
                new paragraph:
            ``(73) 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.''.
                (B) Application to chip.--Section 2107(e)(1) of such Act
            (42 U.S.C. 1397gg(1)), as amended by subsections (b)(2) and (d)
            (2), is amended--
                    (i) by redesignating subparagraphs (B), (C), (D), (E),
                (F), (G), (H), (I), (J), and (K) as subparagraphs (D), (F),
                (B), (E), (G), (I), (H), (J), (K), and (L), respectively;
                    (ii) by moving such subparagraphs so as to appear in
                alphabetical order; and
                    (iii) by inserting after subparagraph (B) (as so
                redesiganted and moved) the following new subparagraph:
                ``(C) Section 1902(a)(73) (relating to requiring certain
            States to seek advice from designees of Indian Health Programs
            and Urban Indian Organizations).''.
            (3) Rule of construction.--Nothing in the amendments made by
        this subsection 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.
        (f) Effective Date.--The amendments made by this section shall take
    effect on July 1, 2009.

    SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION.

        (a) Oversight.--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 fiscal year 2009, which shall remain
    available for expenditure until September 30, 2011, and shall be in
    addition to any other amounts appropriated or made available to such
    Office for such purposes.
        (b) Implementation of Increased FMAP.--For purposes of carrying out
    section 5001, there is appropriated to the Secretary of Health and
    Human Services, out of any money in the Treasury not otherwise
    appropriated and without further appropriation, $5,000,000 for fiscal
    year 2009, which shall remain available for expenditure until September
    30, 2011, and shall be in addition to any other amounts appropriated or
    made available to such Secretary for such purposes.

    SEC. 5008. 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
            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--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

    SEC. 6000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

              TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

    Sec. 6000. Table of contents.
    Sec. 6001. Broadband Technology Opportunities Program.

    SEC. 6001. BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM.

        (a) The Assistant Secretary of Commerce for Communications and
    Information (Assistant Secretary), in consultation with the Federal
    Communications Commission (Commission), shall establish a national
    broadband service development and expansion program in conjunction with
    the technology opportunities program, which shall be referred to as 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.
        (b) The purposes of the program are to--
            (1) provide access to broadband service to consumers residing
        in unserved areas of the United States;
            (2) provide improved access to broadband service to consumers
        residing in underserved areas of the United States;
            (3) provide broadband education, awareness, training, access,
        equipment, and support to--
                (A) 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;
                (B) 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
                (C) 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;
            (4) improve access to, and use of, broadband service by public
        safety agencies; and
            (5) stimulate the demand for broadband, economic growth, and
        job creation.
        (c) The Assistant Secretary may consult a State, the District of
    Columbia, or territory or possession of the United States with respect
    to--
            (1) the identification of areas described in subsection (b)(1)
        or (2) located in that State; and
            (2) the allocation of grant funds within that State for
        projects in or affecting the State.
        (d) The Assistant Secretary shall--
            (1) establish and implement the grant program as expeditiously
        as practicable;
            (2) ensure that all awards are made before the end of fiscal
        year 2010;
            (3) 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
            (4) report on the status of the program to the Committees on
        Appropriations of the House of Representatives and the Senate, the
        Committee on Energy and Commerce of the House of Representatives,
        and the Committee on Commerce, Science, and Transportation of the
        Senate, every 90 days.
        (e) To be eligible for a grant under the program, an applicant
    shall--
            (1)(A) be a State or political subdivision thereof, the
        District of Columbia, a territory or possession of the United
        States, an Indian tribe (as defined in section 4 of the Indian
        Self-Determination and Education Assistance Act (25 U.S.C. 450(b))
        or native Hawaiian organization;
                (B) a nonprofit--
                    (i) foundation,
                    (ii) corporation,
                    (iii) institution, or
                    (iv) association; or
                (C) any other entity, including a broadband service or
            infrastructure provider, that the Assistant Secretary finds by
            rule to be in the public interest. In establishing such rule,
            the Assistant Secretary shall to the extent practicable promote
            the purposes of this section in a technologically neutral
            manner;
            (2) submit an application, at such time, in such form, and
        containing such information as the Assistant Secretary may require;
            (3) 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 showing
        that the project would not have been implemented during the grant
        period without Federal grant assistance;
            (4) 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;
            (5) 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 subsection (f);
            (6) 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
            (7) 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.
        (f) 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--
            (1) the applicant petitions the Assistant Secretary for a
        waiver; and
            (2) the Assistant Secretary determines that the petition
        demonstrates financial need.
        (g) The Assistant Secretary may make competitive grants under the
    program to--
            (1) acquire equipment, instrumentation, networking capability,
        hardware and software, digital network technology, and
        infrastructure for broadband services;
            (2) construct and deploy broadband service related
        infrastructure;
            (3) ensure access to broadband service by community anchor
        institutions;
            (4) 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;
            (5) construct and deploy broadband facilities that improve
        public safety broadband communications services; and
            (6) undertake such other projects and activities as the
        Assistant Secretary finds to be consistent with the purposes for
        which the program is established.
        (h) The Assistant Secretary, in awarding grants under this section,
    shall, to the extent practical--
            (1) award not less than 1 grant in each State;
            (2) consider whether an application to deploy infrastructure in
        an area--
                (A) will, if approved, increase the affordability of, and
            subscribership to, service to the greatest population of users
            in the area;
                (B) will, if approved, provide the greatest broadband speed
            possible to the greatest population of users in the area;
                (C) will, if approved, enhance service for health care
            delivery, education, or children to the greatest population of
            users in the area; and
                (D) will, if approved, not result in unjust enrichment as a
            result of support for non-recurring costs through another
            Federal program for service in the area; and
            (3) consider whether the applicant is a socially and
        economically disadvantaged small business concern as defined under
        section 8(a) of the Small Business Act (15 U.S.C. 637).
        (i) The Assistant Secretary--
            (1) 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;
            (2) may establish additional reporting and information
        requirements for any recipient of any assistance made available
        pursuant to this section;
            (3) shall establish appropriate mechanisms to ensure
        appropriate use and compliance with all terms of any use of funds
        made available pursuant to this section;
            (4) 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
            (5) shall create and maintain a fully searchable database,
        accessible on the Internet at no cost to the public, that contains
        at least a list of each entity that has applied for a grant under
        this section, a description of each application, the status of each
        such application, 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.
        (j) Concurrent with the issuance of the Request for Proposal for
    grant applications pursuant to this section, the Assistant Secretary
    shall, in coordination with the Commission, publish the non-
    discrimination and network interconnection obligations that shall be
    contractual conditions of grants awarded under this section, including,
    at a minimum, adherence to the principles contained in the Commission's
    broadband policy statement (FCC 05-15, adopted August 5, 2005).
        (k)(1) Not later than 1 year after the date of enactment of this
    section, the Commission shall submit to the Committee on Energy and
    Commerce of the House of Representatives and the Committee on Commerce,
    Science, and Transportation of the Senate, a report containing a
    national broadband plan.
            (2) The national broadband plan required by this section shall
        seek to ensure that all people of the United States have access to
        broadband capability and shall establish benchmarks for meeting
        that goal. The plan shall also include--
                (A) an analysis of the most effective and efficient
            mechanisms for ensuring broadband access by all people of the
            United States;
                (B) a detailed strategy for achieving affordability of such
            service and maximum utilization of broadband infrastructure and
            service by the public;
                (C) an evaluation of the status of deployment of broadband
            service, including progress of projects supported by the grants
            made pursuant to this section; and
                (D) a plan for use of broadband infrastructure and services
            in advancing consumer welfare, civic participation, public
            safety and homeland security, community development, health
            care delivery, energy independence and efficiency, education,
            worker training, private sector investment, entrepreneurial
            activity, job creation and economic growth, and other national
            purposes.
            (3) In developing the plan, the Commission shall have access to
        data provided to other Government agencies under the Broadband Data
        Improvement Act (47 U.S.C. 1301 note).
        (l) The Assistant Secretary shall develop and maintain a
    comprehensive nationwide inventory map of existing broadband service
    capability and availability in the United States that depicts the
    geographic extent to which broadband service capability is deployed and
    available from a commercial provider or public provider throughout each
    State. Not later than 2 years after the date of the enactment of this
    Act, the Assistant Secretary shall make the broadband inventory map
    developed and maintained pursuant to this section accessible by the
    public on a World Wide Web site of the National Telecommunications and
    Information Administration in a form that is interactive and
    searchable.
        (m) The Assistant Secretary shall have the authority to prescribe
    such rules as are necessary to carry out the purposes of this section.

                  TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

    SEC. 7000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

                   TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

    Sec. 7000. Table of contents.
    Sec. 7001. Executive compensation and corporate governance.
    Sec. 7002. Applicability with respect to loan modifications.

    SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

        Section 111 of the Emergency Economic Stabilization Act of 2008 (12
    U.S.C. 5221) is amended to read as follows:

    ``SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

        ``(a) Definitions.--For purposes of this section, 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 recipient.--The term `TARP recipient' means any
        entity that has received or will receive financial assistance under
        the financial assistance provided under the TARP.
            ``(4) Commission.--The term `Commission' means the Securities
        and Exchange Commission.
            ``(5) Period in which obligation is outstanding; rule of
        construction.--For purposes of this section, the period in which
        any obligation arising from financial assistance provided under the
        TARP remains outstanding does not include any period during which
        the Federal Government only holds warrants to purchase common stock
        of the TARP recipient.
        ``(b) Executive Compensation and Corporate Governance.--
            ``(1) Establishment of standards.--During the period in which
        any obligation arising from financial assistance provided under the
        TARP remains outstanding, each TARP recipient shall be subject to--
                ``(A) the standards established by the Secretary under this
            section; and
                ``(B) the provisions of section 162(m)(5) of the Internal
            Revenue Code of 1986, as applicable.
            ``(2) Standards required.--The Secretary shall require each
        TARP recipient to meet appropriate standards for executive
        compensation and corporate governance.
            ``(3) Specific requirements.--The standards established under
        paragraph (2) shall include the following:
                ``(A) 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 in which any obligation arising
            from financial assistance provided under the TARP remains
            outstanding.
                ``(B) 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.
                ``(C) 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 in which any obligation arising
            from financial assistance provided under the TARP remains
            outstanding.
                ``(D)(i) A prohibition on such TARP recipient paying or
            accruing any bonus, retention award, or incentive compensation
            during the period in which any obligation arising from
            financial assistance provided under the TARP remains
            outstanding, except that any prohibition developed under this
            paragraph shall not apply to the payment of long-term
            restricted stock by such TARP recipient, provided that such
            long-term restricted stock--
                    ``(I) does not fully vest during the period in which
                any obligation arising from financial assistance provided
                to that TARP recipient remains outstanding;
                    ``(II) has a value in an amount that is not greater
                than \1/3\ of the total amount of annual compensation of
                the employee receiving the stock; and
                    ``(III) is subject to such other terms and conditions
                as the Secretary may determine is in the public interest.
                ``(ii) The prohibition required under clause (i) shall
            apply as follows:
                    ``(I) For any financial institution that received
                financial assistance provided under the TARP equal to less
                than $25,000,000, the prohibition shall apply only to the
                most highly compensated employee of the financial
                institution.
                    ``(II) For any financial institution that received
                financial assistance provided under the TARP equal to at
                least $25,000,000, but less than $250,000,000, the
                prohibition shall apply to at least the 5 most highly-
                compensated employees of the financial institution, or such
                higher number as the Secretary may determine is in the
                public interest with respect to any TARP recipient.
                    ``(III) For any financial institution that received
                financial assistance provided under the TARP equal to at
                least$250,000,000, but less than $500,000,000, the
                prohibition shall apply to the senior executive officers
                and at least the 10 next most highly-compensated employees,
                or such higher number as the Secretary may determine is in
                the public interest with respect to any TARP recipient.
                    ``(IV) For any financial institution that received
                financial assistance provided under the TARP equal to
                $500,000,000 or more, the prohibition shall apply to the
                senior executive officers and at least the 20 next most
                highly-compensated employees, or such higher number as the
                Secretary may determine is in the public interest with
                respect to any TARP recipient.
                ``(iii) The prohibition required under clause (i) shall not
            be construed to prohibit any bonus payment required to be paid
            pursuant to a written employment contract executed on or before
            February 11, 2009, as such valid employment contracts are
            determined by the Secretary or the designee of the Secretary.
                ``(E) 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.
                ``(F) A requirement for the establishment of a Board
            Compensation Committee that meets the requirements of
            subsection (c).
            ``(4) 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 section--
                ``(A) 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
                ``(B) in the case of a TARP recipient that is not a
            publicly traded company, to the Secretary.
        ``(c) Board Compensation Committee.--
            ``(1) 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.
            ``(2) 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.
            ``(3) Compliance by non-sec registrants.--In the case of any
        TARP recipient, the common or preferred stock of which is not
        registered pursuant to the Securities Exchange Act of 1934, and
        that has received $25,000,000 or less of TARP assistance, the
        duties of the Board Compensation Committee under this subsection
        shall be carried out by the board of directors of such TARP
        recipient.
        ``(d) Limitation on Luxury Expenditures.--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 staff development, reasonable performance
        incentives, or other similar measures conducted in the normal
        course of the business operations of the TARP recipient.
        ``(e) Shareholder Approval of Executive Compensation.--
            ``(1) 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).
            ``(2) Nonbinding vote.--A shareholder vote described in
        paragraph (1) 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.
            ``(3) Deadline for rulemaking.--Not later than 1 year after the
        date of enactment of the American Recovery and Reinvestment Act of
        2009, the Commission shall issue any final rules and regulations
        required by this subsection.
        ``(f) Review of Prior Payments to Executives.--
            ``(1) In general.--The Secretary shall review bonuses,
        retention awards, and other compensation paid to the senior
        executive officers and the next 20 most highly-compensated
        employees of each entity receiving TARP assistance before the date
        of enactment of the American Recovery and Reinvestment Act of 2009,
        to determine whether any such payments were inconsistent with the
        purposes of this section or the TARP or were otherwise contrary to
        the public interest.
            ``(2) Negotiations for reimbursement.--If the Secretary makes a
        determination described in paragraph (1), 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.
        ``(g) No Impediment to Withdrawal by TARP Recipients.--Subject to
    consultation with the appropriate Federal banking agency (as that term
    is defined in section 3 of the Federal Deposit Insurance Act), if any,
    the Secretary shall permit a TARP recipient to repay any assistance
    previously provided under the TARP to such financial institution,
    without regard to whether the financial institution has replaced such
    funds from any other source or to any waiting period, and when such
    assistance is repaid, the Secretary shall liquidate warrants associated
    with such assistance at the current market price.
        ``(h) Regulations.--The Secretary shall promulgate regulations to
    implement this section.''.

    SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS.

        Section 109(a) of the Emergency Economic Stabilization Act of 2008
    (12 U.S.C. 5219(a)) is amended--
            (1) by striking ``To the extent'' and inserting the following:
            ``(1) In general.--To the extent''; and
            (2) by adding at the end the following:
            ``(2) Waiver of certain provisions in connection with loan
        modifications.--The Secretary shall not be required to apply
        executive compensation restrictions under section 111, or to
        receive warrants or debt instruments under section 113, solely in
        connection with any loan modification under this section.''.

                                   Speaker of the House of Representatives.

                                Vice President of the United States and
                                                   President of the Senate.