    [Congressional Bills 111th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 1 Introduced in House (IH)]

    111th CONGRESS
      1st Session
                                     H. R. 1

     Making supplemental appropriations for job preservation and creation,
    infrastructure investment, energy efficiency and science, assistance to
       the unemployed, and State and local fiscal stabilization, for the
         fiscal year ending September 30, 2009, and for other purposes.

    _______________________________________________________________________

                        IN THE HOUSE OF REPRESENTATIVES

                                January 26, 2009

      Mr. Obey (for himself, Mr. Rangel, Mr. Waxman, Mr. George Miller of
        California, Mr. Oberstar, Mr. Gordon of Tennessee, Mr. Frank of
    Massachusetts, Ms. Velazquez, Mr. Spratt, and Mr. Towns) introduced the
    following bill; which was referred to the Committee on Appropriations,
      and in addition to the Committee on the Budget, for a period to be
    subsequently determined by the Speaker, in each case for consideration
      of such provisions as fall within the jurisdiction of the committee
                                   concerned

    _______________________________________________________________________

                                     A BILL

     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--APPROPRIATION PROVISIONS

    TITLE I--GENERAL PROVISIONS
    TITLE II--AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT
    TITLE III--COMMERCE, JUSTICE, AND SCIENCE
    TITLE IV--DEFENSE
    TITLE V--ENERGY AND WATER
    TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT
    TITLE VII--HOMELAND SECURITY
    TITLE VIII--INTERIOR AND ENVIRONMENT
    TITLE IX--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION
    TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS
    TITLE XI--DEPARTMENT OF STATE
    TITLE XII--TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT
    TITLE XIII--STATE FISCAL STABILIZATION FUND
                          DIVISION B--OTHER PROVISIONS

    TITLE I--TAX PROVISIONS
    TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
    TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED
    TITLE IV--HEALTH INFORMATION TECHNOLOGY
    TITLE V--MEDICAID PROVISIONS
    TITLE VI--BROADBAND COMMUNICATIONS
    TITLE VII--ENERGY

    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--APPROPRIATION PROVISIONS

    SEC. 1001. STATEMENT OF APPROPRIATIONS.

         The following sums in this Act are appropriated, out of any money
    in the Treasury not otherwise appropriated, for the fiscal year ending
    September 30, 2009, and for other purposes.

                          TITLE I--GENERAL PROVISIONS

                            Subtitle A--Use of Funds

    SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS.

        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).

    SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES.

        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.

    SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS.

        (a) Formula Grants.--Formula grants using funds made available in
    this Act shall be awarded not later than 30 days after the date of the
    enactment of this Act (or, in the case of appropriations not available
    upon enactment, not later than 30 days after the appropriation becomes
    available for obligation), unless expressly provided otherwise in this
    Act.
        (b) Competitive Grants.--Competitive grants using funds made
    available in this Act shall be awarded not later than 90 days after the
    date of the enactment of this Act (or, in the case of appropriations
    not available upon enactment, not later than 90 days after the
    appropriation becomes available for obligation), unless expressly
    provided otherwise in this Act.
        (c) Additional Period for New Programs.--The time limits specified
    in subsections (a) and (b) may each be extended by up to 30 days in the
    case of grants for which funding was not provided in fiscal year 2008.

    SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANTEES.

        (a) Deadline for Binding Commitments.--Each recipient of a grant
    made using amounts made available in this Act in any account listed in
    subsection (c) shall enter into contracts or other binding commitments
    not later than 1 year after the date of the enactment of this Act (or
    not later than 9 months after the grant is awarded, if later) to make
    use of 50 percent of the funds awarded, and shall enter into contracts
    or other binding commitments not later than 2 years after the date of
    the enactment of this Act (or not later than 21 months after the grant
    is awarded, if later) to make use of the remaining funds. In the case
    of activities to be carried out directly by a grant recipient (rather
    than by contracts, subgrants, or other arrangements with third
    parties), a certification by the recipient specifying the amounts,
    planned timing, and purpose of such expenditures shall be deemed a
    binding commitment for purposes of this section.
        (b) Redistribution of Uncommitted Funds.--The head of the Federal
    department or agency involved shall recover or deobligate any grant
    funds not committed in accordance with subsection (a), and redistribute
    such funds to other recipients eligible under the grant program and
    able to make use of such funds in a timely manner (including binding
    commitments within 120 days after the reallocation).
        (c) Appropriations to Which This Section Applies.--This section
    shall apply to grants made using amounts appropriated in any of the
    following accounts within this Act:
                (1) ``Environmental Protection Agency--State and Tribal
            Assistance Grants''.
                (2) ``Department of Transportation--Federal Aviation
            Administration--Grants-in-Aid for Airports''.
                (3) ``Department of Transportation--Federal Railroad
            Administration--Capital Assistance for Intercity Passenger Rail
            Service''.
                (4) ``Department of Transportation--Federal Transit
            Administration--Capital Investment Grants''.
                (5) ``Department of Transportation--Federal Transit
            Administration--Fixed Guideway Infrastructure Investment''.
                (6) ``Department of Transportation--Federal Transit
            Administration--Transit Capital Assistance''.
                (7) ``Department of Housing and Urban Development--Public
            and Indian Housing--Public Housing Capital Fund''.
                (8) ``Department of Housing and Urban Development--Public
            and Indian Housing--Elderly, Disabled, and Section 8 Assisted
            Housing Energy Retrofit''.
                (9) ``Department of Housing and Urban Development--Public
            and Indian Housing--Native American Housing Block Grants''.
                (10) ``Department of Housing and Urban Development--
            Community Planning and Development--HOME Investment
            Partnerships Program''.
                (11) ``Department of Housing and Urban Development--
            Community Planning and Development--Self-Help and Assisted
            Homeownership Opportunity Program''.

    SEC. 1105. PERIOD OF AVAILABILITY.

        (a) In General.--All funds appropriated in this Act shall remain
    available for obligation until September 30, 2010, unless expressly
    provided otherwise in this Act.
        (b) Reobligation.--Amounts that are not needed or cannot be used
    under title X of this Act for the activity for which originally
    obligated may be deobligated and, notwithstanding the limitation on
    availability specified in subsection (a), reobligated for other
    activities that have received funding from the same account or
    appropriation in such title.

    SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT.

        Unless other provision is made in this Act (or in other applicable
    law) for such expenses, up to 0.5 percent of each amount appropriated
    in this Act 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. Funds set aside under this section shall
    remain available for obligation until September 30, 2012.

    SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL.

        In addition to funds otherwise made available in this Act, there
    are hereby appropriated the following sums to the specified Offices of
    Inspector General, to remain available until September 30, 2013, for
    oversight and audit of programs, grants, and projects funded under this
    Act:
                (1) ``Department of Agriculture--Office of Inspector
            General'', $22,500,000.
                (2) ``Department of Commerce--Office of Inspector
            General'', $10,000,000.
                (3) ``Department of Defense--Office of the Inspector
            General'', $15,000,000.
                (4) ``Department of Education--Departmental Management--
            Office of the Inspector General'', $14,000,000.
                (5) ``Department of Energy--Office of Inspector General'',
            $15,000,000.
                (6) ``Department of Health and Human Services--Office of
            the Secretary--Office of Inspector General'', $19,000,000.
                (7) ``Department of Homeland Security--Office of Inspector
            General'', $2,000,000.
                (8) ``Department of Housing and Urban Development--
            Management and Administration--Office of Inspector General'',
            $15,000,000.
                (9) ``Department of the Interior--Office of Inspector
            General'', $15,000,000.
                (10) ``Department of Justice--Office of Inspector
            General'', $2,000,000.
                (11) ``Department of Labor--Departmental Management--Office
            of Inspector General'', $6,000,000.
                (12) ``Department of Transportation--Office of Inspector
            General'', $20,000,000.
                (13) ``Department of Veterans Affairs--Office of Inspector
            General'', $1,000,000.
                (14) ``Environmental Protection Agency--Office of Inspector
            General'', $20,000,000.
                (15) ``General Services Administration--General
            Activities--Office of Inspector General'', $15,000,000.
                (16) ``National Aeronautics and Space Administration--
            Office of Inspector General'', $2,000,000.
                (17) ``National Science Foundation--Office of Inspector
            General'', $2,000,000.
                (18) ``Small Business Administration--Office of Inspector
            General'', $10,000,000.
                (19) ``Social Security Administration--Office of Inspector
            General'', $2,000,000.
                (20) ``Corporation for National and Community Service--
            Office of Inspector General'', $1,000,000.

    SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNTABILITY OFFICE.

        There is hereby appropriated as an additional amount for
    ``Government Accountability Office--Salaries and Expenses''
    $25,000,000, for oversight activities relating to this Act.

    SEC. 1109. PROHIBITED USES.

        None of the funds appropriated or otherwise made available in this
    Act may be used for any casino or other gambling establishment,
    aquarium, zoo, golf course, or swimming pool.

    SEC. 1110. USE OF AMERICAN IRON AND STEEL.

        (a) In General.--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 and steel used in the project is produced in the
    United States.
        (b) Exceptions.--Subsection (a) shall not apply in any case in
    which the head of the Federal department or agency involved finds
    that--
                (1) applying subsection (a) would be inconsistent with the
            public interest;
                (2) iron and steel are not produced in the United States in
            sufficient and reasonably available quantities and of a
            satisfactory quality; or
                (3) inclusion of iron and steel produced in the United
            States will increase the cost of the overall project by more
            than 25 percent.
        (c) Written Justification for Waiver.--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) Definitions.--In this section, the terms ``public building''
    and ``public work'' have the meanings given such terms in section 1 of
    the Buy American Act (41 U.S.C. 10c) and include airports, bridges,
    canals, dams, dikes, pipelines, railroads, multiline mass transit
    systems, roads, tunnels, harbors, and piers.

    SEC. 1111. WAGE RATE REQUIREMENTS.

        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.

    SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE OF FUNDS.

        None of the funds provided by this Act may be made available to the
    State of Illinois, or any agency of the State, unless (1) the use of
    such funds by the State is approved in legislation enacted by the State
    after the date of the enactment of this Act, or (2) Rod R. Blagojevich
    no longer holds the office of Governor of the State of Illinois. The
    preceding sentence shall not apply to any funds provided directly to a
    unit of local government (1) by a Federal department or agency, or (2)
    by an established formula from the State.

    SEC. 1113. PERSISTENT POVERTY COUNTIES.

        (a) Allocation Requirement.--Of the amount appropriated in this Act
    for ``Department of Agriculture--Rural Development Programs--Rural
    Community Advancement Program'', at least 10 percent shall be allocated
    for assistance in persistent poverty counties.
        (b) Definition.--For 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.

    SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PROGRAM.

        None of the funds made available in this Act may be used to enter
    into a contract with an entity that does not participate in the E-
    verify program described in section 401(b) of the Illegal Immigration
    Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

              Subtitle B--Accountability in Recovery Act Spending

                PART 1--TRANSPARENCY AND OVERSIGHT REQUIREMENTS

    SEC. 1201. TRANSPARENCY REQUIREMENTS.

        (a) Requirements for Federal Agencies.--Each Federal agency shall
    publish on the website Recovery.gov (as established under section 1226
    of this subtitle)--
                (1) a plan for using funds made available in this Act to
            the agency; and
                (2) all announcements for grant competitions, allocations
            of formula grants, and awards of competitive grants using those
            funds.
        (b) Requirements for Federal, State, and Local Government
    Agencies.--
                (1) Infrastructure investment funding.--With respect to
            funds made available under this Act for infrastructure
            investments to Federal, State, or local government agencies,
            the following requirements apply:
                        (A) Each such agency shall notify the public of
                    funds obligated to particular infrastructure
                    investments by posting the notification on the website
                    Recovery.gov.
                        (B) The notification required by subparagraph (A)
                    shall include the following:
                                (i) A description of the infrastructure
                            investment funded.
                                (ii) The purpose of the infrastructure
                            investment.
                                (iii) The total cost of the infrastructure
                            investment.
                                (iv) The rationale of the agency for
                            funding the infrastructure investment with
                            funds made available under this Act.
                                (v) The name of the person to contact at
                            the agency if there are concerns with the
                            infrastructure investment and, with respect to
                            Federal agencies, an email address for the
                            Federal official in the agency whom the public
                            can contact.
                                (vi) In the case of State or local
                            agencies, a certification from the Governor,
                            mayor, or other chief executive, as
                            appropriate, that the infrastructure investment
                            has received the full review and vetting
                            required by law and that the chief executive
                            accepts responsibility that the infrastructure
                            investment is an appropriate use of taxpayer
                            dollars. A State or local agency may not
                            receive infrastructure investment funding from
                            funds made available in this Act unless this
                            certification is made.
                (2) Operational funding.--With respect to funds made
            available under this Act in the form of grants for operational
            purposes to State or local government agencies or other
            organizations, the agency or organization shall publish on the
            website Recovery.gov a description of the intended use of the
            funds, including the number of jobs sustained or created.
        (c) Availability on Internet of Contracts and Grants.--Each
    contract awarded or grant issued using funds made available in this Act
    shall be posted on the Internet and linked to the website Recovery.gov.
    Proprietary data that is required to be kept confidential under
    applicable Federal or State law or regulation shall be redacted before
    posting.

    SEC. 1202. 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 an inspector general resulting from such a
    review shall be relayed immediately to the head of each department and
    agency. 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 Internet and linked to the website
    Recovery.gov.
        (b) Examination of Records.--The Inspector General of the agency
    concerned may examine any records related to obligations of funds made
    available in this Act.

    SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE REVIEWS AND REPORTS.

        (a) Reviews and Reports.--The Comptroller General of the United
    States 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 Recovery.gov.
        (b) Examination of Records.--The Comptroller General may examine
    any records related to obligations of funds made available in this Act.

    SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS.

        The Chairman of the Council of Economic Advisers, in consultation
    with the Director of the Office of Management and Budget and the
    Secretary of the Treasury, shall submit quarterly reports to Congress
    detailing the estimated impact of programs under this Act on
    employment, economic growth, and other key economic indicators.

    SEC. 1205. SPECIAL CONTRACTING PROVISIONS.

        The Federal Acquisition Regulation shall apply to contracts awarded
    with funds made available in this Act. To the maximum extent possible,
    such contracts shall be awarded as fixed-price contracts through the
    use of competitive procedures. Existing contracts so awarded may be
    utilized in order to obligate such funds expeditiously. 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 Recovery.gov.

                 PART 2--ACCOUNTABILITY AND TRANSPARENCY BOARD

    SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND TRANSPARENCY BOARD.

        There is established a board to be known as the ``Recovery Act
    Accountability and Transparency Board'' (hereafter in this subtitle
    referred to as the ``Board'') to coordinate and conduct oversight of
    Federal spending under this Act to prevent waste, fraud, and abuse.

    SEC. 1222. COMPOSITION OF BOARD.

        (a) Membership.--The Board shall be composed of seven members as
    follows:
                (1) The Chief Performance Officer of the President, who
            shall chair the Board.
                (2) Six members designated by the President from the
            inspectors general and deputy secretaries of the Departments of
            Education, Energy, Health and Human Services, Transportation,
            and other Federal departments and agencies to which funds are
            made available in this Act.
        (b) Terms.--Each member of the Board shall serve for a term to be
    determined by the President.

    SEC. 1223. FUNCTIONS OF THE BOARD.

        (a) Oversight.--The Board shall coordinate and conduct oversight of
    spending under this Act to prevent waste, fraud, and abuse. In addition
    to responsibilities set forth in this subtitle, the responsibilities of
    the Board shall include the following:
                (1) Ensuring that the reporting of information regarding
            contract and grants under this Act meets applicable standards
            and specifies the purpose of the contract or grant and measures
            of performance.
                (2) Verifying that competition requirements applicable to
            contracts and grants under this Act and other applicable
            Federal law have been satisfied.
                (3) Investigating spending under this Act to determine
            whether wasteful spending, poor contract or grant management,
            or other abuses are occurring.
                (4) Reviewing whether there are sufficient qualified
            acquisition and grant personnel overseeing spending under this
            Act.
                (5) Reviewing whether acquisition and grant personnel
            receive adequate training and whether there are appropriate
            mechanisms for interagency collaboration.
        (b) Reports.--
                (1) Flash and other reports.--The Board shall submit to
            Congress 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.--The Board shall submit to the President and
            Congress quarterly reports summarizing its findings and the
            findings of agency inspectors general and may issue additional
            reports as appropriate.
                (3) Annually.--On an annual basis, the Board shall prepare
            a consolidated report on the use of funds under this Act. All
            reports shall be publicly available and shall be posted on the
            Internet website Recovery.gov, except that portions of reports
            may be redacted if the portions would disclose information that
            is protected from public disclosure under section 552 of title
            5, United States Code (popularly known as the Freedom of
            Information Act).
        (c) Recommendations to Agencies.--The Board shall make
    recommendations to Federal agencies on measures to prevent waste,
    fraud, and abuse. A Federal agency shall, within 30 days after receipt
    of any such recommendation, submit to the Board, the President, and the
    congressional committees of jurisdiction a report on whether the agency
    agrees or disagrees with the recommendations and what steps, if any,
    the agency plans to take to implement the recommendations.

    SEC. 1224. POWERS OF THE BOARD.

        (a) Coordination of Audits and Investigations by Agency Inspectors
    General.--The Board shall coordinate the audits and investigations of
    spending under this Act by agency inspectors general.
        (b) Conduct of Reviews by Board.--The Board may conduct reviews of
    spending under this Act and may collaborate on such reviews with any
    inspector general.
        (c) Meetings.--The Board may, for the purpose of carrying out its
    duties under this Act, hold public meetings, sit and act at times and
    places, and receive information as the Board considers appropriate. The
    Board shall meet at least once a month.
        (d) Obtaining Official Data.--The Board may secure directly from
    any department or agency of the United States information necessary to
    enable it to carry out its duties under this Act. Upon request of the
    Chairman of the Board, the head of that department or agency shall
    furnish that information to the Board.
        (e) Contracts.--The Board may enter into contracts to enable the
    Board to discharge its duties under this Act.

    SEC. 1225. STAFFING.

        (a) Executive Director.--The Chairman of the Board may appoint and
    fix the compensation of an executive director and other personnel as
    may be required to carry out the functions of the Board. The Director
    shall be paid at the rate of basic pay for level IV of the Executive
    Schedule.
        (b) Staff of Federal Agencies.--Upon request of the Board, the head
    of any Federal department or agency may detail any Federal official or
    employee, including officials and employees of offices of inspector
    general, to the Board without reimbursement from the Board, and such
    detailed staff shall retain the rights, status, and privileges of his
    or her regular employment without interruption.
        (c) Office Space.--Office space shall be provided to the Board
    within the Executive Office of the President.

    SEC. 1226. RECOVERY.GOV.

        (a) Requirement To Establish Website.--The Board shall establish
    and maintain a website on the Internet to be named Recovery.gov, to
    foster greater accountability and transparency in the use of funds made
    available in this Act.
        (b) Purpose.--Recovery.gov shall be a portal or gateway to key
    information related to this Act and provide a window to other
    Government websites with related information.
        (c) Matters Covered.--In establishing the website Recovery.gov, the
    Board shall ensure the following:
                (1) The website shall provide materials explaining what
            this Act means for citizens. The materials shall be easy to
            understand and regularly updated.
                (2) The website shall provide accountability information,
            including a database of findings from audits, inspectors
            general, and the Government Accountability Office.
                (3) The website shall provide data on relevant economic,
            financial, grant, and contract information in user-friendly
            visual presentations to enhance public awareness of the use
            funds made available in this Act.
                (4) The website shall provide detailed data on contracts
            awarded by the Government for purposes of carrying out this
            Act, including information about the competitiveness of the
            contracting process, notification of solicitations for
            contracts to be awarded, and information about the process that
            was used for the award of contracts.
                (5) The website shall include printable reports on funds
            made available in this Act 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 awarded for
            purposes of carrying out this Act.
                (7) The website shall be enhanced and updated as necessary
            to carry out the purposes of this subtitle.

    SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF INSPECTORS GENERAL.

        Inspectors general shall retain independent authority to determine
    whether to conduct an audit or investigation of spending under this
    Act. 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,
    within 30 days after receipt of the request, submit to the Board, the
    agency head, and the congressional committees of jurisdiction a report
    explaining why the inspector general has rejected the request in whole
    or in part.

    SEC. 1228. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE
                  AUDITORS.

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

    SEC. 1229. INDEPENDENT ADVISORY PANEL.

        (a) Establishment.--There is established a panel to be known as the
    ``Independent Advisory Panel'' to advise the Board.
        (b) Membership.--The Panel shall be composed of five members
    appointed by the President from among individuals with expertise in
    economics, public finance, contracting, accounting, or other relevant
    fields.
        (c) Functions.--The Panel shall make recommendations to the Board
    on actions the Board could take to prevent waste, fraud, and abuse in
    Federal spending under this Act.
        (d) Travel Expenses.--Each member of the Panel shall receive travel
    expenses, including per diem in lieu of subsistence, in accordance with
    applicable provisions under subchapter I of chapter 57 of title 5,
    United States Code.

    SEC. 1230. FUNDING.

        There is hereby appropriated to the Board $14,000,000 to carry out
    this subtitle.

    SEC. 1231. BOARD TERMINATION.

         The Board shall terminate 12 months after 90 percent of the funds
    made available under this Act have been expended, as determined by the
    Director of the Office of Management and Budget.

         PART 3--ADDITIONAL ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

    SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NONCOMPETITIVE
                  CONTRACTS.

        No contract entered into using funds made available in this Act
    pursuant to the authority provided in section 303(c)(2) of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)(2))
    that is for an amount greater than the simplified acquisition threshold
    (as defined in section 4(11) of the Office of Federal Procurement
    Policy Act (41 U.S.C. (4)(11))--
                (1) may exceed the time necessary--
                        (A) to meet the unusual and compelling requirements
                    of the work to be performed under the contract; and
                        (B) for the executive agency to enter into another
                    contract for the required goods or services through the
                    use of competitive procedures; and
                (2) may exceed one year unless the head of the executive
            agency entering into such contract determines that exceptional
            circumstances apply.

    SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OFFICE AND OFFICES OF
                  INSPECTOR GENERAL TO CERTAIN EMPLOYEES.

        (a) Access.--Each contract awarded using funds made available in
    this Act shall provide that the Comptroller General and his
    representatives, and any representatives of an appropriate inspector
    general appointed under section 3 or 8G of the Inspector General Act of
    1978 (5 U.S.C. App.), are authorized--
                (1) to examine any records of the contractor or any of its
            subcontractors, or any State or local agency administering such
            contract, that directly pertain to, and involve transactions
            relating to, the contract or subcontract; and
                (2) to interview any current employee regarding such
            transactions.
        (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 or an Inspector General.

    SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
                  WHISTLEBLOWERS.

        (a) Prohibition of Reprisals.--An employee of any non-Federal
    employer receiving funds made available in this Act may not be
    discharged, demoted, or otherwise discriminated against as a reprisal
    for disclosing to the Board, an inspector general, the Comptroller
    General, a member of Congress, or a Federal agency head, or their
    representatives, information that the employee reasonably believes is
    evidence of--
                (1) gross mismanagement of an executive agency contract or
            grant;
                (2) a gross waste of executive agency funds;
                (3) a substantial and specific danger to public health or
            safety; or
                (4) a violation of law related to an executive agency
            contract (including the competition for or negotiation of a
            contract) or grant awarded or issued to carry out this Act.
        (b) Investigation of Complaints.--
                (1) A person who believes that the person has been
            subjected to a reprisal prohibited by subsection (a) may submit
            a complaint to the inspector general of the executive agency
            that awarded the contract or issued the grant. Unless the
            inspector general determines that the complaint is frivolous,
            the inspector general shall investigate the complaint and, upon
            completion of such investigation, submit a report of the
            findings of the investigation to the person, the person's
            employer, the head of the Federal agency that awarded the
            contract or issued the grant, and the Board.
                (2)(A) Except as provided under subparagraph (B), the
            inspector general shall make a determination that a complaint
            is frivolous or submit a report under paragraph (1) within 180
            days after receiving the complaint.
                (B) If the inspector general is unable to complete an
            investigation in time to submit a report within the 180-day
            period specified in subparagraph (A) and the person submitting
            the complaint agrees to an extension of time, the inspector
            general shall submit a report under paragraph (1) within such
            additional period of time as shall be agreed upon between the
            inspector general and the person submitting the complaint.
        (c) Remedy and Enforcement Authority.--
                (1) Not later than 30 days after receiving an inspector
            general report pursuant to subsection (b), the head of the
            agency concerned shall determine whether there is sufficient
            basis to conclude that the non-Federal employer has subjected
            the complainant to a reprisal prohibited by subsection (a) and
            shall either issue an order denying relief or shall take one or
            more of the following actions:
                        (A) Order the employer to take affirmative action
                    to abate the reprisal.
                        (B) Order the employer to reinstate the person to
                    the position that the person held before the reprisal,
                    together with the compensation (including back pay),
                    employment benefits, and other terms and conditions of
                    employment that would apply to the person in that
                    position if the reprisal had not been taken.
                        (C) Order the employer to pay the complainant an
                    amount equal to the aggregate amount of all costs and
                    expenses (including attorneys' fees and expert
                    witnesses' fees) that were reasonably incurred by the
                    complainant for, or in connection with, bringing the
                    complaint regarding the reprisal, as determined by the
                    head of the agency.
                (2) If the head of an executive agency issues an order
            denying relief under paragraph (1) or has not issued an order
            within 210 days after the submission of a complaint under
            subsection (b), or in the case of an extension of time under
            paragraph (b)(2)(B), not later than 30 days after the
            expiration of the extension of time, and there is no showing
            that such delay is due to the bad faith of the complainant, the
            complainant shall be deemed to have exhausted all
            administrative remedies with respect to the complaint, and the
            complainant may bring a de novo action at law or equity against
            the employer to seek compensatory damages and other relief
            available under this section in the appropriate district court
            of the United States, which shall have jurisdiction over such
            an action without regard to the amount in controversy. Such an
            action shall, at the request of either party to the action, be
            tried by the court with a jury.
                (3) An inspector general determination and an agency head
            order denying relief under paragraph (2) shall be admissible in
            evidence in any de novo action at law or equity brought
            pursuant to this subsection.
                (4) Whenever a person fails to comply with an order issued
            under paragraph (1), the head of the agency shall file an
            action for enforcement of such order in the United States
            district court for a district in which the reprisal was found
            to have occurred. In any action brought under this paragraph,
            the court may grant appropriate relief, including injunctive
            relief and compensatory and exemplary damages.
                (5) Any person adversely affected or aggrieved by an order
            issued under paragraph (1) may obtain review of the order's
            conformance with this subsection, and any regulations issued to
            carry out this section, in the United States court of appeals
            for a circuit in which the reprisal is alleged in the order to
            have occurred. No petition seeking such review may be filed
            more than 60 days after issuance of the order by the head of
            the agency. Review shall conform to chapter 7 of title 5.
        (d) Construction.--Nothing in this section may be construed to
    authorize the discharge of, demotion of, or discrimination against an
    employee for a disclosure other than a disclosure protected by
    subsection (a) or to modify or derogate from a right or remedy
    otherwise available to the employee.
        (e) Definitions.--
                (1) Non-federal employer receiving funds under this act.--
            The term ``non-Federal employer receiving funds made available
            in this Act'' means--
                        (A) with respect to a Federal contract awarded or
                    Federal grant issued to carry out this Act, the
                    contractor or grantee, as the case may be, if the
                    contractor or grantee is an employer; or
                        (B) a State or local government, if the State or
                    local government has received funds made available in
                    this Act.
                (2) Executive agency.--The term ``executive agency'' has
            the meaning given that term in section 4 of the Office of
            Federal Procurement Policy Act (41 U.S.C. 403).
                (3) 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
                    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).

            TITLE II--AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT

                           DEPARTMENT OF AGRICULTURE

            Agriculture Buildings and Facilities and Rental Payments

        For an additional amount for ``Agriculture Buildings and Facilities
    and Rental Payments'', $44,000,000, for necessary construction, repair,
    and improvement activities: Provided, That section 1106 of this Act
    shall not apply to this appropriation.

                         Agricultural Research Service

                            buildings and facilities

        For an additional amount for ``Buildings and Facilities'',
    $209,000,000, 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 ``Salaries and Expenses,''
    $245,000,000, for the purpose of maintaining and modernizing the
    information technology system: Provided, That section 1106 of this Act
    shall not apply to this appropriation.

                     Natural Resources Conservation Service

                   watershed and flood prevention operations

         For an additional amount for ``Watershed and Flood Prevention
    Operations'', $350,000,000, of which $175,000,000 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 $50,000,000 of the amount provided for the
    purchase of floodplain easements may be obligated for projects in any
    one State): Provided, That section 1106 of this Act shall not apply to
    this appropriation: Provided further, That priority in the use of such
    funds shall be given 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, for necessary expenses to carry out rehabilitation of
    structural measures: Provided, That section 1106 of this Act shall not
    apply to this appropriation: Provided further, That priority in the use
    of such funds shall be given 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 Development Programs

                      rural community advancement program

                         (including transfers of funds)

         For an additional amount for gross obligations for the principal
    amount of direct and guaranteed loans as authorized by sections 306 and
    310B and described in sections 381E(d)(1), 381E(d)(2), and 381E(d)(3)
    of the Consolidated Farm and Rural Development Act, to be available
    from the rural community advancement program, as follows:
    $5,838,000,000, of which $1,102,000,000 is for rural community
    facilities direct loans, of which $2,000,000,000 is for business and
    industry guaranteed loans, and of which $2,736,000,000 is for rural
    water and waste disposal direct loans.
        For an additional amount for the cost of direct loans, loan
    guarantees, and grants, including the cost of modifying loans, as
    defined in section 502 of the Congressional Budget Act of 1974, as
    follows: $1,800,000,000, of which $63,000,000 is for rural community
    facilities direct loans, of which $137,000,000 is for rural community
    facilities grants authorized under section 306(a) of the Consolidated
    Farm and Rural Development Act, of which $87,000,000 is for business
    and industry guaranteed loans, of which $13,000,000 is for rural
    business enterprise grants authorized under section 310B of the
    Consolidated Farm and Rural Development Act, of which $400,000,000 is
    for rural water and waste disposal direct loans, and of which
    $1,100,000,000 is for rural water and waste disposal grants authorized
    under section 306(a): Provided, That the amounts appropriated under
    this heading shall be transferred to, and merged with, the
    appropriation for ``Rural Housing Service, Rural Community Facilities
    Program Account'', the appropriation for ``Rural Business-Cooperative
    Service, Rural Business Program Account'', and the appropriation for
    ``Rural Utilities Service, Rural Water and Waste Disposal Program
    Account'': 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 enactment of this Act.
        In addition to other available funds, the Secretary of Agriculture
    may use not more than 3 percent of the funds made available under this
    account for administrative costs to carry out loans, loan guarantees,
    and grants funded under this account, which shall be transferred and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses'' and shall remain available until September 30, 2012:
    Provided, That the authority provided in this paragraph shall apply to
    appropriations under this heading in lieu of the provisions of section
    1106 of this Act.
        Funds appropriated by this Act to the Rural Community Advancement
    Program for rural community facilities, rural business, and rural water
    and waste disposal direct loans, loan guarantees and grants may be
    transferred among these programs: Provided, That the Committees on
    Appropriations of the House of Representatives and the Senate shall be
    notified at least 15 days in advance of any transfer.

                             Rural Housing Service

                  rural housing insurance fund program account

                         (including transfers of funds)

         For an additional amount of 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: $22,129,000,000 for loans to section 502
    borrowers, of which $4,018,000,000 shall be for direct loans, and of
    which $18,111,000,000 shall be for 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: section 502 loans,
    $500,000,000, of which $270,000,000 shall be for direct loans, and of
    which $230,000,000 shall be for unsubsidized guaranteed loans.
        In addition to other available funds, the Secretary of Agriculture
    may use not more than 3 percent of the funds made available under this
    account for administrative costs to carry out loans and loan guarantees
    funded under this account, of which $1,750,000 will 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: Provided, These funds shall be transferred and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses'':  Provided further, That the authority provided in this
    paragraph shall apply to appropriations under this heading in lieu of
    the provisions of section 1106 of this Act.
        Funds appropriated by this Act to the Rural Housing Insurance Fund
    Program account for section 502 direct loans and unsubsidized
    guaranteed loans may be transferred between these programs: Provided,
    That the Committees on Appropriations of the House of Representatives
    and the Senate shall be notified at least 15 days in advance of any
    transfer.

                            Rural Utilities Service

             distance learning, telemedicine, and broadband program

                         (including transfers of funds)

         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, $2,825,000,000: 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 open
    access 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 funds made available under this paragraph shall
    be given to projects that provide service to the most 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 notwithstanding section 1103 of this
    Act, 50 percent of the grants, loans, and loan guarantees made
    available under this heading shall be awarded not later than September
    30, 2009: 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 enactment of this Act: 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 Deployment Grant 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.
         In addition to other available funds, the Secretary may use not
    more than 3 percent of the funds made available under this account for
    administrative costs to carry out loans, loan guarantees, and grants
    funded under this account, which shall be transferred and merged with
    the appropriation for ``Rural Development, Salaries and Expenses'' and
    shall remain available until September 30, 2012: Provided, That the
    authority provided in this paragraph shall apply to appropriations
    under this heading in lieu of the provisions of section 1106 of this
    Act.

                           Food and Nutrition Service

    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), $100,000,000, for the purposes specified in section
    17(h)(10)(B)(ii) for the Secretary of Agriculture to provide assistance
    to State agencies to implement new management information systems or
    improve existing management information systems for the program.

                       emergency food 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, of which $100,000,000
    is for the purchase of commodities and of which $50,000,000 is for
    costs associated with the distribution of commodities.

                         GENERAL PROVISIONS, THIS TITLE

    SEC. 2001. 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
                    allotment 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; and
                (4) have the authority to take such measures as necessary
            to ensure the efficient administration of the benefits provided
            in this section.
        (c) Administrative Expenses.--
                (1) In general.--For the costs of State administrative
            expenses associated with carrying out this section, the
            Secretary shall make available $150,000,000 in each of fiscal
            years 2009 and 2010, to remain available through September 30,
            2012, 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) Availability of funds.--Funds described in paragraph
            (1) shall be made available as grants to State agencies based
            on each State's share of households that participate in the
            Supplemental Nutrition Assistance Program as reported to the
            Department of Agriculture for the 12-month period ending with
            June, 2008.
        (d) Treatment of Jobless Workers.--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, jobless
    adults who comply with work registration and employment and training
    requirements under section 6, section 20, or section 26 of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2015, 2029, or 2035) shall not be
    disqualified from the Supplemental Nutrition Assistance Program because
    of the provisions of section 6(o)(2) of such Act (7 U.S.C. 2015(o)(2)).
    Beginning on October 1, 2010, for the purposes of section 6(o), a State
    agency shall disregard any period during which an individual received
    Supplemental Nutrition Assistance Program benefits prior to October 1,
    2010.
        (e) Funding.--There is appropriated to the Secretary of Agriculture
    such sums as are necessary to carry out this section, to remain
    available until expended. Section 1106 of this Act shall not apply to
    this appropriation.

    SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK CHILDREN.

        Section 17(r) of the Richard B. Russell National School Lunch Act
    (42 U.S.C. 1766(r)) is amended by striking paragraph (5).

                   TITLE III--COMMERCE, JUSTICE, AND SCIENCE

                              Subtitle A--Commerce

                             DEPARTMENT OF COMMERCE

                      Economic Development Administration

                    Economic Development Assistance Programs

                         (including transfer of funds)

        For an additional amount for ``Economic Development Assistance
    Programs'', $250,000,000: Provided, That the amount set aside from this
    appropriation pursuant to section 1106 of this Act shall not exceed 2
    percent instead of the percentage specified in such section: Provided
    further, That the amount set aside pursuant to the previous proviso
    shall 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 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: Provided, That section 1106 of this Act shall not apply
    to funds provided under this heading.

           National Telecommunications and Information Administration

                             salaries and expenses

         For an additional amount for ``Salaries and Expenses'',
    $350,000,000, to remain available until September 30, 2011: Provided,
    That funds shall be available to establish the State Broadband Data and
    Development Grant Program, as authorized by Public Law 110-385, for the
    development and implementation of statewide initiatives to identify and
    track the availability and adoption of broadband services within each
    State, and to develop and maintain a nationwide broadband inventory
    map, as authorized by section 6001 of division B of this Act.

                wireless and broadband deployment grant programs

                         (including transfer of funds)

        For necessary expenses related to the Wireless and Broadband
    Deployment Grant Programs established by section 6002 of division B of
    this Act, $2,825,000,000, of which $1,000,000,000 shall be for Wireless
    Deployment Grants and $1,825,000,000 shall be for Broadband Deployment
    Grants: Provided, That the National Telecommunications and Information
    Administration shall submit a report on planned spending and actual
    obligations describing the use of these funds not later than 120 days
    after the date of enactment of this Act, and an update report not later
    than 60 days following the initial report, 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:
    Provided further, That notwithstanding section 1103 of this Act, 50
    percent of the grants made available under this heading shall be
    awarded not later than September 30, 2009: Provided further, That up to
    20 percent of the funds provided under this heading for Wireless
    Deployment Grants and Broadband Deployment Grants may be transferred
    between these programs: Provided further, That the Committees on
    Appropriations of the House of Representatives and the Senate shall be
    notified at least 15 days in advance of any transfer.

                    digital-to-analog converter box program

        Notwithstanding any other provision of law, and in addition to
    amounts otherwise provided in any other Act, for costs associated with
    the Digital-to-Analog Converter Box Program, $650,000,000, to be
    available until September 30, 2009: Provided, That these funds shall be
    available for coupons and related activities, including but not limited
    to education, consumer support and outreach, as deemed appropriate and
    necessary to ensure a timely conversion of analog to digital
    television.

                 National Institute of Standards and Technology

                 scientific and technical research and services

         For an additional amount for ``Scientific and Technical Research
    and Services'', $100,000,000.

                         industrial technology services

         For an additional amount for ``Industrial Technology Services'',
    $100,000,000, of which $70,000,000 shall be available for the necessary
    expenses of the Technology Innovation Program and $30,000,000 shall be
    available for the necessary expenses of the Hollings Manufacturing
    Extension Partnership.

                      construction of research facilities

         For an additional amount for ``Construction of Research
    Facilities'', as authorized by sections 13 through 15 of the Act of
    March 13, 1901 (15 U.S.C. 278c-278e), $300,000,000, for a competitive
    construction grant program for research science buildings: Provided
    further, That for peer-reviewed grants made under this heading, the
    time limitation provided in section 1103(b) of this Act shall be 120
    days.

                National Oceanic and Atmospheric Administration

                      operations, research, and facilities

        For an additional amount for ``Operations, Research, and
    Facilities'', $400,000,000, for habitat restoration and mitigation
    activities.

                   procurement, acquisition and construction

        For an additional amount for ``Procurement, Acquisition and
    Construction'', $600,000,000, for accelerating satellite development
    and acquisition, acquiring climate sensors and climate modeling
    capacity, and establishing climate data records: Provided further, That
    not less than $140,000,000 shall be available for climate data
    modeling.

                              Subtitle B--Justice

                             DEPARTMENT OF JUSTICE

                   State and Local Law Enforcement Activities

                           Office of Justice Programs

                   state and local law enforcement assistance

        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $3,000,000,000, to be available 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 Act of
    1968, (except that section 1001(c), and the special rules for Puerto
    Rico under section 505(g), of such Act shall not apply for purposes of
    this Act): Provided, That section 1106 of this Act shall not apply to
    funds provided under this heading.

                      community oriented policing services

        For an additional amount for ``Community Oriented Policing
    Services'', $1,000,000,000, to be available for grants under section
    1701 of title I of the 1968 Act (42 U.S.C. 3796dd) for the hiring and
    rehiring of additional career law enforcement officers under part Q of
    such title notwithstanding subsection (i) of such section: Provided,
    That for peer-reviewed grants made under this heading, the time
    limitation provided in section 1103(b) of this Act shall be 120 days.

                              Subtitle C--Science

                 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                                    science

         For an additional amount for ``Science'', $400,000,000, of which
    not less than $250,000,000 shall be solely for accelerating the
    development of the tier 1 set of Earth science climate research
    missions recommended by the National Academies Decadal Survey.

                                  aeronautics

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

                         cross agency support programs

         For an additional amount for ``Cross Agency Support Programs'',
    for necessary expenses for restoration and mitigation of National
    Aeronautics and Space Administration owned infrastructure and
    facilities related to the consequences of hurricanes, floods, and other
    natural disasters occurring during 2008 for which the President
    declared a major disaster under title IV of the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act of 1974, $50,000,000.

                          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: Provided, That for peer-
    reviewed grants made under this heading, the time limitation provided
    in section 1103(b) of this Act shall be 120 days.

                         education and human resources

         For an additional amount for ``Education and Human Resources'',
    $100,000,000: Provided, That $60,000,000 shall be for activities
    authorized by section 7030 of Public Law 110-69 and $40,000,000 shall
    be for activities authorized by section 9 of the National Science
    Foundation Authorization Act of 2002 (42 U.S.C. 1862n).

              major research equipment and facilities construction

         For an additional amount for ``Major Research Equipment and
    Facilities Construction'', $400,000,000, which shall be available only
    for approved projects.

                               TITLE IV--DEFENSE

                             DEPARTMENT OF DEFENSE

                  Facility Infrastructure Investments, Defense

        For expenses, not otherwise provided for, to improve, repair and
    modernize Department of Defense facilities, restore and modernize Army
    barracks, and invest in the energy efficiency of Department of Defense
    facilities, $4,500,000,000, for Facilities Sustainment, Restoration and
    Modernization programs of the Department of Defense (including minor
    construction and major maintenance and repair), which shall be
    available as follows:
                (1) ``Operation and Maintenance, Army'', $1,490,804,000.
                (2) ``Operation and Maintenance, Navy'', $624,380,000.
                (3) ``Operation and Maintenance, Marine Corps'',
            $128,499,000.
                (4) ``Operation and Maintenance, Air Force'',
            $1,236,810,000.
                (5) ``Defense Health Program'', $454,658,000.
                (6) ``Operation and Maintenance, Army Reserve'',
            $110,899,000.
                (7) ``Operation and Maintenance, Navy Reserve'',
            $62,162,000.
                (8) ``Operation and Maintenance, Marine Corps Reserve'',
            $45,038,000.
                (9) ``Operation and Maintenance, Air Force Reserve'',
            $14,881,000.
                (10) ``Operation and Maintenance, Army National Guard'',
            $302,700,000.
                (11) ``Operation and Maintenance, Air National Guard'',
            $29,169,000.

                    Energy Research and Development, Defense

        For expenses, not otherwise provided for, for research,
    development, test and evaluation programs for improvements in energy
    generation, transmission, regulation, use, and storage, for military
    installations, military vehicles, and other military equipment,
    $350,000,000, which shall be available as follows:
                (1) ``Research, Development, Test and Evaluation, Army'',
            $87,500,000.
                (2) ``Research, Development, Test and Evaluation, Navy'',
            $87,500,000.
                (3) ``Research, Development, Test and Evaluation, Air
            Force'', $87,500,000.
                (4) ``Research, Development, Test and Evaluation, Defense-
            Wide'', $87,500,000

                           TITLE V--ENERGY AND WATER

                             DEPARTMENT OF THE ARMY

                           Corps of Engineers--Civil

                                  construction

        For an additional amount for ``Construction'', $2,000,000,000:
    Provided, That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall
    not apply to funds provided in this paragraph: 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 in this paragraph may only be used for programs, projects or
    activities previously funded: Provided further, That the Corps of
    Engineers is directed to prioritize funding for activities based on the
    ability to accelerate existing contracts or fully fund project elements
    and contracts for such elements in a time period of 2 years after the
    date of enactment of this Act giving preference to projects and
    activities that are labor intensive: Provided further, That funds
    provided in this paragraph shall be used for elements of projects,
    programs or activities that can be completed using funds provided
    herein: Provided further, That funds appropriated in this paragraph 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 one or more of 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), and 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 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 are otherwise
    expired or lapsed for obligation, expired or lapsed 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.

                       mississippi river and tributaries

        For an additional amount for ``Mississippi River and Tributaries'',
    $250,000,000: Provided, That funds provided in this paragraph may only
    be used for programs, projects, or activities previously funded:
    Provided further, That the Corps of Engineers is directed to prioritize
    funding for activities based on the ability to accelerate existing
    contracts or fully fund project elements and contracts for such
    elements in a time period of 2 years after the date of enactment of
    this Act giving preference to projects and activities that are labor
    intensive: Provided further, That funds provided in this paragraph
    shall be used for elements of projects, programs, or activities that
    can be completed using funds provided herein: Provided further, That
    for projects that are being completed with funds appropriated in this
    Act that are otherwise expired or lapsed for obligation, expired or
    lapsed 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.

                           operation and maintenance

        For an additional amount for ``Operation and Maintenance'',
    $2,225,000,000: Provided, That the Corps of Engineers is directed to
    prioritize funding for activities based on the ability to accelerate
    existing contracts or fully fund project elements and contracts for
    such elements in a time period of 2 years after the date of enactment
    of this Act giving preference to projects and activities that are labor
    intensive: Provided further, That funds provided in this paragraph
    shall be used for elements of projects, programs, or activities that
    can be completed using funds provided herein: Provided further, That
    for projects that are being completed with funds appropriated in this
    Act that are otherwise expired or lapsed for obligation, expired or
    lapsed 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.

                               regulatory program

        For an additional amount for ``Regulatory Program'', $25,000,000.

                           DEPARTMENT OF THE INTERIOR

                             Bureau of Reclamation

                          water and related resources

        For an additional amount for ``Water and Related Resources'',
    $500,000,000: 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 of the amount appropriated under this heading,
    not less than $80,000,000 shall be used for rural water projects and
    these funds shall be expended primarily on water intake and treatment
    facilities of such projects: Provided further, That the costs of
    reimbursable activities, other than for maintenance and rehabilitation,
    carried out with funds made available under this heading shall be
    repaid pursuant to existing authorities and agreements: Provided
    further, That the costs of maintenance and rehabilitation activities
    carried out with funds provided in this Act shall be repaid pursuant to
    existing authority, except the length of repayment period shall be
    determined on needs-based criteria to be established and adopted by the
    Commissioner of the Bureau of Reclamation, but in no case shall the
    repayment period exceed 25 years.

                              DEPARTMENT OF ENERGY

                                ENERGY PROGRAMS

                     Energy Efficiency and Renewable Energy

         For an additional amount for ``Energy Efficiency and Renewable
    Energy'', $18,500,000,000, which shall be used as follows:
                (1) $2,000,000,000 shall be for expenses necessary for
            energy efficiency and renewable energy research, development,
            demonstration and deployment activities, to accelerate the
            development of technologies, to include advanced batteries, of
            which not less than $800,000,000 is for biomass and
            $400,000,000 is for geothermal technologies.
                (2) $500,000,000 shall be for expenses necessary to
            implement the programs authorized under part E of title III of
            the Energy Policy and Conservation Act (42 U.S.C. 6341 et
            seq.).
                (3) $1,000,000,000 shall be for the cost of grants to
            institutional entities for energy sustainability and efficiency
            under section 399A of the Energy Policy and Conservation Act
            (42 U.S.C. 6371h-1).
                (4) $6,200,000,000 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.).
                (5) $3,500,000,000 shall be 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.).
                (6) $3,400,000,000 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).
                (7) $200,000,000 shall be for expenses necessary to
            implement the programs authorized under section 131 of the
            Energy Independence and Security Act of 2007 (42 U.S.C. 17011).
                (8) $300,000,000 shall be for expenses necessary to
            implement the program authorized under section 124 of the
            Energy Policy Act of 2005 (42 U.S.C. 15821) and the Energy Star
            program.
                (9) $400,000,000 shall be for expenses necessary to
            implement the program authorized under section 721 of the
            Energy Policy Act of 2005 (42 U.S.C. 16071).
                (10) $1,000,000,000 shall be for expenses necessary for the
            manufacturing of advanced batteries authorized under section
            136(b)(1)(B) of the Energy Independence and Security Act of
            2007 (42 U.S.C. 17013(b)(1)(B)):
    Provided, 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 may, upon a determination
    that there is a severe shortage of candidates or a critical hiring need
    for particular positions, 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, 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 of such
    amounts, $100,000,000 shall be for worker training: 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.

                    Advanced Battery Loan Guarantee Program

        For the cost of guaranteed loans as authorized by section 135 of
    the Energy Independence and Security Act of 2007 (42 U.S.C. 17012),
    $1,000,000,000, to remain available until expended: Provided, That of
    such amount, $10,000,000 shall be used for administrative expenses in
    carrying out the guaranteed loan program, and shall be in lieu of the
    amount set aside under section 1106 of this Act: Provided further, That
    the cost of such loans, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974.

                      Institutional Loan Guarantee Program

        For the cost of guaranteed loans as authorized by section 399A of
    the Energy Policy and Conservation Act (42 U.S.C. 6371h-1),
    $500,000,000: Provided, That of such amount, $10,000,000 shall be used
    for administrative expenses in carrying out the guaranteed loan
    program, and shall be in lieu of the amount set aside under section
    1106 of this Act: Provided further, That the cost of such loans,
    including the cost of modifying such loans, shall be as defined in
    section 502 of the Congressional Budget Act of 1974.

                  Innovative Technology Loan Guarantee Program

        For an additional amount for ``Innovative Technology Loan Guarantee
    Program'' for the cost of guaranteed loans authorized by section 1705
    of the Energy Policy Act of 2005, $8,000,000,000: Provided, That of
    such amount, $25,000,000 shall be used for administrative expenses in
    carrying out the guaranteed loan program, and shall be in lieu of the
    amount set aside under section 1106 of this Act: Provided further, That
    the cost of such loans, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974.

                                 Fossil Energy

         For an additional amount for ``Fossil Energy'', $2,400,000,000 for
    necessary expenses to demonstrate carbon capture and sequestration
    technologies as authorized under section 702 of the Energy Independence
    and Security Act of 2007.

                                    Science

        For an additional amount for ``Science'', $2,000,000,000: Provided,
    That of such amounts, not less than $400,000,000 shall be used for the
    Advanced Research Projects Agency--Energy authorized under section 5012
    of the America COMPETES Act (42 U.S.C. 16538): Provided further, That
    of such amounts, not less than $100,000,000 shall be used for advanced
    scientific computing.

                   ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                         Defense Environmental Cleanup

        For an additional amount for ``Defense Environmental Cleanup,''
    $500,000,000: Provided, That such amounts shall be used for elements of
    projects, programs, or activities that can be completed using funds
    provided herein.

                         GENERAL PROVISIONS, THIS TITLE

    SEC. 5001. 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 1 time) as, in the judgment
                    of the Administrator, are from time to time required
                    for the purpose of--
                                ``(i) constructing, financing,
                            facilitating, or studying construction of new
                            or upgraded electric power transmission lines
                            and related facilities with at least 1 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 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 obligation to provide
            ancillary services to users of transmission facilities
            developed under this section.
        ``(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 interests.--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. 5002. BONNEVILLE POWER ADMINISTRATION.

        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 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. 5003. APPROPRIATIONS TRANSFER AUTHORITY.

        Not to exceed 20 percent of the amounts made available in this Act
    to the Department of Energy for ``Energy Efficiency and Renewable
    Energy'', ``Electricity Delivery and Energy Reliability'', and
    ``Advanced Battery Loan Guarantee Program'' may be transferred within
    and between such accounts, except that no amount specified under any
    such heading may be increased or decreased by more than a total of 20
    percent by such transfers, and notification of such transfers shall be
    submitted promptly to the Committees on Appropriations of the House of
    Representatives and the Senate.

              TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                          Subtitle A--General Services

                        General Services Administration

                             federal buildings fund

                     limitations on availability of revenue

                         (including transfer of funds)

         For an additional amount to be deposited in the Federal Buildings
    Fund, $7,700,000,000 for real property activities with priority given
    to activities that can commence promptly following enactment of this
    Act; of which up to $1,000,000,000 shall be used for construction,
    repair, and alteration of border facilities and land ports of entry; of
    which not less than $6,000,000,000 shall be used for construction,
    repair, and alteration of Federal buildings for projects that will
    create the greatest impact on energy efficiency and conservation; of
    which $108,000,000 shall remain available until September 30, 2012, and
    shall be used for rental of space costs associated with the
    construction, repair, and alteration of these projects; Provided, That
    of the amounts provided, $160,000,000 shall remain available until
    September 30, 2012, and shall be for building operations in support of
    the activities described in this paragraph: Provided further, That the
    preceding proviso shall apply to this appropriation in lieu of the
    provisions of section 1106 of this Act: Provided further, That the
    Administrator of General Services is authorized to initiate design,
    construction, repair, alteration, leasing, and other projects through
    existing authorities of the Administrator: Provided further, That the
    Administrator shall submit a detailed plan, by project, regarding the
    use of funds to the Committees on Appropriations of the House of
    Representatives and the Senate within 30 days after 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 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).

            energy efficient federal motor vehicle fleet procurement

         For capital expenditures and necessary expenses of the General
    Services Administration's Motor Vehicle Acquisition and Motor Vehicle
    Leasing programs for the acquisition of motor vehicles, including plug-
    in and alternative fuel vehicles, $600,000,000: Provided, That the
    amount set aside from this appropriation pursuant to section 1106 of
    this Act shall be 1 percent instead of the percentage specified in such
    section: Provided further, 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 the
    Administrator shall report to the Committees on the obligation of these
    funds on a quarterly basis beginning on June 30, 2009.

                           Subtitle B--Small Business

                         Small Business Administration

                         business loans program account

                         (including transfers of funds)

        For the cost of direct loans and loan guarantees authorized by
    sections 6202 through 6205 of this Act, $426,000,000: Provided, That
    such cost, including the cost of modifying such loans, shall be as
    defined in section 502 of the Congressional Budget Act of 1974. In
    addition, for administrative expenses to carry out the direct loan and
    loan guarantee programs authorized by this Act, $4,000,000, which may
    be transferred to and merged with the appropriations for Salaries and
    Expenses: Provided, That this sentence shall apply to this
    appropriation in lieu of the provisions of section 1106 of this Act.

                       GENERAL PROVISIONS, THIS SUBTITLE

    SEC. 6201. 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 95 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 that would be eligible for a
            loan guarantee under 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).
                (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) Application.--In order to participate in the loan guarantee
    program under this section a lender shall submit an application to the
    Administrator for the guarantee of up to 95 percent of the principal
    amount of a qualifying small business loan. The Administrator shall
    approve or deny each such application within 5 business days after
    receipt thereof. The Administrator may not delegate to lenders the
    authority to approve or disapprove such applications.
        (d) Fees.--The Administrator may charge fees for guarantees issued
    under this section. Such fees shall not exceed the fees permitted for
    loan guarantees under section 7(a) of the Small Business Act (15 U.S.C.
    631 and following).
        (e) Interest Rates.--The Administrator may not guarantee under this
    section any loan that bears interest at a rate higher than 3 percent
    above the higher of either of the following as quoted in the Wall
    Street Journal on the first business day of the week in which such
    guarantee is issued:
                (1) The London interbank offered rate (LIBOR) for a 3-month
            period.
                (2) The Prime Rate.
        (f) 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.
        (g) 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.
        (h) 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).
        (i) Sunset.--Loan guarantees may not be issued under this section
    after the date 90 days after the date of establishment (as determined
    by the Administrator) of the economic recovery program under section
    6204.
        (j) Small Business Act Provisions.--The provisions of the Small
    Business Act applicable to loan guarantees under section 7 of that Act
    shall apply to loan guarantees under this section except as otherwise
    provided in this section.
        (k) Authorization.--There are authorized to be appropriated such
    sums as may be necessary to carry out this section.

    SEC. 6202. 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 established under subsection (c).
                (4) The term ``SBA secondary market'' means the 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
                                    government 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, deems
                            appropriate.
        (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) Funding.--Such sums as necessary are authorized to be
    appropriated to carry out the provisions of this section.
        (g) 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).
        (h) Emergency Rulemaking Authority.--The Administrator shall
    promulgate regulations under this section within 15 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.

    SEC. 6203. 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 custodial 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 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 custodial 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 seller of such pools shall absorb
                            any and all losses resulting from a shortage or
                            excess of monthly cash flows.
                                (iii) The Administrator shall receive a
                            monthly fee of not more than 50 basis points on
                            the outstanding balance of the dollar amount of
                            the pools that are guaranteed.
                                (iv) The Administrator may guarantee not
                            more than $3,000,000,0000 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) terminate such guarantee immediately,
                        (B) 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
                        (C) 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 proceeding 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. 6204. ECONOMIC RECOVERY PROGRAM.

        (a) Purpose.--The purpose of this section is to establish a new
    lending and refinancing authority within the Small Business
    Administration.
        (b) Definitions.--For purposes of this section:
                (1) The term ``Administrator'' means the Administrator of
            the Small Business Administration.
                (2) 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) Refinancing Authority.--
                (1) In general.--Upon application from a lender (and with
            consent of the borrower), the Administrator may refinance
            existing non-Small Business Administration or Small Business
            Administration loans (including loans under sections 7(a) and
            504 of the Small Business Act) made to small business concerns.
                (2) Eligible loans.--In order to be eligible for
            refinancing under this section--
                        (A) the amount of the loan refinanced may not
                    exceed $10,000,000 and a first lien must be conveyed to
                    the Administrator;
                        (B) the lender shall offer to accept from the
                    Administrator as full repayment of the loan an amount
                    equal to less than 100 percent but more than 85 percent
                    of the remaining balance of the principal of the loan;
                    and
                        (C) the loan to be refinanced was made before the
                    date of enactment of this Act and for a purpose that
                    would have been eligible for a loan under any Small
                    Business Administration lending program.
                (3) Terms.--The term of the refinancing by the
            Administrator under this section shall not be less than
            remaining term on the loan that is refinanced but shall not
            exceed a term of 20 years. The rate of interest on the loan
            refinanced under this section shall be fixed by the
            Administrator at a level that the Administrator determines will
            result in manageable monthly payments for the borrower.
                (4) Limit.--The Administrator may not refinance amounts
            under this section that are greater than the amount the lender
            agrees to accept from the Administrator as full repayment of
            the loan as provided in paragraph (2)(B).
        (d) Underwriting and Other Loan Services.--
                (1) In general.--The Administrator is authorized to engage
            in underwriting, loan closing, funding, and servicing of loans
            made to small business concerns and to guarantee loans made by
            other entities to small business concerns.
                (2) Application process.--The Administrator shall by rule
            establish a process in which small business concerns may submit
            applications to the Administrator for the purposes of securing
            a loan under this subsection. The Administrator shall, at a
            minimum, collect all information necessary to determine the
            creditworthiness and repayment ability of the borrower.
                (3) Participation of lenders.--
                        (A) The Administrator shall by rule establish a
                    process in which the Administrator makes available loan
                    applications and all accompanying information to
                    lenders for the purpose of such lenders originating,
                    underwriting, closing, and servicing such loans.
                        (B) Lenders are eligible to receive loan
                    applications and accompanying information under this
                    paragraph if they participate in the programs
                    established in section 7(a) of the Small Business Act
                    (15 U.S.C. 636) or title V of the Small Business
                    Investment Act (15 U.S.C. 695).
                        (C) The Administrator shall first make available
                    such loan applications and accompanying information to
                    lenders within 100 miles of a loan applicant's
                    principal office.
                        (D) If a lender described in subparagraph (C) does
                    not agree to originate, underwrite, close, and service
                    such loans within 5 business days of receiving the loan
                    applications, the Administrator shall subsequently make
                    available such loan applications and accompanying
                    information to lenders in the Preferred Lenders Program
                    under section 7(a)(2)(C)(ii) of the Small Business Act
                    (15 U.S.C. 636).
                        (E) If a lender described in subparagraph (C) or
                    (D) does not agree to originate, underwrite, close, and
                    service such loans within 10 business days of receiving
                    the loan applications, the Administrator may originate,
                    underwrite, close, and service such loans as described
                    in paragraph (1) of this subsection.
                (4) Asset sales.--The Administrator shall offer to sell
            loans made or refinanced by the Administrator under this
            section. Such sales shall be made through semi-annual public
            solicitation (in the Federal Register and in other media) of
            offers to purchase. The Administrator may contract with vendors
            for due diligence, asset valuation, and other services related
            to such sales. The Administrator may not sell any loan under
            this section for less than 90 percent of the net present value
            of the loan, as determined and certified by a qualified third-
            party.
                (5) Loans not sold.--The Administrator shall maintain and
            service loans made by the Administrator under this section that
            are not sold through the asset sales under this section.
        (e) Duration.-- The authority of this section shall terminate on
    the date two years after the date on which the program under this
    section becomes operational (as determined by the Administrator).
        (f) 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).
        (g) Qualified Loans.--
                (1) Aliens unlawfully present in the united states.--A loan
            to any concern shall not be subject to this section 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 shall
            be subject to this section if the borrower is an 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.
        (h) Reports.--The Administrator shall submit a report to Congress
    semi-annually setting forth the aggregate amount of loans and
    geographic dispersion of such loans made, underwritten, closed, funded,
    serviced, sold, guaranteed, or held by the Administrator under the
    authority of this section. Such report shall also set forth information
    concerning loan defaults, prepayments, and recoveries related to loans
    ,made under the authority of this section.
        (i) Authorization.--There are authorized to be appropriated such
    sums as may be necessary to carry out this section.

    SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT LENDING.

        (a) 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 which has
                    existing indebtedness collateralized by fixed assets,
                    any amount of existing indebtedness that does not
                    exceed \1/2\ 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 borrower has been current on all
                            payments due on the existing debt for not less
                            than 1 year preceding the date of refinancing;
                            and
                                ``(iii) the financing under section 504
                            will provide better terms or rate of interest
                            than exists on the debt 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. 6206. 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--
                (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.''; and
                (2) 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.''.

    SEC. 6207. GAO REPORT.

        (a) Report.--Not later than 30 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
    authority established in sections 6201 through 6206 of this Act.
        (b) Included Item.--The report under this section shall include a
    summary of the activity of the Administrator under this section and an
    analysis of whether he is accomplishing the purpose of increasing
    liquidity in the secondary market for Small Business Administration
    loans.

                          TITLE VII--HOMELAND SECURITY

                        DEPARTMENT OF HOMELAND SECURITY

                       U.S. Customs and Border Protection

                             salaries and expenses

         For an additional amount for ``Salaries and Expenses'',
    $100,000,000, for non-intrusive detection technology to be deployed at
    sea ports of entry.

                                  construction

        For an additional amount for ``Construction'', $150,000,000, to
    repair and construct inspection facilities at land border ports of
    entry.

                     Transportation Security Administration

                               aviation security

         For an additional amount for ``Aviation Security'', $500,000,000,
    for the purchase and installation of explosive detection systems and
    emerging checkpoint technologies: 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 and to
    expeditiously award new letters of intent.

                                  Coast Guard

                             alteration of bridges

         For an additional amount for ``Alteration of Bridges'',
    $150,000,000, 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.

                      Federal Emergency Management Agency

                           emergency food and shelter

        For an additional amount for ``Emergency Food and Shelter'',
    $200,000,000, 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.): Provided, That for the purposes of this
    appropriation, the redistribution required by section 1104(b) shall be
    carried out by the Federal Emergency Management Agency and the National
    Board, who may reallocate and obligate any funds that are unclaimed or
    returned to the program: Provided further, That the amount set aside
    from this appropriation pursuant to section 1106 of this Act shall be
    3.5 percent instead of the percentage specified in such section.

                         GENERAL PROVISIONS, THIS TITLE

    SEC. 7001. EXTENSION OF PROGRAMS.

        Section 401(b) of the Illegal Immigration Reform and Immigrant
    Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by striking
    ``11-year period'' and inserting ``16-year period''.

    SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

        (a) Funding Under Agreement.--Effective for fiscal years beginning
    on or after October 1, 2008, the Commissioner of Social Security and
    the Secretary of Homeland Security shall enter into and maintain an
    agreement which shall--
                (1) provide funds to the Commissioner for the full costs of
            the responsibilities of the Commissioner under section 404 of
            the Illegal Immigration Reform and Immigrant Responsibility Act
            of 1996 (8 U.S.C. 1324a note), including (but not limited to)--
                        (A) acquiring, installing, and maintaining
                    technological equipment and systems necessary for the
                    fulfillment of the responsibilities of the Commissioner
                    under such section 404, but only that portion of such
                    costs that are attributable exclusively to such
                    responsibilities; and
                        (B) responding to individuals who contest a
                    tentative nonconfirmation provided by the basic pilot
                    confirmation system established under such section;
                (2) provide such funds quarterly in advance of the
            applicable quarter based on estimating methodology agreed to by
            the Commissioner and the Secretary (except in such instances
            where the delayed enactment of an annual appropriation may
            preclude such quarterly payments); and
                (3) require an annual accounting and reconciliation of the
            actual costs incurred and the funds provided under the
            agreement, which shall be reviewed by the Office of Inspector
            General of the Social Security Administration and the
            Department of Homeland Security.
        (b) Continuation of Employment Verification in Absence of Timely
    Agreement.--In any case in which the agreement required under
    subsection (a) for any fiscal year beginning on or after October 1,
    2008, has not been reached as of October 1 of such fiscal year, the
    latest agreement between the Commissioner and the Secretary of Homeland
    Security providing for funding to cover the costs of the
    responsibilities of the Commissioner under section 404 of the Illegal
    Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
    1324a note) shall be deemed in effect on an interim basis for such
    fiscal year until such time as an agreement required under subsection
    (a) is subsequently reached, except that the terms of such interim
    agreement shall be modified by the Director of the Office of Management
    and Budget to adjust for inflation and any increase or decrease in the
    volume of requests under the basic pilot confirmation system. In any
    case in which an interim agreement applies for any fiscal year under
    this subsection, the Commissioner and the Secretary shall, not later
    than October 1 of such fiscal year, notify the Committee on Ways and
    Means, the Committee on the Judiciary, and the Committee on
    Appropriations of the House of Representatives and the Committee on
    Finance, the Committee on the Judiciary, and the Committee on
    Appropriations of the Senate of the failure to reach the agreement
    required under subsection (a) for such fiscal year. Until such time as
    the agreement required under subsection (a) has been reached for such
    fiscal year, the Commissioner and the Secretary shall, not later than
    the end of each 90-day period after October 1 of such fiscal year,
    notify such Committees of the status of negotiations between the
    Commissioner and the Secretary in order to reach such an agreement.

    SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION SYSTEM.

        (a) In General.--As soon as practicable after the date of the
    enactment of this Act, the Comptroller General of the United States
    shall conduct a study regarding erroneous tentative nonconfirmations
    under the basic pilot confirmation system established under section
    404(a) of the Illegal Immigration Reform and Immigrant Responsibility
    Act of 1996 (8 U.S.C. 1324a note).
        (b) Matters To Be Studied.--In the study required under subsection
    (a), the Comptroller General shall determine and analyze--
                (1) the causes of erroneous tentative nonconfirmations
            under the basic pilot confirmation system;
                (2) the processes by which such erroneous tentative
            nonconfirmations are remedied; and
                (3) the effect of such erroneous tentative nonconfirmations
            on individuals, employers, and Federal agencies.
        (c) Report.--Not later than 2 years after the date of the enactment
    of this Act, the Comptroller General shall submit the results of the
    study required under subsection (a) to the Committee on Ways and Means
    and the Committee on the Judiciary of the House of Representatives and
    the Committee on Finance and the Committee on the Judiciary of the
    Senate.

    SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PROGRAM ON SMALL
                  ENTITIES.

        (a) In General.--Not later than 2 years after the date of the
    enactment of this Act, the Comptroller General of the United States
    shall submit to the Committees on the Judiciary of the United States
    House of Representatives and the Senate a report containing the
    Comptroller General's analysis of the effects of the basic pilot
    program described in section 403(a) of the Illegal Immigration Reform
    and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) on small
    entities (as defined in section 601 of title 5, United States Code).
    The report shall detail--
                (1) the costs of compliance with such program on small
            entities;
                (2) a description and an estimate of the number of small
            entities enrolled and participating in such program or an
            explanation of why no such estimate is available;
                (3) the projected reporting, recordkeeping and other
            compliance requirements of such program on small entities;
                (4) factors that impact small entities' enrollment and
            participation in such program, including access to appropriate
            technology, geography, entity size, and class of entity; and
                (5) the steps, if any, the Secretary of Homeland Security
            has taken to minimize the economic impact of participating in
            such program on small entities.
        (b) Direct and Indirect Effects.--The report shall cover, and treat
    separately, direct effects (such as wages, time, and fees spent on
    compliance) and indirect effects (such as the effect on cash flow,
    sales, and competitiveness).
        (c) Specific Contents.--The report shall provide specific and
    separate details with respect to--
                (1) small businesses (as defined in section 601 of title 5,
            United States Code) with fewer than 50 employees; and
                (2) small entities operating in States that have mandated
            use of the basic pilot program.

                      TITLE VIII--INTERIOR AND ENVIRONMENT

                           DEPARTMENT OF THE INTERIOR

                           Bureau of Land Management

                                  construction

                         (including transfers of funds)

        For an additional amount for ``Construction'', $325,000,000, for
    priority road, bridge, and trail repair or decommissioning, critical
    deferred maintenance projects, facilities construction and renovation,
    hazardous fuels reduction, and remediation of abandoned mine or well
    sites: Provided, That funds may be transferred to other appropriate
    accounts of the Bureau of Land management: Provided further, That the
    amount set aside from this appropriation pursuant to section 1106 of
    this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

                    United States Fish and Wildlife Service

                                  construction

                         (including transfer of funds)

        For an additional amount for ``Construction'', $300,000,000, for
    priority road and bridge repair and replacement, and critical deferred
    maintenance and improvement projects on National Wildlife Refuges,
    National Fish Hatcheries, and other Service properties: Provided, That
    funds may be transferred to ``Resource Management'': Provided further,
    That the amount set aside from this appropriation pursuant to section
    1106 of this Act shall be not more than 5 percent instead of the
    percentage specified in such section.

                             National Park Service

                                  construction

                         (including transfer of funds)

        For an additional amount for ``Construction'', $1,700,000,000, for
    projects to address critical deferred maintenance needs within the
    National Park System, including roads, bridges and trails, and for
    other critical infrastructure projects: Provided, That funds may be
    transferred to ``Operation of the National Park System'': Provided
    further, That $200,000,000 of these funds shall be for projects related
    to the preservation and repair of historical and cultural resources
    within the National Park System: Provided further, That the amount set
    aside from this appropriation pursuant to section 1106 of this Act
    shall be not more than 5 percent instead of the percentage specified in
    such section.

                       national mall revitalization fund

        For construction, improvements, repair, or replacement of
    facilities related to the revitalization of National Park Service
    assets on the National Mall in Washington, DC, $200,000,000, of which
    $100,000,000 shall only be made available to the extent that funds are
    matched by non-Federal contributions: Provided, That the amount set
    aside from this appropriation pursuant to section 1106 of this Act
    shall be not more than 5 percent instead of the percentage specified in
    such section.

                              centennial challenge

        To carry out provisions of section 814(g) of Public Law 104-333
    relating to challenge cost share agreements, $100,000,000, for National
    Park Service Centennial Challenge signature projects and programs:
    Provided, That not less than 50 percent of the total cost of each
    project or program is derived from non-Federal sources in the form of
    donated cash, assets, in-kind services, or a pledge of donation
    guaranteed by an irrevocable letter of credit: Provided further, That
    the amount set aside from this appropriation pursuant to section 1106
    of this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

                        United States Geological Survey

                     surveys, investigations, and research

        For an additional amount for ``Surveys, Investigations, and
    Research'', $200,000,000, for repair 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: Provided, That
    the amount set aside from this appropriation pursuant to section 1106
    of this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

                            Bureau of Indian Affairs

                                  construction

                         (including transfer of funds)

        For an additional amount for ``Construction'', $500,000,000, for
    priority repair and replacement of schools, detention centers, roads,
    bridges, employee housing, and critical deferred maintenance projects:
    Provided, That not less than $250,000,000 shall be used for new and
    replacement schools and detention centers: Provided further, That funds
    may be transferred to ``Operation of Indian Programs'': Provided
    further, That the amount set aside from this appropriation pursuant to
    section 1106 of this Act shall be not more than 5 percent instead of
    the percentage specified in such section.

                        ENVIRONMENTAL PROTECTION AGENCY

                         Hazardous Substance Superfund

        For an additional amount for ``Hazardous Substance Superfund'',
    $800,000,000, which shall be used for the Superfund Remedial program:
    Provided, That amounts available by law from this appropriation for
    management and administration shall take the place of the set-aside
    under section 1106 of this Act.

              Leaking Underground Storage Tank Trust Fund Program

        For an additional amount for ``Leaking Underground Storage Tank
    Trust Fund Program'', to carry out leaking underground storage tank
    cleanup activities authorized by subtitle I of the Solid Waste Disposal
    Act, $200,000,000, which shall be used to carry out leaking underground
    storage tank cleanup activities authorized by section 9003(h) of the
    Solid Waste Disposal Act, except that such funds shall not be subject
    to the State matching requirements in section 9003(h)(7)(B):  Provided,
    That amounts available by law from this appropriation for management
    and administration shall take the place of the set-aside under section
    1106 of this Act.

                       State and Tribal Assistance Grants

        For an additional amount for ``State and Tribal Assistance
    Grants'', $8,400,000,000, which shall be used as follows:
                (1) $6,000,000,000 shall be for capitalization grants for
            the Clean Water State Revolving Funds under title VI of the
            Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.),
            except that such funds shall not be subject to the State
            matching requirements in paragraphs (2) and (3) of section
            602(b) of such Act or to the Federal cost share limitations in
            section 202 of such Act: Provided, That the amount set aside
            from this appropriation pursuant to section 1106 of this Act
            shall be not more than 2 percent instead of the percentage
            specified in such section: Provided further, That,
            notwithstanding the limitation on amounts specified in section
            518(c) of the Federal Water Pollution Control Act, up to a
            total of 1.5 percent of such funds may be reserved by the
            Administrator of the Environmental Protection Agency for grants
            under section 518(c) of such Act: Provided further, That the
            requirements of section 513 of such Act shall apply to the
            construction of treatment works carried out in whole or in part
            with assistance made available under this heading by a Clean
            Water State Revolving Fund under title VI of such Act, or with
            assistance made available under section 205(m) of such Act, or
            both: Provided further, That, notwithstanding the requirements
            of section 603(d) of such Act, each State shall use 50 percent
            of the amount of the capitalization grant received by the State
            under title VI of such Act to provide assistance, in the form
            of additional subsidization, including forgiveness of
            principal, negative interest loans, and grants, to
            municipalities (as defined in section 502 of such Act) for
            projects that are included on the State's priority list
            established under section 603(g) of such Act, of which 80
            percent shall be for projects to benefit municipalities that
            meet affordability criteria as determined by the Governor of
            the State and 20 percent shall be for projects to address
            water-efficiency goals, address energy-efficiency goals,
            mitigate stormwater runoff, or encourage environmentally
            sensitive project planning, design, and construction, to the
            extent that there are sufficient project applications eligible
            for such assistance.
                (2) $2,000,000,000 shall be for capitalization grants for
            the Drinking Water State Revolving Funds under section 1452 of
            the Safe Drinking Water Act (42 U.S.C. 300j-12), except that
            such funds shall not be subject to the State matching
            requirements of section 1452(e) of such Act: Provided, That the
            amount set aside from this appropriation pursuant to section
            1106 of this Act shall be not more than 2 percent instead of
            the percentage specified in such section: Provided further,
            That section 1452(k) of the Safe Drinking Water Act shall not
            apply to such funds: Provided further, That the requirements of
            section 1450(e) of such Act (42 U.S.C. 300j-9(e)) shall apply
            to the construction carried out in whole or part with
            assistance made available under this heading by a Drinking
            Water State Revolving fund under section 1452 of such Act:
            Provided further, That, notwithstanding the requirements of
            section 1452(a)(2) of such Act, each State shall use 50 percent
            of the amount of the capitalization grant received by the State
            under section 1452 of such Act to provide assistance, in the
            form of additional subsidization, including forgiveness of
            principal, negative interest loans, and grants, to
            municipalities (as defined in section 1401 of such Act) for
            projects that are included on the State's priority list
            established under section 1452(b)(3) of such Act.
                (3) $300,000,000 shall be for grants under title VII,
            Subtitle G of the Energy Policy Act of 2005:  Provided, That
            the amount set aside from this appropriation pursuant to
            section 1106 of this Act shall be not more than 3 percent
            instead of the percentage specified in such section.
                (4) $100,000,000 shall be to carry out section 104(k) of
            the Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980:  Provided, That the amount set aside
            from this appropriation pursuant to section 1106 of this Act
            shall be not more than 3 percent instead of the percentage
            specified in such section.

                           DEPARTMENT OF AGRICULTURE

                                 Forest Service

                      capital improvement and maintenance

                         (including transfer of funds)

        For an additional amount for ``Capital Improvement and
    Maintenance'', $650,000,000, for reconstruction, capital improvement,
    decommissioning, and maintenance of forest roads, bridges and trails;
    alternative energy technologies, energy efficiency enhancements and
    deferred maintenance at Federal facilities; and for remediation of
    abandoned mine sites, removal of fish passage barriers, and other
    critical habitat, forest improvement and watershed enhancement projects
    on Federal lands and waters: Provided, That funds may be transferred to
    ``National Forest System'': Provided further, That the amount set aside
    from this appropriation pursuant to section 1106 of this Act shall be
    not more than 5 percent instead of the percentage specified in such
    section.

                            wildland fire management

                         (including transfers of funds)

        For an additional amount for ``Wildland Fire Management'',
    $850,000,000, of which $300,000,000 is for hazardous fuels reduction,
    forest health, wood to energy grants and rehabilitation and restoration
    activities on Federal lands, and of which $550,000,000 is for State
    fire assistance hazardous fuels projects, volunteer fire assistance,
    cooperative forest health projects, city forest enhancements, and wood
    to energy grants on State and private lands: Provided, That amounts in
    this paragraph may be transferred to ``State and Private Forestry'' and
    ``National Forest System'': Provided further, That the amount set aside
    from this appropriation pursuant to section 1106 of this Act shall be
    not more than 5 percent instead of the percentage specified in such
    section.

                    DEPARTMENT OF HEALTH AND HUMAN SERVICES

                             Indian Health Service

                            indian health facilities

        For an additional amount for ``Indian Health Facilities'',
    $550,000,000, for priority health care facilities construction projects
    and deferred maintenance, and the purchase of equipment and related
    services, including but not limited to health information technology:
    Provided, That notwithstanding any other provision of law, the amounts
    available under this paragraph shall be allocated at the discretion of
    the Director of the Indian Health Service: Provided further, That the
    amount set aside from this appropriation pursuant to section 1106 of
    this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

                             OTHER RELATED AGENCIES

                            Smithsonian Institution

                               facilities capital

                         (including transfer of funds)

        For an additional amount for ``Facilities Capital'', $150,000,000,
    for deferred maintenance projects, and for repair, revitalization, and
    alteration of facilities owned or occupied by the Smithsonian
    Institution, by contract or otherwise, as authorized by section 2 of
    the Act of August 22, 1949 (63 Stat. 623): Provided, That funds may be
    transferred to ``Salaries and Expenses'': Provided further, That the
    amount set aside from this appropriation pursuant to section 1106 of
    this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

               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: Provided further, That the
    amount set aside from this appropriation pursuant to section 1106 of
    this Act shall be not more than 5 percent instead of the percentage
    specified in such section.

           TITLE IX--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION

                               Subtitle A--Labor

                              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''),
    $4,000,000,000, 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;
                (2) $1,200,000,000 for grants to the States for youth
            activities, including summer jobs for youth: Provided, 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 jobs for
            youth provided with such funds: 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 no portion of
            the additional funds provided herein 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, such funds
            shall be allotted as if the total amount of funding available
            for youth activities in the fiscal year does not exceed
            $1,000,000,000;
                (3) $1,000,000,000 for grants to the States for dislocated
            worker employment and training activities;
                (4) $500,000,000 for the dislocated workers assistance
            national reserve to remain available for Federal obligation
            through June 30, 2010: Provided, That such funds shall be made
            available for grants only to eligible entities that serve areas
            of high unemployment or high poverty and only for the purposes
            described in subsection 173(a)(1) of the WIA: Provided further,
            That the Secretary of Labor shall ensure that applicants for
            such funds demonstrate how income support, child care, and
            other supportive services necessary for an individual's
            participation in job training will be provided;
                (5) $50,000,000 for YouthBuild activities, which shall
            remain available for Federal obligation through June 30, 2010;
            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 the energy efficiency and renewable
            energy industries specified in section 171(e)(1)(B)(ii) of the
            WIA (as amended by the Green Jobs Act of 2007): 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 further, That the
            provisions of section 1103 of this Act shall not apply to this
            appropriation:
    Provided, That the additional funds provided to States under this
    heading are not subject to section 191(a) of the WIA: Provided further,
    That notwithstanding section 1106 of this Act, there shall be no amount
    set aside from the appropriations made in subsections (1) through (3)
    under this heading and the amount set aside for subsections (4) through
    (6) shall be up to 1 percent instead of the percentage specified in
    such section.

                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: Provided, That funds shall be allotted within
    30 days of such enactment to current grantees in proportion to their
    allotment in program year 2008.

         state unemployment insurance and employment service operations

        For an additional amount for ``State Unemployment Insurance and
    Employment Service Operations'' for grants to the States in accordance
    with section 6 of the Wagner-Peyser Act, $500,000,000, 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, with respect to such funds, section 6(b)(1) of such Act
    shall be applied by substituting ``one-third'' for ``two-thirds'' in
    subparagraph (A), with the remaining one-third of the sums to be
    allotted in accordance with section 132(b)(2)(B)(ii)(III) of the
    Workforce Investment Act of 1998: Provided further, That not less than
    $250,000,000 of the amount provided under this heading 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'',
    ``Occupational Safety and Health Administration'', and ``Employment and
    Training Administration--Program Administration'' for enforcement,
    oversight, and coordination activities: Provided further, That the
    provisions of section 1106 of this Act shall not apply to this
    appropriation.

                              office of job corps

        For an additional amount for ``Office of Job Corps'', $300,000,000,
    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 to up
    to 30 percent of such funds, if such 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 referred to in 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 the provision of
    additional training for careers in the energy efficiency and renewable
    energy industries: Provided further, That priority should be given to
    activities that can commence promptly following enactment and to those
    projects that will create the greatest impact on the energy efficiency
    of Job Corps facilities: 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 September 30, 2009 and quarterly thereafter
    as long as funding provided under this heading is available for
    obligation or expenditure.

                       GENERAL PROVISIONS, THIS SUBTITLE

    SEC. 9101. 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;''.

                     Subtitle B--Health and Human Services

                    DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Health Resources and Services

        For an additional amount for ``Health Resources and Services'',
    $2,188,000,000 which shall be used as follows:
                (1) $500,000,000, of which $250,000,000 shall not be
            available until October 1, 2009, shall be for grants to health
            centers authorized under section 330 of the Public Health
            Service Act (``PHS Act'');
                (2) $1,000,000,000 shall be available for renovation and
            repair of health centers authorized under section 330 of the
            PHS Act and for the acquisition by such centers of health
            information technology systems: Provided, That the timeframe
            for the award of grants pursuant to section 1103(b) of this Act
            shall not be later than 180 days after the date of enactment of
            this Act instead of the timeframe specified in such section;
                (3) $88,000,000 shall be for fit-out and other costs
            related to moving into a facility to be secured through a
            competitive lease procurement to replace or renovate a
            headquarters building for Public Health Service agencies and
            other components of the Department of Health and Human
            Services; and
                (4) $600,000,000, of which $300,000,000 shall not be
            available until October 1, 2009, shall be for the training of
            nurses and primary care physicians and dentists as authorized
            under titles VII and VIII of the PHS Act, for the provision of
            health care personnel under the National Health Service Corps
            program authorized under title III of the PHS Act, and for the
            patient navigator program authorized under title III of the PHS
            Act.

                   Centers for Disease Control and Prevention

                    disease control, research, and training

        For an additional amount for ``Disease Control, Research, and
    Training'' for equipment, construction, and renovation of facilities,
    including necessary repairs and improvements to leased laboratories,
    $462,000,000: Provided, That notwithstanding any other provision of
    law, the Centers for Disease Control and Prevention may award a single
    contract or related contracts for development and construction of
    facilities that collectively include the full scope of the project:
    Provided further, That the solicitation and contract shall contain the
    clause ``availability of funds'' found at 48 CFR 52.232-18: Provided
    further, That in accordance with applicable authorities, policies, and
    procedures, the Centers for Disease Control and Prevention shall
    acquire real property, and make any necessary improvements thereon, to
    relocate and consolidate property and facilities of the National
    Institute for Occupational Safety and Health.

                         National Institutes of Health

                     national center for research resources

        For an additional amount for ``National Center for Research
    Resources'', $1,500,000,000 for grants or contracts under section 481A
    of the Public Health Service Act to 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 such funds 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: Provided further, That the Center, in obligating such funds,
    shall require that each entity that applies for a grant or contract
    under section 481A for any project shall include in its application an
    assurance described in section 1621(b)(1)(I) of the Public Health
    Service Act: Provided further, That the Center shall give priority in
    the award of grants and contracts under section 481A of such Act to
    those applications that are expected to generate demonstrable energy-
    saving or beneficial environmental effects: Provided further, That the
    provisions of section 1103 of this Act shall not apply to the peer-
    reviewed grants awarded under this heading.

                             office of the director

                         (including transfer of funds)

        For an additional amount for ``Office of the Director'',
    $1,500,000,000, of which $750,000,000 shall not be available until
    October 1, 2009: Provided, That such funds shall be transferred to the
    Institutes and Centers of the National Institutes of Health and to the
    Common Fund established under section 402A(c)(1) of the Public Health
    Service Act in proportion to the appropriations otherwise made to such
    Institutes, Centers, and Common Fund for fiscal year 2009: Provided
    further, That these funds shall be used to support additional
    scientific research and shall be merged with and be available for the
    same purposes as the appropriation or fund to which transferred:
    Provided further, That this transfer authority is in addition to any
    other transfer authority available to the National Institutes of
    Health: Provided further, That none of these funds may be transferred
    to ``National Institutes of Health--Buildings and Facilities'', the
    Center for Scientific Review, the Center for Information Technology,
    the Clinical Center, the Global Fund for HIV/AIDS, Tuberculosis and
    Malaria, or the Office of the Director (except for the transfer to the
    Common Fund): Provided further, That the provisions of section 1103 of
    this Act shall not apply to the peer-reviewed grants awarded under this
    heading.

                            buildings and facilities

        For an additional amount for ``Buildings and Facilities'',
    $500,000,000, to fund high priority repair 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: Provided further, That funds transferred to the
    Office of the Director may be transferred to the national research
    institutes and national 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 the
    provisions of section 1103 of this Act shall not apply to the peer-
    reviewed grants awarded under this paragraph: Provided further, That
    the amount set aside from this appropriation pursuant to section 1106
    of this Act shall be not more than 1 percent instead of the percentage
    specified in such section.
        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, including
    through efforts that: (1) conduct, support, or synthesize research that
    compares the clinical outcomes, effectiveness, and appropriateness of
    items, services, and procedures that are used to prevent, diagnose, or
    treat diseases, disorders, and other health conditions; and (2)
    encourage the development and use of clinical registries, clinical data
    networks, and other forms of electronic health data that can be used to
    generate or obtain outcomes data: Provided further, That the Secretary
    shall enter into a contract with the Institute of Medicine, for which
    no more than $1,500,000 shall be made available from funds provided in
    this paragraph, to produce and submit a report to the Congress and the
    Secretary by not later than June 30, 2009, that includes
    recommendations on the national priorities for comparative
    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 9201 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 the provisions of section 1103 of this Act shall
    not apply to the peer-reviewed grants awarded under this paragraph:
    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 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 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

                       low-income home energy assistance

        For an additional amount for ``Low-Income Home Energy Assistance''
    for making payments under section 2602(b) and section 2602(d) of the
    Low-Income Home Energy Assistance Act of 1981, $1,000,000,000, which
    shall become available on October 1, 2009: Provided, That the
    provisions of section 1106 of this Act shall not apply to this
    appropriation.

       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, of which
    $1,000,000,000 shall become available on October 1, 2009, which shall
    be used to supplement, not supplant State general revenue funds for
    child care assistance for low-income families: Provided, That the
    provisions of section 1106 of this Act shall not apply to this
    appropriation.

                    children and families services programs

        For an additional amount for ``Children and Families Services
    Programs'', $3,200,000,000, which shall be used as follows:
                (1) $1,000,000,000 for carrying out activities under the
            Head Start Act, of which $500,000,000 shall become available on
            October 1, 2009;
                (2) $1,100,000,000 for expansion of Early Head Start
            programs, as described in section 645A of the Head Start Act,
            of which $550,000,000 shall become available on October 1,
            2009: Provided, That of the funds provided in this sentence, up
            to 10 percent shall be available for the provision of training
            and technical assistance to such programs consistent with
            section 645A(g)(2) of such Act, and up to 3 percent shall be
            available for monitoring the operation of such programs
            consistent with section 641A of such Act: Provided further,
            That the preceding proviso shall apply to this appropriation in
            lieu of the provisions of section 1106 of this Act: Provided
            further, That the provisions of section 1103 of this Act shall
            not apply to this appropriation;
                (3) $1,000,000,000 for carrying out activities under
            sections 674 through 679 of the Community Services Block Grant
            Act, of which $500,000,000 shall become available on October 1,
            2009, and of which no part shall be subject to paragraphs (2)
            and (3) of section 674(b) of such Act: Provided, That
            notwithstanding section 675C(a)(1) of such Act, 100 percent of
            the funds made available to a State from this additional amount
            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'':
            Provided further, That the provisions of section 1106 of this
            Act shall not apply to this appropriation; and
                (4) $100,000,000 for carrying out activities under section
            1110 of the Social Security Act, of which $50,000,000 shall
            become available on October 1, 2009: Provided, That the
            Secretary of Health and Human Services shall distribute such
            amount under the Compassion Capital Fund to eligible faith-
            based and community organizations: Provided further, That the
            provisions of section 1106 of this Act shall not apply to this
            appropriation.

                            Administration on Aging

                            aging services programs

        For an additional amount for ``Aging Services Programs'' under
    section 311, and subparts 1 and 2 of part C, of title III of the Older
    Americans Act of 1965, $200,000,000, of which $100,000,000 shall become
    available on October 1, 2009: Provided, That the provisions of section
    1106 of this Act shall not apply to this appropriation.

                            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'' to carry out section 9202 of this
    Act, $2,000,000,000, 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 the
    provisions of section 1103 of this Act shall not apply to this
    appropriation: Provided further, That the amount set aside from this
    appropriation pursuant to section 1106 of this Act shall be 0.25
    percent instead of the percentage specified in such section: 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: Provided further, That the
    Comptroller General of the United States shall review on an annual
    basis the expenditures from funds provided under this heading to
    determine if such funds are used in a manner consistent with the
    purpose and requirements under this heading.

                public health and social services emergency fund

                         (including transfer of funds)

        For an additional amount for ``Public Health and Social Services
    Emergency Fund'' to support advanced research and development pursuant
    to section 319L of the Public Health Service Act, $430,000,000:
    Provided, That the provisions of section 1103 of this Act shall not
    apply to this appropriation.
        For an additional amount for ``Public Health and Social Services
    Emergency Fund'' to prepare for and respond to an influenza pandemic,
    including the development and purchase of vaccine, antivirals,
    necessary medical supplies, diagnostics, and other surveillance tools,
    $420,000,000: Provided, That the provisions of section 1103 of this Act
    shall not apply to this appropriation: Provided further, That products
    purchased with these funds may, at the discretion of the Secretary of
    Health and Human Services (``Secretary''), be deposited in the
    Strategic National Stockpile: Provided further, That notwithstanding
    section 496(b) of the Public Health Service Act, funds may be used for
    the construction or renovation of privately owned facilities for the
    production of pandemic influenza vaccine and other biologics, where the
    Secretary finds such a contract necessary to secure sufficient supplies
    of such vaccines or biologics: Provided further, That funds
    appropriated in this paragraph may be transferred to other
    appropriation accounts of the Department of Health and Human Services,
    as determined by the Secretary to be appropriate, to be used for the
    purposed specified in this sentence.
        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: Provided, That
    the Secretary shall prepare and submit a report by not later than
    November 1, 2009, and by not later than 15 days after the end of each
    month thereafter, updating the status of actions taken and funds
    obligated in this and previous appropriations Acts for pandemic
    influenza preparedness and response activities, biomedical advanced
    research and development activities, Project BioShield, and Cyber
    Security.

                          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, $3,000,000,000: Provided, That the provisions
    of section 1103 of this Act shall not apply to this appropriation:
    Provided further, That of the amount appropriated under this heading
    not less than $2,350,000,000 shall be transferred to the Centers for
    Disease Control and Prevention as follows:
                (1) not less than $954,000,000 shall be used as an
            additional amount to carry out the immunization program
            authorized by section 317(a), (j), and (k)(1) of the Public
            Health Service Act (``section 317 immunization program''), of
            which $649,900,000 shall be available on October 1, 2009;
                (2) not less than $296,000,000 shall be used as an
            additional amount to carry out Part A of title XIX of the
            Public Health Service Act, of which $148,000,000 shall be
            available on October 1, 2009;
                (3) not less than $545,000,000 shall be used as an
            additional amount to carry out chronic disease, health
            promotion, and genomics programs, as jointly determined by the
            Secretary of Health and Human Services (``Secretary'') and the
            Director of the Centers for Disease Control and Prevention
            (``Director'');
                (4) not less than $335,000,000 shall be used as an
            additional amount to carry out domestic HIV/AIDS, viral
            hepatitis, sexually-transmitted diseases, and tuberculosis
            prevention programs, as jointly determined by the Secretary and
            the Director;
                (5) not less than $60,000,000 shall be used as an
            additional amount to carry out environmental health programs,
            as jointly determined by the Secretary and the Director;
                (6) not less than $50,000,000 shall be used as an
            additional amount to carry out injury prevention and control
            programs, as jointly determined by the Secretary and the
            Director;
                (7) not less than $30,000,000 shall be used as an
            additional amount for public health workforce development
            activities, as jointly determined by the Secretary and the
            Director;
                (8) not less than $40,000,000 shall be used as an
            additional amount for the National Institute for Occupational
            Safety and Health to carry out research activities within the
            National Occupational Research Agenda; and
                (9) not less than $40,000,000 shall be used as an
            additional amount for the National Center for Health
            Statistics:
    Provided further, That of the amount appropriated under this heading
    not less than $150,000,000 shall be available for an additional amount
    to carry out activities to implement a national action plan to prevent
    healthcare-associated infections, as determined by the Secretary, of
    which not less $50,000,000 shall be provided to States to implement
    healthcare-associated infection reduction strategies: Provided further,
    That of the amount appropriated under this heading $500,000,000 shall
    be used to carry out evidence-based clinical and community-based
    prevention and wellness strategies and public health workforce
    development activities authorized by the Public Health Service Act, as
    determined by the Secretary, that deliver specific, measurable health
    outcomes that address chronic and infectious disease rates and health
    disparities, which shall include evidence-based interventions in
    obesity, diabetes, heart disease, cancer, tobacco cessation and smoking
    prevention, and oral health, and which may be used for the Healthy
    Communities program administered by the Centers for Disease Control and
    Prevention and other existing community-based programs administered by
    the Department of Health and Human Services: 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 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 (1) summarizing the annual
    evaluations of programs from the preceding proviso; and (2) making
    recommendations concerning future spending on prevention and wellness
    activities, including any recommendations made by the United States
    Preventive Services Task Force in the area of clinical preventive
    services and the Task Force on Community Preventive Services in the
    area of community preventive services: 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 no later than 1 year after the date of
    enactment of this Act that includes recommendations on the national
    priorities for clinical and community-based prevention and wellness
    activities that will have a positive impact in preventing illness or
    reducing healthcare costs and that considers input from stakeholders:
    Provided further, That the Secretary shall provide to the Committees on
    Appropriations of the House of Representatives and the Senate a fiscal
    year 2009 operating plan for the Prevention and Wellness Fund prior to
    making any Federal obligations of funds provided under this heading in
    fiscal year 2009 (excluding funds to carry out the section 317
    immunization program), but not later than 90 days after the date of
    enactment of this Act, and a fiscal year 2010 operating plan for the
    Prevention and Wellness Fund prior to making any Federal obligations of
    funds provided under this heading in fiscal year 2010 (excluding funds
    to carry out the section 317 immunization program), but not later than
    November 1, 2009, that indicate the prevention priorities to be
    addressed; provide measurable goals for each prevention priority;
    detail the allocation of resources within the Department of Health and
    Human Services; and identify 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.

                       GENERAL PROVISIONS, THIS SUBTITLE

    SEC. 9201. 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; 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;
                        (B) appropriate organizational expenditures for
                    comparative effectiveness research by relevant Federal
                    departments and agencies; and
                        (C) opportunities to assure 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) Membership.--
                (1) Number and appointment.--The Council shall be composed
            of not more than 15 members, all of whom are senior Federal
            officers or employees with responsibility for health-related
            programs, appointed by the President, acting through the
            Secretary of Health and Human Services (in this section
            referred to as the ``Secretary''). Members shall first be
            appointed to the Council not later than 30 days after the date
            of the enactment of this Act.
                (2) Members.--
                        (A) In general.--The members of the Council shall
                    include one senior officer or employee from each of the
                    following agencies:
                                (i) The Agency for Healthcare Research and
                            Quality.
                                (ii) The Centers for Medicare and Medicaid
                            Services.
                                (iii) The National Institutes of Health.
                                (iv) The Office of the National Coordinator
                            for Health Information Technology.
                                (v) The Food and Drug Administration.
                                (vi) The Veterans Health Administration
                            within the Department of Veterans Affairs.
                                (vii) The office within the Department of
                            Defense responsible for management of the
                            Department of Defense Military Health Care
                            System.
                        (B) Qualifications.--At least half of the members
                    of the Council shall be physicians or other experts
                    with clinical expertise.
                (3) Chairman; vice chairman.--The Secretary shall serve as
            Chairman of the Council and shall designate a member to serve
            as Vice Chairman.
        (d) Reports.--
                (1) Initial report.--Not later than June 30, 2009, the
            Council shall submit to the President and the Congress a report
            containing information describing Federal activities on
            comparative effectiveness research and recommendations for
            additional investments in 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, appropriate organizational expenditures and
            opportunities for better coordination of comparative
            effectiveness research by relevant Federal departments and
            agencies.
        (e) 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.

    SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECHNOLOGY.

        (a) In General.--The Secretary of Health and Human Services shall
    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 Office of the National Coordinator for
    Health Information Technology. Such investment shall include investment
    in at least 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) Integration of health information technology, including
            electronic medical records, into the initial and ongoing
            training of health professionals and others in the healthcare
            industry who would be instrumental to improving the quality of
            healthcare through the smooth and accurate electronic use and
            exchange of health information as determined by the Secretary.
                (3) Training on and dissemination of information on best
            practices to integrate health information technology, including
            electronic records, into a provider's delivery of care,
            including community health centers receiving assistance under
            section 330 of the Public Health Service Act and providers
            participating in one or more of the programs under titles
            XVIII, XIX, and XXI of the Social Security Act (relating to
            Medicare, Medicaid, and the State Childrens 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.
    The Secretary shall implement paragraph (3) in coordination with State
    agencies administering the Medicaid program and the State Children's
    Health Insurance Program.
        (b) Limitation.--None of the funds appropriated to carry out this
    section may be used to make significant investments in, or provide
    significant funds for, the acquisition of hardware or software or for
    the use of an electronic health or medical record, or significant
    components thereof, unless such investments or funds are for certified
    products that would permit the full and accurate electronic exchange
    and use of health information in a medical record, including standards
    for security, privacy, and quality improvement functions adopted by the
    Office of the National Coordinator for Health Information Technology.
        (c) Report.--The Secretary shall annually report to the Committees
    on Energy and Commerce, on Ways and Means, on Science and Technology,
    and on Appropriations of the House of Representatives and the
    Committees on Finance, on Health, Education, Labor, and Pensions, and
    on Appropriations of the Senate on the uses of these funds and their
    impact on the infrastructure for the electronic exchange and use of
    health information.

                             Subtitle C--Education

                            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 $5,500,000,000 shall be
    available for targeted grants under section 1125 of the ESEA, of which
    $2,750,000,000 shall become available on July 1, 2009, and shall remain
    available through September 30, 2010, and $2,750,000,000 shall become
    available on July 1, 2010, and shall remain available through September
    30, 2011: Provided further, That $5,500,000,000 shall be available for
    education finance incentive grants under section 1125A of the ESEA, of
    which $2,750,000,000 shall become available on July 1, 2009, and shall
    remain available through September 30, 2010, and $2,750,000,000 shall
    become available on July 1, 2010, and shall remain available through
    September 30, 2011: Provided further, That $2,000,000,000 shall be for
    school improvement grants under section 1003(g) of the ESEA, of which
    $1,000,000,000 shall become available on July 1, 2009, and shall remain
    available through September 30, 2010, and $1,000,000,000 shall become
    available on July 1, 2010, and shall remain available through September
    30, 2011: Provided further, That the provisions of section 1106 of this
    Act shall not apply to this appropriation.

                                   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 remain available through September 30,
    2010: Provided, That the amount set aside from this appropriation
    pursuant to section 1106 of this Act shall be 1 percent instead of the
    percentage specified in such section.

                          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, $1,066,000,000: Provided, That
    $1,000,000,000 shall be available for subpart 1, part D of title II of
    the ESEA, of which $500,000,000 shall become available on July 1, 2009,
    and shall remain available through September 30, 2010, and $500,000,000
    shall become available on July 1, 2010, and remain available through
    September 30, 2011: Provided further, That the provisions of section
    1106 of this Act shall not apply to these funds: Provided further, That
    $66,000,000 shall be available for subtitle B of title VII of the
    McKinney-Vento Homeless Assistance Act, of which $33,000,000 shall
    become available on July 1, 2009, and shall remain available through
    September 30, 2010, and $33,000,000 shall become available on July 1,
    2010, and remain available through September 30, 2011.

                           Innovation and Improvement

        For an additional amount for ``Innovation and Improvement'' to
    carry out subpart 1, part D and subpart 2, part B of title V of the
    Elementary and Secondary Education Act of 1965 (``ESEA''),
    $225,000,000: Provided, That $200,000,000 shall be available for
    subpart 1, part D of title V of the ESEA: Provided further, 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 $25,000,000 shall be available for subpart 2,
    part B of title V of the ESEA: Provided further, That the amount set
    aside from this appropriation pursuant to section 1106 of this Act
    shall be 1 percent instead of the percentage specified in such section.

                               Special Education

        For an additional amount for ``Special Education'' for carrying out
    section 611 and part C of the Individuals with Disabilities Education
    Act (``IDEA''), $13,600,000,000: Provided, That $13,000,000,000 shall
    be available for section 611 of the IDEA, of which $6,000,000,000 shall
    become available on July 1, 2009, and remain available through
    September 30, 2010, and $7,000,000,000 shall become available on July
    1, 2010, and remain available through September 30, 2011: Provided
    further, That $600,000,000 shall be available for part C of the IDEA,
    of which $300,000,000 shall become available on July 1, 2009, and
    remain available through September 30, 2010, and $300,000,000 shall
    become available on July 1, 2010, and remain available through
    September 30, 2011: 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 from funds available for obligation on July
    1, 2009, with any remaining funds to be allocated in accordance with
    section 643(c) of the IDEA: Provided further, That by July 1, 2010, the
    Secretary shall reserve the amount needed for grants under section
    643(e) of the IDEA from funds available for obligation on July 1, 2010,
    with any remaining funds to be allocated in accordance with section
    643(c) of the IDEA: Provided further, 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 the provisions of section 1106 of this Act shall
    not apply to this appropriation.

                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, $700,000,000: Provided, That $500,000,000
    shall be available for part B of title I of the Rehabilitation Act, of
    which $250,000,000 shall become available on October 1, 2009: 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
    the provisions of section 1106 of this Act shall not apply to these
    funds: Provided further, That $200,000,000 shall be available for parts
    B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation
    Act, of which $100,000,000 shall become available on October 1, 2009:
    Provided further, That $34,775,000 shall be for State Grants,
    $114,581,000 shall be for independent living centers, and $50,644,000
    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''), $16,126,000,000, which shall remain
    available through September 30, 2011: Provided, That $15,636,000,000
    shall be available for subpart 1of part A of title IV of the HEA:
    Provided further, That $490,000,000 shall be available for part C of
    title IV of the HEA, of which $245,000,000 shall become available on
    October 1, 2009: Provided further, That the provisions of section 1106
    of this Act shall not apply to this appropriation.
        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,
    $50,000,000, which shall remain available through September 30, 2011:
    Provided, That such amount shall also be available for an independent
    audit of programs and activities authorized under section 459A of such
    Act: Provided further, That the provisions of section 1106 of this Act
    shall not apply to this appropriation.

                                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:
    Provided, That section 203(c)(1) of such Act shall not apply to awards
    made with these funds.

                        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: Provided, That
    the amount set aside from this appropriation pursuant to section 1106
    of this Act shall be 1 percent instead of the percentage specified in
    such section.

                  School Modernization, Renovation, and Repair

        For carrying out section 9301 of this Act, $14,000,000,000:
    Provided, That amount available under section 9301 of this Act for
    administration and oversight shall take the place of the set-aside
    under section 1106 of this Act.

             Higher Education Modernization, Renovation, and Repair

        For carrying out section 9302 of this Act, $6,000,000,000:
    Provided, That amount available under section 9302 of this Act for
    administration and oversight shall take the place of the set-aside
    under section 1106 of this Act.

                       GENERAL PROVISIONS, THIS SUBTITLE

    SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUBLIC SCHOOL FACILITIES.

        (a) Definitions.--In this section:
                (1) The term ``Bureau-funded school'' has the meaning given
            to such term in section 1141 of the Education Amendments of
            1978 (25 U.S.C. 2021).
                (2) The term ``charter school'' has the meaning given such
            term in section 5210 of the Elementary and Secondary Education
            Act of 1965.
                (3) The term ``local educational agency''--
                        (A) has the meaning given to that term in section
                    9101 of the Elementary and Secondary Education Act of
                    1965, and shall also include the Recovery School
                    District of Louisiana and the New Orleans Public
                    Schools; and
                        (B) includes any public charter school that
                    constitutes a local educational agency under State law.
                (4) The term ``outlying area''--
                        (A) means the United States Virgin Islands, Guam,
                    American Samoa, and the Commonwealth of the Northern
                    Mariana Islands; and
                        (B) includes the freely associated states of the
                    Republic of the Marshall Islands, the Federated States
                    of Micronesia, and the Republic of Palau.
                (5) The term ``public school facilities'' includes charter
            schools.
                (6) The term ``State'' means each of the 50 States, the
            District of Columbia, and the Commonwealth of Puerto Rico.
                (7) The term ``LEED Green Building Rating System'' means
            the United States Green Building Council Leadership in Energy
            and Environmental Design green building rating standard
            referred to as the LEED Green Building Rating System.
                (8) The term ``Energy Star'' means the Energy Star program
            of the United States Department of Energy and the United States
            Environmental Protection Agency.
                (9) The term ``CHPS Criteria'' means the green building
            rating program developed by the Collaborative for High
            Performance Schools.
                (10) The term ``Green Globes'' means the Green Building
            Initiative environmental design and rating system referred to
            as Green Globes.
        (b) Purpose.--Grants under this section shall be for the purpose of
    modernizing, renovating, or repairing public school facilities, based
    on their need for such improvements, to be safe, healthy, high-
    performing, and up-to-date technologically.
        (c) Allocation of Funds.--
                (1) Reservations.--
                        (A) In general.--From the amount appropriated to
                    carry out this section, the Secretary of Education
                    shall reserve 1 percent of such amount, consistent with
                    the purpose described in subsection (b)--
                                (i) to provide assistance to the outlying
                            areas; and
                                (ii) for payments to the Secretary of the
                            Interior to provide assistance to Bureau-funded
                            schools.
                        (B) Administration and oversight.--The Secretary
                    may, in addition, reserve up to $6,000,000 of such
                    amount for administration and oversight of this
                    section.
                (2) Allocation to states.--
                        (A) State-by-state allocation.--Of the amount
                    appropriated to carry out this section, and not
                    reserved under paragraph (1), each State shall be
                    allocated an amount in proportion to the amount
                    received by all local educational agencies in the State
                    under part A of title I of the Elementary and Secondary
                    Education Act of 1965 for fiscal year 2008 relative to
                    the total amount received by all local educational
                    agencies in every State under such part for such fiscal
                    year.
                        (B) State administration.--A State may reserve up
                    to 1 percent of its allocation under subparagraph (A)
                    to carry out its responsibilities under this section,
                    including--
                                (i) providing technical assistance to local
                            educational agencies;
                                (ii) developing, within 6 months of
                            receiving its allocation under subparagraph
                            (A), a plan to develop a database that includes
                            an inventory of public school facilities in the
                            State and the modernization, renovation, and
                            repair needs of, energy use by, and the carbon
                            footprint of such schools; and
                                (iii) developing a school energy efficiency
                            quality plan.
                        (C) Grants to local educational agencies.--From the
                    amount allocated to a State under subparagraph (A),
                    each local educational agency in the State that meets
                    the requirements of section 1112(a) of the Elementary
                    and Secondary Education Act of 1965 shall receive an
                    amount in proportion to the amount received by such
                    local educational agency under part A of title I of
                    that Act for fiscal year 2008 relative to the total
                    amount received by all local educational agencies in
                    the State under such part for such fiscal year, except
                    that no local educational agency that received funds
                    under part A of title I of that Act for such fiscal
                    year shall receive a grant of less than $5,000.
                        (D) Special rule.--Section 1122(c)(3) of the
                    Elementary and Secondary Education Act of 1965 shall
                    not apply to subparagraph (A) or (C).
                (3) Special rules.--
                        (A) Distributions by secretary.--The Secretary of
                    Education shall make and distribute the reservations
                    and allocations described in paragraphs (1) and (2) not
                    later than 30 days after the date of the enactment of
                    this Act.
                        (B) Distributions by states.--A State shall make
                    and distribute the allocations described in paragraph
                    (2)(C) within 30 days of receiving such funds from the
                    Secretary.
        (d) Use It or Lose It Requirements.--
                (1) Deadline for binding commitments.--Each local
            educational agency receiving funds under this section shall
            enter into contracts or other binding commitments not later
            than 1 year after the date of the enactment of this Act (or not
            later than 9 months after such funds are awarded, if later) to
            make use of 50 percent of such funds, and shall enter into
            contracts or other binding commitments not later than 2 years
            after the date of the enactment of this Act (or not later than
            21 months after such funds are awarded, if later) to make use
            of the remaining funds. In the case of activities to be carried
            out directly by a local educational agency (rather than by
            contracts, subgrants, or other arrangements with third
            parties), a certification by the agency specifying the amounts,
            planned timing, and purpose of such expenditures shall be
            deemed a binding commitment for purposes of this subsection.
                (2) Redistribution of uncommitted funds.--A State shall
            recover or deobligate any funds not committed in accordance
            with paragraph (1), and redistribute such funds to other local
            educational agencies eligible under this section and able to
            make use of such funds in a timely manner (including binding
            commitments within 120 days after the reallocation).
        (e) Allowable Uses of Funds.--A local educational agency receiving
    a grant under this section shall use the grant for modernization,
    renovation, or repair of public school facilities, including--
                (1) repairing, replacing, or installing roofs, including
            extensive, intensive or semi-intensive green roofs, electrical
            wiring, plumbing systems, sewage systems, lighting systems, or
            components of such systems, windows, or doors, including
            security doors;
                (2) repairing, replacing, or installing heating,
            ventilation, air conditioning systems, or components of such
            systems (including insulation), including indoor air quality
            assessments;
                (3) bringing public schools into compliance with fire,
            health, and safety codes, including professional installation
            of fire/life safety alarms, including modernizations,
            renovations, and repairs that ensure that schools are prepared
            for emergencies, such as improving building infrastructure to
            accommodate security measures;
                (4) modifications necessary to make public school
            facilities accessible to comply with the Americans with
            Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section
            504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), except
            that such modifications shall not be the primary use of the
            grant;
                (5) asbestos or polychlorinated biphenyls abatement or
            removal from public school facilities;
                (6) implementation of measures designed to reduce or
            eliminate human exposure to lead-based paint hazards through
            methods including interim controls, abatement, or a combination
            of each;
                (7) implementation of measures designed to reduce or
            eliminate human exposure to mold or mildew;
                (8) upgrading or installing educational technology
            infrastructure to ensure that students have access to up-to-
            date educational technology;
                (9) technology activities that are carried out in
            connection with school repair and renovation, including--
                        (A) wiring;
                        (B) acquiring hardware and software;
                        (C) acquiring connectivity linkages and resources;
                    and
                        (D) acquiring microwave, fiber optics, cable, and
                    satellite transmission equipment;
                (10) modernization, renovation, or repair of science and
            engineering laboratory facilities, libraries, and career and
            technical education facilities, including those related to
            energy efficiency and renewable energy, and improvements to
            building infrastructure to accommodate bicycle and pedestrian
            access;
                (11) renewable energy generation and heating systems,
            including solar, photovoltaic, wind, geothermal, or biomass,
            including wood pellet, systems or components of such systems;
                (12) other modernization, renovation, or repair of public
            school facilities to--
                        (A) improve teachers' ability to teach and
                    students' ability to learn;
                        (B) ensure the health and safety of students and
                    staff;
                        (C) make them more energy efficient; or
                        (D) reduce class size; and
                (13) required environmental remediation related to public
            school modernization, renovation, or repair described in
            paragraphs (1) through (12).
        (f) Impermissible Uses of Funds.--No funds received under this
    section may be used for--
                (1) payment of maintenance costs; or
                (2) stadiums or other facilities primarily used for
            athletic contests or exhibitions or other events for which
            admission is charged to the general public.
        (g) Supplement, Not Supplant.--A local educational agency receiving
    a grant under this section shall use such Federal funds only to
    supplement and not supplant the amount of funds that would, in the
    absence of such Federal funds, be available for modernization,
    renovation, or repair of public school facilities.
        (h) Prohibition Regarding State Aid.--A State shall not take into
    consideration payments under this section in determining the
    eligibility of any local educational agency in that State for State
    aid, or the amount of State aid, with respect to free public education
    of children.
        (i) Special Rule on Contracting.--Each local educational agency
    receiving a grant under this section shall ensure that, if the agency
    carries out modernization, renovation, or repair through a contract,
    the process for any such contract ensures the maximum number of
    qualified bidders, including local, small, minority, and women- and
    veteran-owned businesses, through full and open competition.
        (j) Special Rule on Use of Iron and Steel Produced in the United
    States.--
                (1) In general.--A local educational agency shall not
            obligate or expend funds received under this section for a
            project for the modernization, renovation, or repair of a
            public school facility unless all of the iron and steel used in
            such project is produced in the United States.
                (2) Exceptions.--The provisions of paragraph (1) shall not
            apply in any case in which the local educational agency finds
            that--
                        (A) their application would be inconsistent with
                    the public interest;
                        (B) iron and steel are not produced in the United
                    States in sufficient and reasonably available
                    quantities and of a satisfactory quality; or
                        (C) inclusion of iron and steel produced in the
                    United States will increase the cost of the overall
                    project contract by more than 25 percent.
        (k) Application of GEPA.--The grant program under this section is
    an applicable program (as that term is defined in section 400 of the
    General Education Provisions Act (20 U.S.C. 1221)) subject to section
    439 of such Act (20 U.S.C. 1232b).
        (l) Charter Schools.--A local educational agency receiving an
    allocation under this section shall use an equitable portion of that
    allocation for allowable activities benefitting charter schools within
    its jurisdiction, as determined based on the percentage of students
    from low-income families in the schools of the agency who are enrolled
    in charter schools and on the needs of those schools as determined by
    the agency.
        (m) Green Schools.--
                (1) In general.--A local educational agency shall use not
            less than 25 percent of the funds received under this section
            for public school modernization, renovation, or repairs that
            are certified, verified, or consistent with any applicable
            provisions of--
                        (A) the LEED Green Building Rating System;
                        (B) Energy Star;
                        (C) the CHPS Criteria;
                        (D) Green Globes; or
                        (E) an equivalent program adopted by the State or
                    another jurisdiction with authority over the local
                    educational agency.
                (2) Technical assistance.--The Secretary, in consultation
            with the Secretary of Energy and the Administrator of the
            Environmental Protection Agency, shall provide outreach and
            technical assistance to States and school districts concerning
            the best practices in school modernization, renovation, and
            repair, including those related to student academic achievement
            and student and staff health, energy efficiency, and
            environmental protection.
        (n) Youthbuild Programs.--The Secretary of Education, in
    consultation with the Secretary of Labor, shall work with recipients of
    funds under this section to promote appropriate opportunities for
    participants in a YouthBuild program (as defined in section 173A of the
    Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to gain employment
    experience on modernization, renovation, and repair projects funded
    under this section.
        (o) Reporting.--
                (1) Reports by local educational agencies.--Local
            educational agencies receiving a grant under this section shall
            compile, and submit to the State educational agency (which
            shall compile and submit such reports to the Secretary), a
            report describing the projects for which such funds were used,
            including--
                        (A) the number of public schools in the agency,
                    including the number of charter schools;
                        (B) the total amount of funds received by the local
                    educational agency under this section and the amount of
                    such funds expended, including the amount expended for
                    modernization, renovation, and repair of charter
                    schools;
                        (C) the number of public schools in the agency with
                    a metro-centric locale code of 41, 42, or 43 as
                    determined by the National Center for Education
                    Statistics and the percentage of funds received by the
                    agency under this section that were used for projects
                    at such schools;
                        (D) the number of public schools in the agency that
                    are eligible for schoolwide programs under section 1114
                    of the Elementary and Secondary Education Act of 1965
                    and the percentage of funds received by the agency
                    under this section that were used for projects at such
                    schools;
                        (E) the cost of each project, which, if any, of the
                    standards described in subsection (k)(1) the project
                    met, and any demonstrable or expected academic, energy,
                    or environmental benefits as a result of the project;
                        (F) if flooring was installed, whether--
                                (i) it was low- or no-VOC (Volatile Organic
                            Compounds) flooring;
                                (ii) it was made from sustainable
                            materials; and
                                (iii) use of flooring described in clause
                            (i) or (ii) was cost effective; and
                        (G) the total number and amount of contracts
                    awarded, and the number and amount of contracts awarded
                    to local, small, minority-owned, women-owned, and
                    veteran-owned businesses.
                (2) Reports by secretary.--Not later than December 31,
            2011, the Secretary of Education shall submit to the Committees
            on Education and Labor and Appropriations of the House of
            Representatives and the Committees on Health, Education, Labor,
            and Pensions and Appropriations of the Senate a report on
            grants made under this section, including the information
            described in paragraph (1), the types of modernization,
            renovation, and repair funded, and the number of students
            impacted, including the number of students counted under
            section 1113(a)(5) of the Elementary and Secondary Education
            Act of 1965.

    SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVATION, AND REPAIR.

        (a) Purpose.--Grants awarded under this section shall be for the
    purpose of modernizing, renovating, and repairing institution of higher
    education facilities that are primarily used for instruction, research,
    or student housing.
        (b) Grants to State Higher Education Agencies.--
                (1) Formula.--From the amounts appropriated to carry out
            this section, the Secretary of Education shall allocate funds
            to State higher education agencies based on the number of
            students attending institutions of higher education, with the
            State higher education agency in each State receiving an amount
            that is in proportion to the number of full-time equivalent
            undergraduate students attending institutions of higher
            education in such State for the most recent fiscal year for
            which there are data available, relative to the total number of
            full-time equivalent undergraduate students attending
            institutions of higher education in all States for such fiscal
            year.
                (2) Application.--To be eligible to receive an allocation
            from the Secretary under paragraph (1), a State higher
            education agency shall submit an application to the Secretary
            at such time and in such manner as the Secretary may reasonably
            require.
                (3) Reallocation.--Amounts allocated to a State higher
            education agency under this section that are not obligated by
            such agency within 6 months of the date the agency receives
            such amounts shall be returned to the Secretary, and the
            Secretary shall reallocate such amounts to State higher
            education agencies in other States on the same basis as the
            original allocations under paragraph (1)(B).
                (4) Administration and oversight expenses.--From the
            amounts appropriated to carry out this section, not more than
            $6,000,000 shall be available to the Secretary for
            administrative and oversight expenses related to carrying out
            this section.
        (c) Use of Grants by State Higher Education Agencies.--
                (1) Subgrants to institutions of higher education.--
                        (A) In general.--Except as provided in paragraph
                    (2), each State higher education agency receiving an
                    allocation under subsection (b)(1) shall use the amount
                    allocated to award subgrants to institutions of higher
                    education within the State to carry out projects in
                    accordance with subsection (d)(1).
                        (B) Subgrant award allocation.--A State higher
                    education agency shall award subgrants to institutions
                    of higher education under this section based on the
                    demonstrated need of each institution for facility
                    modernization, renovation, and repair.
                        (C) Priority considerations.--In awarding subgrants
                    under this section, each State higher education agency
                    shall give priority consideration to institutions of
                    higher education with any of the following
                    characteristics:
                                (i) The institution is eligible for Federal
                            assistance under title III or title V of the
                            Higher Education Act of 1965.
                                (ii) The institution was impacted by a
                            major disaster or emergency declared by the
                            President (as defined in section 102(2) of the
                            Robert T. Stafford Disaster Relief and
                            Emergency Assistance Act (42 U.S.C. 5122(2))),
                            including an institution affected by a Gulf
                            hurricane disaster, as such term is defined in
                            section 824(g)(1) of the Higher Education Act
                            of 1965 (20 U.S.C. 11611-3(g)(1)).
                                (iii) The institution demonstrates that the
                            proposed project or projects to be carried out
                            with a subgrant under this section will
                            increase the energy efficiency of the
                            institution's facilities and comply with the
                            LEED Green Building Rating System.
                (2) Administrative and oversight expenses.--Of the
            allocation amount received under subsection (b)(1), a State
            higher education agency may reserve not more than 5 percent of
            such amount, or $500,000, whichever is less, for administrative
            and oversight expenses related to carrying out this section.
        (d) Use of Subgrants by Institutions of Higher Education.--
                (1) Permissible uses of funds.--An institution of higher
            education receiving a subgrant under this section shall use
            such subgrant to modernize, renovate, or repair facilities of
            the institution that are primarily used for instruction,
            research, or student housing, which may include any of the
            following:
                        (A) Repair, replacement, or installation of roofs,
                    electrical wiring, plumbing systems, sewage systems, or
                    lighting systems.
                        (B) Repair, replacement, or installation of
                    heating, ventilation, or air conditioning systems
                    (including insulation).
                        (C) Compliance with fire and safety codes,
                    including--
                                (i) professional installation of fire or
                            life safety alarms; and
                                (ii) modernizations, renovations, and
                            repairs that ensure that the institution's
                            facilities are prepared for emergencies, such
                            as improving building infrastructure to
                            accommodate security measures.
                        (D) Retrofitting necessary to increase the energy
                    efficiency of the institution's facilities.
                        (E) Renovations to the institution's facilities
                    necessary to comply with accessibility requirements in
                    the Americans with Disabilities Act of 1990 (42 U.S.C.
                    12101 et seq.) and section 504 of the Rehabilitation
                    Act of 1973 (29 U.S.C. 794).
                        (F) Abatement or removal of asbestos from the
                    institution's facilities.
                        (G) Modernization, renovation, and repair relating
                    to improving science and engineering laboratories,
                    libraries, and instructional facilities.
                        (H) Upgrading or installation of educational
                    technology infrastructure.
                        (I) Installation or upgrading of renewable energy
                    generation and heating systems, including solar,
                    photovoltaic, wind, biomass (including wood pellet), or
                    geothermal systems, or components of such systems.
                        (J) Other modernization, renovation, or repair
                    projects that are primarily for instruction, research,
                    or student housing.
                (2) Green school requirement.--An institution of higher
            education receiving a subgrant under this section shall use not
            less than 25 percent of such subgrant to carry out projects for
            modernization, renovation, or repair that are certified,
            verified, or consistent with the applicable provisions of--
                        (A) the LEED Green Building Rating System;
                        (B) Energy Star;
                        (C) the CHPS Criteria;
                        (D) Green Globes; or
                        (E) an equivalent program adopted by the State or
                    the State higher education agency.
                (3) Prohibited uses of funds.--No funds awarded under this
            section may be used for--
                        (A) the maintenance of systems, equipment, or
                    facilities, including maintenance associated with any
                    permissible uses of funds described in paragraph (1);
                        (B) modernization, renovation, or repair of
                    stadiums or other facilities primarily used for
                    athletic contests or exhibitions or other events for
                    which admission is charged to the general public;
                        (C) modernization, renovation, or repair of
                    facilities--
                                (i) used for sectarian instruction,
                            religious worship, or a school or department of
                            divinity; or
                                (ii) in which a substantial portion of the
                            functions of the facilities are subsumed in a
                            religious mission; or
                        (D) construction of new facilities.
                (4) Use it or lose it requirements.--
                        (A) Deadline for binding commitments.--Each
                    institution of higher education receiving a subgrant
                    under this section shall enter into contracts or other
                    binding commitments not later than 1 year after the
                    date of the enactment of this Act (or not later than 9
                    months after the subgrant is awarded, if later) to make
                    use of 50 percent of the funds awarded, and shall enter
                    into contracts or other binding commitments not later
                    than 2 years after the date of the enactment of this
                    Act (or not later than 21 months after the subgrant is
                    awarded, if later) to make use of the remaining funds.
                    In the case of activities to be carried out directly by
                    an institution of higher education receiving such a
                    subgrant (rather than by contracts, subgrants, or other
                    arrangements with third parties), a certification by
                    the institution specifying the amounts, planned timing,
                    and purpose of such expenditures shall be deemed a
                    binding commitment for purposes of this section.
                        (B) Redistribution of uncommitted funds.--A State
                    higher education agency shall recover or deobligate any
                    subgrant funds not committed in accordance with
                    subparagraph (A), and redistribute such funds to other
                    institutions of higher education that are--
                                (i) eligible for subgrants under this
                            section; and
                                (ii) able to make use of such funds in a
                            timely manner (including binding commitments
                            within 120 days after the reallocation).
        (e) Application of GEPA.--The grant program authorized in this
    section is an applicable program (as that term is defined in section
    400 of the General Education Provisions Act (20 U.S.C. 1221)) subject
    to section 439 of such Act (20 U.S.C. 1232b). The Secretary shall,
    notwithstanding section 437 of such Act (20 U.S.C. 1232) and section
    553 of title 5, United States Code, establish such program rules as may
    be necessary to implement such grant program by notice in the Federal
    Register.
        (f) Reporting.--
                (1) Reports by institutions.--Not later than September 30,
            2011, each institution of higher education receiving a subgrant
            under this section shall submit to the State higher education
            agency awarding such subgrant a report describing the projects
            for which such subgrant was received, including--
                        (A) a description of each project carried out, or
                    planned to be carried out, with such subgrant,
                    including the types of modernization, renovation, and
                    repair to be completed by each such project;
                        (B) the total amount of funds received by the
                    institution under this section and the amount of such
                    funds expended, as of the date of the report, on the
                    such projects;
                        (C) the actual or planned cost of each such project
                    and any demonstrable or expected academic, energy, or
                    environmental benefits resulting from such project; and
                        (D) the total number of contracts, and amount of
                    funding for such contracts, awarded by the institution
                    to carry out such projects, as of the date of such
                    report, including the number of contracts, and amount
                    of funding for such contracts, awarded to local, small,
                    minority-owned, women-owned, and veteran-owned
                    businesses, as such terms are defined by the Small
                    Business Act.
                (2) Reports by states.--Not later than December 31, 2011,
            each State higher education agency receiving a grant under this
            section shall submit to the Secretary a report containing a
            compilation of all of the reports under paragraph (1) submitted
            to the agency by institutions of higher education.
                (3) Reports by the secretary.--Not later than March 31,
            2012, the Secretary shall submit to the Committee on Education
            and Labor in the House of Representatives and the Committee on
            Health, Education, Labor, and Pensions in the Senate and
            Committees on Appropriations of the House of Representatives
            and the Senate a report on grants and subgrants made under this
            section, including the information described in paragraph (1).
        (g) Definitions.--In this section:
                (1) Chps criteria.--The term ``CHPS Criteria'' means the
            green building rating program developed by the Collaborative
            for High Performance Schools.
                (2) Energy star.--The term ``Energy Star'' means the Energy
            Star program of the United States Department of Energy and the
            United States Environmental Protection Agency.
                (3) Green globes.--The term ``Green Globes'' means the
            Green Building Initiative environmental design and rating
            system referred to as Green Globes.
                (4) Institution of higher education.--The term
            ``institution of higher education'' has the meaning given such
            term in section 101 of the Higher Education Act of 1965.
                (5) LEED green building rating system.--The term ``LEED
            Green Building Rating System'' means the United States Green
            Building Council Leadership in Energy and Environmental Design
            green building rating standard referred to as the LEED Green
            Building Rating System.
                (6) Secretary.--The term ``Secretary'' means the Secretary
            of Education.
                (7) State.--The term ``State'' has the meaning given such
            term in section 103 of the Higher Education Act of 1965 (20
            U.S.C. 1003).
                (8) State higher education agency.--The term ``State higher
            education agency'' has the meaning given such term in section
            103 of the Higher Education Act of 1965 (20 U.S.C. 1003).

    SEC. 9303. 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. 9304. INCREASE STUDENT LOAN LIMITS.

        (a) Amendments.--Section 428H(d) of the Higher Education Act of
    1965 (20 U.S.C. 1078-8(d)) is amended--
                (1) in paragraph (3)--
                        (A) in subparagraph (A), by striking ``$2,000'' and
                    inserting ``$4,000''; and
                        (B) in subparagraph (B), by striking ``$31,000''
                    and inserting ``$39,000''; and
                (2) in paragraph (4)--
                        (A) in subparagraph (A)--
                                (i) in clause (i)(I) and clause (iii)(I),
                            by striking ``$6,000'' each place it appears
                            and inserting ``$8,000''; and
                                (ii) in clause (ii)(I) and clause
                            (iii)(II), by striking ``$7,000'' each place it
                            appears and inserting ``$9,000''; and
                        (B) in subparagraph (B), by striking ``$57,500''
                    and inserting ``$65,500''.
        (b) Effective Date.--The amendments made by this section shall be
    effective for loans first disbursed on or after January 1, 2009.

    SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE.

        (a) Temporary Calculation Rule.--Section 438(b)(2)(I) of the Higher
    Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is amended by adding
    at the end the following new clause:
                                ``(vii) Temporary calculation rule during
                            unstable commercial paper markets.--
                                        ``(I) Calculation based on libor.--
                                    For the calendar quarter beginning on
                                    October 1, 2008, and ending on December
                                    31, 2008, in computing the special
                                    allowance paid pursuant to this
                                    subsection with respect to loans for
                                    which the first disbursement is made on
                                    or after January 1, 2000, clause (i)(I)
                                    of this subparagraph shall be applied
                                    by substituting `the rate that is the
                                    average rate of the 3-month London
                                    Inter Bank Offered Rate (LIBOR) for
                                    United States dollars in effect for
                                    each of the days in such quarter as
                                    compiled and released by the British
                                    Bankers Association, minus 0.13
                                    percent,' for `the average of the bond
                                    equivalent rates of the quotes of the
                                    3-month commercial paper (financial)
                                    rates in effect for each of the days in
                                    such quarter as reported by the Federal
                                    Reserve in Publication H-15 (or its
                                    successor) for such 3-month period'.
                                        ``(II) Participation interests.--
                                    Notwithstanding subclause (I) of this
                                    clause, the special allowance paid on
                                    any loan held by a lender that has sold
                                    participation interests in such loan to
                                    the Secretary shall be the rate
                                    computed under this subparagraph
                                    without regard to subclause (I) of this
                                    clause, unless the lender agrees that
                                    the participant's yield with respect to
                                    such participation interest is to be
                                    calculated in accordance with subclause
                                    (I) of this clause.''.
        (b) Conforming Amendments.--Section 438(b)(2)(I) of the Higher
    Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is further amended--
                (1) in clause (i)(II), by striking ``such average bond
            equivalent rate'' and inserting ``the rate determined under
            subclause (I)''; and
                (2) in clause (v)(III), by striking ``(iv), and (vi)'' and
            inserting ``(iv), (vi), and (vii)''.

                          Subtitle D--Related Agencies

                 Corporation for National and Community Service

                               operating expenses

        For an additional amount for ``Operating Expenses'' to carry out
    the Domestic Volunteer Service Act of 1973 and the National and
    Community Service Act of 1990 (``1990 Act''), $160,000,000, which shall
    be used to expand existing AmeriCorps grants: Provided, That funds made
    available under this heading may be used to provide adjustments to
    awards made prior to September 30, 2010 in order to waive the match
    requirement authorized in section 121(e)(4) of part I of subtitle C of
    the 1990 Act, if the Chief Executive Officer of the Corporation for
    National and Community Service (``CEO'') determines that the grantee
    has reduced capacity to meet this requirement: Provided further, That
    in addition to requirements identified herein, funds provided under
    this heading shall be subject to the terms and conditions under which
    funds are appropriated in fiscal year 2009: 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 under this heading 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
    volunteers supported by the AmeriCorps programs: Provided further, That
    the CEO shall provide to the Committees on Appropriations of the House
    of Representatives and the Senate a report on the actual obligations,
    expenditures, and unobligated balances for each activity funded under
    this heading not later than November 1, 2009, and every 6 months
    thereafter as long as funding provided under this heading is available
    for obligation or expenditure.

                             National Service Trust

                         (including transfer of funds)

         For an additional amount for ``National Service Trust''
    established under subtitle D of title I of the National and Community
    Service Act of 1990 (``1990 Act''), $40,000,000, which shall remain
    available until expended: Provided, That the Corporation for National
    and Community Service may transfer additional funds from the amount
    provided within ``Operating Expenses'' for grants made under subtitle C
    of 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'', $900,000,000, which shall be used as follows:
                (1) $400,000,000 for the construction and associated costs
            to establish a new National Computer Center, which may include
            lease or purchase of real property: Provided, 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 the Committees on Appropriations
            of the House of Representatives and the Senate shall be
            notified 15 days in advance of the lease or purchase of such
            site: Provided further, That such center shall continue to be a
            government-operated facility; and
                (2) $500,000,000 for processing disability and retirement
            workloads: 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.

              TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                             DEPARTMENT OF DEFENSE

                          Military Construction, Army

         For an additional amount for ``Military Construction, Army'',
    $920,000,000: 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, $600,000,000 shall be for training and
    recruit troop housing, $220,000,000 shall be for permanent party troop
    housing, and $100,000,000 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 the House of Representatives and the
    Senate 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'', $350,000,000: 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, $170,000,000 shall be for sailor
    and marine housing and $180,000,000 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 the House of Representatives and the
    Senate an expenditure plan for funds provided under this heading.

                        Military Construction, Air Force

         For an additional amount for ``Military Construction, Air Force'',
    $280,000,000: 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, $200,000,000 shall be for airmen 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 the House of Representatives and the Senate an
    expenditure plan for funds provided under this heading.

                      Military Construction, Defense-Wide

         For an additional amount for ``Military Construction, Defense-
    Wide'', $3,750,000,000, for the construction of hospitals and
    ambulatory surgery centers: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                   Military Construction, Army National Guard

         For an additional amount for ``Military Construction, Army
    National Guard'', $140,000,000: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                   Military Construction, Air National Guard

         For an additional amount for ``Military Construction, Air National
    Guard'', $70,000,000: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                      Military Construction, Army Reserve

         For an additional amount for ``Military Construction, Army
    Reserve'', $100,000,000: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                      Military Construction, Navy Reserve

         For an additional amount for ``Military Construction, Navy
    Reserve'', $30,000,000: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                    Military Construction, Air Force Reserve

         For an additional amount for ``Military Construction, Air Force
    Reserve'', $60,000,000: 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 shall submit to the Committees on Appropriations
    of the House of Representatives and the Senate an expenditure plan for
    funds provided under this heading.

                Department of Defense Base Closure Account 1990

         For an additional amount to be deposited into the Department of
    Defense Base Closure Account 1990, established by section 2906(a)(1) of
    the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687
    note), $300,000,000: Provided, 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 the House of Representatives and
    the Senate an expenditure plan for funds provided under this heading.

                         DEPARTMENT OF VETERANS AFFAIRS

                         Veterans Health Administration

                               medical facilities

         For an additional amount for ``Medical Facilities'' for non-
    recurring maintenance, including energy projects, $950,000,000:
    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 the House of Representatives and the
    Senate 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, $50,000,000: 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 the House of Representatives and the Senate an
    expenditure plan for funds provided under this heading.

                         TITLE XI--DEPARTMENT OF STATE

                              DEPARTMENT OF STATE

                       Administration of Foreign Affairs

                            capital investment fund

        For an additional amount for ``Capital Investment Fund'',
    $276,000,000, of which up to $120,000,000 shall be available for the
    design and construction of a backup information management facility in
    the United States to support mission-critical operations and projects,
    and up to $98,527,000 shall be available to carry out the Department of
    State's responsibilities under the Comprehensive National Cybersecurity
    Initiative: Provided, That the Secretary of State shall submit to the
    Committees on Appropriations of the House of Representatives and the
    Senate within 90 days of enactment of this Act a detailed spending plan
    for funds appropriated under this heading.

                           International Commissions

     international boundary and water commission, united states and mexico

                                  construction

                         (including transfer of funds)

        For an additional amount for ``Construction'' for the water
    quantity program to meet immediate repair and rehabilitation
    requirements, $224,000,000: 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'', and such amount shall be in lieu of
    amounts available under section 1106 of this Act: Provided, That the
    Secretary of State shall submit to the Committees on Appropriations of
    the House of Representatives and the Senate 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

                          DEPARTMENT OF TRANSPORTATION

                        Federal Aviation Administration

                           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 I of chapter 471 and subchapter I
    of chapter 475 of title 49, United States Code, $3,000,000,000:
    Provided, That such funds shall not be subject to apportionment
    formulas, special apportionment categories, or minimum percentages
    under chapter 471: Provided further, That the conditions,
    certifications, and assurances required for grants under subchapter I
    of chapter 471 of such title apply: Provided further, That for purposes
    of applying section 1104 of this Act to this appropriation, the
    deadline for grantees to enter into contracts or other binding
    commitments to make use of not less than 50 percent of the funds
    awarded shall be 120 days after award of the grant.

                         Federal Highway Administration

                       highway infrastructure investment

        For projects and activities eligible under section 133 of title 23,
    United States Code, section 144 of such title (without regard to
    subsection (g)), and sections 103, 119, 134, 148, and 149 of such
    title, $30,000,000,000, of which $300,000,000 shall be for Indian
    reservation roads under section 204 of such title; $250,000,000 shall
    be for park roads and parkways under section 204 of such title;
    $20,000,000 shall be for highway surface transportation and technology
    training under section 140(b) of such title; and $20,000,000 shall be
    for disadvantaged business enterprises bonding assistance under section
    332(e) of title 49, United States Code: Provided, That the amount set
    aside from this appropriation pursuant to section 1106 of this Act
    shall not be more than 0.2 percent of the funds made available under
    this heading instead of the percentage specified in such section:
    Provided further, That, after making the set-asides authorized by the
    previous provisos, the funds made available under this heading shall be
    distributed among the States, and Puerto Rico, American Samoa, Guam,
    the Virgin Islands, and the Commonwealth of the Northern Mariana
    Islands, 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,
    but, in the case of the Puerto Rico Highway Program and the Territorial
    Highway Program, under section 120(a)(5) of such division: Provided
    further, That 45 percent of the funds distributed to a State under this
    heading shall be suballocated within the State in the manner and for
    the purposes described in section 133(d) of title 23, United States
    Code, (without regard to the comparison to fiscal year 2005 in
    paragraph (2)): Provided further, That in selecting projects to be
    funded, recipients shall give priority to projects that can award
    contracts within 120 days of enactment of this Act, are included in an
    approved Statewide Transportation Improvement Program (STIP) and/or
    Metropolitan Transportation Improvement Program (TIP), are projected
    for completion within a three-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 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 Indian
    reservation roads and park roads and parkways which shall be
    administered in accordance with chapter 2 of title 23, 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, at the option of the recipient, be 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 the provisions of section 1101(b) of Public Law
    109-59 shall apply to funds made available under this heading: Provided
    further, That, in lieu of the redistribution required by section
    1104(b) of this Act, if less than 50 percent of the funds made
    available to each State and territory under this heading are obligated
    within 180 days after the date of distribution of those funds to the
    States and territories, then the portion of the 50 percent of the total
    funding distributed to the State or territory that has not been
    obligated shall be redistributed, in the manner described in section
    120(c) of division K of Public Law 110-161, to those States and
    territories that have obligated at least 50 percent of the funds made
    available under this heading and are able to obligate amounts in
    addition to those previously distributed, except that, for those funds
    suballocated within the State, if less than 50 percent of the funds so
    suballocated within the State are obligated within 150 days of
    suballocation, then the portion of the 50 percent of funding so
    suballocated that has not been obligated will be returned to the State
    for use anywhere in the State prior to being redistributed in
    accordance with the first part of this proviso: Provided further, That,
    in lieu of the redistribution required by section 1104(b) of this Act,
    any funds made available under this heading that are not obligated by
    August 1, 2010, shall be redistributed, in the manner described in
    section 120(c) of division K of Public Law 110-161, to those States
    able to obligate amounts in addition to those previously distributed,
    except that funds suballocated within the State that are not obligated
    by June 1, 2010, will be returned to the State for use anywhere in the
    State prior to being redistributed in accordance with the first part of
    this proviso:  Provided further, That notwithstanding section 1103 of
    this Act, funds made available under this heading shall be apportioned
    not later than 7 days after the date of enactment of this Act.

                        Federal Railroad Administration

            capital assistance for intercity passenger rail service

         For an additional amount for ``Capital Assistance for Intercity
    Passenger Rail Service'' to enable the Secretary of Transportation to
    make grants for capital costs as authorized by chapter 244 of title 49
    United States Code, $300,000,000: Provided, That notwithstanding
    section 1103 of this Act, the Secretary shall give preference to
    projects for the repair, rehabilitation, upgrade, or purchase of
    railroad assets or infrastructure that can be awarded within 180 days
    of enactment of this Act: Provided further, That in awarding grants for
    the acquisition of a piece of rolling stock or locomotive, the
    Secretary shall give preference to FRA-compliant rolling stock and
    locomotives: Provided further, That the Secretary shall give preference
    to projects that support the development of intercity high speed rail
    service: Provided further, That the Federal share shall be, at the
    option of the recipient, up to 100 percent.

      capital and debt service grants to the national railroad passenger
                                  corporation

        For an additional amount for ``Capital and Debt Service Grants to
    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), $800,000,000: Provided,
    That priority shall be given to projects for the repair,
    rehabilitation, or upgrade of railroad assets or infrastructure:
    Provided further, That none of the funds under this heading shall be
    used to subsidize the operating losses of Amtrak: Provided further,
    Notwithstanding section 1103 of this Act, funds made available under
    this heading shall be awarded not later than 7 days after the date of
    enactment of this Act.

                         Federal Transit Administration

                           transit capital assistance

        For transit capital assistance grants, $6,000,000,000, of which
    $5,400,000,000 shall be for grants under section 5307 of title 49,
    United States Code and shall be apportioned in accordance with section
    5336 of such title (other than subsections (i)(1) and (j)) but may not
    be combined or commingled with any other funds apportioned under such
    section 5336, and of which $600,000,000 shall be for grants under
    section 5311 of such title and shall be apportioned in accordance with
    such section 5311 but may not be combined or commingled with any other
    funds apportioned under that section: Provided, That of the funds
    provided for section 5311 under this heading, 3 percent shall be made
    available for section 5311(c)(1): 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, In lieu
    of the requirements of section 1103 of this Act, funds made available
    under this heading shall be apportioned not later than 7 days after the
    date of enactment of this Act: Provided further, That for purposes of
    applying section 1104 of this Act to this appropriation, the deadline
    for grantees to enter into obligations to make use of not less than 50
    percent of the funds awarded shall be 180 days after apportionment:
    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, of the funds
    apportioned in accordance with section 5336, up to three-quarters of 1
    percent shall be available for administrative expenses and program
    management oversight and of the funds apportioned in accordance with
    section 5311, up to one-half of 1 percent shall be available for
    administrative expenses and program management oversight and both
    amounts shall remain available for obligation until September 30, 2012:
    Provided further, That the preceding proviso shall apply in lieu of the
    provisions in section 1106 of this Act.

                    fixed guideway infrastructure investment

        For an amount for capital expenditures authorized under section
    5309(b)(2) of title 49, United States Code, $2,000,000,000: 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 funds available under the
    Formula and Bus Grants account:  Provided further, In lieu of the
    requirements of section 1103 of this Act, funds made available under
    this heading shall be apportioned not later than 7 days after the date
    of enactment of this Act: Provided further, That for purposes of
    applying section 1104 of this Act to this appropriation, the deadline
    for grantees to enter into obligations to make use of not less than 50
    percent of the funds awarded shall be 180 days after apportionment:
    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: Provided
    further, That the preceding proviso shall apply in lieu of the
    provisions in section 1106 of this Act.

                           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, $1,000,000,000: 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 award contracts based on bids
    within 120 days of enactment of this Act: Provided further, That for
    purposes of applying section 1104 of this Act to this appropriation,
    the deadline for grantees to enter into contracts or other binding
    commitments to make use of not less than 50 percent of the funds
    awarded shall be 120 days after award: 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 applicable
    chapter 53 requirements shall apply, except 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: Provided further, That the preceding proviso shall apply in lieu
    of the provisions in section 1106 of this Act.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                           Public and Indian Housing

                          public housing capital fund

        For an additional amount for ``Public Housing Capital Fund'' to
    carry out capital and management activities for public housing
    agencies, as authorized under section 9 of the United States Housing
    Act of 1937 (42 U.S.C. 1437g) (``the Act''), $5,000,000,000: Provided,
    That the Secretary of Housing and Urban Development shall distribute at
    least $4,000,000,000 of this amount by the same formula used for
    amounts made available in fiscal year 2008: 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
    notwithstanding any other provision of the Act or regulations, (1)
    funding provided herein may not be used for Operating Fund activities
    pursuant to section 9(g) of the Act, and (2) any restriction of funding
    to replacement housing uses shall be inapplicable: Provided further,
    That public housing agencies shall prioritize capital projects underway
    or already in their 5-year plans: Provided further, That of the amount
    provided under this heading, the Secretary may obligate up to
    $1,000,000,000, for competitive grants to public housing authorities
    for activities including: (1) investments that leverage private sector
    funding or financing for housing renovations and energy conservation
    retrofit investments; (2) rehabilitation of units using sustainable
    materials and methods that improve energy efficiency, reduce energy
    costs, or preserve and improve units with good access to public
    transportation or employment centers; (3) increase the availability of
    affordable rental housing by expediting rehabilitation projects to
    bring vacant units into use or by filling the capital investment gap
    for redevelopment or replacement housing projects which have been
    approved or are otherwise ready to proceed but are stalled due to the
    inability to obtain anticipated private capital; or (4) address the
    needs of seniors and persons with disabilities through improvements to
    housing and related facilities which attract or promote the coordinated
    delivery of supportive services: Provided further, That the Secretary
    may waive statutory or regulatory provisions related to the obligation
    and expenditure of capital funds if necessary to facilitate the timely
    expenditure of funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment).

       elderly, disabled, and section 8 assisted housing energy retrofit

        For grants or loans 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 (42 U.S.C. 1437f), to accomplish energy retrofit
    investments, $2,500,000,000: Provided, That such loans or grants shall
    be provided through 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: 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: Provided further, That the Secretary shall undertake
    appropriate underwriting and oversight with respect to such
    transactions: Provided further, That the Secretary may set aside funds
    made available under this heading for an efficiency incentive payable
    upon satisfactory completion of energy retrofit investments, and may
    provide additional incentives if such investments resulted in
    extraordinary job creation for low-income and very low-income persons:
    Provided further, that of the funds provided under this heading, 1
    percent shall be available only for staffing, training, technical
    assistance, technology, monitoring, research and evaluation activities.

                      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.), $500,000,000: Provided, That $250,000,000 of the amount
    appropriated under this heading shall be distributed according to the
    same funding formula used in fiscal year 2008: Provided further, That
    in selecting projects to be funded, recipients shall give priority to
    projects that can award contracts based on bids within 120 days from
    the date that funds are available to the recipients: Provided further,
    That in allocating the funds appropriated under this heading, the
    Secretary of Housing and Urban Development shall not require an
    additional action plan from grantees: Provided further, That the
    Secretary may obligate $250,000,000 of the amount appropriated under
    this heading for competitive grants to eligible entities that apply for
    funds as authorized under NAHASDA: Provided further, That in awarding
    competitive funds, the Secretary shall give priority to projects that
    will spur construction and rehabilitation and will create employment
    opportunities for low-income and unemployed persons.

                       Community Planning and Development

                           community development fund

        For an additional amount for ``Community Development Fund''
    $1,000,000,000, 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 according to the same funding
    formula used in fiscal year 2008: Provided further, That in allocating
    the funds appropriated in this paragraph, the Secretary of Housing and
    Urban Development shall not require an additional action plan from
    grantees: 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 provided in this paragraph, 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 related to fair
    housing, nondiscrimination, labor standards, and the environment), upon
    a finding that such waiver is required to facilitate the timely use of
    such funds and would not be inconsistent with the overall purpose of
    the statute.
         For a further additional amount for ``Community Development
    Fund'', $4,190,000,000, to be used for neighborhood stabilization
    activities related to 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 (Public Law 110-
    289), of which--
                (1) not less than $3,440,000,000 shall be allocated by a
            competition for which eligible entities shall be States, units
            of general local government, and nonprofit entities or
            consortia of nonprofit entities: Provided, That the award
            criteria for such competition shall include grantee capacity,
            leveraging potential, targeted impact of foreclosure
            prevention, 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 amounts made available under this Section may be
            used to (A) establish financing mechanisms for purchase and
            redevelopment of foreclosed-upon homes and residential
            properties, including such mechanisms as soft-seconds, loan
            loss reserves, and shared-equity loans for low- and moderate-
            income homebuyers; (B) purchase and rehabilitate homes and
            residential properties that have been abandoned or foreclosed
            upon, in order to sell or rent such homes and properties; (C)
            establish and operate land banks for homes that have been
            foreclosed upon; (D) demolish foreclosed properties that have
            become blighted structures; and (E) redevelop demolished or
            vacant foreclosed properties in order to sell or rent such
            properties; and
                (2) up to $750,000,000 shall be awarded by competition to
            nonprofit entities or consortia of nonprofit entities to
            provide community stabilization assistance by (A) accelerating
            state and local government and nonprofit productivity; (B)
            increasing the scale and efficiency of property transfers of
            foreclosed and vacant residential properties from financial
            institutions and government entities to qualified local housing
            providers in order to return the properties to productive
            affordable housing use; (C) building industry and property
            management capacity; and (D) partnering with private sector
            real estate developers and contractors and leveraging private
            sector capital: Provided further, That such community
            stabilization assistance shall be provided primarily in States
            and areas with high rates of defaults and foreclosures to
            support the acquisition, rehabilitation and property management
            of single-family and multi-family homes and to work in
            partnership with the private sector real estate industry and to
            leverage available private and public funds for those purposes:
            Provided further, That for purposes of this paragraph qualified
            local housing providers shall be nonprofit organizations with
            demonstrated capabilities in real estate development or
            acquisition and rehabilitation or property management of
            single- or multi-family homes, or local or state governments or
            instrumentalities of such governments: Provided further, That
            qualified local housing providers shall be expected to utilize
            and leverage additional local nonprofit, governmental, for-
            profit and private resources:
    Provided further, That in the case of any foreclosure on any dwelling
    or residential real property acquired with any amounts made available
    under this heading, any 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 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 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 acquisition or financing, the owner and any 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 this paragraph shall not preempt
    any State or local law that provides more protection for tenants:
    Provided further, That amounts made available under this heading may be
    used for the costs of demolishing foreclosed housing that is
    deteriorated or unsafe: Provided further, That the amount for
    demolition of such housing may not exceed 10 percent of amounts
    allocated under this paragraph to States and units of general local
    government: Provided further, That no amounts from a grant made under
    this paragraph 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 section 2301(d)(4) of the
    Housing and Economic Recovery Act of 2008 (Public Law 110-289) is
    repealed.

                      home investment partnerships program

         For an additional amount for ``HOME Investment Partnerships
    Program'' as authorized under Title II of the Cranston-Gonzalez
    National Affordable Housing Act (``the Act''), $1,500,000,000:
    Provided, That the amount appropriated under this heading shall be
    distributed according to the same funding formula used in fiscal year
    2008: Provided further, That the Secretary of Housing and Urban
    Development may waive statutory or regulatory provisions related to the
    obligation of such funds if necessary to facilitate the timely
    expenditure of funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment): 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 that funds are available to the recipients.

            self-help and assisted homeownership opportunity program

         For an additional amount for ``Self-Help and Assisted
    Homeownership Opportunity Program'', as authorized under section 11 of
    the Housing Opportunity Program Extension Act of 1996, $10,000,000:
    Provided, That in awarding competitive grant funds, the Secretary of
    Housing and Urban Development shall give priority to the provision and
    rehabilitation of sustainable, affordable single and multifamily units
    in low-income, high-need rural areas: Provided further, That in
    selecting projects to be funded, grantees 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 grantee.

                           homeless assistance grants

        For an additional amount for ``Homeless Assistance Grants'', for
    the emergency shelter grants program as authorized under subtitle B of
    tile IV of the McKinney-Vento Homeless Assistance Act, $1,500,000,000:
    Provided, That in addition to homeless prevention activities specified
    in the emergency shelter grant program, funds provided under this
    heading may 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,
    legal services, credit repair, resolution of security or utility
    deposits, utility payments, rental assistance for a final month at a
    location, and moving costs assistance; or other appropriate
    homelessness prevention activities; Provided further, That these funds
    shall be allocated pursuant to the formula authorized by section 413 of
    such Act: Provided further, That the Secretary of Housing and Urban
    Development may waive statutory or regulatory provisions related to the
    obligation and use of emergency shelter grant funds necessary to
    facilitate the timely expenditure of funds.

                Office of Healthy Homes and Lead Hazard Control

                             lead hazard reduction

         For an additional amount for ``Lead Hazard Reduction'', for the
    Lead Hazard Reduction Program as authorized by section 1011 of the
    Residential Lead-Based Paint Hazard Reduction Act of 1992,
    $100,000,000: 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 of the
    total amount made available under this heading, $30,000,000 shall be
    made available on a competitive basis for areas with the highest lead
    paint abatement needs.

                         GENERAL PROVISIONS, THIS TITLE

    SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING REQUIREMENTS TO ENSURE
                  TRANSPARENCY AND ACCOUNTABILITY.

        (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 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 covered agency a
    statement identifying the amount of funds the State planned to expend
    as of the date of enactment of this Act from non-Federal sources in 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) 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.
                (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 jobs created or sustained by the
                    Federal funds provided for projects under the
                    appropriation, including information on job sectors and
                    pay levels; and
                        (G) for each covered program report information
                    tracking the actual aggregate expenditures by each
                    grant recipient from non-Federal 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 30 days after the date of enactment
            of this Act and shall submit updated reports not later than 60
            days, 120 days, 180 days, 1 year, and 3 years after such date
            of enactment.
        (c) Definitions.--In this section, the following definitions apply:
                (1) Covered agency.--The term ``covered agency'' means the
            Federal Aviation Administration, the Federal Highway
            Administration, the Federal Railroad Administration, and the
            Federal Transit Administration of the Department of
            Transportation.
                (2) Covered program.--The term ``covered program'' means
            funds appropriated in this Act for ``Grants-in-Aid for
            Airports'' to the Federal Aviation Administration; for
            ``Highway Infrastructure Investment'' to the Federal Highway
            Administration; for ``Capital Assistance for Intercity
            Passenger Rail Service'' to the Federal Railroad
            Administration; for ``Transit Capital Assistance'', ``Fixed
            Guideway Infrastructure Investment'', and ``Capital Investment
            Grants'' to the Federal Transit 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.

    SEC. 12002. 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. 12003. 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 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. 12004. 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. 171520(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--STATE FISCAL STABILIZATION FUND

                            DEPARTMENT OF EDUCATION

                        State Fiscal Stabilization Fund

        For necessary expenses for a State Fiscal Stabilization Fund,
    $79,000,000,000, which shall be administered by the Department of
    Education, of which $39,500,000,000 shall become available on July 1,
    2009 and remain available through September 30, 2010, and
    $39,500,000,000 shall become available on July 1, 2010 and remain
    available through September 30, 2011: Provided, That the provisions of
    section 1103 of this Act shall not apply to the funds reserved under
    section 13001(c) of this title: Provided further, That the amount made
    available under section 13001(b) of this title for administration and
    oversight shall take the place of the set-aside under section 1106 of
    this Act.

                         GENERAL PROVISIONS, THIS TITLE

    SEC. 13001. ALLOCATIONS.

        (a) Outlying Areas.--From each year's appropriation to carry out
    this title, the Secretary of Education shall first allocate one half of
    1 percent to the outlying areas on the basis of their respective needs,
    as determined by the Secretary, for activities consistent with this
    title under such terms and conditions as the Secretary may determine.
        (b) Administration and Oversight.--The Secretary may, in addition,
    reserve up to $12,500,000 each year for administration and oversight of
    this title, including for program evaluation.
        (c) Reservation for Additional Programs.--After reserving funds
    under subsections (a) and (b), the Secretary shall reserve
    $7,500,000,000 each year for grants under sections 13006 and 13007.
        (d) State Allocations.--After carrying out subsections (a), (b),
    and (c), the Secretary shall allocate the remaining funds made
    available to carry out this title to the States as follows:
                (1) 61 percent on the basis of their relative population of
            individuals aged 5 through 24.
                (2) 39 percent on the basis of their relative total
            population.
        (e) State Grants.--From funds allocated under subsection (d), the
    Secretary shall make grants to the Governor of each State.
        (f) Reallocation.--The Governor shall return to the Secretary any
    funds received under subsection (e) that the Governor does not obligate
    within one year of receiving a grant, and the Secretary shall
    reallocate such funds to the remaining States in accordance with
    subsection (d).

    SEC. 13002. STATE USES OF FUNDS.

        (a) Education Fund.--
                (1) In general.--For each fiscal year, the Governor shall
            use at least 61 percent of the State's allocation under section
            13001 for the support of elementary, secondary, and
            postsecondary education.
                (2) Restoring 2008 state support for education.--
                        (A) In general.--The Governor shall first use the
                    funds described in paragraph (1)--
                                (i) to provide the amount of funds, through
                            the State's principal elementary and secondary
                            funding formula, that is needed to restore
                            State support for elementary and secondary
                            education to the fiscal year 2008 level; and
                                (ii) to provide the amount of funds to
                            public institutions of higher education in the
                            State that is needed to restore State support
                            for postsecondary education to the fiscal year
                            2008 level.
                        (B) Shortfall.--If the Governor determines that the
                    amount of funds available under paragraph (1) is
                    insufficient to restore State support for education to
                    the levels described in clauses (i) and (ii) of
                    subparagraph (A), the Governor shall allocate those
                    funds between those clauses in proportion to the
                    relative shortfall in State support for the education
                    sectors described in those clauses.
                (3) Subgrants to improve basic programs operated by local
            educational agencies.--After carrying out paragraph (2), the
            Governor shall use any funds remaining under paragraph (1) to
            provide local educational agencies in the State with subgrants
            based on their relative shares of funding under part A of title
            I of the Elementary and Secondary Education Act of 1965 (20
            U.S.C. 6311 et seq.) for the most recent year for which data
            are available.
        (b) Other Government Services.--For each fiscal year, the Governor
    may use up to 39 percent of the State's allocation under section 1301
    for public safety and other government services, which may include
    assistance for elementary and secondary education and public
    institutions of higher education.

    SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

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

    SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

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

    SEC. 13005. STATE APPLICATIONS.

        (a) In General.--The Governor of a State desiring to receive an
    allocation under section 13001 shall submit an annual application at
    such time, in such manner, and containing such information as the
    Secretary may reasonably require.
        (b) First Year Application.--In the first of such applications, the
    Governor shall--
                (1) include the assurances described in subsection (e);
                (2) provide baseline data that demonstrates the State's
            current status in each of the areas described in such
            assurances; and
                (3) describe how the State intends to use its allocation.
        (c) Second Year Application.--In the second year application, the
    Governor shall--
                (1) include the assurances described in subsection (e); and
                (2) describe how the State intends to use its allocation.
        (d) Incentive Grant Application.--The Governor of a State seeking a
    grant under section 13006 shall--
                (1) submit an application for consideration;
                (2) describe the status of the State's progress in each of
            the areas described in subsection (e), and the strategies the
            State is employing to help ensure that high-need students in
            the State continue making progress towards meeting the State's
            student academic achievement standards;
                (3) describe how the State would use its grant funding,
            including how it will allocate the funds to give priority to
            high-need schools and local educational agencies; and
                (4) include a plan for evaluating its progress in closing
            achievement gaps.
        (e) Assurances.--An application under subsection (b) or (c) shall
    include the following assurances:
                (1) Maintenance of effort.--
                        (A) Elementary and secondary education.--The State
                    will, in each of fiscal years 2009 and 2010, maintain
                    State support for elementary and secondary education at
                    least at the level of such support in fiscal year 2006.
                        (B) Higher education.--The State will, in each of
                    fiscal years 2009 and 2010, maintain State support for
                    public institutions of higher education (not including
                    support for capital projects or for research and
                    development) at least at the level of such support in
                    fiscal year 2006.
                (2) Achieving equity in teacher distribution.--The State
            will take actions to comply with section 1111(b)(8)(C) of ESEA
            (20 U.S.C. 6311(b)(8)(C)) in order to address inequities in the
            distribution of 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) Assessments.--The State--
                        (A) will enhance the quality of academic
                    assessments described in section 1111(b)(3) of ESEA (20
                    U.S.C. 6311(b)(3)) through activities such as those
                    described in section 6112(a) of such Act (20 U.S.C.
                    7301a(a)); and
                        (B) will comply with the requirements of paragraphs
                    3(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C.
                    6311(b)) and section 612(a)(16) of IDEA (20 U.S.C.
                    1412(a)(16)) related to the inclusion of children with
                    disabilities and limited English proficient students in
                    State assessments, the development of valid and
                    reliable assessments for those students, and the
                    provision of accommodations that enable their
                    participation in State assessments.

    SEC. 13006. STATE INCENTIVE GRANTS.

        (a) In General.--From the total amount reserved under section
    13001(c) that is not used for section 13007, the Secretary shall, in
    fiscal year 2010, make grants to States that have made significant
    progress in meeting the objectives of paragraphs (2), (3), and (4) of
    section 13005(e).
        (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
    13005 and such other criteria as the Secretary determines appropriate.
        (c) Subgrants to Local Educational Agencies.--Each State receiving
    a grant under this section shall use at least 50 percent of the grant
    to provide local educational agencies in the State with subgrants based
    on their relative shares of funding under part A of title I of ESEA (20
    U.S.C. 6311 et seq.) for the most recent year.

    SEC. 13007. INNOVATION FUND.

        (a) In General.--
                (1) Program established.--From the total amount reserved
            under section 13001(c), the Secretary may reserve up to
            $325,000,000 each year to establish an Innovation Fund, which
            shall consist of academic achievement awards that recognize
            States, local educational agencies, or schools that meet the
            requirements described in subsection (b).
                (2) Basis for awards.--The Secretary shall make awards to
            States, local educational agencies, or schools that have made
            significant gains in closing the achievement gap as described
            in subsection (b)(1)--
                        (A) to allow such States, local educational
                    agencies, and schools to expand their work and serve as
                    models for best practices;
                        (B) to allow such States, local educational
                    agencies, and schools 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, a State, local
    educational agency, or school shall--
                (1) have significantly closed the achievement gaps between
            groups of students described in section 1111(b)(2) of ESEA (20
            U.S.C. 6311(b)(2));
                (2) have exceeded the State's annual measurable objectives
            consistent with such section 1111(b)(2) for 2 or more
            consecutive years or have demonstrated success in significantly
            increasing student academic achievement for all groups of
            students described in such section through another measure,
            such as measures described in section 1111(c)(2) of ESEA;
                (3) have made significant improvement in other areas, such
            as graduation rates or increased recruitment and placement of
            high-quality teachers and school leaders, as demonstrated with
            meaningful data; and
                (4) demonstrate that they have established partnerships
            with the private sector, which may include philanthropic
            organizations, and that the private sector will provide
            matching funds in order to help bring results to scale.

    SEC. 13008. 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 teachers, in implementing a State student
            longitudinal data system, and in developing and implementing
            valid and reliable assessments for limited English proficient
            students and children with disabilities;
                (6) the tuition and fee increases for in-State students
            imposed by public institutions of higher education in the State
            during the period of availability of funds under this title,
            and a description of any actions taken by the State to limit
            those increases; and
                (7) the extent to which public institutions of higher
            education maintained, increased, or decreased enrollment of in-
            State students, including students eligible for Pell Grants or
            other need-based financial assistance.

    SEC. 13009. EVALUATION.

        The Comptroller General of the United States shall conduct
    evaluations of the programs under sections 13006 and 13007 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. 13010. 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
    13008.

    SEC. 13011. 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. 13012. DEFINITIONS.

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

                          DIVISION B--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:

    Sec. 1000. Short title, etc.
                          Subtitle A--Making Work Pay

    Sec. 1001. Making work pay credit.
          Subtitle B--Additional Tax Relief for Families With Children

    Sec. 1101. Increase in earned income tax credit.
    Sec. 1102. Increase of refundable portion of child credit.
                  Subtitle C--American Opportunity Tax Credit

    Sec. 1201. American opportunity tax credit.
                         Subtitle D--Housing Incentives

    Sec. 1301. Waiver of requirement to repay first-time homebuyer credit.
    Sec. 1302. Coordination of low-income housing credit and low-income
                                housing grants.
                    Subtitle E--Tax Incentives for Business

                    Part 1--Temporary Investment Incentives

    Sec. 1401. Special allowance for certain property acquired during 2009.
    Sec. 1402. Temporary increase in limitations on expensing of certain
                                depreciable business assets.
                  Part 2--5-Year Carryback of Operating Losses

    Sec. 1411. 5-year carryback of operating losses.
    Sec. 1412. Exception for TARP recipients.
                        Part 3--Incentives for New Jobs

    Sec. 1421. Incentives to hire unemployed veterans and disconnected
                                youth.
    Part 4--Clarification of Regulations Related to Limitations on Certain
                 Built-In Losses Following an Ownership Change

    Sec. 1431. Clarification of regulations related to limitations on
                                certain built-in losses following an
                                ownership change.
           Subtitle F--Fiscal Relief for State and Local Governments

              Part 1--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.
                      Part 2--Tax Credit Bonds for Schools

    Sec. 1511. Qualified school construction bonds.
    Sec. 1512. Extension and expansion of qualified zone academy bonds.
               Part 3--Taxable Bond Option for Governmental Bonds

    Sec. 1521. Taxable bond option for governmental bonds.
                          Part 4--Recovery Zone Bonds

    Sec. 1531. Recovery zone bonds.
    Sec. 1532. Tribal economic development bonds.
          Part 5--Repeal of Withholding Tax on Government Contractors

    Sec. 1541. Repeal of withholding tax on government contractors.
                         Subtitle G--Energy Incentives

                      Part 1--Renewable Energy Incentives

    Sec. 1601. Extension of credit for electricity produced from certain
                                renewable resources.
    Sec. 1602. Election of investment credit in lieu of production credit.
    Sec. 1603. Repeal of certain limitations on credit for renewable energy
                                property.
    Sec. 1604. Coordination with renewable energy grants.
     Part 2--Increased Allocations of New Clean Renewable Energy Bonds and
                      Qualified Energy Conservation Bonds

    Sec. 1611. Increased limitation on issuance of new clean renewable
                                energy bonds.
    Sec. 1612. Increased limitation and expansion of qualified energy
                                conservation bonds.
                     Part 3--Energy Conservation Incentives

    Sec. 1621. Extension and modification of credit for nonbusiness energy
                                property.
    Sec. 1622. Modification of credit for residential energy efficient
                                property.
    Sec. 1623. Temporary increase in credit for alternative fuel vehicle
                                refueling property.
                       Part 4--Energy Research Incentives

    Sec. 1631. Increased research credit for energy research.
                          Subtitle H--Other Provisions

      Part 1--Application of Certain Labor Standards to Projects Financed
                         With Certain Tax-Favored Bonds

    Sec. 1701. Application of certain labor standards to projects financed
                                with certain tax-favored bonds.
           Part 2--Grants To Provide Financing for Low-Income Housing

    Sec. 1711. Grants to States for low-income housing projects in lieu of
                                low-income housing credit allocations for
                                2009.
      Part 3--Grants for Specified Energy Property in Lieu of Tax Credits

    Sec. 1721. Grants for specified energy property in lieu of tax credits.
     Part 4--Study of Economic, Employment, and Related Effects of This Act

    Sec. 1731. Study of economic, employment, and related effects of this
                                Act.

                          Subtitle A--Making Work Pay

    SEC. 1001. MAKING WORK PAY CREDIT.

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

    ``SEC. 36A. MAKING WORK PAY CREDIT.

        ``(a) Allowance of Credit.--In the case of an eligible individual,
    there shall be allowed as a credit against the tax imposed by this
    subtitle for the taxable year an amount equal to the lesser of--
                ``(1) 6.2 percent of earned income of the taxpayer, or
                ``(2) $500 ($1,000 in the case of a joint return).
        ``(b) Limitation Based on Modified Adjusted Gross Income.--
                ``(1) In general.--The amount allowable as a credit under
            subsection (a) (determined without regard to this paragraph)
            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) Definitions.--For purposes of this section--
                ``(1) Eligible individual.--The term `eligible individual'
            means any individual other than--
                        ``(A) any nonresident alien individual,
                        ``(B) any individual with respect to whom a
                    deduction under section 151 is allowable to another
                    taxpayer for a taxable year beginning in the calendar
                    year in which the individual's taxable year begins, and
                        ``(C) an estate or trust.
            Such term shall not include any individual unless the
            requirements of section 32(c)(1)(E) are met with respect to
            such individual.
                ``(2) Earned income.--The term `earned income' has the
            meaning given such term by section 32(c)(2), except that such
            term shall not include net earnings from self-employment which
            are not taken into account in computing taxable income. For
            purposes of the preceding sentence, any amount excluded from
            gross income by reason of section 112 shall be treated as
            earned income which is taken into account in computing taxable
            income for the taxable year.
        ``(d) 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) 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.''.
        (e) Effective Date.--This section shall apply to taxable years
    beginning after December 31, 2008.

          Subtitle B--Additional Tax Relief for Families With Children

    SEC. 1101. 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. 1102. 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 zero.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.

                  Subtitle C--American Opportunity Tax Credit

    SEC. 1201. 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 1324(b)(2) of title 31, United States Code, is
            amended by inserting ``25A,'' before ``35''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2008.
        (d) Application of EGTRRA Sunset.--The amendment made by subsection
    (b)(1) shall be subject to title IX of the Economic Growth and Tax
    Relief Reconciliation Act of 2001 in the same manner as the provision
    of such Act to which such amendment relates.
        (e) Treasury Studies Regarding Education Incentives.--
                (1) Study regarding coordination with non-tax educational
            incentives.--The Secretary of the Treasury, or the Secretary's
            delegate, shall study how to coordinate the credit allowed
            under section 25A of the Internal Revenue Code of 1986 with the
            Federal Pell Grant program under section 401 of the Higher
            Education Act of 1965.
                (2) Study regarding imposition of community service
            requirements.--The Secretary of the Treasury, or the
            Secretary's delegate, shall study the feasibility of requiring
            students to perform community service as a condition of taking
            their tuition and related expenses into account under section
            25A of the Internal Revenue Code of 1986.
                (3) Report.--Not later than 1 year after the date of the
            enactment of this Act, the Secretary of the Treasury, or the
            Secretary's delegate, shall report to Congress on the results
            of the studies conducted under this paragraph.

                         Subtitle D--Housing Incentives

    SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-TIME HOMEBUYER CREDIT.

        (a) 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 July 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.''.
        (b) Conforming Amendment.--Subsection (g) of section 36 is amended
    by striking ``subsection (c)'' and inserting ``subsections (c) and
    (f)(4)(D)''.
        (c) Effective Date.--The amendments made by this section shall
    apply to residences purchased after December 31, 2008.

    SEC. 1302. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME
                  HOUSING GRANTS.

        Subsection (i) of section 42 of the Internal Revenue Code of 1986
    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 1711 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 E--Tax Incentives for Business

                    PART 1--TEMPORARY INVESTMENT INCENTIVES

    SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

        (a) In General.--Paragraph (2) of section 168(k) is amended--
                (1) by striking ``January 1, 2010'' and inserting ``January
            1, 2011'', and
                (2) by striking ``January 1, 2009'' each place it appears
            and inserting ``January 1, 2010''.
        (b) Conforming Amendments.--
                (1) The heading for subsection (k) of section 168 is
            amended by striking ``January 1, 2009'' and inserting ``January
            1, 2010''.
                (2) 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''.
                (3) Subparagraph (D) of section 168(k)(4) is amended--
                        (A) by striking ``and'' at the end of clause (i),
                        (B) by redesignating clause (ii) as clause (v), and
                        (C) by inserting after clause (i) the following new
                    clauses:
                                ``(ii) `April 1, 2008' shall be substituted
                            for `January 1, 2008' in subparagraph
                            (A)(iii)(I) thereof,
                                ``(iii) `January 1, 2009' shall be
                            substituted for `January 1, 2010' each place it
                            appears,
                                ``(iv) `January 1, 2010' shall be
                            substituted for `January 1, 2011' in
                            subparagraph (A)(iv) thereof, and''.
                (4) Subparagraph (B) of section 168(l)(5) is amended by
            striking ``January 1, 2009'' and inserting ``January 1, 2010''.
                (5) Subparagraph (B) of section 1400N(d)(3) is amended by
            striking ``January 1, 2009'' and inserting ``January 1, 2010''.
        (c) Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to property placed
            in service after December 31, 2008, in taxable years ending
            after such date.
                (2) Technical amendment.--Section 168(k)(4)(D)(ii) of the
            Internal Revenue Code of 1986, as added by subsection
            (b)(3)(C), shall apply to taxable years ending after March 31,
            2008.

    SEC. 1402. 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 2--5-YEAR CARRYBACK OF OPERATING LOSSES

    SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES.

        (a) In General.--Subparagraph (H) of section 172(b)(1) is amended
    to read as follows:
                        ``(H) Carryback for 2008 and 2009 net operating
                    losses.--
                                ``(i) In general.--In the case of an
                            applicable 2008 or 2009 net operating loss with
                            respect to which the taxpayer has elected the
                            application of this subparagraph--
                                        ``(I) such net operating loss shall
                                    be reduced by 10 percent of such loss
                                    (determined without regard to this
                                    subparagraph),
                                        ``(II) 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',
                                        ``(III) subparagraph (E)(ii) shall
                                    be applied by substituting the whole
                                    number which is one less than the whole
                                    number substituted under subclause (II)
                                    for `2', and
                                        ``(IV) subparagraph (F) shall not
                                    apply.
                                ``(ii) Applicable 2008 or 2009 net
                            operating loss.--For purposes of this
                            subparagraph, the term `applicable 2008 or 2009
                            net operating loss' means--
                                        ``(I) the taxpayer's net operating
                                    loss for any taxable year ending in
                                    2008 or 2009, or
                                        ``(II) if the taxpayer elects to
                                    have this subclause apply in lieu of
                                    subclause (I), the taxpayer's net
                                    operating loss for any taxable year
                                    beginning in 2008 or 2009.
                                ``(iii) Election.--Any election under this
                            subparagraph shall be made in such manner as
                            may be prescribed by the Secretary, and shall
                            be made by the due date (including extension of
                            time) for filing the taxpayer's return for the
                            taxable year of the net operating loss. Any
                            such election, once made, shall be irrevocable.
                                ``(iv) Coordination with alternative tax
                            net operating loss deduction.--In the case of a
                            taxpayer who elects to have clause (ii)(II)
                            apply, section 56(d)(1)(A)(ii) shall be applied
                            by substituting `ending during 2001 or 2002 or
                            beginning during 2008 or 2009' for `ending
                            during 2001, 2002, 2008, or 2009'.''.
        (b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of
    section 56(d)(1)(A)(ii) is amended to read as follows:
                                        ``(I) the amount of such deduction
                                    attributable to the sum of carrybacks
                                    of net operating losses from taxable
                                    years ending during 2001, 2002, 2008,
                                    or 2009 and carryovers of net operating
                                    losses to such taxable years, or''.
        (c) Loss From Operations of Life Insurance Companies.--Subsection
    (b) of section 810 is amended by adding at the end the following new
    paragraph:
                ``(4) Carryback for 2008 and 2009 losses.--
                        ``(A) In general.--In the case of an applicable
                    2008 or 2009 loss from operations with respect to which
                    the taxpayer has elected the application of this
                    paragraph--
                                ``(i) such loss from operations shall be
                            reduced by 10 percent of such loss (determined
                            without regard to this paragraph), and
                                ``(ii) paragraph (1)(A) shall be applied,
                            at the election of the taxpayer, by
                            substituting `5' or `4' for `3'.
                        ``(B) Applicable 2008 or 2009 loss from
                    operations.--For purposes of this paragraph, the term
                    `applicable 2008 or 2009 loss from operations' means--
                                ``(i) the taxpayer's loss from operations
                            for any taxable year ending in 2008 or 2009, or
                                ``(ii) if the taxpayer elects to have this
                            clause apply in lieu of clause (i), the
                            taxpayer's loss from operations for any taxable
                            year beginning in 2008 or 2009.
                        ``(C) Election.--Any election under this paragraph
                    shall be made in such manner as may be prescribed by
                    the Secretary, and shall be made by the due date
                    (including extension of time) for filing the taxpayer's
                    return for the taxable year of the loss from
                    operations. Any such election, once made, shall be
                    irrevocable.
                        ``(D) Coordination with alternative tax net
                    operating loss deduction.--In the case of a taxpayer
                    who elects to have subparagraph (B)(ii) apply, section
                    56(d)(1)(A)(ii) shall be applied by substituting
                    `ending during 2001 or 2002 or beginning during 2008 or
                    2009' for `ending during 2001, 2002, 2008, or 2009'.''.
        (d) Conforming Amendment.--Section 172 is amended by striking
    subsection (k).
        (e) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            net operating losses arising in taxable years ending after
            December 31, 2007.
                (2) Alternative tax net operating loss deduction.--The
            amendment made by subsection (b) shall apply to taxable years
            ending after 1997.
                (3) Loss from operations of life insurance companies.--The
            amendment made by subsection (d) shall apply to losses from
            operations arising in taxable years ending after December 31,
            2007.
                (4) Transitional rule.--In the case of a net operating loss
            (or, in the case of a life insurance company, a loss from
            operations) for a taxable year ending before the date of the
            enactment of this Act--
                        (A) any election made under section 172(b)(3) or
                    810(b)(3) of the Internal Revenue Code of 1986 with
                    respect to such loss may (notwithstanding such section)
                    be revoked before the applicable date,
                        (B) any election made under section 172(b)(1)(H) or
                    810(b)(4) of such Code with respect to such loss shall
                    (notwithstanding such section) be treated as timely
                    made if made before the applicable date, and
                        (C) any application under section 6411(a) of such
                    Code with respect to such loss shall be treated as
                    timely filed if filed before the applicable date.
            For purposes of this paragraph, the term ``applicable date''
            means the date which is 60 days after the date of the enactment
            of this Act.

    SEC. 1412. EXCEPTION FOR TARP RECIPIENTS.

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

                        PART 3--INCENTIVES FOR NEW JOBS

    SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED
                  YOUTH.

        (a) In General.--Subsection (d) of section 51 is amended by adding
    at the end the following new paragraph:
                ``(14) Credit allowed for unemployed veterans and
            disconnected youth hired in 2009 or 2010.--
                        ``(A) In general.--Any unemployed veteran or
                    disconnected youth who begins work for the employer
                    during 2009 or 2010 shall be treated as a member of a
                    targeted group for purposes of this subpart.
                        ``(B) Definitions.--For purposes of this
                    paragraph--
                                ``(i) Unemployed veteran.--The term
                            `unemployed veteran' means any veteran (as
                            defined in paragraph (3)(B), determined without
                            regard to clause (ii) thereof) who is certified
                            by the designated local agency as--
                                        ``(I) having been discharged or
                                    released from active duty in the Armed
                                    Forces during 2008, 2009, or 2010, and
                                        ``(II) being in receipt of
                                    unemployment compensation under State
                                    or Federal law for not less than 4
                                    weeks during the 1-year period ending
                                    on the hiring date.
                                ``(ii) Disconnected youth.--The term
                            `disconnected youth' means any individual who
                            is certified by the designated local agency--
                                        ``(I) as having attained age 16 but
                                    not age 25 on the hiring date,
                                        ``(II) as not regularly attending
                                    any secondary, technical, or post-
                                    secondary school during the 6-month
                                    period preceding the hiring date,
                                        ``(III) as not regularly employed
                                    during such 6-month period, and
                                        ``(IV) as not readily employable by
                                    reason of lacking a sufficient number
                                    of basic skills.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to individuals who begin work for the employer after December 31,
    2008.

    PART 4--CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN
                 BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

    SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON
                  CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.

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

           Subtitle F--Fiscal Relief for State and Local Governments

              PART 1--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 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 one
                            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 amendments made by this section shall
    apply to obligations issued after December 31, 2008.

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

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

                      PART 2--TAX CREDIT BONDS FOR SCHOOLS

    SEC. 1511. 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 sum of--
                ``(1) the limitation amount allocated under subsection (d)
            for such calendar year to such issuer, and
                ``(2) if such issuer is a large local educational agency
            (as defined in subsection (e)(4)) or is issuing on behalf of
            such an agency, the limitation amount allocated under
            subsection (e) for such calendar year to such agency.
        ``(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 (f), zero after
            2010.
        ``(d) 60 Percent of Limitation Allocated Among States.--
                ``(1) In general.--60 percent of the limitation applicable
            under subsection (c) for any calendar year shall be allocated
            by the Secretary among the States in proportion to the
            respective numbers of children in each State who have attained
            age 5 but not age 18 for the most recent fiscal year ending
            before such calendar year. The limitation amount allocated to a
            State under the preceding sentence shall be allocated by the
            State to issuers within such State.
                ``(2) Minimum allocations to states.--
                        ``(A) In general.--The Secretary shall adjust the
                    allocations under this subsection for any calendar year
                    for each State to the extent necessary to ensure that
                    the sum of--
                                ``(i) the amount allocated to such State
                            under this subsection for such year, and
                                ``(ii) the aggregate amounts allocated
                            under subsection (e) to large local educational
                            agencies in such State for such year,
                    is not less than an amount equal to such State's
                    adjusted minimum percentage of the amount to be
                    allocated under paragraph (1) for the calendar year.
                        ``(B) Adjusted minimum percentage.--A State's
                    adjusted minimum percentage for any calendar year is
                    the product of--
                                ``(i) the minimum percentage described in
                            section 1124(d) of the Elementary and Secondary
                            Education Act of 1965 (20 U.S.C. 6334(d)) for
                            such State for the most recent fiscal year
                            ending before such calendar year, multiplied by
                                ``(ii) 1.68.
                ``(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) 40 Percent of Limitation Allocated Among Largest School
    Districts.--
                ``(1) In general.--40 percent of the limitation applicable
            under subsection (c) for any calendar year shall be allocated
            under paragraph (2) by the Secretary among local educational
            agencies which are large local educational agencies for such
            year.
                ``(2) Allocation formula.--The amount to be allocated under
            paragraph (1) for any calendar year shall be allocated among
            large local educational agencies in proportion to the
            respective amounts each such agency received for Basic Grants
            under subpart 2 of part A of title I of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for
            the most recent fiscal year ending before such calendar year.
                ``(3) Allocation of unused limitation to state.--The amount
            allocated under this subsection 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 subsection (d)(1).
                ``(4) Large local educational agency.--For purposes of this
            section, the term `large local educational agency' means, with
            respect to a calendar year, any local educational agency if
            such agency is--
                        ``(A) 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
                        ``(B) 1 of not more than 25 local educational
                    agencies (other than those described in subparagraph
                    (A)) 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.
        ``(f) 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) or (e).''.
        (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 December 31, 2008.

    SEC. 1512. 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 3--TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

    SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 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--Taxable Bond Option for Governmental Bonds

    ``Sec. 54AA. Taxable bond option for governmental bonds.

    ``SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.

        ``(a) In General.--If a taxpayer holds a taxable governmental 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 taxable
    governmental 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) Taxable Governmental Bond.--
                ``(1) In general.--For purposes of this section, the term
            `taxable governmental 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, and
                        ``(B) the issuer makes an irrevocable election to
                    have this section apply.
                ``(2) Applicable rules.--For purposes of applying paragraph
            (1)--
                        ``(A) a taxable governmental bond shall not be
                    treated as federally guaranteed by reason of the credit
                    allowed under subsection (a) or section 6432,
                        ``(B) the yield on a taxable governmental bond
                    shall be determined without regard to the credit
                    allowed under subsection (a), and
                        ``(C) a bond shall not be treated as a taxable
                    governmental 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 taxable governmental bond is entitled to a payment of
    interest under such bond.
        ``(f) Special Rules.--
                ``(1) Interest on taxable governmental bonds includible in
            gross income for federal income tax purposes.--For purposes of
            this title, interest on any taxable governmental 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 6432.
                ``(2) Qualified bond.--For purposes of this subsection, the
            term `qualified bond' means any taxable governmental bond
            issued as part of an issue if--
                        ``(A) 100 percent of the available project proceeds
                    (as defined in section 54A) of such issue are to be
                    used for capital expenditures, and
                        ``(B) the issuer makes an irrevocable election to
                    have this subsection apply.
        ``(h) Regulations.--The Secretary may prescribe such regulations
    and other guidance as may be necessary or appropriate to carry out this
    section and section 6432.''.
        (b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of
    chapter 65, as amended by this Act, is amended by adding at the end the
    following new section:

    ``SEC. 6432. 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(h).''.
        (c) Conforming Amendments.--
                (1) Section 1324(b)(2) of title 31, United States Code, is
            amended by striking ``or 6428'' and inserting ``6428, or
            6432,''.
                (2) Section 54A(c)(1)(B) is amended by striking ``subpart
            C'' and inserting ``subparts C and J''.
                (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are
            each amended by striking ``and I'' and inserting ``, I, and
            J''.
                (4) Section 6401(b)(1) is amended by striking ``and I'' and
            inserting ``I, and J''.
                (5) The table of subparts for part IV of subchapter A of
            chapter 1 is amended by adding at the end the following new
            item:

    ``Subpart J. Taxable bond option for governmental bonds.''.
                (6) The table of sections for subchapter B of chapter 65,
            as amended by this Act, is amended by adding at the end the
            following new item:

    ``Sec. 6432. Credit for qualified bonds allowed to issuer on advance
                                basis.''.
        (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 taxable governmental 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 4--RECOVERY ZONE BONDS

    SEC. 1531. RECOVERY ZONE BONDS.

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

                        ``PART III--RECOVERY ZONE BONDS

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

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

        ``(a) Allocations.--
                ``(1) In general.--The Secretary shall allocate the
            national recovery zone economic development bond limitation and
            the national recovery zone facility bond limitation among the
            States 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.
                ``(2) 2008 state employment decline.--For purposes of this
            subsection, the term `2008 State employment decline' means,
            with respect to any State, the excess (if any) of--
                        ``(A) the number of individuals employed in such
                    State determined for December 2007, over
                        ``(B) the number of individuals employed in such
                    State determined for December 2008.
                ``(3) Allocations by states.--
                        ``(A) In general.--Each State with respect to which
                    an allocation is made under paragraph (1) shall
                    reallocate such allocation among the counties and large
                    municipalities in such State in the proportion the each
                    such county's or municipality's 2008 employment decline
                    bears to the aggregate of the 2008 employment declines
                    for all the counties and municipalities in such State.
                        ``(B) Large municipalities.--For purposes of
                    subparagraph (A), the term `large municipality' means a
                    municipality with a population of more than 100,000.
                        ``(C) Determination of local employment declines.--
                    For purposes of this paragraph, the employment decline
                    of any municipality or county shall be determined in
                    the same manner as determining the State employment
                    decline under paragraph (2), except that in the case of
                    a municipality any portion of which is in a county,
                    such portion shall be treated as part of such
                    municipality and not part of such county.
                ``(4) National limitations.--
                        ``(A) Recovery zone economic development bonds.--
                    There is a national recovery zone economic development
                    bond limitation of $10,000,000,000.
                        ``(B) Recovery zone facility bonds.--There is a
                    national recovery zone facility bond limitation of
                    $15,000,000,000.
        ``(b) Recovery Zone.--For purposes of this part, the term `recovery
    zone' means--
                ``(1) any area designated by the issuer as having
            significant poverty, unemployment, home foreclosures, or
            general distress, and
                ``(2) any area for which a designation as an empowerment
            zone or renewal community is in effect.

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

        ``(a) In General.--In the case of a recovery zone economic
    development bond--
                ``(1) such bond shall be treated as a qualified bond for
            purposes of section 6432, and
                ``(2) subsection (b) of such section shall be applied by
            substituting `55 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 taxable
            governmental bond (as defined in section 54AA(d)) issued before
            January 1, 2011, as part of issue if--
                        ``(A) 100 percent of the available project proceeds
                    (as defined in section 54A) of such issue are to be
                    used for one or more qualified economic development
                    purposes, and
                        ``(B) the issuer designates such bond for purposes
                    of this section.
                ``(2) Limitation on amount of bonds designated.--The
            maximum aggregate face amount of bonds which may be designated
            by any issuer under paragraph (1) shall not exceed the amount
            of the recovery zone economic development bond limitation
            allocated to such issuer under section 1400U-1.
        ``(c) Qualified Economic Development Purpose.--For purposes of this
    section, the term `qualified economic development purpose' means
    expenditures for purposes of promoting development or other economic
    activity in a recovery zone, including--
                ``(1) capital expenditures paid or incurred with respect to
            property located in such zone,
                ``(2) expenditures for public infrastructure and
            construction of public facilities, and
                ``(3) expenditures for job training and educational
            programs.

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

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

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

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

    SEC. 1532. 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, and
                        ``(B) 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 is not exempt
                            from tax under section 103 by reason of
                            subsection (c) (determined without regard to
                            this subsection) but would be so exempt if
                            issued by a State or local government, and
                                ``(ii) which is designated by the Indian
                            tribal government as a tribal economic
                            development bond for purposes of this
                            subsection.
                        ``(B) Exceptions.--The term tribal economic
                    development bond shall not include any bond issued as
                    part of an issue if any portion of the proceeds of such
                    issue are used to finance--
                                ``(i) any portion of a building in which
                            class II or class III gaming (as defined in
                            section 4 of the Indian Gaming Regulatory Act)
                            is conducted or housed or any other property
                            actually used in the conduct of such gaming, or
                                ``(ii) any facility located outside the
                            Indian reservation (as defined in section
                            168(j)(6)).
                        ``(C) Limitation on amount of bonds designated.--
                    The maximum aggregate face amount of bonds which may be
                    designated by any Indian tribal government under
                    subparagraph (A) shall not exceed the amount of
                    national tribal economic development bond limitation
                    allocated to such government under paragraph (1).''.
        (b) Study.--The Secretary of the Treasury, or the Secretary's
    delegate, shall conduct a study of the effects of the amendment made by
    subsection (a). Not later than 1 year after the date of the enactment
    of this Act, the Secretary of the Treasury, or the Secretary's
    delegate, shall report to Congress on the results of the studies
    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.

          PART 5--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

    SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

        Section 3402 is amended by striking subsection (t).

                         Subtitle G--Energy Incentives

                      PART 1--RENEWABLE ENERGY INCENTIVES

    SEC. 1601. 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. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

        (a) In General.--Subsection (a) of section 48 is amended by adding
    at the end the following new paragraph:
                ``(5) Election to treat qualified facilities as energy
            property.--
                        ``(A) In general.--In the case of any qualified
                    investment credit facility placed in service in 2009 or
                    2010--
                                ``(i) such facility shall be treated as
                            energy property for purposes of this section,
                            and
                                ``(ii) the energy percentage with respect
                            to such property shall be 30 percent.
                        ``(B) Denial of production credit.--No credit shall
                    be allowed under section 45 for any taxable year with
                    respect to any qualified investment credit facility.
                        ``(C) Qualified investment credit facility.--For
                    purposes of this paragraph, the term `qualified
                    investment credit facility' means any facility
                    described in paragraph (1), (2), (3), (4), (6), (7),
                    (9), or (11) of section 45(d) 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.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to facilities placed in service after December 31, 2008.

    SEC. 1603. 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.--Subsection (a) of section 48 is amended by
            striking paragraph (4).
                (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) Effective Date.--
                (1) In general.--Except as provided in paragraph (2),the
            amendment made by this section shall apply to periods after
            December 31, 2008, under rules similar to the rules of section
            48(m) of the Internal Revenue Code of 1986 (as in effect on the
            day before the date of the enactment of the Revenue
            Reconciliation Act of 1990).
                (2) Conforming amendments.--The amendments made by
            subsection (b)(2) shall apply to taxable years beginning after
            December 31, 2008.

    SEC. 1604. COORDINATION WITH RENEWABLE ENERGY GRANTS.

        Section 48 is amended by adding at the end the following new
    subsection:
        ``(d) Coordination With Department of Energy Grants.--In the case
    of any property with respect to which the Secretary of Energy makes a
    grant under section 1721 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 2--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND
                      QUALIFIED ENERGY CONSERVATION BONDS

    SEC. 1611. 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. 1612. INCREASED LIMITATION AND EXPANSION OF QUALIFIED ENERGY
                  CONSERVATION BONDS.

        (a) Increased Limitation.--Subsection (e) of section 54D is amended
    by adding at the end the following new paragraph:
                ``(4) Additional limitation.--The national qualified energy
            conservation bond limitation shall be increased by
            $2,400,000,000. Such increase shall be allocated by the
            Secretary consistent with the rules of paragraphs (1), (2), and
            (3).''.
        (b) Loans and Grants to Implement Green Community Programs.--
                (1) In general.--Subparagraph (A) of section 54D(f)(1) is
            amended by inserting ``(or loans or grants for capital
            expenditures to implement any green community program)'' after
            ``Capital expenditures''.
                (2) Bonds to implement green community programs not treated
            as private activity bonds for purposes of limitations on
            qualified energy conservation bonds .--Subsection (e) of
            section 54D is amended by adding at the end the following new
            paragraph:
                ``(4) Bonds to implement green community programs not
            treated as private activity bonds.--For purposes of paragraph
            (3) and subsection (f)(2), a bond shall not be treated as a
            private activity bond solely because proceeds of the issue of
            which such bond is a part are to be used for loans or grants
            for capital expenditures to implement any green community
            program.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to obligations issued after the date of the enactment of this
    Act.

                     PART 3--ENERGY CONSERVATION INCENTIVES

    SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY
                  PROPERTY.

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

    SEC. 1622. 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. 1623. 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) 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 4--ENERGY RESEARCH INCENTIVES

    SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.

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

                          Subtitle H--Other Provisions

      PART 1--APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED
                         WITH CERTAIN TAX-FAVORED BONDS

    SEC. 1701. 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 qualified 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).

           PART 2--GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING

    SEC. 1711. 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.

      PART 3--GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS

    SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

        (a) In General.--Upon application, the Secretary of Energy shall,
    within 60 days of the application and subject to the requirements of
    this section, provide a grant to each person who places in service
    specified energy property during 2009 or 2010 to reimburse such person
    for a portion of the expense of such facility as provided in subsection
    (b).
        (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 facility.
                (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
                    (c), 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 (c), 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) Specified Energy Property.--For purposes of this section, the
    term ``specified energy property'' means any of the following:
                (1) Qualified facilities.--Any facility described in
            paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section
            45(d) of the Internal Revenue Code of 1986.
                (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 heatpump property.--Any property described
            in clause (vii) of section 48(a)(3)(A) of such Code.
        (d) Application of Certain Rules.--In making grants under this
    section, the Secretary of Energy shall apply rules similar to the rules
    of section 50 of the Internal Revenue Code of 1986. In applying such
    rules, if the facility is disposed of, or otherwise ceases to be a
    qualified renewable energy facility, the Secretary of Energy shall
    provide for the recapture of the appropriate percentage of the grant
    amount in such manner as the Secretary of Energy determines
    appropriate.
        (e) Exception for Certain Non-Taxpayers.--The Secretary of Energy
    shall not make any grant under this section to any Federal, State, or
    local government (or any political subdivision, agency, or
    instrumentality thereof) or 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.
        (f) 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.
        (g) Coordination Between Departments of Treasury and Energy.--The
    Secretary of the Treasury shall provide the Secretary of Energy with
    such technical assistance as the Secretary of Energy may require in
    carrying out this section. The Secretary of Energy shall provide the
    Secretary of the Treasury with such information as the Secretary of the
    Treasury may require in carrying out the amendment made by section
    1604.
        (h) Appropriations.--There is hereby appropriated to the Secretary
    of Energy such sums as may be necessary to carry out this section.
        (i) Termination.--The Secretary of Energy 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.

     PART 4--STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS ACT

    SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS
                  ACT.

        On February 1, 2010, and every 3 months thereafter in calendar year
    2010, the Comptroller General of the United States shall submit to the
    Committee on Ways and Means a written report on the most recent
    national (and, where available, State-by-State) information on--
                (1) the economic effects of this Act;
                (2) the employment effects of this Act, including--
                        (A) a comparison of the number of jobs preserved
                    and the number of jobs created as a result of this Act;
                    and
                        (B) a comparison of the numbers of jobs preserved
                    and the number of jobs created in each of the public
                    and private sectors;
                (3) the share of tax and non-tax expenditures provided
            under this Act that were spent or saved, by group and income
            class;
                (4) how the funds provided to States under this Act have
            been spent, including a breakdown of--
                        (A) funds used for services provided to citizens;
                    and
                        (B) wages and other compensation for public
                    employees; and
                (5) a description of any funds made available under this
            Act that remain unspent, and the reasons why.

      TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

    SEC. 2000. SHORT TITLE.

        This title may be cited as the ``Assistance for Unemployed Workers
    and Struggling Families Act''.

                       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 (h)(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 (h)(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 (h)(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) Weekly unemployment compensation is payable under
            this subparagraph to any individual who is unemployed (as
            determined under the State unemployment compensation law), has
            exhausted all rights to regular unemployment compensation under
            the State law, and is enrolled and making satisfactory progress
            in a State-approved training program or in a job training
            program authorized under the Workforce Investment Act of 1998.
            Such programs shall prepare individuals who have been separated
            from a declining occupation, or who have been involuntarily and
            indefinitely separated from employment as a result of a
            permanent reduction of operations at the individual's place of
            employment, for entry into a high-demand occupation. The amount
            of unemployment compensation payable under this subparagraph to
            an individual for a week of unemployment shall be equal to the
            individual's average weekly benefit amount (including
            dependents' allowances) for the most recent benefit year, and
            the total amount of unemployment compensation payable under
            this subparagraph to any individual shall be equal to at least
            26 times the individual's average weekly benefit amount
            (including dependents' allowances) for the most recent benefit
            year.
                ``(D) Dependents' allowances are provided, in the case of
            any individual who is entitled to receive regular unemployment
            compensation and who has any dependents (as defined by State
            law), in an amount equal to at least $15 per dependent per
            week, subject to any aggregate limitation on such allowances
            which the State law may establish (but which aggregate
            limitation on the total allowance for dependents paid to an
            individual may not be less than $50 for each week of
            unemployment or 50 percent of the individual's weekly benefit
            amount for the benefit year, whichever is less).
        ``(4)(A) Any State seeking an incentive payment under this
    subsection shall submit an application therefor at such time, in such
    manner, and complete with such information as the Secretary of Labor
    may within 60 days after the date of the enactment of this subsection
    prescribe (whether by regulation or otherwise), including information
    relating to compliance with the requirements of paragraph (2) or (3),
    as well as how the State intends to use the incentive payment to
    improve or strengthen the State's unemployment compensation program.
    The Secretary of Labor shall, within 30 days after receiving a complete
    application, notify the State agency of the State of the Secretary's
    findings with respect to the requirements of paragraph (2) or (3) (or
    both).
        ``(B)(i) If the Secretary of Labor finds that the State law
    provisions (disregarding any State law provisions which are not then
    currently in effect as permanent law or which are subject to
    discontinuation) meet the requirements of paragraph (2) or (3), as the
    case may be, the Secretary of Labor shall thereupon make a
    certification to that effect to the Secretary of the Treasury, together
    with a certification as to the amount of the incentive payment to be
    transferred to the State account pursuant to that finding. The
    Secretary of the Treasury shall make the appropriate transfer within 7
    days after receiving such certification.
        ``(ii) For purposes of clause (i), State law provisions which are
    to take effect within 12 months after the date of their certification
    under this subparagraph shall be considered to be in effect as of the
    date of such certification.
        ``(C)(i) No certification of compliance with the requirements of
    paragraph (2) or (3) may be made with respect to any State whose State
    law is not otherwise eligible for certification under section 303 or
    approvable under section 3304 of the Federal Unemployment Tax Act.
        ``(ii) No certification of compliance with the requirements of
    paragraph (3) may be made with respect to any State whose State law is
    not in compliance with the requirements of paragraph (2).
        ``(iii) No application under subparagraph (A) may be considered if
    submitted before the date of the enactment of this subsection or after
    the latest date necessary (as specified by the Secretary of Labor) to
    ensure that all incentive payments under this subsection are made
    before October 1, 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).

               Subtitle B--Assistance for Vulnerable Individuals

    SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

        (a) 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.--Out of any money in the Treasury
            of the United States not otherwise appropriated, there are
            appropriated such sums as are necessary for payment to the
            Emergency Fund.
                ``(3) Grants.--
                        ``(A) Grant related to caseload increases.--
                                ``(i) In general.--For each calendar
                            quarter in fiscal year 2009 or 2010, the
                            Secretary shall make a grant from the Emergency
                            Fund to each State that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                                ``(ii) Caseload increase requirement.--A
                            State meets the requirement of this clause for
                            a quarter if the average monthly assistance
                            caseload of the State for the quarter exceeds
                            the average monthly assistance caseload of the
                            State for the corresponding quarter in the
                            emergency fund base year of the State.
                                ``(iii) Amount of grant.--Subject to
                            paragraph (5), the amount of the grant to be
                            made to a State under this subparagraph for a
                            quarter shall be 80 percent of the amount (if
                            any) by which the total expenditures of the
                            State for basic assistance (as defined by the
                            Secretary) in the quarter, whether under the
                            State program funded under this part or as
                            qualified State expenditures, exceeds the total
                            expenditures of the State for such assistance
                            for the corresponding quarter in the emergency
                            fund base year of the State.
                        ``(B) Grant related to increased expenditures for
                    non-recurrent short term benefits.--
                                ``(i) In general.--For each calendar
                            quarter in fiscal year 2009 or 2010, the
                            Secretary shall make a grant from the Emergency
                            Fund to each State that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                                ``(ii) Non-recurrent short term expenditure
                            requirement.--A State meets the requirement of
                            this clause for a quarter if the total
                            expenditures of the State for non-recurrent
                            short term benefits in the quarter, whether
                            under the State program funded under this part
                            or as qualified State expenditures, exceeds the
                            total such expenditures of the State for non-
                            recurrent short term benefits in the
                            corresponding quarter in the emergency fund
                            base year of the State.
                                ``(iii) Amount of grant.--Subject to
                            paragraph (5), the amount of the grant to be
                            made to a State under this subparagraph for a
                            quarter shall be an amount equal to 80 percent
                            of the excess described in clause (ii).
                        ``(C) Grant related to increased expenditures for
                    subsidized employment.--
                                ``(i) In general.--For each calendar
                            quarter in fiscal year 2009 or 2010, the
                            Secretary shall make a grant from the Emergency
                            Fund to each State that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                                ``(ii) Subsidized employment expenditure
                            requirement.--A State meets the requirement of
                            this clause for a quarter if the total
                            expenditures of the State for subsidized
                            employment in the quarter, whether under the
                            State program funded under this part or as
                            qualified State expenditures, exceeds the total
                            of such expenditures of the State in the
                            corresponding quarter in the emergency fund
                            base year of the State.
                                ``(iii) Amount of grant.--Subject to
                            paragraph (5), the amount of the grant to be
                            made to a State under this subparagraph for a
                            quarter shall be an amount equal to 80 percent
                            of the excess described in clause (ii).
                ``(4) Authority to make necessary adjustments to data and
            collect needed data.--In determining the size of the caseload
            of a State and the expenditures of a State for basic
            assistance, non-recurrent short-term benefits, and subsidized
            employment, during any period for which the State requests
            funds under this subsection, and during the emergency fund base
            year of the State, the Secretary may make appropriate
            adjustments to the data to ensure that the data reflect
            expenditures under the State program funded under this part and
            qualified State expenditures. The Secretary may develop a
            mechanism for collecting expenditure data, including procedures
            which allow States to make reasonable estimates, and may set
            deadlines for making revisions to the data.
                ``(5) Limitation.--The total amount payable to a single
            State under subsection (b) and this subsection for a fiscal
            year shall not exceed 25 percent of the State family assistance
            grant.
                ``(6) Limitations on use of funds.--A State to which an
            amount is paid under this subsection may use the amount only as
            authorized by section 404.
                ``(7) Timing of implementation.--The Secretary shall
            implement this subsection as quickly as reasonably possible,
            pursuant to appropriate guidance to States.
                ``(8) Definitions.--In this subsection:
                        ``(A) Average monthly assistance caseload.--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).''.
        (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
    2009 or 2010, then, at State option, during the emergency fund base
    year of the State with respect to the average monthly assistance
    caseload of the State (within the meaning of section 403(c)(8)(B)))''
    before ``under the State''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act.

    SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPIENTS.

        (a) Payment Authority.--
                (1) In general.--At the earliest practicable date in
            calendar year 2009 but not later than 120 days after the date
            of the enactment of this section, the Commissioner of Social
            Security shall make a one-time payment to each individual who
            is determined by the Commissioner in calendar year 2009 to be
            an individual who--
                        (A) is entitled to a cash benefit under the
                    supplemental security income program under title XVI of
                    the Social Security Act (other than pursuant to section
                    1611(e)(1)(B) of such Act) for at least 1 day in the
                    calendar month in which the first payment under this
                    section is to be made; or
                        (B)(i) was entitled to such a cash benefit (other
                    than pursuant to section 1611(e)(1)(B) of such Act) for
                    at least 1 day in the 2-month period preceding that
                    calendar month; and
                        (ii) whose entitlement to that benefit ceased in
                    that 2-month period solely because the income of the
                    individual (and the income of the spouse, if any, of
                    the individual) exceeded the applicable income limit
                    described in paragraph (1)(A) or (2)(A) of section
                    1611(a) of such Act.
                (2) Amount of payment.--Subject to subsection (b)(1) of
            this section, the amount of the payment shall be--
                        (A) in the case of an individual eligible for a
                    payment under this section who does not have a spouse
                    eligible for such a payment, an amount equal to the
                    average of the cash benefits payable in the aggregate
                    under section 1611 or 1619(a) of the Social Security
                    Act to eligible individuals who do not have an eligible
                    spouse, for the most recent month for which data on
                    payment of the benefits are available, as determined by
                    the Commissioner of Social Security; or
                        (B) in the case of an individual eligible for a
                    payment under this section who has a spouse eligible
                    for such a payment, an amount equal to the average of
                    the cash benefits payable in the aggregate under
                    section 1611 or 1619(a) of the Social Security Act to
                    eligible individuals who have an eligible spouse, for
                    the most recent month for which data on payment of the
                    benefits are available, as so determined.
        (b) Administrative Provisions.--
                (1) Authority to withhold payment to recover prior
            overpayment of ssi benefits.--The Commissioner of Social
            Security may withhold part or all of a payment otherwise
            required to be made under subsection (a) of this section to an
            individual, in order to recover a prior overpayment of benefits
            to the individual under the supplemental security income
            program under title XVI of the Social Security Act, subject to
            the limitations of section 1631(b) of such Act.
                (2) Payment to be disregarded in determining underpayments
            under the ssi program.--A payment under subsection (a) shall be
            disregarded in determining whether there has been an
            underpayment of benefits under the supplemental security income
            program under title XVI of the Social Security Act.
                (3) Nonassignment.--The provisions of section 1631(d) of
            the Social Security Act shall apply with respect to payments
            under this section to the same extent as they apply in the case
            of title XVI of such Act.
        (c) Payments To Be Disregarded for Purposes of All Federal and
    Federally Assisted Programs.--A payment under subsection (a) shall not
    be regarded as income to the recipient, and shall not be regarded as a
    resource of the recipient for the month of receipt and the following 6
    months, for purposes of determining the eligibility of any 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) Appropriation.--Out of any sums in the Treasury of the United
    States not otherwise appropriated, there are appropriated such sums as
    may be necessary to carry out this section.

    SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

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

           TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED

    SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF TITLE.

        (a) Short Title of Title.--This title may be cited as the ``Health
    Insurance Assistance for the Unemployed Act of 2009''.
        (b) Table of Contents of Title.--The table of contents of this
    title is as follows:

    Sec. 3001. Short title and table of contents of title.
    Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA
                                benefits for older or long-term employees.
    Sec. 3003. Temporary optional Medicaid coverage for the unemployed.

    SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS AND EXTENSION OF COBRA
                  BENEFITS FOR OLDER OR LONG-TERM EMPLOYEES.

        (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 35 percent of the amount of such
                    premium (as determined without regard to this
                    subsection).
                        (B) Premium reimbursement.--For provisions
                    providing the balance of such premium, see section 6431
                    of the Internal Revenue Code of 1986, as added by
                    paragraph (12).
                (2) Limitation of period of premium assistance.--
                        (A) In general.--Paragraph (1)(A) shall not apply
                    with respect to any assistance eligible individual for
                    months of coverage beginning on or after the earlier
                    of--
                                (i) the first date that such individual is
                            eligible for coverage under any other group
                            health plan (other than coverage consisting of
                            only dental, vision, counseling, or referral
                            services (or a combination thereof), coverage
                            under a health reimbursement arrangement or a
                            health flexible spending arrangement, or
                            coverage of treatment that is furnished in an
                            on-site medical facility maintained by the
                            employer and that consists primarily of first-
                            aid services, prevention and wellness care, or
                            similar care (or a combination thereof)) or is
                            eligible for benefits under title XVIII of the
                            Social Security Act, or
                                (ii) the earliest of--
                                        (I) the date which is 12 months
                                    after the first day of 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.--Notwithstanding section 605(a) of
                    the Employee Retirement Income Security Act of 1974,
                    section 4980B(f)(5)(A) of the Internal Revenue Code of
                    1986, section 2205(a) of the Public Health Service Act,
                    and section 8905a(c)(2) of title 5, United States Code,
                    in the case of an individual who is a qualified
                    beneficiary described in paragraph (3)(A) as of the
                    date of the enactment of this Act and has not made the
                    election referred to in paragraph (3)(B) as of such
                    date, such individual may elect the COBRA continuation
                    coverage under the COBRA continuation coverage
                    provisions containing such sections during the 60-day
                    period commencing with the date on which the
                    notification required under paragraph (7)(C) is
                    provided to such individual.
                        (B) Commencement of coverage; no reach-back.--Any
                    COBRA continuation coverage elected by a qualified
                    beneficiary during an extended election period under
                    subparagraph (A)--
                                (i) shall commence on the date of the
                            enactment of this Act, and
                                (ii) shall not extend beyond the period of
                            COBRA continuation coverage that would have
                            been required under the applicable COBRA
                            continuation coverage provision if the coverage
                            had been elected as required under such
                            provision.
                        (C) Preexisting conditions.--With respect to a
                    qualified beneficiary who elects COBRA continuation
                    coverage pursuant to subparagraph (A), the period--
                                (i) beginning on the date of the qualifying
                            event, and
                                (ii) ending with the day before the date of
                            the enactment of this Act,
                    shall be disregarded for purposes of determining the
                    63-day periods referred to in section 701)(2) of the
                    Employee Retirement Income Security Act of 1974,
                    section 9801(c)(2) of the Internal Revenue Code of
                    1986, and section 2701(c)(2) of the Public Health
                    Service Act.
                (5) Expedited review of denials of premium assistance.--In
            any case in which an individual requests treatment as an
            assistance eligible individual and is denied such treatment by
            the group health plan by reason of such individual's
            ineligibility for COBRA continuation coverage, the Secretary of
            Labor (or the Secretary of Health and Human services in
            connection with COBRA continuation coverage which is provided
            other than pursuant to part 6 of subtitle B of title I of the
            Employee Retirement Income Security Act of 1974), in
            consultation with the Secretary of the Treasury, shall provide
            for expedited review of such denial. An individual shall be
            entitled to such review upon application to such Secretary in
            such form and manner as shall be provided by such Secretary.
            Such Secretary shall make a determination regarding such
            individual's eligibility within 10 business days after receipt
            of such individual's application for review under this
            paragraph.
                (6) Disregard of subsidies for purposes of federal and
            state programs.--Notwithstanding any other provision of law,
            any premium reduction with respect to an assistance eligible
            individual under this subsection shall not be considered income
            or resources in determining eligibility for, or the amount of
            assistance or benefits provided under, any other public benefit
            provided under Federal law or the law of any State or political
            subdivision thereof.
                (7) Notices to individuals.--
                        (A) General notice.--
                                (i) In general.--In the case of notices
                            provided under section 606(4) of the Employee
                            Retirement Income Security Act of 1974 (29
                            U.S.C. 1166(4)), section 4980B(f)(6)(D) of the
                            Internal Revenue Code of 1986, section 2206(4)
                            of the Public Health Service Act (42 U.S.C.
                            300bb-6(4)), or section 8905a(f)(2)(A) of title
                            5, United States Code, with respect to
                            individuals who, during the period described in
                            paragraph (3)(A), become entitled to elect
                            COBRA continuation coverage, such notices shall
                            include an additional notification to the
                            recipient of the availability of premium
                            reduction with respect to such coverage under
                            this subsection.
                                (ii) Alternative notice.--In the case of
                            COBRA continuation coverage to which the notice
                            provision under such sections does not apply,
                            the Secretary of Labor, in consultation with
                            the Secretary of the Treasury and the Secretary
                            of Health and Human Services, shall, in
                            coordination with administrators of the group
                            health plans (or other entities) that provide
                            or administer the COBRA continuation coverage
                            involved, provide rules requiring the provision
                            of such notice.
                                (iii) Form.--The requirement of the
                            additional notification under this subparagraph
                            may be met by amendment of existing notice
                            forms or by inclusion of a separate document
                            with the notice otherwise required.
                        (B) Specific requirements.--Each additional
                    notification under subparagraph (A) shall include--
                                (i) the forms necessary for establishing
                            eligibility for premium reduction under this
                            subsection,
                                (ii) the name, address, and telephone
                            number necessary to contact the plan
                            administrator and any other person maintaining
                            relevant information in connection with such
                            premium reduction,
                                (iii) a description of the extended
                            election period provided for in paragraph
                            (4)(A),
                                (iv) a description of the obligation of the
                            qualified beneficiary under paragraph (2)(C) to
                            notify the plan providing continuation coverage
                            of eligibility for subsequent coverage under
                            another group health plan or eligibility for
                            benefits under title XVIII of the Social
                            Security Act and the penalty provided for
                            failure to so notify the plan, and
                                (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.
                        (C) Notice relating to retroactive coverage.--In
                    the case of an individual described in paragraph (3)(A)
                    who has elected COBRA continuation coverage as of the
                    date of enactment of this Act or an individual
                    described in paragraph (4)(A), the administrator of the
                    group health plan (or other 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).
                        (D) Model notices.--Not later than 30 days after
                    the date of enactment of this Act, the Secretary of the
                    Labor, in consultation with the Secretary of the
                    Treasury and the Secretary of Health and Human
                    Services, shall prescribe models for the additional
                    notification required under this paragraph.
                (8) Safeguards.--The Secretary of the Treasury shall
            provide such rules, procedures, regulations, and other guidance
            as may be necessary and appropriate to prevent fraud and abuse
            under this subsection.
                (9) Outreach.--The Secretary of Labor, in consultation with
            the Secretary of the Treasury and the Secretary of Health and
            Human Services, shall provide outreach consisting of public
            education and enrollment assistance relating to premium
            reduction provided under this subsection. Such outreach shall
            target employers, group health plan administrators, public
            assistance programs, States, insurers, and other entities as
            determined appropriate by such Secretaries. Such outreach shall
            include an initial focus on those individuals electing
            continuation coverage who are referred to in paragraph (7)(C).
            Information on such premium reduction, including enrollment,
            shall also be made available on website of the Departments of
            Labor, Treasury, and Health and Human Services.
                (10) Definitions.--For purposes of this subsection--
                        (A) Administrator.--The term ``administrator'' has
                    the meaning given such term in section 3(16) of the
                    Employee Retirement Income Security Act of 1974.
                        (B) COBRA continuation coverage.--The term ``COBRA
                    continuation coverage'' means continuation coverage
                    provided pursuant to part 6 of subtitle B of title I of
                    the Employee Retirement Income Security Act of 1974
                    (other than under section 609), title XXII of the
                    Public Health Service Act, section 4980B of the
                    Internal Revenue Code of 1986 (other than subsection
                    (f)(1) of such section insofar as it relates to
                    pediatric vaccines), or section 8905a of title 5,
                    United States Code, or under a State program that
                    provides continuation coverage comparable to such
                    continuation coverage. Such term does not include
                    coverage under a health flexible spending arrangement.
                        (C) COBRA continuation provision.--The term ``COBRA
                    continuation provision'' means the provisions of law
                    described in subparagraph (B).
                        (D) Covered employee.--The term ``covered
                    employee'' has the meaning given such term in section
                    607(2) of the Employee Retirement Income Security Act
                    of 1974.
                        (E) Qualified beneficiary.--The term ``qualified
                    beneficiary'' has the meaning given such term in
                    section 607(3) of the Employee Retirement Income
                    Security Act of 1974.
                        (F) Group health plan.--The term ``group health
                    plan'' has the meaning given such term in section
                    607(1) of the Employee Retirement Income Security Act
                    of 1974.
                        (G) State.--The term ``State'' includes the
                    District of Columbia, the Commonwealth of Puerto Rico,
                    the Virgin Islands, Guam, American Samoa, and the
                    Commonwealth of the Northern Mariana Islands.
                (11) Reports.--
                        (A) Interim report.--The Secretary of the Treasury
                    shall submit an interim report to the Committee on
                    Education and Labor, the Committee on Ways and Means,
                    and the Committee on Energy and Commerce of the House
                    of Representatives and the Committee on Health,
                    Education, Labor, and Pensions and the Committee on
                    Finance of the Senate regarding the premium reduction
                    provided under this subsection that includes--
                                (i) the number of individuals provided such
                            assistance as of the date of the report; and
                                (ii) the total amount of expenditures
                            incurred (with administrative expenditures
                            noted separately) in connection with such
                            assistance as of the date of the report.
                        (B) Final report.--As soon as practicable after the
                    last period of COBRA continuation coverage for which
                    premium reduction is provided under this section, the
                    Secretary of the Treasury shall submit a final report
                    to each Committee referred to in subparagraph (A) that
                    includes--
                                (i) the number of individuals provided
                            premium reduction under this section;
                                (ii) the average dollar amount (monthly and
                            annually) of premium reductions provided to
                            such individuals; and
                                (iii) the total amount of expenditures
                            incurred (with administrative expenditures
                            noted separately) in connection with premium
                            reduction under this section.
                (12) COBRA premium assistance.--
                        (A) In general.--Subchapter B of chapter 65 of the
                    Internal Revenue Code of 1986 is amended by adding at
                    the end the following new section:

    ``SEC. 6431. COBRA PREMIUM ASSISTANCE.

        ``(a) In General.--The entity to whom premiums are payable under
    COBRA continuation coverage shall be reimbursed for the amount of
    premiums not paid by plan beneficiaries by reason of section 3002(a) of
    the Health Insurance Assistance for the Unemployed Act of 2009. Such
    amount shall be treated as a credit against the requirement of such
    entity to make deposits of payroll taxes and the liability of such
    entity for payroll taxes. To the extent that such amount exceeds the
    amount of such taxes, the Secretary shall pay to such entity the amount
    of such excess. No payment may be made under this subsection to an
    entity with respect to any assistance eligible individual until after
    such entity has received the reduced premium from such individual
    required under section 3002(a)(1)(A) of such Act.
        ``(b) Payroll Taxes.--For purposes of this section, the term
    `payroll taxes' means--
                ``(1) amounts required to be deducted and withheld for the
            payroll period under section 3401 (relating to wage
            withholding),
                ``(2) amounts required to be deducted for the payroll
            period under section 3102 (relating to FICA employee taxes),
            and
                ``(3) amounts of the taxes imposed for the payroll period
            under section 3111 (relating to FICA employer taxes).
        ``(c) Treatment of Credit.--Except as otherwise provided by the
    Secretary, the credit described in subsection (a) shall be applied as
    though the employer had paid to the Secretary, on the day that the
    qualified beneficiary's premium payment is received, an amount equal to
    such credit.
        ``(d) Treatment of Payment.--For purposes of section 1324(b)(2) of
    title 31, United States Code, any payment under this section shall be
    treated in the same manner as a refund of the credit under section 35.
        ``(e) Reporting.--
                ``(1) In general.--Each entity entitled to reimbursement
            under subsection (a) for any period shall submit such reports
            as the Secretary may require, including--
                        ``(A) an attestation of involuntary termination of
                    employment for each covered employee on the basis of
                    whose termination entitlement to reimbursement is
                    claimed under subsection (a), and
                        ``(B) a report of the amount of payroll taxes
                    offset under subsection (a) for the reporting period
                    and the estimated offsets of such taxes for the
                    subsequent reporting period in connection with
                    reimbursements under subsection (a).
                ``(2) Timing of reports relating to amount of payroll
            taxes.--Reports required under paragraph (1)(B) shall be
            submitted at the same time as deposits of taxes imposed by
            chapters 21, 22, and 24 or at such time as is specified by the
            Secretary.
        ``(f) Regulations.--The Secretary may issue such regulations or
    other guidance as may be necessary or appropriate to carry out this
    section, including the requirement to report information or the
    establishment of other methods for verifying the correct amounts of
    payments and credits under this section. The Secretary shall issue such
    regulations or guidance with respect to 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 6431 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. 6431. COBRA premium assistance.''.
                        (D) Effective date.--The amendments made by this
                    paragraph shall apply to premiums to which subsection
                    (a)(1)(A) applies.
                (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) Extension of COBRA Benefits for Older or Long-Term Employees.--
                (1) ERISA amendment.--Section 602(2)(A) of the Employee
            Retirement Income Security Act of 1974 is amended by adding at
            the end the following new clauses:
                                ``(x) Special rule for older or long-term
                            employees generally.--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 attained age 55 or
                            has completed 10 or more years of service with
                            the entity that is the employer at the time of
                            the qualifying event, clauses (i) and (ii)
                            shall not apply. For purposes of this clause,
                            in the case of a group health plan that is a
                            multiemployer plan, service by the covered
                            employee performed for 2 or more employers
                            during periods for which such employers
                            contributed to such plan shall be treated as
                            service performed for the entity referred to in
                            the preceding sentence.
                                ``(xi) Year of service.-- For purposes of
                            this subparagraph, the term `year of service'
                            shall have the meaning provided in section
                            202(a)(3).''.
                (2) IRC amendment.--Clause (i) of section 4980B(f)(2)(B) of
            the Internal Revenue Code of 1986 is amended by adding at the
            end the following new subclauses:
                                        ``(X) Special rule for older or
                                    long-term employees generally.--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 attained age 55
                                    or has completed 10 or more years of
                                    service with the entity that is the
                                    employer at the time of the qualifying
                                    event, subclauses (I) and (II) shall
                                    not apply. For purposes of this
                                    subclause, in the case of a group
                                    health plan that is a multiemployer
                                    plan (as defined in section 3(37) of
                                    the Employee Retirement Income Security
                                    Act of 1974), service by the covered
                                    employee performed for 2 or more
                                    employers during periods for which such
                                    employers contributed to such plan
                                    shall be treated as service performed
                                    for the entity referred to in the
                                    preceding sentence.
                                        ``(XI) Year of service.-- For
                                    purposes of this clause, the term `year
                                    of service' shall have the meaning
                                    provided in section 202(a)(3) of the
                                    Employee Retirement Income Security Act
                                    of 1974.''.
                (3) PHSA amendment.--Section 2202(2)(A) of the Public
            Health Service Act is amended by adding at the end the
            following new clauses:
                                ``(viii) Special rule for older or long-
                            term employees generally.--In the case of a
                            qualifying event described in section 2203(2)
                            with respect to a covered employee who (as of
                            such qualifying event) has attained age 55 or
                            has completed 10 or more years of service with
                            the entity that is the employer at the time of
                            the qualifying event, clauses (i) and (ii)
                            shall not apply. For purposes of this clause,
                            in the case of a group health plan that is a
                            multiemployer plan (as defined in section 3(37)
                            of the Employee Retirement Income Security Act
                            of 1974), service by the covered employee
                            performed for 2 or more employers during
                            periods for which such employers contributed to
                            such plan shall be treated as service performed
                            for the entity referred to in the preceding
                            sentence.
                                ``(ix) Year of service.-- For purposes of
                            this subparagraph, the term `year of service'
                            shall have the meaning provided in section
                            202(a)(3) of the Employee Retirement Income
                            Security Act of 1974.''.
                (4) Effective date of amendments.--The amendments made by
            this subsection 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. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE FOR THE UNEMPLOYED.

        (a) In General.--Section 1902 of the Social Security Act (42 U.S.C.
    1396b) is amended--
                (1) in subsection (a)(10)(A)(ii)--
                        (A) by striking ``or'' at the end of subclause
                    (XVIII);
                        (B) by adding ``or'' at the end of subclause (XIX);
                    and
                        (C) by adding at the end the following new
                    subclause
                                        ``(XX) who are described in
                                    subsection (dd)(1) (relating to certain
                                    unemployed individuals and their
                                    families);''; and
                (2) by adding at the end the following new subsection:
        ``(dd)(1) Individuals described in this paragraph are--
        ``(A) individuals who--
                ``(i) are within one or more of the categories described in
            paragraph (2), as elected under the State plan; and
                ``(ii) meet the applicable requirements of paragraph (3);
            and
        ``(B) individuals who--
                ``(i) are the spouse, or dependent child under 19 years of
            age, of an individual described in subparagraph (A); and
                ``(ii) meet the requirement of paragraph (3)(B).
        ``(2) The categories of individuals described in this paragraph are
    each of the following:
                ``(A)(i) Individuals who are receiving unemployment
            compensation benefits; and
                ``(ii) individuals who were receiving, but have exhausted,
            unemployment compensation benefits on or after July 1, 2008.
                ``(B) Individuals who are involuntarily unemployed and were
            involuntarily separated from employment on or after September
            1, 2008, and before January 1, 2011, whose family gross income
            does not exceed a percentage specified by the State (not to
            exceed 200 percent) of the income official poverty line (as
            defined by the Office of Management and Budget, and revised
            annually in accordance with section 673(2) of the Omnibus
            Budget Reconciliation Act of 1981) applicable to a family of
            the size involved, and who, but for subsection
            (a)(10)(A)(ii)(XX), are not eligible for medical assistance
            under this title or health assistance under title XXI.
                ``(C) Individuals who are involuntarily unemployed and were
            involuntarily separated from employment on or after September
            1, 2008, and before January 1, 2011, who are members of
            households participating in the supplemental nutrition
            assistance program established under the Food and Nutrition Act
            of 2008 (7 U.S.C. 2011 et seq), and who, but for subsection
            (a)(10)(A)(ii)(XX), are not eligible for medical assistance
            under this title or health assistance under title XXI.
        ``(3) The requirements of this paragraph with respect to an
    individual are the following:
                ``(A) In the case of individuals within a category
            described in subparagraph (A)(i) of paragraph (2), the
            individual was involuntarily separated from employment on or
            after September 1, 2008, and before January 1, 2011, or meets
            such comparable requirement as the Secretary specifies through
            rule, guidance, or otherwise in the case of an individual who
            was an independent contractor.
                ``(B) The individual is not otherwise covered under
            creditable coverage, as defined in section 2701(c) of the
            Public Health Service Act (42 U.S.C. 300gg(c)), but applied
            without regard to paragraph (1)(F) of such section and without
            regard to coverage provided by reason of the application of
            subsection (a)(10)(A)(ii)(XX).
        ``(4)(A) No income or resources test shall be applied with respect
    to any category of individuals described in subparagraph (A) or (C) of
    paragraph (2) who are eligible for medical assistance only by reason of
    the application of subsection (a)(10)(A)(ii)(XX).
        ``(B) Nothing in this subsection shall be construed to prevent a
    State from imposing a resource test for the category of individuals
    described in paragraph (2)(B)).
        ``(C) In the case of individuals described in paragraph (2)(A) or
    (2)(C), the requirements of subsections (i)(22) and (x) in section 1903
    shall not apply.''.
        (b) 100 Percent Federal Matching Rate.--
                (1) FMAP for time-limited period.--The third sentence of
            section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended by
            inserting before the period at the end the following: ``and for
            items and services furnished on or after the date of enactment
            of this Act and before January 1, 2011, to individuals who are
            eligible for medical assistance only by reason of the
            application of section 1902(a)(10)(A)(ii)(XX)''.
                (2) Certain enrollment-related administrative costs.--
            Notwithstanding any other provision of law, for purposes of
            applying section 1903(a) of the Social Security Act (42 U.S.C.
            1396b(a)), with respect to expenditures incurred on or after
            the date of the enactment of this Act and before January 1,
            2011, for costs of administration (including outreach and the
            modification and operation of eligibility information systems)
            attributable to eligibility determination and enrollment of
            individuals who are eligible for medical assistance only by
            reason of the application of section 1902(a)(10)(A)(ii)(XX) of
            such Act, as added by subsection (a)(1), the Federal matching
            percentage shall be 100 percent instead of the matching
            percentage otherwise applicable.
        (c) Conforming Amendments.--(1) Section 1903(f)(4) of such Act (42
    U.S.C. 1396c(f)(4)) is amended by inserting ``1902(a)(10)(A)(ii)(XX),
    or'' after ``1902(a)(10)(A)(ii)(XIX),''.
        (2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended, in
    the matter preceding paragraph (1)--
                (A) by striking ``or'' at the end of clause (xii);
                (B) by adding ``or'' at the end of clause (xiii); and
                (C) by inserting after clause (xiii) the following new
            clause:
                                ``(xiv) individuals described in section
                            1902(dd)(1),''.

                    TITLE IV--HEALTH INFORMATION TECHNOLOGY

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

        (a) Short Title.--This title 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. 4001. Short title; table of contents of title.
             Subtitle A--Promotion of Health Information Technology

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

    Sec. 4101. 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. Relation to HIPAA privacy and security law.
            ``Sec. 3010. Authorization for appropriations.
    Sec. 4102. Technical amendment.
     Part II--Application and Use of Adopted Health Information Technology
                               Standards; Reports

    Sec. 4111. Coordination of Federal activities with adopted standards
                                and implementation specifications.
    Sec. 4112. Application to private entities.
    Sec. 4113. Study and reports.
              Subtitle B--Testing of Health Information Technology

    Sec. 4201. National Institute for Standards and Technology testing.
    Sec. 4202. Research and development programs.
      Subtitle C--Incentives for the Use of Health Information Technology

                        Part I--Grants and Loans Funding

    Sec. 4301. 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 on health
                                care.
            ``Sec. 3017. General grant and loan provisions.
            ``Sec. 3018. Authorization for appropriations.
                           Part II--Medicare Program

    Sec. 4311. Incentives for eligible professionals.
    Sec. 4312. Incentives for hospitals.
    Sec. 4313. Treatment of payments and savings; implementation funding.
    Sec. 4314. Study on application of EHR payment incentives for providers
                                not receiving other incentive payments.
                           Part III--Medicaid Funding

    Sec. 4321. Medicaid provider HIT adoption and operation payments;
                                implementation funding.
    Sec. 4322. Medicaid nursing home grant program.
                              Subtitle D--Privacy

    Sec. 4400. Definitions.
          Part I--Improved Privacy Provisions and Security Provisions

    Sec. 4401. Application of security provisions and penalties to business
                                associates of covered entities; annual
                                guidance on security provisions.
    Sec. 4402. Notification in the case of breach.
    Sec. 4403. Education on Health Information Privacy.
    Sec. 4404. Application of privacy provisions and penalties to business
                                associates of covered entities.
    Sec. 4405. Restrictions on certain disclosures and sales of health
                                information; accounting of certain
                                protected health information disclosures;
                                access to certain information in electronic
                                format.
    Sec. 4406. Conditions on certain contacts as part of health care
                                operations.
    Sec. 4407. Temporary breach notification requirement for vendors of
                                personal health records and other non-HIPAA
                                covered entities.
    Sec. 4408. Business associate contracts required for certain entities.
    Sec. 4409. Clarification of application of wrongful disclosures
                                criminal penalties.
    Sec. 4410. Improved enforcement.
    Sec. 4411. Audits.
    Sec. 4412. Special rule for information to reduce medication errors and
                                improve patient safety.
     Part II--Relationship to Other Laws; Regulatory References; Effective
                                 Date; Reports

    Sec. 4421. Relationship to other laws.
    Sec. 4422. Regulatory references.
    Sec. 4423. Effective date.
    Sec. 4424. Studies, reports, guidance.
                 Subtitle E--Miscellaneous Medicare Provisions

    Sec. 4501. Moratoria on certain Medicare regulations.
    Sec. 4502. Long-term care hospital technical corrections.

             Subtitle A--Promotion of Health Information Technology

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

    SEC. 4101. 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' means a hospital, skilled nursing facility, nursing
            facility, home health entity or other long term care facility,
            health care clinic, Federally qualified health center, group
            practice (as defined in section 1877(h)(4) of the Social
            Security Act), a pharmacist, a pharmacy, a laboratory, a
            physician (as defined in section 1861(r) of the Social Security
            Act), a practitioner (as described in section 1842(b)(18)(C) of
            the Social Security Act), a provider operated by, or under
            contract with, the Indian Health Service or by an Indian tribe
            (as defined in the Indian Self-Determination and Education
            Assistance Act), tribal organization, or urban Indian
            organization (as defined in section 4 of the Indian Health Care
            Improvement Act), a rural health clinic, a covered entity under
            section 340B, an ambulatory surgical center described in
            section 1833(i) of the Social Security Act, and any other
            category of facility or clinician determined appropriate by the
            Secretary.
                ``(4) Health information.--The term `health information'
            has the meaning given such term in section 1171(4) of the
            Social Security Act.
                ``(5) Health information technology.--The term `health
            information technology' means hardware, software, integrated
            technologies and related licenses, intellectual property,
            upgrades, and packaged solutions sold as services that are
            specifically designed for use by health care entities for the
            electronic creation, maintenance, or exchange of health
            information.
                ``(6) Health plan.--The term `health plan' has the meaning
            given such term in section 1171(5) of the Social Security Act.
                ``(7) HIT policy committee.--The term `HIT Policy
            Committee' means such Committee established under section
            3002(a).
                ``(8) HIT standards committee.--The term `HIT Standards
            Committee' means such Committee established under section
            3003(a).
                ``(9) Individually identifiable health information.--The
            term `individually identifiable health information' has the
            meaning given such term in section 1171(6) of the Social
            Security Act.
                ``(10) Laboratory.--The term `laboratory' has the meaning
            given such term in section 353(a).
                ``(11) National coordinator.--The term `National
            Coordinator' means the head of the Office of the National
            Coordinator for Health Information Technology established under
            section 3001(a).
                ``(12) Pharmacist.--The term `pharmacist' has the meaning
            given such term in section 804(2) of the Federal Food, Drug,
            and Cosmetic Act.
                ``(13) Qualified electronic health record.--The term
            `qualified electronic health record' means an electronic record
            of health-related information on an individual that--
                        ``(A) includes patient demographic and clinical
                    health information, such as medical history and problem
                    lists; and
                        ``(B) has the capacity--
                                ``(i) to provide clinical decision support;
                                ``(ii) to support physician order entry;
                                ``(iii) to capture and query information
                            relevant to health care quality; and
                                ``(iv) to exchange electronic health
                            information with, and integrate such
                            information from other sources.
                ``(14) State.--The term `State' means each of the several
            States, the District of Columbia, Puerto Rico, the Virgin
            Islands, Guam, American Samoa, and the Northern Mariana
            Islands.

            ``Subtitle A--Promotion of Health Information Technology

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

        ``(a) Establishment.--There is established within the Department of
    Health and Human Services an Office of the National Coordinator for
    Health Information Technology (referred to in this section as the
    `Office'). The Office shall be headed by a National Coordinator who
    shall be appointed by the Secretary and shall report directly to the
    Secretary.
        ``(b) Purpose.--The National Coordinator shall perform the duties
    under subsection (c) in a manner consistent with the development of a
    nationwide health information technology infrastructure that allows for
    the electronic use and exchange of information and that--
                ``(1) ensures that each patient's health information is
            secure and protected, in accordance with applicable law;
                ``(2) improves health care quality, reduces medical errors,
            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 prevention of chronic diseases;
                ``(10) promotes a more effective marketplace, greater
            competition, greater systems analysis, increased consumer
            choice, and improved outcomes in health care services; and
                ``(11) improves efforts to reduce health disparities.
        ``(c) Duties of the National Coordinator.--
                ``(1) Standards.--The National Coordinator shall review and
            determine whether to endorse each standard, implementation
            specification, and certification criterion for the electronic
            exchange and use of health information that is recommended by
            the HIT Standards Committee under section 3003 for purposes of
            adoption under section 3004. The Coordinator shall make such
            determination, and report to the Secretary such determination,
            not later than 45 days after the date the recommendation is
            received by the Coordinator.
                ``(2) HIT policy coordination.--
                        ``(A) In general.--The National Coordinator shall
                    coordinate health information technology policy and
                    programs of the Department with those of other relevant
                    executive branch agencies with a goal of avoiding
                    duplication of efforts and of helping to ensure that
                    each agency undertakes health information technology
                    activities primarily within the areas of its greatest
                    expertise and technical capability and in a manner
                    towards a coordinated national goal.
                        ``(B) HIT policy and standards committees.--The
                    National Coordinator shall be a leading member in the
                    establishment and operations of the HIT Policy
                    Committee and the HIT Standards Committee and shall
                    serve as a liaison among those two Committees and the
                    Federal Government.
                ``(3) Strategic plan.--
                        ``(A) In general.--The National Coordinator shall,
                    in consultation with other appropriate Federal agencies
                    (including the National Institute of Standards and
                    Technology), update the Federal Health IT Strategic
                    Plan (developed as of June 3, 2008) to include specific
                    objectives, milestones, and metrics with respect to the
                    following:
                                ``(i) The electronic exchange and use of
                            health information and the enterprise
                            integration of such information.
                                ``(ii) The utilization of an electronic
                            health record for each person in the United
                            States by 2014.
                                ``(iii) The incorporation of privacy and
                            security protections for the electronic
                            exchange of an individual's individually
                            identifiable health information.
                                ``(iv) Ensuring security methods to ensure
                            appropriate authorization and electronic
                            authentication of health information and
                            specifying technologies or methodologies for
                            rendering health information unusable,
                            unreadable, or indecipherable.
                                ``(v) Specifying a framework for
                            coordination and flow of recommendations and
                            policies under this subtitle among the
                            Secretary, the National Coordinator, the HIT
                            Policy Committee, the HIT Standards Committee,
                            and other health information exchanges and
                            other relevant entities.
                                ``(vi) Methods to foster the public
                            understanding of health information technology.
                                ``(vii) Strategies to enhance the use of
                            health information technology in improving the
                            quality of health care, reducing medical
                            errors, reducing health disparities, improving
                            public health, and improving the continuity of
                            care among health care settings.
                        ``(B) Collaboration.--The strategic plan shall be
                    updated through collaboration of public and private
                    entities.
                        ``(C) Measurable outcome goals.--The strategic plan
                    update shall include measurable outcome goals.
                        ``(D) Publication.--The National Coordinator shall
                    republish the strategic plan, including all updates.
                ``(4) Website.--The National Coordinator shall maintain and
            frequently update an Internet website on which there is posted
            information on the work, schedules, reports, recommendations,
            and other information to ensure transparency in promotion of a
            nationwide health information technology infrastructure.
                ``(5) Certification.--
                        ``(A) In general.--The National Coordinator, in
                    consultation with the Director of the National
                    Institute of Standards and Technology, shall develop a
                    program (either directly or by contract) for the
                    voluntary certification of health information
                    technology as being in compliance with applicable
                    certification criteria adopted under this subtitle.
                    Such program shall include testing of the technology in
                    accordance with section 4201(b) of the HITECH 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.
                        ``(D) Evaluation of benefits and costs of the
                    electronic use and exchange of health information.--The
                    National Coordinator shall evaluate and publish
                    evidence on the benefits and costs of the electronic
                    use and exchange of health information and assess to
                    whom these benefits and costs accrue.
                        ``(E) Resource requirements.--The National
                    Coordinator shall estimate and publish resources
                    required annually to reach the goal of utilization of
                    an electronic health record for each person in the
                    United States by 2014, including the required level of
                    Federal funding, expectations for regional, State, and
                    private investment, and the expected contributions by
                    volunteers to activities for the utilization of such
                    records.
                ``(7) Assistance.--The National Coordinator may provide
            financial assistance to consumer advocacy groups and not-for-
            profit entities that work in the public interest for purposes
            of defraying the cost to such groups and entities to
            participate under, whether in whole or in part, the National
            Technology Transfer Act of 1995 (15 U.S.C. 272 note).
                ``(8) Governance for nationwide health information
            network.--The National Coordinator shall establish a governance
            mechanism for the nationwide health information network.
        ``(d) Detail of Federal Employees.--
                ``(1) In general.--Upon the request of the National
            Coordinator, the head of any Federal agency is authorized to
            detail, with or without reimbursement from the Office, any of
            the personnel of such agency to the Office to assist it in
            carrying out its duties under this section.
                ``(2) Effect of detail.--Any detail of personnel under
            paragraph (1) shall--
                        ``(A) not interrupt or otherwise affect the civil
                    service status or privileges of the Federal employee;
                    and
                        ``(B) be in addition to any other staff of the
                    Department employed by the National Coordinator.
                ``(3) Acceptance of detailees.--Notwithstanding any other
            provision of law, the Office may accept detailed personnel from
            other Federal agencies without regard to whether the agency
            described under paragraph (1) is reimbursed.
        ``(e) Chief Privacy Officer of the Office of the National
    Coordinator.--Not later than 12 months after the date of the enactment
    of this title, the Secretary shall appoint a Chief Privacy Officer of
    the Office of the National Coordinator, whose duty it shall be to
    advise the National Coordinator on privacy, security, and data
    stewardship of electronic health information and to coordinate with
    other Federal agencies (and similar privacy officers in such agencies),
    with State and regional efforts, and with foreign countries with regard
    to the privacy, security, and data stewardship of electronic
    individually identifiable health information.

    ``SEC. 3002. HIT POLICY COMMITTEE.

        ``(a) Establishment.--There is established a HIT Policy Committee
    to make policy recommendations to the National Coordinator relating to
    the implementation of a nationwide health information technology
    infrastructure, including implementation of the strategic plan
    described in section 3001(c)(3).
        ``(b) Duties.--
                ``(1) Recommendations on health information technology
            infrastructure.--The HIT Policy Committee shall recommend a
            policy framework for the development and adoption of a
            nationwide health information technology infrastructure that
            permits the electronic exchange and use of health information
            as is consistent with the strategic plan under section
            3001(c)(3) and that includes the recommendations under
            paragraph (2). The Committee shall update such recommendations
            and make new recommendations as appropriate.
                ``(2) Specific areas of standard development.--
                        ``(A) In general.--The HIT Policy Committee shall
                    recommend the areas in which standards, implementation
                    specifications, and certification criteria are needed
                    for the electronic exchange and use of health
                    information for purposes of adoption under section 3004
                    and shall recommend an order of priority for the
                    development, harmonization, and recognition of such
                    standards, specifications, and certification criteria
                    among the areas so recommended. Such standards and
                    implementation specifications shall include named
                    standards, architectures, and software schemes for the
                    authentication and security of individually
                    identifiable health information and other information
                    as needed to ensure the reproducible development of
                    common solutions across disparate entities.
                        ``(B) Areas required for consideration.--For
                    purposes of subparagraph (A), the HIT Policy Committee
                    shall make recommendations for at least the following
                    areas:
                                ``(i) Technologies that protect the privacy
                            of health information and promote security in a
                            qualified electronic health record, including
                            for the segmentation and protection from
                            disclosure of specific and sensitive
                            individually identifiable health information
                            with the goal of minimizing the reluctance of
                            patients to seek care (or disclose information
                            about a condition) because of privacy concerns,
                            in accordance with applicable law, and for the
                            use and disclosure of limited data sets of such
                            information.
                                ``(ii) A nationwide health information
                            technology infrastructure that allows for the
                            electronic use and accurate exchange of health
                            information.
                                ``(iii) The utilization of a certified
                            electronic health record for each person in the
                            United States by 2014.
                                ``(iv) Technologies that as a part of a
                            qualified electronic health record allow for an
                            accounting of disclosures made by a covered
                            entity (as defined for purposes of regulations
                            promulgated under section 264(c) of the Health
                            Insurance Portability and Accountability Act of
                            1996) for purposes of treatment, payment, and
                            health care operations (as such terms are
                            defined for purposes of such regulations).
                                ``(v) The use of certified electronic
                            health records to improve the quality of health
                            care, such as by promoting the coordination of
                            health care and improving continuity of health
                            care among health care providers, by reducing
                            medical errors, by improving population health,
                            by reducing health disparities, 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.
                        ``(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) Any other technology that the HIT
                            Policy Committee finds to be among the
                            technologies with the greatest potential to
                            improve the quality and efficiency of health
                            care.
                ``(3) Forum.--The HIT Policy Committee shall serve as a
            forum for broad stakeholder input with specific expertise in
            policies relating to the matters described in paragraphs (1)
            and (2).
        ``(c) Membership and Operations.--
                ``(1) In general.--The National Coordinator shall provide
            leadership in the establishment and operations of the HIT
            Policy Committee.
                ``(2) Membership.--The membership of the HIT Policy
            Committee shall at least reflect providers, ancillary
            healthcare workers, consumers, purchasers, health plans,
            technology vendors, researchers, relevant Federal agencies, and
            individuals with technical expertise on health care quality,
            privacy and security, and on the electronic exchange and use of
            health information.
                ``(3) Consideration.--The National Coordinator shall ensure
            that the relevant recommendations and comments from the
            National Committee on Vital and Health Statistics are
            considered in the development of policies.
        ``(d) Application of FACA.--The Federal Advisory Committee Act (5
    U.S.C. App.), other than section 14 of such Act, shall apply to the HIT
    Policy Committee.
        ``(e) Publication.--The Secretary shall provide for publication in
    the Federal Register and the posting on the Internet website of the
    Office of the National Coordinator for Health Information Technology of
    all policy recommendations made by the HIT Policy Committee under this
    section.

    ``SEC. 3003. HIT STANDARDS COMMITTEE.

        ``(a) Establishment.--There is established a committee to be known
    as the HIT Standards Committee to recommend to the National Coordinator
    standards, implementation specifications, and certification criteria
    for the electronic exchange and use of health information for purposes
    of adoption under section 3004, consistent with the implementation of
    the strategic plan described in section 3001(c)(3) and beginning with
    the areas listed in section 3002(b)(2)(B) in accordance with policies
    developed by the HIT Policy Committee.
        ``(b) Duties.--
                ``(1) 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) 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 4201(a) of the
                    HITECH Act.
                        ``(C) Consistency.--The standards, implementation
                    specifications, and certification criteria recommended
                    under this subsection shall be consistent with the
                    standards for information transactions and data
                    elements adopted pursuant to section 1173 of the Social
                    Security Act.
                ``(2) Forum.--The HIT Standards Committee shall serve as a
            forum for the participation of a broad range of stakeholders to
            provide input on the development, harmonization, and
            recognition of standards, implementation specifications, and
            certification criteria necessary for the development and
            adoption of a nationwide health information technology
            infrastructure that allows for the electronic use and exchange
            of health information.
                ``(3) Schedule.--Not later than 90 days after the date of
            the enactment of this title, the HIT Standards Committee shall
            develop a schedule for the assessment of policy recommendations
            developed by the HIT Policy Committee under section 3002. The
            HIT Standards Committee shall update such schedule annually.
            The Secretary shall publish such schedule in the Federal
            Register.
                ``(4) Public input.--The HIT Standards Committee shall
            conduct open public meetings and develop a process to allow for
            public comment on the schedule described in paragraph (3) and
            recommendations described in this subsection. Under such
            process comments shall be submitted in a timely manner after
            the date of publication of a recommendation under this
            subsection.
        ``(c) Membership and Operations.--
                ``(1) In general.--The National Coordinator shall provide
            leadership in the establishment and operations of the HIT
            Standards Committee.
                ``(2) Membership.--The membership of the HIT Standards
            Committee shall at least reflect providers, ancillary
            healthcare workers, consumers, purchasers, health plans,
            technology vendors, researchers, relevant Federal agencies, and
            individuals with technical expertise on health care quality,
            privacy and security, and on the electronic exchange and use of
            health information.
                ``(3) Consideration.--The National Coordinator shall ensure
            that the relevant recommendations and comments from the
            National Committee on Vital and Health Statistics are
            considered in the development of standards.
                ``(4) Assistance.--For the purposes of carrying out this
            section, the Secretary may provide or ensure that financial
            assistance is provided by the HIT Standards Committee to defray
            in whole or in part any membership fees or dues charged by such
            Committee to those consumer advocacy groups and not for profit
            entities that work in the public interest as a part of their
            mission.
        ``(d) Application of FACA.--The Federal Advisory Committee Act (5
    U.S.C. App.), other than section 14, shall apply to the HIT Standards
    Committee.
        ``(e) Publication.--The Secretary shall provide for publication in
    the Federal Register and the posting on the Internet website of the
    Office of the National Coordinator for Health Information Technology of
    all recommendations made by the HIT Standards Committee under this
    section.

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

        ``(a) Process for Adoption of Endorsed Recommendations.--
                ``(1) Review of endorsed standards, implementation
            specifications, and certification criteria.--Not later than 90
            days after the date of receipt of standards, implementation
            specifications, or certification criteria endorsed under
            section 3001(c), the Secretary, in consultation with
            representatives of other relevant Federal agencies, shall
            jointly review such standards, implementation specifications,
            or certification criteria and shall determine whether or not to
            propose adoption of such standards, implementation
            specifications, or certification criteria.
                ``(2) Determination to adopt standards, implementation
            specifications, and certification criteria.--If the Secretary
            determines--
                        ``(A) to propose adoption of any grouping of such
                    standards, implementation specifications, or
                    certification criteria, the Secretary shall, by
                    regulation, determine whether or not to adopt such
                    grouping of standards, implementation specifications,
                    or certification criteria; or
                        ``(B) not to propose adoption of any grouping of
                    standards, implementation specifications, or
                    certification criteria, the Secretary shall notify the
                    National Coordinator and the HIT Standards Committee in
                    writing of such determination and the reasons for not
                    proposing the adoption of such recommendation.
                ``(3) Publication.--The Secretary shall provide for
            publication in the Federal Register of all determinations made
            by the Secretary under paragraph (1).
        ``(b) Adoption of Initial Set of Standards, Implementation
    Specifications, and Certification Criteria.--
                ``(1) In general.--Not later than December 31, 2009, the
            Secretary shall, through the rulemaking process described in
            section 3004(a), adopt an initial set of standards,
            implementation specifications, and certification criteria for
            the areas required for consideration under section
            3002(b)(2)(B).
                ``(2) Application of current standards, implementation
            specifications, and certification criteria.--The standards,
            implementation specifications, and certification criteria
            adopted before the date of the enactment of this title through
            the process existing through the Office of the National
            Coordinator for Health Information Technology may be applied
            towards meeting the requirement of paragraph (1).

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

        ``For requirements relating to the application and use by Federal
    agencies of the standards and implementation specifications adopted
    under section 3004, see section 4111 of the HITECH Act.

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

        ``(a) In General.--Except as provided under section 4112 of the
    HITECH Act, any standard or implementation specification adopted under
    section 3004 shall be voluntary with respect to private entities.
        ``(b) Rule of Construction.--Nothing in this subtitle shall be
    construed to require that a private entity that enters into a contract
    with the Federal Government apply or use the standards and
    implementation specifications adopted under section 3004 with respect
    to activities not related to the contract.

    ``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

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

    ``SEC. 3008. TRANSITIONS.

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

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

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

    ``SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS.

        ``There is authorized to be appropriated to the Office of the
    National Coordinator for Health Information Technology to carry out
    this subtitle $250,000,000 for fiscal year 2009.''.

    SEC. 4102. TECHNICAL AMENDMENT.

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

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

    SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS
                  AND IMPLEMENTATION SPECIFICATIONS.

        (a) Spending on Health Information Technology Systems.--As each
    agency (as defined in the Executive Order issued on August 22, 2006,
    relating to promoting quality and efficient health care in Federal
    government administered or sponsored health care programs) implements,
    acquires, or upgrades health information technology systems used for
    the direct exchange of individually identifiable health information
    between agencies and with non-Federal entities, it shall utilize, where
    available, health information technology systems and products that meet
    standards and implementation specifications adopted under section 3004
    of the Public Health Service Act, as added by section 4101.
        (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 4101, 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
    4101, shall apply for purposes of this part.

    SEC. 4112. 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 4101.

    SEC. 4113. 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. 4201. 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
    4101, 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 4101, 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. 4202. RESEARCH AND DEVELOPMENT PROGRAMS.

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

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

                        PART I--GRANTS AND LOANS FUNDING

    SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

        Title XXX of the Public Health Service Act, as added by section
    4101, 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. To the greatest extent practicable, the
    Secretary shall ensure that any funds so appropriated shall be used for
    the acquisition of health information technology that meets standards
    and certification criteria adopted before the date of the enactment of
    this title until such date as the standards are adopted under section
    3004. The Secretary shall invest funds through the different agencies
    with expertise in such goals, such as the Office of the National
    Coordinator for Health Information Technology, the Health Resources and
    Services Administration, the Agency for Healthcare Research and
    Quality, the Centers of Medicare & Medicaid Services, the Centers for
    Disease Control and Prevention, and the Indian Health Service to
    support the following:
                ``(1) Health information technology architecture that will
            support the nationwide electronic exchange and use of health
            information in a secure, private, and accurate manner,
            including connecting health information exchanges, and which
            may include updating and implementing the infrastructure
            necessary within different agencies of the Department of Health
            and Human Services to support the electronic use and exchange
            of health information.
                ``(2) Development and adoption of appropriate certified
            electronic health records for categories of providers, as
            defined in section 3000, 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.
                ``(8) Provision of $300 million to support regional or sub-
            national efforts towards health information exchange.
        ``(b) Coordination.--The Secretary shall ensure funds under this
    section are used in a coordinated manner with other health information
    promotion activities.
        ``(c) Additional Use of Funds.--In addition to using funds as
    provided in subsection (a), the Secretary may use amounts appropriated
    under section 3018 to carry out health information technology
    activities that are provided for under laws in effect on the date of
    the enactment of this title.

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

        ``(a) Health Information Technology Extension Program.--To assist
    health care providers to adopt, implement, and effectively use
    certified EHR technology that allows for the electronic exchange and
    use of health information, the Secretary, acting through the Office of
    the National Coordinator, shall establish a health information
    technology extension program to provide health information technology
    assistance services to be carried out through the Department of Health
    and Human Services. The National Coordinator shall consult with other
    Federal agencies with demonstrated experience and expertise in
    information technology services, such as the National Institute of
    Standards and Technology, in developing and implementing this program.
        ``(b) Health Information Technology Research Center.--
                ``(1) In general.--The Secretary shall create a Health
            Information Technology Research Center (in this section
            referred to as the `Center') to provide technical assistance
            and develop or recognize best practices to support and
            accelerate efforts to adopt, implement, and effectively utilize
            health information technology that allows for the electronic
            exchange and use of information in compliance with standards,
            implementation specifications, and certification criteria
            adopted under section 3004.
                ``(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;
                ``(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 and enhance
            health care quality;
                ``(3) be--
                        ``(A) a school of medicine, osteopathic medicine,
                    dentistry, or pharmacy, a graduate program in
                    behavioral or mental health, or any other graduate
                    health professions school;
                        ``(B) a graduate school of nursing or physician
                    assistant studies;
                        ``(C) a consortium of two or more schools described
                    in subparagraph (A) or (B); or
                        ``(D) an institution with a graduate medical
                    education program in medicine, osteopathic medicine,
                    dentistry, pharmacy, nursing, or physician assistance
                    studies;
                ``(4) provide for the collection of data regarding the
            effectiveness of the demonstration project to be funded under
            the grant in improving the safety of patients, the efficiency
            of health care delivery, and in increasing the likelihood that
            graduates of the grantee will adopt and incorporate certified
            EHR technology, in the delivery of health care services; and
                ``(5) provide matching funds in accordance with subsection
            (d).
        ``(c) Use of Funds.--
                ``(1) In general.--With respect to a grant under subsection
            (a), an eligible entity shall--
                        ``(A) use grant funds in collaboration with 2 or
                    more disciplines; and
                        ``(B) use grant funds to integrate certified EHR
                    technology into community-based clinical education.
                ``(2) Limitation.--An eligible entity shall not use amounts
            received under a grant under subsection (a) to purchase
            hardware, software, or services.
        ``(d) Financial Support.--The Secretary may not provide more than
    50 percent of the costs of any activity for which assistance is
    provided under subsection (a), except in an instance of national
    economic conditions which would render the cost-share requirement under
    this subsection detrimental to the program and upon notification to
    Congress as to the justification to waive the cost-share requirement.
        ``(e) Evaluation.--The Secretary shall take such action as may be
    necessary to evaluate the projects funded under this section and
    publish, make available, and disseminate the results of such
    evaluations on as wide a basis as is practicable.
        ``(f) Reports.--Not later than 1 year after the date of enactment
    of this title, and annually thereafter, the Secretary shall submit to
    the Committee on Health, Education, Labor, and Pensions and the
    Committee on Finance of the Senate, and the Committee on Energy and
    Commerce of the House of Representatives a report that--
                ``(1) describes the specific projects established under
            this section; and
                ``(2) contains recommendations for Congress based on the
            evaluation conducted under subsection (e).

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

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

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

        ``(a) Reports.--The Secretary may require that an entity receiving
    assistance under this 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. Amounts so appropriated shall
    remain available until expended.''.

                           PART II--MEDICARE PROGRAM

    SEC. 4311. 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.--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 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.
                        ``(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 clause (iii),
                            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.
                                        ``(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. If the first
                            payment year for an eligible professional is
                            after 2015 then the applicable amount specified
                            in this subparagraph for such professional for
                            such year and any subsequent year shall be $0.
                        ``(C) Non-application to hospital-based eligible
                    professionals.--
                                ``(i) In general.--No incentive payment may
                            be made under this paragraph in the case of a
                            hospital-based eligible professional.
                                ``(ii) Hospital-based eligible
                            professional.--For purposes of clause (i), the
                            term `hospital-based eligible professional'
                            means, with respect to covered professional
                            services furnished by an eligible professional
                            during the reporting period for a payment year,
                            an eligible professional, such as a
                            pathologist, anesthesiologist, or emergency
                            physician, who furnishes substantially all of
                            such services in a hospital setting (whether
                            inpatient or outpatient) and through the use of
                            the facilities and equipment, including
                            computer equipment, of the hospital.
                        ``(D) Payment.--
                                ``(i) Form of payment.--The payment under
                            this paragraph may be in the form of a single
                            consolidated payment or in the form of such
                            periodic installments as the Secretary may
                            specify.
                                ``(ii) Coordination of application of
                            limitation for professionals in different
                            practices.--In the case of an eligible
                            professional furnishing covered professional
                            services in more than one practice (as
                            specified by the Secretary), the Secretary
                            shall establish rules to coordinate the
                            incentive payments, including the application
                            of the limitation on amounts of such incentive
                            payments under this paragraph, among such
                            practices.
                                ``(iii) Coordination with medicaid.--The
                            Secretary shall seek, to the maximum extent
                            practicable, to avoid duplicative requirements
                            from Federal and State Governments to
                            demonstrate meaningful use of certified EHR
                            technology under this title and title XIX. The
                            Secretary may also adjust the reporting periods
                            under such title and such subsections in order
                            to carry out this clause.
                        ``(E) Payment year defined.--
                                ``(i) In general.--For purposes of this
                            subsection, the term `payment year' means a
                            year beginning with 2011.
                                ``(ii) First, second, etc. payment year.--
                            The term `first payment year' means, with
                            respect to covered professional services
                            furnished by an eligible professional, the
                            first year for which an incentive payment is
                            made for such services under this subsection.
                            The terms `second payment year', `third payment
                            year', `fourth payment year', and `fifth
                            payment year' mean, with respect to covered
                            professional services furnished by such
                            eligible professional, each successive year
                            immediately following the first payment year
                            for such professional.
                ``(2) Meaningful ehr user.--
                        ``(A) In general.--For purposes of paragraph (1),
                    an eligible professional shall be treated as a
                    meaningful EHR user for a reporting period for a
                    payment year (or, for purposes of subsection (a)(7),
                    for a reporting period under such subsection for a
                    year) if each of the following requirements is met:
                                ``(i) Meaningful use of certified ehr
                            technology.--The eligible professional
                            demonstrates to the satisfaction of the
                            Secretary, in accordance with subparagraph
                            (C)(i), that during such period the
                            professional is using certified EHR technology
                            in a meaningful manner, which shall include the
                            use of electronic prescribing as determined to
                            be appropriate by the Secretary.
                                ``(ii) Information exchange.--The eligible
                            professional demonstrates to the satisfaction
                            of the Secretary, in accordance with
                            subparagraph (C)(i), that during such period
                            such certified EHR technology is connected in a
                            manner that provides, in accordance with law
                            and standards applicable to the exchange of
                            information, for the electronic exchange of
                            health information to improve the quality of
                            health care, such as promoting care
                            coordination.
                                ``(iii) Reporting on measures using ehr.--
                            Subject to subparagraph (B)(ii) and using such
                            certified EHR technology, the eligible
                            professional submits information for such
                            period, in a form and manner specified by the
                            Secretary, on such clinical quality measures
                            and such other measures as selected by the
                            Secretary under subparagraph (B)(i).
                    The Secretary may provide for the use of alternative
                    means for meeting the requirements of clauses (i),
                    (ii), and (iii) in the case of an eligible professional
                    furnishing covered professional services in a group
                    practice (as defined by the Secretary). The Secretary
                    shall seek to improve the use of electronic health
                    records and health care quality over time by requiring
                    more stringent measures of meaningful use selected
                    under this paragraph.
                        ``(B) Reporting on measures.--
                                ``(i) Selection.--The Secretary shall
                            select measures for purposes of subparagraph
                            (A)(iii) but only consistent with the
                            following:
                                        ``(I) The Secretary shall provide
                                    preference to clinical quality measures
                                    that have been endorsed by the entity
                                    with a contract with the Secretary
                                    under section 1890(a).
                                        ``(II) Prior to any measure being
                                    selected under this subparagraph, the
                                    Secretary shall publish in the Federal
                                    Register such measure and provide for a
                                    period of public comment on such
                                    measure.
                                ``(ii) Limitation.--The Secretary may not
                            require the electronic reporting of information
                            on clinical quality measures under subparagraph
                            (A)(iii) unless the Secretary has the capacity
                            to accept the information electronically, which
                            may be on a pilot basis.
                                ``(iii) Coordination of reporting of
                            information.--In selecting such measures, and
                            in establishing the form and manner for
                            reporting measures under subparagraph (A)(iii),
                            the Secretary shall seek to avoid redundant or
                            duplicative reporting otherwise required,
                            including reporting under subsection (k)(2)(C).
                        ``(C) Demonstration of meaningful use of certified
                    ehr technology and information exchange.--
                                ``(i) In general.--A professional may
                            satisfy the demonstration requirement of
                            clauses (i) and (ii) of subparagraph (A)
                            through means specified by the Secretary, which
                            may include--
                                        ``(I) an attestation;
                                        ``(II) the submission of claims
                                    with appropriate coding (such as a code
                                    indicating that a patient encounter was
                                    documented using certified EHR
                                    technology);
                                        ``(III) a survey response;
                                        ``(IV) reporting under subparagraph
                                    (A)(iii); and
                                        ``(V) other means specified by the
                                    Secretary.
                                ``(ii) Use of part d data.--Notwithstanding
                            sections 1860D-15(d)(2)(B) and 1860D-15(f)(2),
                            the Secretary may use data regarding drug
                            claims submitted for purposes of section 1860D-
                            15 that are necessary for purposes of
                            subparagraph (A).
                ``(3) Application.--
                        ``(A) Physician reporting system rules.--Paragraphs
                    (5), (6), and (8) of subsection (k) shall apply for
                    purposes of this subsection in the same manner as they
                    apply for purposes of such subsection.
                        ``(B) Coordination with other payments.--The
                    provisions of this subsection shall not be taken into
                    account in applying the provisions of subsection (m) of
                    this section and of section 1833(m) and any payment
                    under such provisions shall not be taken into account
                    in computing allowable charges under this subsection.
                        ``(C) Limitations on review.--There shall be no
                    administrative or judicial review under section 1869,
                    section 1878, or otherwise of the determination of any
                    incentive payment under this subsection and the payment
                    adjustment under subsection (a)(7), including the
                    determination of a meaningful EHR user under paragraph
                    (2), a limitation under paragraph (1)(B), and the
                    exception under subsection (a)(7)(B).
                        ``(D) Posting on website.--The Secretary shall post
                    on the Internet website of the Centers for Medicare &
                    Medicaid Services, in an easily understandable format,
                    a list of the names, business addresses, and business
                    phone numbers of the eligible professionals who are
                    meaningful EHR users and, as determined appropriate by
                    the Secretary, of group practices receiving incentive
                    payments under paragraph (1).
                ``(4) Certified ehr technology defined.--For purposes of
            this section, the term `certified EHR technology' means a
            qualified electronic health record (as defined in 3000(13) of
            the Public Health Service Act) that is certified pursuant to
            section 3001(c)(5) of such Act as meeting standards adopted
            under section 3004 of such Act that are applicable to the type
            of record involved (as determined by the Secretary, such as an
            ambulatory electronic health record for office-based physicians
            or an inpatient hospital electronic health record for
            hospitals).
                ``(5) Definitions.--For purposes of this subsection:
                        ``(A) Covered professional services.--The term
                    `covered professional services' has the meaning given
                    such term in subsection (k)(3).
                        ``(B) Eligible professional.--The term `eligible
                    professional' means a physician, as defined in section
                    1861(r).
                        ``(C) Reporting period.--The term `reporting
                    period' means any period (or periods), with respect to
                    a payment year, as specified by the Secretary.''.
        (b) Incentive Payment Adjustment.--Section 1848(a) of the Social
    Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the
    following new paragraph:
                ``(7) Incentives for meaningful use of certified ehr
            technology.--
                        ``(A) Adjustment.--
                                ``(i) In general.--Subject to subparagraphs
                            (B) and (D), with respect to covered
                            professional services furnished by an eligible
                            professional during 2016 or any subsequent
                            payment year, if the eligible professional is
                            not a meaningful EHR user (as determined under
                            subsection (o)(2)) for a reporting period for
                            the year, the fee schedule amount for such
                            services furnished by such professional during
                            the year (including the fee schedule amount for
                            purposes of determining a payment based on such
                            amount) shall be equal to the applicable
                            percent of the fee schedule amount that would
                            otherwise apply to such services under this
                            subsection (determined after application of
                            paragraph (3) but without regard to this
                            paragraph).
                                ``(ii) Applicable percent.--Subject to
                            clause (iii), for purposes of clause (i), the
                            term `applicable percent' means--
                                        ``(I) for 2016, 99 percent;
                                        ``(II) for 2017, 98 percent; and
                                        ``(III) for 2018 and each
                                    subsequent year, 97 percent.
                                ``(iii) Authority to decrease applicable
                            percentage for 2019 and subsequent years.--For
                            2019 and each subsequent year, if the Secretary
                            finds that the proportion of eligible
                            professionals who are meaningful EHR users (as
                            determined under subsection (o)(2)) is less
                            than 75 percent, the applicable percent shall
                            be decreased by 1 percentage point from the
                            applicable percent in the preceding year, but
                            in no case shall the applicable percent be less
                            than 95 percent.
                        ``(B) Significant hardship exception.--The
                    Secretary may, on a case-by-case basis, exempt an
                    eligible professional from the application of the
                    payment adjustment under subparagraph (A) if the
                    Secretary determines, subject to annual renewal, that
                    compliance with the requirement for being a meaningful
                    EHR user would result in a significant hardship, such
                    as in the case of an eligible professional who
                    practices in a rural area without sufficient Internet
                    access. In no case may an eligible professional be
                    granted an exemption under this subparagraph for more
                    than 5 years.
                        ``(C) Application of physician reporting system
                    rules.--Paragraphs (5), (6), and (8) of subsection (k)
                    shall apply for purposes of this paragraph in the same
                    manner as they apply for purposes of such subsection.
                        ``(D) Non-application to hospital-based eligible
                    professionals.--No payment adjustment may be made under
                    subparagraph (A) in the case of hospital-based eligible
                    professionals (as defined in subsection (o)(1)(C)(ii)).
                        ``(E) Definitions.--For purposes of this paragraph:
                                ``(i) Covered professional services.--The
                            term `covered professional services' has the
                            meaning given such term in subsection (k)(3).
                                ``(ii) Eligible professional.--The term
                            `eligible professional' means a physician, as
                            defined in section 1861(r).
                                ``(iii) Reporting period.--The term
                            `reporting period' means, with respect to a
                            year, a period specified by the Secretary.''.
        (c) Application to Certain HMO-Affiliated Eligible Professionals.--
    Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended
    by adding at the end the following new subsection:
        ``(l) Application of Eligible Professional Incentives for Certain
    MA Organizations for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) In general.--Subject to paragraphs (3) and (4), in
            the case of a qualifying MA organization, the provisions of
            sections 1848(o) and 1848(a)(7) shall apply with respect to
            eligible professionals described in paragraph (2) of the
            organization who the organization attests under paragraph (6)
            to be meaningful EHR users in a similar manner as they apply to
            eligible professionals under such sections. Incentive payments
            under paragraph (3) shall be made to and payment adjustments
            under paragraph (4) shall apply to such qualifying
            organizations.
                ``(2) Eligible professional described.--With respect to a
            qualifying MA organization, an eligible professional described
            in this paragraph is an eligible professional (as defined for
            purposes of section 1848(o)) who--
                        ``(A)(i) is employed by the organization; or
                        ``(ii)(I) is employed by, or is a partner of, an
                    entity that through contract with the organization
                    furnishes at least 80 percent of the entity's patient
                    care services to enrollees of such organization; and
                        ``(II) furnishes at least 80 percent of the
                    professional services of the eligible professional to
                    enrollees of the organization; and
                        ``(B) furnishes, on average, at least 20 hours per
                    week of patient care services.
                ``(3) Eligible professional incentive payments.--
                        ``(A) In general.--In applying section 1848(o)
                    under paragraph (1), instead of the additional payment
                    amount under section 1848(o)(1)(A) and subject to
                    subparagraph (B), the Secretary may substitute an
                    amount determined by the Secretary to the extent
                    feasible and practical to be similar to the estimated
                    amount in the aggregate that would be payable if
                    payment for services furnished by such professionals
                    was payable under part B instead of this part.
                        ``(B) Avoiding duplication of payments.--
                                ``(i) In general.--If an eligible
                            professional described in paragraph (2) is
                            eligible for the maximum incentive payment
                            under section 1848(o)(1)(A) for the same
                            payment period, the payment incentive shall be
                            made only under such section and not under this
                            subsection.
                                ``(ii) Methods.--In the case of an eligible
                            professional described in paragraph (2) who is
                            eligible for an incentive payment under section
                            1848(o)(1)(A) but is not described in clause
                            (i) for the same payment period, the Secretary
                            shall develop a process--
                                        ``(I) to ensure that duplicate
                                    payments are not made with respect to
                                    an eligible professional both under
                                    this subsection and under section
                                    1848(o)(1)(A); and
                                        ``(II) to collect data from
                                    Medicare Advantage organizations to
                                    ensure against such duplicate payments.
                        ``(C) Fixed schedule for application of limitation
                    on incentive payments for all eligible professionals.--
                    In applying section 1848(o)(1)(B)(ii) under
                    subparagraph (A), in accordance with rules specified by
                    the Secretary, a qualifying MA organization shall
                    specify a year (not earlier than 2011) that shall be
                    treated as the first payment year for all eligible
                    professionals with respect to such organization.
                ``(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 are meaningful EHR users
                    with respect to a year, the Secretary shall apply the
                    payment adjustment under this paragraph based on the
                    proportion of such eligible professionals 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.''.
        (d) Conforming Amendments.--Section 1853 of the Social Security Act
    (42 U.S.C. 1395w-23) is amended--
                (1) in subsection (a)(1)(A), by striking ``and (i)'' and
            inserting ``(i), and (l)'';
                (2) in subsection (c)--
                        (A) in paragraph (1)(D)(i), by striking ``section
                    1886(h)'' and inserting ``sections 1848(o) and
                    1886(h)''; and
                        (B) in paragraph (6)(A), by inserting after ``under
                    part B,'' the following: ``excluding expenditures
                    attributable to subsections (a)(7) and (o) of section
                    1848,''; and
                (3) in subsection (f), by inserting ``and for payments
            under subsection (l)'' after ``with the organization''.
        (e) Conforming Amendments to e-Prescribing.--
                (1) Section 1848(a)(5)(A) of the Social Security Act (42
            U.S.C. 1395w-4(a)(5)(A)) is amended--
                        (A) in clause (i), by striking ``or any subsequent
                    year'' and inserting ``, 2013, 2014, or 2015''; and
                        (B) in clause (ii), by striking ``and each
                    subsequent year'' and inserting ``and 2015''.
                (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-
            4(m)(2)) is amended--
                        (A) in subparagraph (A), by striking ``For 2009''
                    and inserting ``Subject to subparagraph (D), for
                    2009''; and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(D) Limitation with respect to ehr incentive
                    payments.--The provisions of this paragraph shall not
                    apply to an eligible professional (or, in the case of a
                    group practice under paragraph (3)(C), to the group
                    practice) if, for the reporting period the eligible
                    professional (or group practice) receives an incentive
                    payment under subsection (o)(1)(A) with respect to a
                    certified EHR technology (as defined in subsection
                    (o)(4)) that has the capability of electronic
                    prescribing.''.

    SEC. 4312. INCENTIVES FOR HOSPITALS.

        (a) Incentive Payment.--Section 1886 of the Social Security Act (42
    U.S.C. 1395ww) is amended by adding at the end the following new
    subsection:
        ``(n) Incentives for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) In general.--Subject to the succeeding provisions of
            this subsection, with respect to inpatient hospital services
            furnished by an eligible hospital during a payment year (as
            defined in paragraph (2)(G)), if the eligible hospital is a
            meaningful EHR user (as determined under paragraph (3)) for the
            reporting period with respect to such year, in addition to the
            amount otherwise paid under this section, there also shall be
            paid to the eligible hospital, from the Federal Hospital
            Insurance Trust Fund established under section 1817, an amount
            equal to the applicable amount specified in paragraph (2)(A)
            for the hospital for such payment year.
                ``(2) Payment amount.--
                        ``(A) In general.--Subject to the succeeding
                    subparagraphs of this paragraph, the applicable amount
                    specified in this subparagraph for an eligible hospital
                    for a payment year is equal to the product of the
                    following:
                                ``(i) Initial amount.--The sum of--
                                        ``(I) the base amount specified in
                                    subparagraph (B); plus
                                        ``(II) the discharge related amount
                                    specified in subparagraph (C) for a 12-
                                    month period selected by the Secretary
                                    with respect to such payment year.
                                ``(ii) Medicare share.--The Medicare share
                            as specified in subparagraph (D) for the
                            hospital for a period selected by the Secretary
                            with respect to such payment year.
                                ``(iii) Transition factor.--The transition
                            factor specified in subparagraph (E) for the
                            hospital for the payment year.
                        ``(B) Base amount.--The base amount specified in
                    this subparagraph is $2,000,000.
                        ``(C) Discharge related amount.--The discharge
                    related amount specified in this subparagraph for a 12-
                    month period selected by the Secretary shall be
                    determined as the sum of the amount, based upon total
                    discharges (regardless of any source of payment) for
                    the period, for each discharge up to the 23,000th
                    discharge as follows:
                                ``(i) For the 1,150th through the 23,000th
                            discharge, $200.
                                ``(ii) For any discharge greater than the
                            23,000th, $0.
                        ``(D) Medicare share.--The Medicare share specified
                    under this subparagraph for a hospital for a period
                    selected by the Secretary for a payment year is equal
                    to the fraction--
                                ``(i) the numerator of which is the sum
                            (for such period and with respect to the
                            hospital) of--
                                        ``(I) the number of inpatient-bed-
                                    days (as established by the Secretary)
                                    which are attributable to individuals
                                    with respect to whom payment may be
                                    made under part A; and
                                        ``(II) the number of inpatient-bed-
                                    days (as so established) which are
                                    attributable to individuals who are
                                    enrolled with a Medicare Advantage
                                    organization under part C; and
                                ``(ii) the denominator of which is the
                            product of--
                                        ``(I) the total number of
                                    inpatient-bed-days with respect to the
                                    hospital during such period; and
                                        ``(II) the total amount of the
                                    hospital's charges during such period,
                                    not including any charges that are
                                    attributable to charity care (as such
                                    term is used for purposes of hospital
                                    cost reporting under this title),
                                    divided by the total amount of the
                                    hospital's charges during such period.
                    Insofar as the Secretary determines that data are not
                    available on charity care necessary to calculate the
                    portion of the formula specified in clause (ii)(II),
                    the Secretary shall use data on uncompensated care and
                    may adjust such data so as to be an appropriate proxy
                    for charity care including a downward adjustment to
                    eliminate bad debt data from uncompensated care data.
                    In the absence of the data necessary, with respect to a
                    hospital, for the Secretary to compute the amount
                    described in clause (ii)(II), the amount under such
                    clause shall be deemed to be 1. In the absence of data,
                    with respect to a hospital, necessary to compute the
                    amount described in clause (i)(II), the amount under
                    such clause shall be deemed to be 0.
                        ``(E) Transition factor specified.--
                                ``(i) In general.--Subject to clause (ii),
                            the transition factor specified in this
                            subparagraph for an eligible hospital for a
                            payment year is as follows:
                                        ``(I) For the first payment year
                                    for such hospital, 1.
                                        ``(II) For the second payment year
                                    for such hospital, \3/4\.
                                        ``(III) For the third payment year
                                    for such hospital, \1/2\.
                                        ``(IV) For the fourth payment year
                                    for such hospital, \1/4\.
                                        ``(V) For any succeeding payment
                                    year for such hospital, 0.
                                ``(ii) Phase down for eligible hospitals
                            first adopting ehr after 2013.--If the first
                            payment year for an eligible hospital is after
                            2013, then the transition factor specified in
                            this subparagraph for a payment year for such
                            hospital is the same as the amount specified in
                            clause (i) for such payment year for an
                            eligible hospital for which the first payment
                            year is 2013. If the first payment year for an
                            eligible hospital is after 2015 then the
                            transition factor specified in this
                            subparagraph for such hospital and for such
                            year and any subsequent year shall be 0.
                        ``(F) Form of payment.--The payment under this
                    subsection for a payment year may be in the form of a
                    single consolidated payment or in the form of such
                    periodic installments as the Secretary may specify.
                        ``(G) Payment year defined.--
                                ``(i) In general.--For purposes of this
                            subsection, the term `payment year' means a
                            fiscal year beginning with fiscal year 2011.
                                ``(ii) First, second, etc. payment year.--
                            The term `first payment year' means, with
                            respect to inpatient hospital services
                            furnished by an eligible hospital, the first
                            fiscal year for which an incentive payment is
                            made for such services under this subsection.
                            The terms `second payment year', `third payment
                            year', and `fourth payment year' mean, with
                            respect to an eligible hospital, each
                            successive year immediately following the first
                            payment year for that hospital.
                ``(3) Meaningful ehr user.--
                        ``(A) In general.--For purposes of paragraph (1),
                    an eligible hospital shall be treated as a meaningful
                    EHR user for a reporting period for a payment year (or,
                    for purposes of subsection (b)(3)(B)(ix), for a
                    reporting period under such subsection for a fiscal
                    year) if each of the following requirements are met:
                                ``(i) Meaningful use of certified ehr
                            technology.--The eligible hospital demonstrates
                            to the satisfaction of the Secretary, in
                            accordance with subparagraph (C)(i), that
                            during such period the hospital is using
                            certified EHR technology in a meaningful
                            manner.
                                ``(ii) Information exchange.--The eligible
                            hospital demonstrates to the satisfaction of
                            the Secretary, in accordance with subparagraph
                            (C)(i), that during such period such certified
                            EHR technology is connected in a manner that
                            provides, in accordance with law and standards
                            applicable to the exchange of information, for
                            the electronic exchange of health information
                            to improve the quality of health care, such as
                            promoting care coordination.
                                ``(iii) Reporting on measures using ehr.--
                            Subject to subparagraph (B)(ii) and using such
                            certified EHR technology, the eligible hospital
                            submits information for such period, in a form
                            and manner specified by the Secretary, on such
                            clinical quality measures and such other
                            measures as selected by the Secretary under
                            subparagraph (B)(i).
                    The Secretary shall seek to improve the use of
                    electronic health records and health care quality over
                    time by requiring more stringent measures of meaningful
                    use selected under this paragraph.
                        ``(B) Reporting on measures.--
                                ``(i) Selection.--The Secretary shall
                            select measures for purposes of subparagraph
                            (A)(iii) but only consistent with the
                            following:
                                        ``(I) The Secretary shall provide
                                    preference to clinical quality measures
                                    that have been selected for purposes of
                                    applying subsection (b)(3)(B)(viii) or
                                    that have been endorsed by the entity
                                    with a contract with the Secretary
                                    under section 1890(a).
                                        ``(II) Prior to any measure (other
                                    than a clinical quality measure that
                                    has been selected for purposes of
                                    applying subsection (b)(3)(B)(viii))
                                    being selected under this subparagraph,
                                    the Secretary shall publish in the
                                    Federal Register such measure and
                                    provide for a period of public comment
                                    on such measure.
                                ``(ii) Limitations.--The Secretary may not
                            require the electronic reporting of information
                            on clinical quality measures under subparagraph
                            (A)(iii) unless the Secretary has the capacity
                            to accept the information electronically, which
                            may be on a pilot basis.
                                ``(iii) Coordination of reporting of
                            information.--In selecting such measures, and
                            in establishing the form and manner for
                            reporting measures under subparagraph (A)(iii),
                            the Secretary shall seek to avoid redundant or
                            duplicative reporting with reporting otherwise
                            required, including reporting under subsection
                            (b)(3)(B)(viii).
                        ``(C) Demonstration of meaningful use of certified
                    ehr technology and information exchange.--
                                ``(i) In general.--A hospital may satisfy
                            the demonstration requirement of clauses (i)
                            and (ii) of subparagraph (A) through means
                            specified by the Secretary, which may include--
                                        ``(I) an attestation;
                                        ``(II) the submission of claims
                                    with appropriate coding (such as a code
                                    indicating that inpatient care was
                                    documented using certified EHR
                                    technology);
                                        ``(III) a survey response;
                                        ``(IV) reporting under subparagraph
                                    (A)(iii); and
                                        ``(V) other means specified by the
                                    Secretary.
                                ``(ii) Use of part d data.--Notwithstanding
                            sections 1860D-15(d)(2)(B) and 1860D-15(f)(2),
                            the Secretary may use data regarding drug
                            claims submitted for purposes of section 1860D-
                            15 that are necessary for purposes of
                            subparagraph (A).
                ``(4) Application.--
                        ``(A) Limitations on review.--There shall be no
                    administrative or judicial review under section 1869,
                    section 1878, or otherwise of the determination of any
                    incentive payment under this subsection and the payment
                    adjustment under subsection (b)(3)(B)(ix), including
                    the determination of a meaningful EHR user under
                    paragraph (3), determination of measures applicable to
                    services furnished by eligible hospitals under this
                    subsection, and the exception under subsection
                    (b)(3)(B)(ix)(II).
                        ``(B) Posting on website.--The Secretary shall post
                    on the Internet website of the Centers for Medicare &
                    Medicaid Services, in an easily understandable format,
                    a list of the names of the eligible hospitals that are
                    meaningful EHR users under this subsection or
                    subsection (b)(3)(B)(ix) and other relevant data as
                    determined appropriate by the Secretary. The Secretary
                    shall ensure that a hospital has the opportunity to
                    review the other relevant data that are to be made
                    public with respect to the hospital prior to such data
                    being made public.
                ``(5) Certified ehr technology defined.--The term
            `certified EHR technology' has the meaning given such term in
            section 1848(o)(4).
                ``(6) Definitions.--For purposes of this subsection:
                        ``(A) Eligible hospital.--The term `eligible
                    hospital' means a subsection (d) hospital.
                        ``(B) Reporting period.--The term `reporting
                    period' means any period (or periods), with respect to
                    a payment year, as specified by the Secretary.''.
        (b) Incentive Market Basket Adjustment.--Section 1886(b)(3)(B) of
    the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
                (1) in clause (viii)(I), by inserting ``(or, beginning with
            fiscal year 2016, by one-quarter)'' after ``2.0 percentage
            points''; and
                (2) by adding at the end the following new clause:
        ``(ix)(I) For purposes of clause (i) for fiscal year 2016 and each
    subsequent fiscal year, in the case of an eligible hospital (as defined
    in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined
    in subsection (n)(3)) for the reporting period for such fiscal year,
    three-quarters of the applicable percentage increase otherwise
    applicable under clause (i) for such fiscal year shall be reduced by
    33\1/3\ percent for fiscal year 2016, 66\2/3\ percent for fiscal year
    2017, and 100 percent for fiscal year 2018 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 2016 and each subsequent fiscal year, a
    State in which hospitals are paid for services under section 1814(b)(3)
    shall adjust the payments to each subsection (d) hospital in the State
    that is not a meaningful EHR user (as defined in subsection (n)(3)) in
    a manner that is designed to result in an aggregate reduction in
    payments to hospitals in the State that is equivalent to the aggregate
    reduction that would have occurred if payments had been reduced to each
    subsection (d) hospital in the State in a manner comparable to the
    reduction under the previous provisions of this clause. The State shall
    report to the Secretary the methodology it will use to make the payment
    adjustment under the previous sentence.
        ``(IV) For purposes of this clause, the term `reporting period'
    means, with respect to a fiscal year, any period (or periods), with
    respect to the fiscal year, as specified by the Secretary.''.
        (c) Application to Certain HMO-Affiliated Eligible Hospitals.--
    Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as
    amended by section 4311(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 that is under common
            corporate governance with such organization and serves
            individuals enrolled under an MA plan offered by such
            organization.
                ``(3) Eligible hospital incentive payments.--
                        ``(A) In general.--In applying section 1886(n)(2)
                    under paragraph (1), instead of the additional payment
                    amount under section 1886(n)(2), there shall be
                    substituted an amount determined by the Secretary to be
                    similar to the estimated amount in the aggregate that
                    would be payable if payment for services furnished by
                    such hospitals was payable under part A instead of this
                    part. In implementing the previous sentence, the
                    Secretary--
                                ``(i) shall, insofar as data to determine
                            the discharge related amount under section
                            1886(n)(2)(C) for an eligible hospital are not
                            available to the Secretary, use such
                            alternative data and methodology to estimate
                            such discharge related amount as the Secretary
                            determines appropriate; and
                                ``(ii) shall, insofar as data to determine
                            the medicare share described in section
                            1886(n)(2)(D) for an eligible hospital are not
                            available to the Secretary, use such
                            alternative data and methodology to estimate
                            such share, which data and methodology may
                            include use of the inpatient bed days (or
                            discharges) with respect to an eligible
                            hospital during the appropriate period which
                            are attributable to both individuals for whom
                            payment may be made under part A or individuals
                            enrolled in an MA plan under a Medicare
                            Advantage organization under this part as a
                            proportion of the total number of patient-bed-
                            days (or discharges) with respect to such
                            hospital during such period.
                        ``(B) Avoiding duplication of payments.--
                                ``(i) In general.--In the case of a
                            hospital that for a payment year is an eligible
                            hospital described in paragraph (2), is an
                            eligible hospital under section 1886(n), 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.''.
        (d) Conforming Amendments.--
                (1) Section 1814(b) of the Social Security Act (42 U.S.C.
            1395f(b)) is amended--
                        (A) in paragraph (3), in the matter preceding
                    subparagraph (A), by inserting ``, subject to section
                    1886(d)(3)(B)(ix)(III),'' after ``then''; and
                        (B) by adding at the end the following: ``For
                    purposes of applying paragraph (3), there shall be
                    taken into account incentive payments, and payment
                    adjustments under subsection (b)(3)(B)(ix) or (n) of
                    section 1886.''.
                (2) Section 1851(i)(1) of the Social Security Act (42
            U.S.C. 1395w-21(i)(1)) is amended by striking ``and
            1886(h)(3)(D)'' and inserting ``1886(h)(3)(D), and 1853(m)''.
                (3) Section 1853 of the Social Security Act (42 U.S.C.
            1395w-23), as amended by section 4311(d)(1), is amended--
                        (A) in subsection (c)--
                                (i) in paragraph (1)(D)(i), by striking
                            ``1848(o)'' and inserting ``, 1848(o), and
                            1886(n)''; and
                                (ii) in paragraph (6)(A), by inserting
                            ``and subsections (b)(3)(B)(ix) and (n) of
                            section 1886'' after ``section 1848''; and
                        (B) in subsection (f), by inserting ``and
                    subsection (m)'' after ``under subsection (l)''.

    SEC. 4313. 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, $60,000,000 for each of fiscal years 2009 through 2015 and
    $30,000,000 for each succeeding fiscal year through fiscal year 2019,
    which shall be available for purposes of carrying out the provisions of
    (and amendments made by) this part. Amounts appropriated under this
    subsection for a fiscal year shall be available until expended.

    SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR PROVIDERS
                  NOT RECEIVING OTHER INCENTIVE PAYMENTS.

        (a) Study.--
                (1) In general.--The Secretary of Health and Human Services
            shall conduct a study to determine the extent to which and
            manner in which payment incentives (such as under title XVIII
            or XIX of the Social Security Act) and other funding for
            purposes of implementing and using certified EHR technology (as
            defined in section 3000 of the Public Health Service Act)
            should be made available to health care providers who are
            receiving minimal or no payment incentives or other funding
            under this Act, under title XVIII or XIX of the Social Security
            Act, or otherwise, for such purposes.
                (2) Details of study.--Such study shall include an
            examination of--
                        (A) the adoption rates of certified EHR technology
                    by such health care providers;
                        (B) the clinical utility of such technology by such
                    health care providers;
                        (C) whether the services furnished by such health
                    care providers are appropriate for or would benefit
                    from the use of such technology;
                        (D) the extent to which such health care providers
                    work in settings that might otherwise receive an
                    incentive payment or other funding under this Act,
                    title XVIII or XIX of the Social Security Act, or
                    otherwise;
                        (E) the potential costs and the potential benefits
                    of making payment incentives and other funding
                    available to such health care providers; and
                        (F) any other issues the Secretary deems to be
                    appropriate.
        (b) Report.--Not later than June 30, 2010, the Secretary shall
    submit to Congress a report on the findings and conclusions of the
    study conducted under subsection (a).

                           PART III--MEDICAID FUNDING

    SEC. 4321. 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 for certified EHR technology (and support
                    services including maintenance and training that is
                    for, or is necessary for the adoption and operation of,
                    such technology) by Medicaid providers described in
                    subsection (t)(1); and
                        ``(ii) 90 percent of so much of the sums expended
                    during such quarter as are attributable to payments for
                    reasonable administrative expenses related to the
                    administration of payments described in clause (i) if
                    the State meets the condition described in subsection
                    (t)(9); plus''; and
                (2) by inserting after subsection (s) the following new
            subsection:
        ``(t)(1)(A) For purposes of subsection (a)(3)(F), the payments for
    certified EHR technology (and support services including maintenance
    that is for, or is necessary for the operation of, such technology) by
    Medicaid providers described in this paragraph are payments made by the
    State in accordance with this subsection of the applicable percent (as
    specified in subparagraph (B)) of the net allowable costs of Medicaid
    providers (as defined in paragraph (2)) for such technology (and
    support services).
        ``(B) For purposes of subparagraph (A), the applicable percent is--
                ``(i) in the case of a Medicaid provider described in
            paragraph (2)(A), 85 percent; and
                ``(ii) in the case of a Medicaid provider described in
            paragraph (2)(B), 100 percent.
        ``(2) In this subsection and subsection (a)(3)(F), the term
    `Medicaid provider' means--
                ``(A) an eligible professional (as defined in paragraph
            (3)(B)) who is not hospital-based and has at least 30 percent
            of the professional's patient volume (as estimated in
            accordance with standards established by the Secretary)
            attributable to individuals who are receiving medical
            assistance under this title; and
                ``(B)(i) a children's hospital, (ii) an acute-care hospital
            that is not described in clause (i) and that has at least 10
            percent of the hospital's patient volume (as estimated in
            accordance with standards established by the Secretary)
            attributable to individuals who are receiving medical
            assistance under this title, or (iii) a Federally-qualified
            health center or rural health clinic that has at least 30
            percent of the center's or clinic's patient volume (as
            estimated in accordance with standards established by the
            Secretary) attributable to individuals who are receiving
            medical assistance under this title.
    An eligible professional shall not qualify as a Medicaid provider under
    this subsection unless the eligible professional has waived, in a
    manner specified by the Secretary, any right to payment under section
    1848(o) with respect to the adoption or support of certified EHR
    technology by the professional. In applying clauses (ii) and (iii) of
    subparagraph (B), the standards established by the Secretary for
    patient volume shall include individuals enrolled in a Medicaid managed
    care plan (under section 1903(m) or section 1932).
        ``(3) In this subsection and subsection (a)(3)(F):
                ``(A) The term `certified EHR technology' means a qualified
            electronic health record (as defined in 3000(13) of the Public
            Health Service Act) that is certified pursuant to section
            3001(c)(5) of such Act as meeting standards adopted under
            section 3004 of such Act that are applicable to the type of
            record involved (as determined by the Secretary, such as an
            ambulatory electronic health record for office-based physicians
            or an inpatient hospital electronic health record for
            hospitals).
                ``(B) The term `eligible professional' means a physician as
            defined in paragraphs (1) and (2) of section 1861(r), and
            includes a certified nurse mid-wife and a nurse practitioner.
                ``(C) The term `hospital-based' means, with respect to an
            eligible professional, a professional (such as a pathologist,
            anesthesiologist, or emergency physician) who furnishes
            substantially all of the individual's professional services in
            a hospital setting (whether inpatient or outpatient) and
            through the use of the facilities and equipment, including
            computer equipment, of the hospital.
        ``(4)(A) The term `allowable costs' means, with respect to
    certified EHR technology of a Medicaid provider, costs of such
    technology (and support services including maintenance and training
    that is for, or is necessary for the adoption and operation of, such
    technology) as determined by the Secretary to be reasonable.
        ``(B) The term `net allowable costs' means allowable costs reduced
    by any payment that is made to the Medicaid provider involved from any
    other source that is directly attributable to payment for certified EHR
    technology or services described in subparagraph (A).
        ``(C) In no case shall--
                ``(i) the aggregate allowable costs under this subsection
            (covering one or more years) with respect to a Medicaid
            provider described in paragraph (2)(A) for purchase and initial
            implementation of certified EHR technology (and services
            described in subparagraph (A)) exceed $25,000 or include costs
            over a period of longer than 5 years;
                ``(ii) for costs not described in clause (i) relating to
            the operation, maintenance, or use of certified EHR technology,
            the annual allowable costs under this subsection with respect
            to such a Medicaid provider for costs not described in clause
            (i) for any year exceed $10,000;
                ``(iii) payment described in paragraph (1) for costs
            described in clause (ii) be made with respect to such a
            Medicaid provider over a period of more than 5 years;
                ``(iv) the aggregate allowable costs under this subsection
            with respect to such a Medicaid provider for all costs exceed
            $75,000; or
                ``(v) the allowable costs, whether for purchase and initial
            implementation, maintenance, or otherwise, for a Medicaid
            provider described in paragraph (2)(B)(iii) exceed such
            aggregate or annual limitation as the Secretary shall
            establish, based on an amount determined by the Secretary as
            being adequate to adopt and maintain certified EHR technology,
            consistent with paragraph (6).
        ``(5) Payments described in paragraph (1) are not in accordance
    with this subsection unless the following requirements are met:
                ``(A) The State provides assurances satisfactory to the
            Secretary that amounts received under subsection (a)(3)(F) with
            respect to costs of a Medicaid provider are paid directly to
            such provider without any deduction or rebate.
                ``(B) Such Medicaid provider is responsible for payment of
            the costs described in such paragraph that are not provided
            under this title.
                ``(C) With respect to payments to such Medicaid provider
            for costs other than costs related to the initial adoption of
            certified EHR technology, the Medicaid provider demonstrates
            meaningful use of certified EHR technology through a means that
            is approved by the State and acceptable to the Secretary, and
            that may be based upon the methodologies applied under section
            1848(o) or 1886(n).
                ``(D) To the extent specified by the Secretary, the
            certified EHR technology is compatible with State or Federal
            administrative management systems.
        ``(6)(A) In no case shall the payments described in paragraph (1),
    with respect to a hospital, exceed in the aggregate the product of--
                ``(i) the overall hospital EHR amount for the hospital
            computed under subparagraph (B); and
                ``(ii) the Medicaid share for such hospital computed under
            subparagraph (C).
        ``(B) For purposes of this paragraph, the overall hospital EHR
    amount, with respect to a hospital, is the sum of the applicable
    amounts specified in section 1886(n)(2)(A) for such hospital for the
    first 4 payment years (as estimated by the Secretary) determined as if
    the Medicare share specified in clause (ii) of such section were 1. The
    Secretary shall publish in the Federal Register the overall hospital
    EHR amount for each hospital eligible for payments under this
    subsection. In computing amounts under paragraph 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
    hospital for a period specified by the Secretary, shall be calculated
    in the same manner as the Medicare share under section 1886(n)(2)(D)
    for such a hospital and period, except that there shall be substituted
    for the numerator under clause (i) of such section the amount that is
    equal to the number of inpatient-bed-days (as established by the
    Secretary) which are attributable to individuals who are receiving
    medical assistance under this title and who are not described in
    section 1886(n)(2)(D)(i). In computing inpatient-bed-days under the
    previous sentence, the Secretary shall take into account inpatient-bed-
    days attributable to inpatient-bed-days that are paid for individuals
    enrolled in a Medicaid managed care plan (under section 1903(m) or
    section 1932).
        ``(7) With respect to health care providers other than hospitals,
    the Secretary shall ensure coordination of the different programs for
    payment of such health care providers for adoption or use of health
    information technology (including certified EHR technology), as well as
    payments for such health care providers provided under this title or
    title XVIII, to assure no duplication of funding.
        ``(8) In carrying out paragraph (5)(C), the State and Secretary
    shall seek, to the maximum extent practicable, to avoid duplicative
    requirements from Federal and State Governments to demonstrate
    meaningful use of certified EHR technology under this title and title
    XVIII. In doing so, the Secretary may deem satisfaction of requirements
    for such meaningful use for a payment year under title XVIII to be
    sufficient to qualify as meaningful use under this subsection. The
    Secretary may also specify the reporting periods under this subsection
    in order to carry out this paragraph.
        ``(9) In order to be provided Federal financial participation under
    subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction
    of the Secretary, that the State--
                ``(A) is using the funds provided for the purposes of
            administering payments under this subsection, including
            tracking of meaningful use by Medicaid providers;
                ``(B) is conducting adequate oversight of the program under
            this subsection, including routine tracking of meaningful use
            attestations and reporting mechanisms; and
                ``(C) is pursuing initiatives to encourage the adoption of
            certified EHR technology to promote health care quality and the
            exchange of health care information under this title, subject
            to applicable laws and regulations governing such exchange.
        ``(10) The Secretary shall periodically submit reports to the
    Committee on Energy and Commerce of the House of Representatives and
    the Committee on Finance of the Senate on status, progress, and
    oversight of payments under paragraph (1).''.
        (b) Implementation Funding.--In addition to funds otherwise
    available, out of any funds in the Treasury not otherwise appropriated,
    there are appropriated to the Secretary of Health and Human Services
    for the Center for Medicare & Medicaid Services Program Management
    Account, $40,000,000 for each of fiscal years 2009 through 2015 and
    $20,000,000 for each succeeding fiscal year through fiscal year 2019,
    which shall be available for purposes of carrying out the provisions of
    (and the amendments made by) this part. Amounts appropriated under this
    subsection for a fiscal year shall be available until expended.

    SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM.

        (a) In General.--The Secretary shall establish a grant program to
    enhance the meaningful use of certified electronic health records in
    nursing facilities. In establishing such program, the Secretary shall
    use payment incentives for meaningful use of certified EHR technology,
    similar to those specified in sections 4311, 4312, and 4321, as
    appropriate. For the purpose of such incentives, the Secretary shall
    define meaningful use in a manner so as to be consistent with such
    sections to the extent practicable. The Secretary shall award funds to
    not more than 10 States to carry out activities under this section.
        (b) Activities.--The Secretary shall require a State participating
    in the grant program to--
                (1) provide payment incentives to nursing facilities
            contingent on the demonstration of meaningful use of certified
            electronic health records;
                (2) require participating nursing facilities to engage in
            programs to improve the quality and coordination of care
            through the use of certified EHR technology, including for
            persons who are repeatedly admitted to acute care hospitals
            from the nursing facility and persons who receive services
            across multiple medical and social services providers
            (including facility and community-based providers); and
                (3) provide for training of appropriate personnel in the
            use of certified electronic health records.
        (c) Targeting.--The Secretary shall require a State participating
    in the grant program to target nursing facilities with a significant
    percentage (but not less than the average in the State) of the
    facility's patient volume (as estimated in accordance with standards
    established by the Secretary) attributable to individuals who are
    receiving medical assistance under title XIX of the Social Security
    Act.
        (d) Priority.--In making grants under this section, the Secretary
    shall give priority to States with a high proportion of total national
    nursing facility days paid under title XIX of the Social Security Act.
        (e) Limitations on Use of Funds.--A State may not make payments to
    a nursing facility in excess of 90 percent of the costs of such nursing
    facility for the adoption and operation of certified EHR technology.
        (f) Application.--No grant may be made to a State under this
    section unless the State submits an application to the Secretary in a
    form and manner specified by the Secretary.
        (g) Report.--Not later than the end of the 3-year period beginning
    on the date that grants under this section are first awarded, the
    Secretary shall submit a report to Congress on the activities under
    this grant program and the effect of this program on quality and
    coordination of care under title XIX of the Social Security Act.
        (h) Appropriation.--Out of any money in the Treasury not otherwise
    appropriated, there is appropriated to the Secretary of Health and
    Human Services to carry out this section $600,000,000, to remain
    available until expended.

                              Subtitle D--Privacy

    SEC. 4400. DEFINITIONS.

        In this subtitle, except as specified otherwise:
                (1) Breach.--The term ``breach'' means the unauthorized
            acquisition, access, use, or disclosure of protected health
            information which compromises the security, privacy, or
            integrity of protected health information maintained by or on
            behalf of a person. Such term does not include any
            unintentional acquisition, access, use, or disclosure of such
            information by an employee or agent of the covered entity or
            business associate involved if such acquisition, access, use,
            or disclosure, respectively, was made in good faith and within
            the course and scope of the employment or other contractual
            relationship of such employee or agent, respectively, with the
            covered entity or business associate and if such information is
            not further acquired, accessed, used, or disclosed by such
            employee or agent.
                (2) Business associate.--The term ``business associate''
            has the meaning given such term in section 160.103 of title 45,
            Code of Federal Regulations.
                (3) Covered entity.--The term ``covered entity'' has the
            meaning given such term in section 160.103 of title 45, Code of
            Federal Regulations.
                (4) Disclose.--The terms ``disclose'' and ``disclosure''
            have the meaning given the term ``disclosure'' in section
            160.103 of title 45, Code of Federal Regulations.
                (5) Electronic health record.--The term ``electronic health
            record'' means an electronic record of health-related
            information on an individual that is created, gathered,
            managed, and consulted by authorized health care clinicians and
            staff.
                (6) Health care operations.--The term ``health care
            operation'' has the meaning given such term in section 164.501
            of title 45, Code of Federal Regulations.
                (7) Health care provider.--The term ``health care
            provider'' has the meaning given such term in section 160.103
            of title 45, Code of Federal Regulations.
                (8) Health plan.--The term ``health plan'' has the meaning
            given such term in section 1171(5) of the Social Security Act.
                (9) National coordinator.--The term ``National
            Coordinator'' means the head of the Office of the National
            Coordinator for Health Information Technology established under
            section 3001(a) of the Public Health Service Act, as added by
            section 4101.
                (10) Payment.--The term ``payment'' has the meaning given
            such term in section 164.501 of title 45, Code of Federal
            Regulations.
                (11) Personal health record.--The term ``personal health
            record'' means an electronic record of individually
            identifiable health information on an individual that can be
            drawn from multiple sources and that is managed, shared, and
            controlled by or for the individual.
                (12) Protected health information.--The term ``protected
            health information'' has the meaning given such term in section
            160.103 of title 45, Code of Federal Regulations.
                (13) Secretary.--The term ``Secretary'' means the Secretary
            of Health and Human Services.
                (14) Security.--The term ``security'' has the meaning given
            such term in section 164.304 of title 45, Code of Federal
            Regulations.
                (15) State.--The term ``State'' means each of the several
            States, the District of Columbia, Puerto Rico, the Virgin
            Islands, Guam, American Samoa, and the Northern Mariana
            Islands.
                (16) Treatment.--The term ``treatment'' has the meaning
            given such term in section 164.501 of title 45, Code of Federal
            Regulations.
                (17) Use.--The term ``use'' has the meaning given such term
            in section 160.103 of title 45, Code of Federal Regulations.
                (18) Vendor of personal health records.--The term ``vendor
            of personal health records'' means an entity, other than a
            covered entity (as defined in paragraph (3)), that offers or
            maintains a personal health record.

          PART I--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

    SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO BUSINESS
                  ASSOCIATES OF COVERED ENTITIES; ANNUAL GUIDANCE ON
                  SECURITY PROVISIONS.

        (a) Application of Security Provisions.--Sections 164.308, 164.310,
    164.312, and 164.316 of title 45, Code of Federal Regulations, shall
    apply to a business associate of a covered entity in the same manner
    that such sections apply to the covered entity. The additional
    requirements of this title that relate to security and that are made
    applicable with respect to covered entities shall also be applicable to
    such a business associate and shall be incorporated into the business
    associate agreement between the business associate and the covered
    entity.
        (b) Application of Civil and Criminal Penalties.--In the case of a
    business associate that violates any security provision specified in
    subsection (a), sections 1176 and 1177 of the Social Security Act (42
    U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
    respect to such violation in the same manner such sections apply to a
    covered entity that violates such security provision.
        (c) Annual Guidance.--For the first year beginning after the date
    of the enactment of this Act and annually thereafter, the Secretary of
    Health and Human Services shall, in consultation with industry
    stakeholders, annually issue guidance on the most effective and
    appropriate technical safeguards for use in carrying out the sections
    referred to in subsection (a) and the security standards in subpart C
    of part 164 of title 45, Code of Federal Regulations, including the use
    of standards developed under section 3002(b)(2)(B)(vi) of the Public
    Health Service Act, as added by section 4101, as such provisions are in
    effect as of the date before the enactment of this Act.

    SEC. 4402. 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
            involved 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
            407(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 use of
            standards developed under section 3002(b)(2)(B)(vi) of the
            Public Health Service Act, as added by section 4101.
        (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. 4403. 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. 4404. 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. 4405. 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 4424(c).
                        (C) Sunset.--Subparagraph (A) shall not apply on
                    and after the effective date on which the Secretary
                    issues the guidance under subparagraph (B).
                (2) Determination of minimum necessary.--For purposes of
            paragraph (1), in the case of the disclosure of protected
            health information, the covered entity or business associate
            disclosing such information shall determine what constitutes
            the minimum necessary to accomplish the intended purpose of
            such disclosure.
                (3) Application of exceptions.--The exceptions described in
            section 164.502(b)(2) of title 45, Code of Federal Regulations,
            shall apply to the requirement under paragraph (1) as of the
            effective date described in section 4423 in the same manner
            that such exceptions apply to section 164.502(b)(1) of such
            title before such date.
                (4) Rule of construction.--Nothing in this subsection shall
            be construed as affecting the use, disclosure, or request of
            protected health information that has been de-identified.
        (c) Accounting of Certain Protected Health Information Disclosures
    Required if Covered Entity Uses Electronic Health Record.--
                (1) In general.--In applying section 164.528 of title 45,
            Code of Federal Regulations, in the case that a covered entity
            uses or maintains an electronic health record with respect to
            protected health information--
                        (A) the exception under paragraph (a)(1)(i) of such
                    section shall not apply to disclosures through an
                    electronic health record made by such entity of such
                    information; and
                        (B) an individual shall have a right to receive an
                    accounting of disclosures described in such paragraph
                    of such information made by such covered entity during
                    only the three years prior to the date on which the
                    accounting is requested.
                (2) Regulations.--The Secretary shall promulgate
            regulations on what information shall be collected about each
            disclosure referred to in paragraph (1)(A) not later than 18
            months after the date on which the Secretary adopts standards
            on accounting for disclosure described in the section
            3002(b)(2)(B)(iv) of the Public Health Service Act, as added by
            section 4101. Such regulations shall only require such
            information to be collected through an electronic health record
            in a manner that takes into account the interests of
            individuals in learning the circumstances under which their
            protected health information is being disclosed and takes into
            account the administrative burden of accounting for such
            disclosures.
                (3) Construction.--Nothing in this subsection shall be
            construed as requiring a covered entity to account for
            disclosures of protected health information that are not made
            by such covered entity or by a business associate acting on
            behalf of the covered entity.
                (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.
        (d) Review of Health Care Operations.--Not later than 18 months
    after the date of the enactment of this title, the Secretary shall
    promulgate regulations to eliminate from the definition of health care
    operations under section 164.501 of title 45, Code of Federal
    Regulations, those activities that can reasonably and efficiently be
    conducted through the use of information that is de-identified (in
    accordance with the requirements of section 164.514(b) of such title)
    or that should require a valid authorization for use or disclosure. In
    promulgating such regulations, the Secretary may choose to narrow or
    clarify activities that the Secretary chooses to retain in the
    definition of health care operations and the Secretary shall take into
    account the report under section 424(d). In such regulations the
    Secretary shall specify the date on which such regulations shall apply
    to disclosures made by a covered entity, but in no case would such date
    be sooner than the date that is 24 months after the date of the
    enactment of this section.
        (e) Prohibition on Sale of Electronic Health Records or Protected
    Health Information.--
                (1) In general.--Except as provided in paragraph (2), a
            covered entity or business associate shall not directly or
            indirectly receive remuneration in exchange for any protected
            health information of an individual unless the covered entity
            obtained from the individual, in accordance with section
            164.508 of title 45, Code of Federal Regulations, a valid
            authorization that includes, in accordance with such section, a
            specification of whether the protected health information can
            be further exchanged for remuneration by the entity receiving
            protected health information of that individual.
                (2) Exceptions.--Paragraph (1) shall not apply in the
            following cases:
                        (A) The purpose of the exchange is for research or
                    public health activities (as described in sections
                    164.501, 164.512(i), and 164.512(b) of title 45, Code
                    of Federal Regulations) and the price charged reflects
                    the costs of preparation and transmittal of the data
                    for such purpose.
                        (B) The purpose of the exchange is for the
                    treatment of the individual and the price charges
                    reflects not more than the costs of preparation and
                    transmittal of the data for such purpose.
                        (C) The purpose of the exchange is the health care
                    operation specifically described in subparagraph (iv)
                    of paragraph (6) of the definition of health care
                    operations in section 164.501 of title 45, Code of
                    Federal Regulations.
                        (D) The purpose of the exchange is for remuneration
                    that is provided by a covered entity to a business
                    associate for activities involving the exchange of
                    protected health information that the business
                    associate undertakes on behalf of and at the specific
                    request of the covered entity pursuant to a business
                    associate agreement.
                        (E) The purpose of the exchange is to provide an
                    individual with a copy of the individual's protected
                    health information pursuant to section 164.524 of title
                    45, Code of Federal Regulations.
                        (F) The purpose of the exchange is otherwise
                    determined by the Secretary in regulations to be
                    similarly necessary and appropriate as the exceptions
                    provided in subparagraphs (A) through (E).
                (3) Regulations.--The Secretary shall promulgate
            regulations to carry out paragraph (this subsection, including
            exceptions described in paragraph (2), not later than 18 months
            after the date of the enactment of this title.
                (4) Effective date.--Paragraph (1) shall apply to exchanges
            occurring on or after the date that is 6 months after the date
            of the promulgation of final regulations implementing this
            subsection.
        (f) Access to Certain Information in Electronic Format.--In
    applying section 164.524 of title 45, Code of Federal Regulations, in
    the case that a covered entity uses or maintains an electronic health
    record with respect to protected health information of an individual--
                (1) the individual shall have a right to obtain from such
            covered entity a copy of such information in an electronic
            format; and
                (2) notwithstanding paragraph (c)(4) of such section, any
            fee that the covered entity may impose for providing such
            individual with a copy of such information (or a summary or
            explanation of such information) if such copy (or summary or
            explanation) is in an electronic form shall not be greater than
            the entity's labor costs in responding to the request for the
            copy (or summary or explanation).
        (g) Clarification.--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. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE
                  OPERATIONS.

        (a) Marketing.--
                (1) In general.--A communication by a covered entity or
            business associate that is about a product or service and that
            encourages recipients of the communication to purchase or use
            the product or service shall not be considered a health care
            operation for purposes of subpart E of part 164 of title 45,
            Code of Federal Regulations, unless the communication is made
            as described in subparagraph (i), (ii), or (iii) of paragraph
            (1) of the definition of marketing in section 164.501 of such
            title.
                (2) Payment for certain communications.--A covered entity
            or business associate may not receive direct or indirect
            payment in exchange for making any communication described in
            subparagraph (i), (ii), or (iii) of paragraph (1) of the
            definition of marketing in section 164.501 of title 45, Code of
            Federal Regulations, except--
                        (A) a business associate of a covered entity may
                    receive payment from the covered entity for making any
                    such communication on behalf of the covered entity that
                    is consistent with the written contract (or other
                    written arrangement) described in section 164.502(e)(2)
                    of such title between such business associate and
                    covered entity; or
                        (B) a covered entity may receive payment in
                    exchange for making any such communication if the
                    entity obtains from the recipient of the communication,
                    in accordance with section 164.508 of title 45, Code of
                    Federal Regulations, a valid authorization (as
                    described in paragraph (b) of such section) with
                    respect to such communication.
        (b) Fundraising.--Fundraising for the benefit of a covered entity
    shall not be considered a health care operation for purposes of section
    164.501 of title 45, Code of Federal Regulations.
        (c) Effective Date.--This section shall apply to contracting
    occurring on or after the effective date specified under section 4423.

    SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR VENDORS OF
                  PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED
                  ENTITIES.

        (a) In General.--In accordance with subsection (c), each vendor of
    personal health records, following the discovery of a breach of
    security of unsecured PHR identifiable health information that is in a
    personal health record maintained or offered by such vendor, and each
    entity described in clause (ii) or (iii) of section 4424(b)(1)(A),
    following the discovery of a breach of security of such information
    that is obtained through a product or service provided by such entity,
    shall--
                (1) notify each individual who is a citizen or resident of
            the United States whose unsecured PHR identifiable health
            information was acquired by an unauthorized person as a result
            of such a breach of security; and
                (2) notify the Federal Trade Commission.
        (b) Notification by Third Party Service Providers.--A third party
    service provider that provides services to a vendor of personal health
    records or to an entity described in clause (ii) or (iii) of section
    4424(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 402
    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 4402(h)(2).
                        (B) Exception in case timely guidance not issued.--
                    In the case that the Secretary does not issue guidance
                    under section 4402(h)(2) by the date specified in such
                    section, for purposes of this section, the term
                    ``unsecured PHR identifiable health information'' shall
                    mean PHR identifiable health information that is not
                    secured by a technology standard that renders protected
                    health information unusable, unreadable, or
                    indecipherable to unauthorized individuals and that is
                    developed or endorsed by a standards developing
                    organization that is accredited by the American
                    National Standards Institute.
        (g) Regulations; Effective Date; Sunset.--
                (1) Regulations; effective date.--To carry out this
            section, the Secretary of Health and Human Services shall
            promulgate interim final regulations by not later than the date
            that is 180 days after the date of the enactment of this
            section. The provisions of this section shall apply to breaches
            of security that are discovered on or after the date that is 30
            days after the date of publication of such interim final
            regulations.
                (2) Sunset.--The provisions of this section shall not apply
            to breaches of security occurring on or after the earlier of
            the following the dates:
                        (A) The date on which a standard relating to
                    requirements for entities that are not covered entities
                    that includes requirements relating to breach
                    notification has been promulgated by the Secretary.
                        (B) The date on which a standard relating to
                    requirements for entities that are not covered entities
                    that includes requirements relating to breach
                    notification has been promulgated by the Federal Trade
                    Commission and has taken effect.

    SEC. 4408. 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. 4409. 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. 4410. IMPROVED ENFORCEMENT.

        (a) In General.--Section 1176 of the Social Security Act (42 U.S.C.
    1320d-5) is amended--
                (1) in subsection (b)(1), by striking ``the act constitutes
            an offense punishable under section 1177'' and inserting ``a
            penalty has been imposed under section 1177 with respect to
            such act''; and
                (2) by adding at the end the following new subsection:
        ``(c) Noncompliance Due to Willful Neglect.--
                ``(1) In general.--A violation of a provision of this part
            due to willful neglect is a violation for which the Secretary
            is required to impose a penalty under subsection (a)(1).
                ``(2) Required investigation.--For purposes of paragraph
            (1), the Secretary shall formally investigate any complaint of
            a violation of a provision of this part if a preliminary
            investigation of the facts of the complaint indicate such a
            possible violation due to willful neglect.''.
        (b) Effective Date; Regulations.--
                (1) The amendments made by subsection (a) shall apply to
            penalties imposed on or after the date that is 24 months after
            the date of the enactment of this title.
                (2) Not later than 18 months after the date of the
            enactment of this title, the Secretary of Health and Human
            Services shall promulgate regulations to implement such
            amendments.
        (c) Distribution of Certain Civil Monetary Penalties Collected.--
                (1) In general.--Subject to the regulation promulgated
            pursuant to paragraph (3), any civil monetary penalty or
            monetary settlement collected with respect to an offense
            punishable under this subtitle or section 1176 of the Social
            Security Act (42 U.S.C. 1320d-5) insofar as such section
            relates to privacy or security shall be transferred to the
            Office of Civil Rights of the Department of Health and Human
            Services to be used for purposes of enforcing the provisions of
            this subtitle and subparts C and E of part 164 of title 45,
            Code of Federal Regulations, as such provisions are in effect
            as of the date of enactment of this Act.
                (2) GAO report.--Not later than 18 months after the date of
            the enactment of this title, the Comptroller General shall
            submit to the Secretary a report including recommendations for
            a methodology under which an individual who is harmed by an act
            that constitutes an offense referred to in paragraph (1) may
            receive a percentage of any civil monetary penalty or monetary
            settlement collected with respect to such offense.
                (3) Establishment of methodology to distribute percentage
            of cmps collected to harmed individuals.--Not later than 3
            years after the date of the enactment of this title, the
            Secretary shall establish by regulation and based on the
            recommendations submitted under paragraph (2), a methodology
            under which an individual who is harmed by an act that
            constitutes an offense referred to in paragraph (1) may receive
            a percentage of any civil monetary penalty or monetary
            settlement collected with respect to such offense.
                (4) Application of methodology.--The methodology under
            paragraph (3) shall be applied with respect to civil monetary
            penalties or monetary settlements imposed on or after the
            effective date of the regulation.
        (d) Tiered Increase in Amount of Civil Monetary Penalties.--
                (1) In general.--Section 1176(a)(1) of the Social Security
            Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who
            violates a provision of this part a penalty of not more than''
            and all that follows and inserting the following: ``who
            violates a provision of this part--
                        ``(A) in the case of a violation of such provision
                    in which it is established that the person did not know
                    (and by exercising reasonable diligence would not have
                    known) that such person violated such provision, a
                    penalty for each such violation of an amount that is at
                    least the amount described in paragraph (3)(A) but not
                    to exceed the amount described in paragraph (3)(D);
                        ``(B) in the case of a violation of such provision
                    in which it is established that the violation was due
                    to reasonable cause and not to willful neglect, a
                    penalty for each such violation of an amount that is at
                    least the amount described in paragraph (3)(B) but not
                    to exceed the amount described in paragraph (3)(D); and
                        ``(C) in the case of a violation of such provision
                    in which it is established that the violation was due
                    to willful neglect--
                                ``(i) if the violation is corrected as
                            described in subsection (b)(3)(A), a penalty in
                            an amount that is at least the amount described
                            in paragraph (3)(C) but not to exceed the
                            amount described in paragraph (3)(D); and
                                ``(ii) if the violation is not corrected as
                            described in such subsection, a penalty in an
                            amount that is at least the amount described in
                            paragraph (3)(D).
                    In determining the amount of a penalty under this
                    section for a violation, the Secretary shall base such
                    determination on the nature and extent of the violation
                    and the nature and extent of the harm resulting from
                    such violation.''.
                (2) Tiers of penalties described.--Section 1176(a) of such
            Act (42 U.S.C. 1320d-5(a)) is further amended by adding at the
            end the following new paragraph:
                ``(3) Tiers of penalties described.--For purposes of
            paragraph (1), with respect to a violation by a person of a
            provision of this part--
                        ``(A) the amount described in this subparagraph is
                    $100 for each such violation, except that the total
                    amount imposed on the person for all such violations of
                    an identical requirement or prohibition during a
                    calendar year may not exceed $25,000;
                        ``(B) the amount described in this subparagraph is
                    $1,000 for each such violation, except that the total
                    amount imposed on the person for all such violations of
                    an identical requirement or prohibition during a
                    calendar year may not exceed $100,000;
                        ``(C) the amount described in this subparagraph is
                    $10,000 for each such violation, except that the total
                    amount imposed on the person for all such violations of
                    an identical requirement or prohibition during a
                    calendar year may not exceed $250,000; and
                        ``(D) the amount described in this subparagraph is
                    $50,000 for each such violation, except that the total
                    amount imposed on the person for all such violations of
                    an identical requirement or prohibition during a
                    calendar year may not exceed $1,500,000.''.
                (3) Conforming amendments.--Section 1176(b) of such Act (42
            U.S.C. 1320d-5(b)) is amended--
                        (A) by striking paragraph (2) and redesignating
                    paragraphs (3) and (4) as paragraphs (2) and (3),
                    respectively; and
                        (B) in paragraph (2), as so redesignated--
                                (i) in subparagraph (A), by striking ``in
                            subparagraph (B), a penalty may not be imposed
                            under subsection (a) if'' and all that follows
                            through ``the failure to comply is corrected''
                            and inserting ``in subparagraph (B) or
                            subsection (a)(1)(C), a penalty may not be
                            imposed under subsection (a) if the failure to
                            comply is corrected''; and
                                (ii) in subparagraph (B), by striking
                            ``(A)(ii)'' and inserting ``(A)'' each place it
                            appears.
                (4) Effective date.--The amendments made by this subsection
            shall apply to violations occurring after the date of the
            enactment of this title.
        (e) Enforcement Through State Attorneys General.--
                (1) In general.--Section 1176 of the Social Security Act
            (42 U.S.C. 1320d-5) is amended by adding at the end the
            following new subsection:
        ``(c) 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 (c)'';
                        (B) in paragraph (2)(A)--
                                (i) in the matter before clause (i), 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 (c)''; 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 (c)'' 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:
        ``(d) Allowing Continued Use of Corrective Action.--Nothing in this
    section shall be construed as preventing the Office of Civil Rights of
    the Department of Health and Human Services from continuing, in its
    discretion, to use corrective action without a penalty in cases where
    the person did not know (and by exercising reasonable diligence would
    not have known) of the violation involved.''.

    SEC. 4411. 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.

    SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE MEDICATION ERRORS AND
                  IMPROVE PATIENT SAFETY.

        Nothing under this subtitle shall prevent a pharmacist from
    communicating with patients in order to reduce medication errors and
    improve patient safety provided there is no remuneration other than for
    the treatment of the individual and payment for such treatment of the
    individual as defined in 45 CFR 164.501.   The Secretary may by
    regulation authorize a pharmacy to receive remuneration that does not
    exceed their reasonable out-of-pocket costs for such communications if
    the Secretary determines that allowing this remuneration improves
    patient care and protects protected health information.

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

    SEC. 4421. 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.

    SEC. 4422. 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. 4423. 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. 4424. 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 4411.
                (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.

                 Subtitle E--Miscellaneous Medicare Provisions

    SEC. 4501. 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. 4502. 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--MEDICAID PROVISIONS

    SEC. 5000. TABLE OF CONTENTS OF TITLE.

        The table of contents of this title is as follows:

    Sec. 5000. Table of contents of title.
    Sec. 5001. Temporary increase of Medicaid FMAP.
    Sec. 5002. Moratoria on certain regulations.
    Sec. 5003. Transitional Medicaid assistance (TMA).
    Sec. 5004. State eligibility option for family planning services.
    Sec. 5005. Protections for Indians under Medicaid and CHIP.
    Sec. 5006. Consultation on Medicaid and CHIP.
    Sec. 5007. Temporary increase in DSH allotments during recession.

    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 4.9 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)(2)), the FMAP (after the application of subsection (a))
            shall be increased (without regard to any limitation otherwise
            specified in section 1905(b) of the Social Security Act) by 4.9
            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 10 percent
            increase under subsection (d) instead of applying a 20 percent
            increase under subsection (d).
        (c) Additional Adjustment To Reflect Increase in Unemployment.--
                (1) In general.--Subject to subsections (e), (f), and (g),
            in the case of a State that is a high unemployment State (as
            defined in paragraph (2)) for a calendar quarter during the
            recession adjustment period, the FMAP (taking into account the
            application of subsections (a) and (b)) for such quarter shall
            be further increased by the high unemployment percentage point
            adjustment specified in paragraph (3) for the State for the
            quarter.
                (2) High unemployment state.--
                        (A) In general.--In this subsection, subject to
                    subparagraph (B), the term ``high unemployment State''
                    means, with respect to a calendar quarter in the
                    recession adjustment period, a State that is 1 of the
                    50 States or the District of Columbia and for which the
                    State unemployment increase percentage (as computed
                    under paragraph (5)) for the quarter is not less than
                    1.5 percentage points.
                        (B) Maintenance of status.--If a State is a high
                    unemployment State for a calendar quarter, it shall
                    remain a high unemployment State for each subsequent
                    calendar quarter ending before July 1, 2010.
                (3) High unemployment percentage point adjustment.--
                        (A) In general.--The high unemployment percentage
                    point adjustment specified in this paragraph for a high
                    unemployment State for a quarter is equal to the
                    product of--
                                (i) the SMAP for such State and quarter
                            (determined after the application of subsection
                            (a) and before the application of subsection
                            (b)); and
                                (ii) subject to subparagraph (B), the State
                            unemployment reduction factor specified in
                            paragraph (4) for the State and quarter.
                        (B) Maintenance of adjustment level for certain
                    quarters.--In no case shall the State unemployment
                    reduction factor applied under subparagraph (A)(ii) for
                    a State for a quarter (beginning on or after January 1,
                    2009, and ending before July 1, 2010) be less than the
                    State unemployment reduction factor applied to the
                    State for the previous quarter (taking into account the
                    application of this subparagraph).
                (4) State unemployment reduction factor.--In the case of a
            high unemployment State for which the State unemployment
            increase percentage (as computed under paragraph (5)) with
            respect to a calendar quarter is--
                        (A) not less than 1.5, but is less than 2.5,
                    percentage points, the State unemployment reduction
                    factor for the State and quarter is 6 percent;
                        (B) not less than 2.5, but is less than 3.5,
                    percentage points, the State unemployment reduction
                    factor for the State and quarter is 12 percent; or
                        (C) not less than 3.5 percentage points, the State
                    unemployment reduction factor for the State and quarter
                    is 14 percent.
                (5) 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.
        (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
    U.S.C. 1308) shall each be increased by 20 percent (or, in the case of
    an election under subsection (b)(2), 10 percent).
        (e) Scope of Application.--The increases in the FMAP for a State
    under this section shall apply for purposes of title XIX of the Social
    Security Act and--
                (1) the increases applied under subsections (a), (b), and
            (c) shall not apply with respect--
                        (A) to payments under parts A, B, and D of title IV
                    or title XXI of such Act (42 U.S.C. 601 et seq. and
                    1397aa et seq.);
                        (B) to 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)); and
                        (C) to payments for disproportionate share hospital
                    (DSH) payment adjustments under section 1923 of such
                    Act (42 U.S.C. 1396r-4); and
                (2) the increase provided under subsection (c) shall not
            apply with respect to payments under part E of title IV of such
            Act.
        (f) State Ineligibility and Limitation.--
                (1) In general.--Subject to paragraphs (2) and (3), 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.
                (2) State reinstatement of eligibility permitted.--Subject
            to paragraph (3), 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
            paragraph (1) 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.
                (3) Special rules.--A State shall not be ineligible under
            paragraph (1)--
                        (A) 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,
                    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
                        (B) on the basis of a restriction that was
                    effective under State law as of July 1, 2008, and would
                    have been in effect as of such date, but for a delay
                    (of not longer than 1 calendar quarter) in the approval
                    of a request for a new waiver under section 1115 of
                    such Act with respect to such restriction.
                (4) 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.
                (5) Rule of construction.--Nothing in paragraph (1) or (2)
            shall be construed as affecting a State's flexibility with
            respect to benefits offered under the State Medicaid program
            under title XIX of the Social Security Act (42 U.S.C. 1396 et
            seq.) (including any waiver under such title or under section
            1115 of such Act (42 U.S.C. 1315)).
                (6) No waiver authority.--The Secretary may not waive the
            application of this subsection or subsection (g) under section
            1115 of the Social Security Act or otherwise.
        (g) 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 (a), (b), or (c), or an increase in a cap amount under
    subsection (d), if it requires that such political subdivisions pay a
    greater percentage of the non-Federal share of such expenditures for
    quarters during the recession adjustment period, than the 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) Recession adjustment period.--The term ``recession
            adjustment period'' means the period beginning on October 1,
            2008, and ending on December 31, 2010.
                (3) Secretary.--The term ``Secretary'' means the Secretary
            of Health and Human Services.
                (4) SMAP.--The term ``SMAP'' means, for a State, 100
            percent minus the Federal medical assistance percentage.
                (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.

    SEC. 5002. MORATORIA ON CERTAIN REGULATIONS.

        (a) Extension of Moratoria on Certain Medicaid Regulations.--The
    following sections are each amended by striking ``April 1, 2009'' and
    inserting ``July 1, 2009'':
                (1) Section 7002(a)(1) of the U.S. Troop Readiness,
            Veterans' Care, Katrina Recovery, and Iraq Accountability
            Appropriations Act, 2007 (Public Law 110-28), as amended by
            section 7001(a)(1) of the Supplemental Appropriations Act, 2008
            (Public Law 110-252).
                (2) 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).
                (3) Section 7001(a)(3)(A) of the Supplemental
            Appropriations Act, 2008 (Public Law 110-252).
        (b) Additional Medicaid Moratorium.--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).

    SEC. 5003. TRANSITIONAL MEDICAID 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. 5004. STATE ELIGIBILITY OPTION FOR FAMILY PLANNING SERVICES.

        (a) Coverage as Optional Categorically Needy Group.--
                (1) In general.--Section 1902(a)(10)(A)(ii) of the Social
            Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by
            section 3003(a) of the Health Insurance Assistance for the
            Unemployed Act of 2009, is amended--
                        (A) in subclause (XIX), by striking ``or'' at the
                    end;
                        (B) in subclause (XX), by adding ``or'' at the end;
                    and
                        (C) by adding at the end the following new
                    subclause:
                ``(XXI) who are described in subsection (ee) (relating to
            individuals who meet certain income standards);''.
                (2) Group described.--Section 1902 of such Act (42 U.S.C.
            1396a), as amended by section 3003(a) of the Health Insurance
            Assistance for the Unemployed Act of 2009, is amended by adding
            at the end the following new subsection:
        ``(ee)(1) Individuals described in this subsection are
    individuals--
                        ``(A) whose income does not exceed an income
                    eligibility level established by the State that does
                    not exceed the highest income eligibility level
                    established under the State plan under this title (or
                    under its State child health plan under title XXI) for
                    pregnant women; and
                        ``(B) who are not pregnant.
                ``(2) At the option of a State, individuals described in
            this subsection may include individuals who, had individuals
            applied on or before January 1, 2007, would have been made
            eligible pursuant to the standards and processes imposed by
            that State for benefits described in clause (XV) of the matter
            following subparagraph (G) of section subsection (a)(10)
            pursuant to a waiver granted under section 1115.
                ``(3) At the option of a State, for purposes of subsection
            (a)(17)(B), in determining eligibility for services under this
            subsection, the State may consider only the income of the
            applicant or recipient.''.
                (3) Limitation on benefits.--Section 1902(a)(10) of the
            Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in the
            matter following subparagraph (G)--
                        (A) by striking ``and (XIV)'' and inserting
                    ``(XIV)''; and
                        (B) by inserting ``, and (XV) the medical
                    assistance made available to an individual described in
                    subsection (ee) shall be limited to family planning
                    services and supplies described in section
                    1905(a)(4)(C) including medical diagnosis and treatment
                    services that are provided pursuant to a family
                    planning service in a family planning setting'' after
                    ``cervical cancer''.
                (4) Conforming amendments.--Section 1905(a) of the Social
            Security Act (42 U.S.C. 1396d(a)), as amended by section
            3003(c)(2) of the Health Insurance Assistance for the
            Unemployed Act of 2009, is amended in the matter preceding
            paragraph (1)--
                        (A) in clause (xiii), by striking ``or'' at the
                    end;
                        (B) in clause (xiv), by adding ``or'' at the end;
                    and
                        (C) by inserting after clause (xiii) the following:
                                ``(xv) individuals described in section
                            1902(ee),''.
        (b) Presumptive Eligibility.--
                (1) In general.--Title XIX of the Social Security Act (42
            U.S.C. 1396 et seq.) is amended by inserting after section
            1920B the following:

             ``presumptive eligibility for family planning services

        ``Sec. 1920C.  (a) State Option.--State plan approved under section
    1902 may provide for making medical assistance available to an
    individual described in section 1902(ee) (relating to individuals who
    meet certain income eligibility standard) during a presumptive
    eligibility period. In the case of an individual described in section
    1902(ee), such medical assistance shall be limited to family planning
    services and supplies described in 1905(a)(4)(C) and, at the State's
    option, medical diagnosis and treatment services that are provided in
    conjunction with a family planning service in a family planning
    setting.
        ``(b) Definitions.--For purposes of this section:
                ``(1) Presumptive eligibility period.--The term
            `presumptive eligibility period' means, with respect to an
            individual described in subsection (a), the period that--
                        ``(A) begins with the date on which a qualified
                    entity determines, on the basis of preliminary
                    information, that the individual is described in
                    section 1902(ee); and
                        ``(B) ends with (and includes) the earlier of--
                                ``(i) the day on which a determination is
                            made with respect to the eligibility of such
                            individual for services under the State plan;
                            or
                                ``(ii) in the case of such an individual
                            who does not file an application by the last
                            day of the month following the month during
                            which the entity makes the determination
                            referred to in subparagraph (A), such last day.
                ``(2) Qualified entity.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    term `qualified entity' means any entity that--
                                ``(i) is eligible for payments under a
                            State plan approved under this title; and
                                ``(ii) is determined by the State agency to
                            be capable of making determinations of the type
                            described in paragraph (1)(A).
                        ``(B) Rule of construction.--Nothing in this
                    paragraph shall be construed as preventing a State from
                    limiting the classes of entities that may become
                    qualified entities in order to prevent fraud and abuse.
        ``(c) Administration.--
                ``(1) In general.--The State agency shall provide qualified
            entities with--
                        ``(A) such forms as are necessary for an
                    application to be made by an individual described in
                    subsection (a) for medical assistance under the State
                    plan; and
                        ``(B) information on how to assist such individuals
                    in completing and filing such forms.
                ``(2) Notification requirements.--A qualified entity that
            determines under subsection (b)(1)(A) that an individual
            described in subsection (a) is presumptively eligible for
            medical assistance under a State plan shall--
                        ``(A) notify the State agency of the determination
                    within 5 working days after the date on which
                    determination is made; and
                        ``(B) inform such individual at the time the
                    determination is made that an application for medical
                    assistance is required to be made by not later than the
                    last day of the month following the month during which
                    the determination is made.
                ``(3) Application for medical assistance.--In the case of
            an individual described in subsection (a) who is determined by
            a qualified entity to be presumptively eligible for medical
            assistance under a State plan, the individual shall apply for
            medical assistance by not later than the last day of the month
            following the month during which the determination is made.
        ``(d) Payment.--Notwithstanding any other provision of law, medical
    assistance that--
                ``(1) is furnished to an individual described in subsection
            (a)--
                        ``(A) during a presumptive eligibility period;
                        ``(B) by a entity that is eligible for payments
                    under the State plan; and
                ``(2) is included in the care and services covered by the
            State plan,
    shall be treated as medical assistance provided by such plan for
    purposes of clause (4) of the first sentence of section 1905(b).''.
                (2) Conforming amendments.--
                        (A) Section 1902(a)(47) of the Social Security Act
                    (42 U.S.C. 1396a(a)(47)) is amended by inserting before
                    the semicolon at the end the following: ``and provide
                    for making medical assistance available to individuals
                    described in subsection (a) of section 1920C during a
                    presumptive eligibility period in accordance with such
                    section''.
                        (B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C.
                    1396b(u)(1)(D)(v)) is amended--
                                (i) by striking ``or for'' and inserting
                            ``for''; and
                                (ii) by inserting before the period the
                            following: ``, or for medical assistance
                            provided to an individual described in
                            subsection (a) of section 1920C during a
                            presumptive eligibility period under such
                            section''.
        (c) Clarification of Coverage of Family Planning Services and
    Supplies.--Section 1937(b) of the Social Security Act (42 U.S.C. 1396u-
    7(b)) is amended by adding at the end the following:
                ``(5) Coverage of family planning services and supplies.--
            Notwithstanding the previous provisions of this section, a
            State may not provide for medical assistance through enrollment
            of an individual with benchmark coverage or benchmark-
            equivalent coverage under this section unless such coverage
            includes for any individual described in section 1905(a)(4)(C),
            medical assistance for family planning services and supplies in
            accordance with such section.''.
        (d) Effective Date.--The amendments made by this section take
    effect on the date of the enactment of this Act and shall apply to
    items and services furnished on or after such date.

    SEC. 5005. 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:
                                ``(vi) An Indian who is furnished an item
                            or service directly by the Indian Health
                            Service, an Indian Tribe, Tribal Organization
                            or Urban Indian Organization or through
                            referral under contract health services.''; and
                        (B) in subparagraph (B), by adding at the end the
                    following new clause:
                                ``(ix) Items and services furnished to an
                            Indian directly by the Indian Health Service,
                            an Indian Tribe, Tribal Organization or Urban
                            Indian Organization or through referral under
                            contract health services.''.
                (3) Effective date.--The amendments made by this subsection
            shall take effect on October 1, 2009.
        (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 section 3003(a) of the Health
            Insurance Assistance for the Unemployed Act of 2009 and section
            5004, 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)) is amended by adding at the end the
            following new subparagraph:
                        ``(E) 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.''.

    SEC. 5006. CONSULTATION ON MEDICAID AND CHIP.

        (a) In General.--Section 1139 of the Social Security Act (42 U.S.C.
    1320b-9) is amended to read as follows:

           ``consultation with tribal technical advisory group (ttag)

        ``Sec. 1139. The Secretary shall maintain within the Centers for
    Medicaid & Medicare Services (CMS) a Tribal Technical Advisory Group,
    which was first established in accordance with requirements of the
    charter dated September 30, 2003, and the Secretary shall include in
    such Group a representative of the Urban Indian Organizations and the
    Service. The representative of the Urban Indian Organization shall be
    deemed to be an elected officer of a tribal government for purposes of
    applying section 204(b) of the Unfunded Mandates Reform Act of 1995 (2
    U.S.C. 1534(b)).''.
        (b) Solicitation of Advice Under Medicaid and CHIP.--
                (1) Medicaid state plan amendment.--Section 1902(a) of the
            Social Security Act (42 U.S.C. 1396a(a)) is amended--
                        (A) in paragraph (70), by striking ``and'' at the
                    end;
                        (B) in paragraph (71), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by inserting after paragraph (71), the
                    following new paragraph:
                ``(72) in the case of any State in which 1 or more Indian
            Health Programs or Urban Indian Organizations furnishes health
            care services, provide for a process under which the State
            seeks advice on a regular, ongoing basis from designees of such
            Indian Health Programs and Urban Indian Organizations on
            matters relating to the application of this title that are
            likely to have a direct effect on such Indian Health Programs
            and Urban Indian Organizations and that--
                        ``(A) shall include solicitation of advice prior to
                    submission of any plan amendments, waiver requests, and
                    proposals for demonstration projects likely to have a
                    direct effect on Indians, Indian Health Programs, or
                    Urban Indian Organizations; and
                        ``(B) may include appointment of an advisory
                    committee and of a designee of such Indian Health
                    Programs and Urban Indian Organizations to the medical
                    care advisory committee advising the State on its State
                    plan under this title.''.
                (2) Application to chip.--Section 2107(e)(1) of such Act
            (42 U.S.C. 1397gg(e)(1)), as amended by section 5005(b), is
            amended by adding at the end the following new subparagraph:
                        ``(F) Section 1902(a)(72) (relating to requiring
                    certain States to seek advice from designees of Indian
                    Health Programs and Urban Indian Organizations).''.
        (c) Rule of Construction.--Nothing in the amendments made by this
    section shall be construed as superseding existing advisory committees,
    working groups, guidance, or other advisory procedures established by
    the Secretary of Health and Human Services or by any State with respect
    to the provision of health care to Indians.

    SEC. 5007. 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
                                    subparagraph (B);
                                        ``(II) for fiscal year 2010 is
                                    equal to 102.5 percent of the 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.''.

                       TITLE VI--BROADBAND COMMUNICATIONS

    SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPABILITY AND AVAILABILITY.

        (a) Establishment.--To provide a comprehensive nationwide inventory
    of existing broadband service capability and availability, the National
    Telecommunications and Information Administration (``NTIA'') shall
    develop and maintain a broadband inventory map of the United States
    that identifies and depicts the geographic extent to which broadband
    service capability is deployed and available from a commercial provider
    or public provider throughout each State.
        (b) Public Availability and Interactivity.--Not later than 2 years
    after the date of enactment of this Act, the NTIA 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 NTIA
    in a form that is interactive and searchable.

    SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT GRANT PROGRAMS.

        (a) Grants Authorized.--
                (1) In general.--The National Telecommunications and
            Information Administration (``NTIA'') is authorized to carry
            out a program to award grants to eligible entities for the non-
            recurring costs associated with the deployment of broadband
            infrastructure in rural, suburban, and urban areas, in
            accordance with the requirements of this section.
                (2) Program website.--The NTIA shall develop and maintain a
            website to make publicly available information about the
            program described in paragraph (1), including--
                        (A) each prioritization report submitted by a State
                    under subsection (b);
                        (B) a list of eligible entities that have applied
                    for a grant under this section, and the area or areas
                    the entity proposes to serve; and
                        (C) the status of each such application, whether
                    approved, denied, or pending.
        (b) State Priorities.--
                (1) Priorities report submission.--Not later than 75 days
            after the date of enactment of this section, each State
            intending to participate in the program under this section
            shall submit to the NTIA a report indicating the geographic
            areas of the State which--
                        (A) for the purposes of determining the need for
                    Wireless Deployment Grants under subsection (c), the
                    State considers to have the greatest priority for--
                                (i) wireless voice service in unserved
                            areas; and
                                (ii) advanced wireless broadband service in
                            underserved areas; and
                        (B) for the purposes of determining the need for
                    Broadband Deployment Grants under subsection (d), the
                    State considers to have the greatest priority for--
                                (i) basic broadband service in unserved
                            areas; and
                                (ii) advanced broadband service in
                            underserved areas.
                (2) Limitation.--The unserved and underserved areas
            identified by a State in the report required by this subsection
            shall not represent, in the aggregate, more than 20 percent of
            the population of such State.
        (c) Wireless Deployment Grants.--
                (1) Authorized activity.--The NTIA shall award Wireless
            Deployment Grants in accordance with this subsection from
            amounts authorized for Wireless Deployment Grants by this
            subtitle to eligible entities to deploy necessary
            infrastructure for the provision of wireless voice service or
            advanced wireless broadband service to end users in designated
            areas.
                (2) Grant distribution.--The NTIA shall seek to distribute
            grants, to the extent possible, so that 25 percent of the
            grants awarded under this subsection shall be awarded to
            eligible entities for providing wireless voice service to
            unserved areas and 75 percent of grants awarded under this
            subsection shall be awarded to eligible entities for providing
            advanced wireless broadband service to underserved areas.
        (d) Broadband Deployment Grants.--
                (1) Authorized activity.--The NTIA shall award Broadband
            Deployment Grants in accordance with this subsection from
            amounts authorized for Broadband Deployment Grants by this
            subtitle to eligible entities to deploy necessary
            infrastructure for the provision of basic broadband service or
            advanced broadband service to end users in designated areas.
                (2) Grant distribution.--The NTIA shall seek to distribute
            grants, to the extent possible, so that 25 percent of the
            grants awarded under this subsection shall be awarded to
            eligible entities for providing basic broadband service to
            unserved areas and 75 percent of grants awarded under this
            subsection shall be awarded to eligible entities for providing
            advanced broadband service to underserved areas.
        (e) Grant Requirements.--The NTIA shall--
                (1) adopt rules to protect against unjust enrichment; and
                (2) ensure that grant recipients--
                        (A) meet buildout requirements;
                        (B) maximize use of the supported infrastructure by
                    the public;
                        (C) operate basic and advanced broadband service
                    networks on an open access basis;
                        (D) operate advanced wireless broadband service on
                    a wireless open access basis; and
                        (E) adhere to the principles contained in the
                    Federal Communications Commission's broadband policy
                    statement (FCC 05-151, adopted August 5, 2005).
        (f) Applications.--
                (1) Submission.--To be considered for a grant awarded under
            subsection (c) or (d), an eligible entity shall submit to the
            NTIA an application at such time, in such manner, and
            containing such information and assurances as the NTIA may
            require. Such an application shall include--
                        (A) a cost-study estimate for serving the
                    particular geographic area to be served by the entity;
                        (B) a proposed build-out schedule to residential
                    households and small businesses in the area;
                        (C) for applicants for Wireless Deployment Grants
                    under subsection (c), a build-out schedule for
                    geographic coverage of such areas; and
                        (D) any other requirements the NTIA deems
                    necessary.
                (2) Selection.--
                        (A) Notification.--The NTIA shall notify each
                    eligible entity that has submitted a complete
                    application whether the entity has been approved or
                    denied for a grant under this section in a timely
                    fashion.
                        (B) Grant distribution considerations.--In awarding
                    grants under this section, the NTIA shall, to the
                    extent practical--
                                (i) award not less than one grant in each
                            State;
                                (ii) give substantial weight to whether an
                            application is from an eligible entity to
                            deploy infrastructure in an area that is an
                            area--
                                        (I) identified by a State in a
                                    report submitted under subsection (b);
                                    or
                                        (II) in which the NTIA determines
                                    there will be a significant amount of
                                    public safety or emergency response use
                                    of the infrastructure;
                                (iii) consider whether an application from
                            an eligible entity to deploy infrastructure in
                            an area--
                                        (I) will, if approved, increase the
                                    affordability of, or subscribership to,
                                    service to the greatest population of
                                    underserved users in the area;
                                        (II) will, if approved, enhance
                                    service for health care delivery,
                                    education, or children to the greatest
                                    population of underserved users in the
                                    area;
                                        (III) contains concrete plans for
                                    enhancing computer ownership or
                                    computer literacy in the area;
                                        (IV) is from a recipient of more
                                    than 20 percent matching grants from
                                    State, local, or private entities for
                                    service in the area and the extent of
                                    such commitment;
                                        (V) will, if approved, result in
                                    unjust enrichment because the eligible
                                    entity has applied for, or intends to
                                    apply for, support for the non-
                                    recurring costs through another Federal
                                    program for service in the area; and
                                        (VI) will, if approved,
                                    significantly improve interoperable
                                    broadband communications systems
                                    available for use by public safety and
                                    emergency response; and
                                (iv) consider whether the eligible entity
                            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).
        (g) Coordination and Consultation.--The NTIA shall coordinate with
    the Federal Communications Commission and shall consult with other
    appropriate Federal agencies in implementing this section.
        (h) Report Required.--The NTIA shall submit an annual report to the
    Committee on Energy and Commerce of the House of Representatives and
    the Committee on Commerce, Science, and Transportation of the Senate
    for 5 years assessing the impact of the grants funded under this
    section on the basis of the objectives and criteria described in
    subsection (f)(2)(B)(iii).
        (i) Rulemaking Authority.--The NTIA shall have the authority to
    prescribe such rules as necessary to carry out the purposes of this
    section.
        (j) Definitions.--For the purpose of this section--
                (1) the term ``advanced broadband service'' means a service
            delivering data to the end user transmitted at a speed of at
            least 45 megabits per second downstream and at least 15
            megabits per second upstream;
                (2) the term ``advanced wireless broadband service'' means
            a wireless service delivering to the end user data transmitted
            at a speed of at least 3 megabits per second downstream and at
            least 1 megabit per second upstream over an end-to-end internet
            protocol wireless network;
                (3) the term ``basic broadband service'' means a service
            delivering data to the end user transmitted at a speed of at
            least 5 megabits per second downstream and at least 1 megabit
            per second upstream;
                (4) the term ``eligible entity'' means--
                        (A) a provider of wireless voice service, advanced
                    wireless broadband service, basic broadband service, or
                    advanced broadband service, including a satellite
                    carrier that provides any such service;
                        (B) a State or unit of local government, or agency
                    or instrumentality thereof, that is or intends to be a
                    provider of any such service; and
                        (C) any other entity, including construction
                    companies, tower companies, backhaul companies, or
                    other service providers, that the NTIA authorizes by
                    rule to participate in the programs under this section,
                    if such other entity is required to provide access to
                    the supported infrastructure on a neutral, reasonable
                    basis to maximize use;
                (5) the term ``interoperable broadband communications
            systems'' means communications systems which enable public
            safety agencies to share information among local, State,
            Federal, and tribal public safety agencies in the same area
            using voice or data signals via advanced wireless broadband
            service;
                (6) the term ``open access'' shall be defined by the
            Federal Communications Commission not later than 45 days after
            the date of enactment of this section;
                (7) the term ``State'' includes the District of Columbia
            and the territories and possessions;
                (8) the term ``underserved area'' shall be defined by the
            Federal Communications Commission not later than 45 days after
            the date of enactment of this section;
                (9) the term ``unserved area'' shall be defined by the
            Federal Communications Commission not later than 45 days after
            the date of enactment of this section;
                (10) the term ``wireless open access'' shall be defined by
            the Federal Communications Commission not later than 45 days
            after the date of enactment of this section; and
                (11) the term ``wireless voice service'' means the
            provision of two-way, real-time, voice communications using a
            mobile service.
        (k) Review of Definitions.--Not later than 3 months after the date
    the NTIA makes a broadband inventory map of the United States
    accessible to the public pursuant to section 6001(b), the Federal
    Communications Commission shall review the definitions of ``underserved
    area'' and ``unserved area'', as defined by the Commission within 45
    days after the date of enactment of this Act (as required by paragraphs
    (8) and (9) of subsection (j)), and shall revise such definitions based
    on the data used by the NTIA to develop and maintain such map.

    SEC. 6003. NATIONAL BROADBAND PLAN.

        (a) Report Required.--Not later than 1 year after the date of
    enactment of this section, the Federal Communications 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.
        (b) Contents of Plan.--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--
                (1) an analysis of the most effective and efficient
            mechanisms for ensuring broadband access by all people of the
            United States;
                (2) a detailed strategy for achieving affordability of such
            service and maximum utilization of broadband infrastructure and
            service by the public; and
                (3) 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.

                               TITLE VII--ENERGY

    SEC. 7001. 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. 7002. 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, and
                    rural areas, including areas where electric system
                    assets are controlled by tax-exempt 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 internet-based protocols and
                    standards.--The Secretary shall require as a condition
                    of receiving funding under this subsection that
                    demonstration projects utilize open Internet-based
                    protocols and standards if available.''.
                (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.--The Secretary shall--
                ``(1) establish within 60 days after the enactment of the
            American Recovery and Reinvestment Act of 2009 procedures by
            which applicants can obtain grants of not more than one-half of
            their documented costs;
                ``(2) require as a condition of receiving a grant under
            this section that grant recipients utilize open Internet-based
            protocols and standards if available;
                ``(3) establish procedures to ensure that there is no
            duplication or multiple payment or recovery for the same
            investment or costs, that the grant goes to the party making
            the actual expenditures for qualifying smart grid investments,
            and that the grants made have significant effect in encouraging
            and facilitating the development of a smart grid;
                ``(4) maintain public records of grants made, recipients,
            and qualifying smart grid investments which have received
            grants;
                ``(5) establish procedures to provide advance payment of
            moneys up to the full amount of the grant award; and
                ``(6) have and exercise the discretion to deny grants for
            investments that do not qualify in the reasonable judgment of
            the Secretary.''.

    SEC. 7003. 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 commercial technology
    projects under subsection (b) that will commence construction not later
    than September 30, 2011.
        ``(b) Categories.--Projects from only the following categories
    shall be eligible for support under this section:
                ``(1) Renewable energy systems, including incremental
            hydropower, that generate electricity.
                ``(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.
        ``(c) Factors Relating to Electric Power Transmission Systems.--In
    determining to make guarantees to projects described in subsection
    (b)(2), the Secretary shall 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.
        ``(d) 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').
        ``(e) Limitation.--Funding under this section for projects
    described in subsection (b)(3) shall not exceed $500,000,000.
        ``(f) 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. 7004. 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 ``$5,000''.
        (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.

    SEC. 7005. 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. 7006. ADDITIONAL STATE ENERGY GRANTS.

        (a) In General.--Amounts appropriated in paragraph (6) under the
    heading ``Department of Energy--Energy Programs--Energy Efficiency and
    Renewable Energy'' in title V of division A of this Act 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 that the governor will seek, to the extent of
    his or her authority, to ensure that each of the following will occur:
                (1) The applicable State regulatory authority will
            implement the following regulatory policies for each electric
            and gas utility with respect to which the State regulatory
            authority has ratemaking authority:
                        (A) Policies that ensure that a utility's recovery
                    of prudent fixed costs of service is timely and
                    independent of its retail sales, without in the process
                    shifting prudent costs from variable to fixed charges.
                    This cost shifting constraint shall not apply to rate
                    designs adopted prior to the date of enactment of this
                    Act.
                        (B) Cost recovery for prudent investments by
                    utilities in energy efficiency.
                        (C) An earnings opportunity for utilities
                    associated with cost-effective energy efficiency
                    savings.
                (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.--No
    limitation on the percentage of funding that may be used for the
    purchase and installation of equipment and materials for energy
    efficiency 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.

    SEC. 7007. INAPPLICABILITY OF LIMITATION.

        The limitations in section 399A(f)(2), (3), and (4) of the Energy
    Policy and Conservation Act (42 U.S.C. 6371h-1(f)(2), (3), and (4))
    shall not apply to grants funded with appropriations provided by this
    Act, except that such grant funds shall be available for not more than
    an amount equal to 80 percent of the costs of the project for which the
    grant is provided.
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