[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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