[Congressional Record (Bound Edition), Volume 155 (2009), Part 3]
[Senate]
[Pages 3226-3312]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 569. Mr. HARKIN submitted an amendment intended to be proposed by 
him to the bill 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 fiscal year ending September 30, 2009, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENERGY PROGRAMS.

       (a) In General.--Notwithstanding any other provision of law 
     and in addition to any other funds made available, not later 
     than 30 days after the date of enactment of this Act, out of 
     any funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture (referred to in this section as the 
     ``Secretary'')--
       (1) to carry out section 9002 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8102), $10,000,000 for 
     the period of fiscal years 2009 and 2010;
       (2) for the costs of grants and loan guarantees to carry 
     out section 9003 of that Act (7 U.S.C. 8103), $280,000,000 
     for the period of fiscal years 2009 and 2010;
       (3) to carry out section 9004 of that Act (7 U.S.C. 8104), 
     $180,000,000 for the period of fiscal years 2009 and 2010;
       (4) to carry out section 9005 of that Act (7 U.S.C. 8105), 
     $100,000,000 for the period of fiscal years 2009 and 2010;
       (5) for the costs of grants and loan guarantees to carry 
     out section 9007 of that Act (7 U.S.C. 8107), $280,000,000 
     for the period of fiscal years 2009 and 2010;
       (6) to carry out section 9008 of that Act (7 U.S.C. 8108), 
     $80,000,000 for the period of fiscal years 2009 and 2010;
       (7) to carry out section 9009 of that Act (7 U.S.C. 8109), 
     $30,000,000 for the period of fiscal years 2009 and 2010; and
       (8) to carry out section 9013 of that Act (7 U.S.C. 8113), 
     $40,000,000 for the period of fiscal years 2009 and 2010.
       (b) Condition on Funds.--Funds made available under 
     subsection (a)(3) may be used to provide assistance under 
     section 9004 of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8104) to power plants and manufacturing 
     facilities in rural areas.
       (c) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to provide 
     those loans the funds transferred under subsection (a), 
     without further appropriation.
       (d) Availability of Funds.--Funds made available under 
     subsection (a) shall remain available until September 30, 
     2010.
       (e) Offset.--Notwithstanding any other provision of this 
     Act, the amount made available for the Office of the National 
     Coordinator for Health Information Technology under the 
     heading ``office of the national coordinator for health 
     information technology (including transfer of funds)'' under 
     the heading ``Office of the Secretary'' under the heading 
     ``DEPARTMENT OF HEALTH AND HUMAN SERVICES'' in title VIII is 
     hereby reduced by $1,000,000,000.

[[Page 3227]]


                                 ______
                                 
  SA 570. Mr. REID (for Ms. Collins (for herself and Mr. Nelson of 
Nebraska)) submitted an amendment intended to be proposed by Mr. Reid 
to the bill 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 fiscal year ending September 30, 2009, and for other 
purposes; as follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Recovery and 
     Reinvestment Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

                 DIVISION A--APPROPRIATIONS PROVISIONS

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, 
              AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND 
              EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED 
              AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED 
              AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION
TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY 
              INDEPENDENT ADVISORY PANEL
TITLE XVI--GENERAL PROVISIONS--THIS ACT

 DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER 
                               PROVISIONS

TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--HEALTH INSURANCE ASSISTANCE
TITLE IV--HEALTH INFORMATION TECHNOLOGY
TITLE V--STATE FISCAL RELIEF

     SEC. 3. REFERENCES.

       Except as expressly provided otherwise, any reference to 
     ``this Act'' contained in any division of this Act shall be 
     treated as referring only to the provisions of that division.

                 DIVISION A--APPROPRIATIONS PROVISIONS

       That the following sums are appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2009, and for other purposes, 
     namely:

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, 
                          AND RELATED AGENCIES

                       DEPARTMENT OF AGRICULTURE

                        Office of the Secretary

                     (including transfers of funds)

       For an additional amount for the ``Office of the 
     Secretary'', $200,000,000, to remain available until 
     September 30, 2010: Provided, That the Secretary may transfer 
     these funds to agencies of the Department, other than the 
     Forest Service, for necessary replacement, modernization, or 
     upgrades of laboratories or other facilities to improve 
     workplace safety and mission-area efficiencies as deemed 
     appropriate by the Secretary: Provided further, that the 
     Secretary shall provide to the Committees on Appropriations 
     of the House and Senate a plan on the allocation of these 
     funds no later than 60 days after the date of enactment of 
     this Act.

                      office of inspector general

       For an additional amount for ``Office of Inspector 
     General'', $5,000,000, to remain available until September 
     30, 2011, for oversight and audit of programs, grants, and 
     activities funded under this title and an additional 
     $17,500,000 for such purposes, to remain available until 
     September 30, 2011.

       Cooperative State Research, Education and Economic Service

                   research and education activities

       For an additional amount for competitive grants authorized 
     at 7 U.S.C. 450(i)(b), $50,000,000, to remain available until 
     September 30, 2010.

                          Farm Service Agency

           agricultural credit insurance fund program account

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

                 Natural Resources Conservation Service

               watershed and flood prevention operations

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

                    watershed rehabilitation program

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

                rural development salaries and expenses

       For an additional amount for ``Rural Development, Salaries 
     and Expenses'', $80,000,000, to remain available until 
     September 30, 2010.

                         Rural Housing Service

                rural housing insurance program account

       For an additional amount for gross obligations for the 
     principal amount of direct and guaranteed loans as authorized 
     by title V of the Housing Act of 1949, to be available from 
     funds in the Rural Housing Insurance Fund Program Account, as 
     follows: $1,000,000,000 for section 502 direct loans; and 
     $10,472,000,000 for section 502 unsubsidized guaranteed 
     loans.
       For an additional amount for the cost of direct and 
     guaranteed loans, including the cost of modifying loans, as 
     defined in section 502 of the Congressional Budget Act of 
     1974, to remain available until September 30, 2010, as 
     follows: $67,000,000 for section 502 direct loans; and 
     $133,000,000 for section 502 unsubsidized guaranteed loans.

               rural community facilities program account

       For an additional amount for the cost of direct loans, loan 
     guarantees, and grants for rural community facilities 
     programs as authorized by section 306 and described in 
     section 381E(d)(1) of the Consolidated Farm and Rural 
     Development Act, $127,000,000, to remain available until 
     September 30, 2010.

                  Rural Business--cooperative Service

                     rural business program account

       For an additional amount for the cost of guaranteed loans 
     and grants as authorized by sections 310B(a)(2)(A) and 
     310B(c) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1932), $150,000,000, to remain available until 
     September 30, 2010.

                         biorefinery assistance

       For the cost of loan guarantees and grants, as authorized 
     by section 9003 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8103), $200,000,000, to remain available 
     until September 30, 2010.

                    rural energy for america program

       For an additional amount for the cost of loan guarantees 
     and grants, as authorized by section 9007 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 8107), 
     $50,000,000, to remain available until September 30, 2010: 
     Provided, That these funds may be used by tribes, local units 
     of government, and schools in rural areas, as defined in 
     section 343(a) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1991(a)).

                        Rural Utilities Service

             rural water and waste disposal program account

       For an additional amount for the cost of direct loans, loan 
     guarantees, and grants for the rural water, waste water, 
     waste disposal, and solid waste management programs 
     authorized by sections 306, 306A, 306C, 306D, and 310B and 
     described in sections 306C(a)(2), 306D, and 381E(d)(2) of the 
     Consolidated Farm and Rural Development Act, $1,375,000,000, 
     to remain available until September 30, 2010.

[[Page 3228]]



     distance learning, telemedicine, and broadband program account

       For an additional amount for direct loans and grants for 
     distance learning and telemedicine services in rural areas, 
     as authorized by 7 U.S.C. 950aaa, et seq., $100,000,000, to 
     remain available until September 30, 2010.

                       Food and Nutrition Service

                        child nutrition programs

       For additional amount for the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1751 et. seq.), except section 
     21, and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et. 
     seq.), except sections 17 and 21, $100,000,000, to remain 
     available until September 30, 2010, to carry out a grant 
     program for National School Lunch Program equipment 
     assistance: Provided, That such funds shall be provided to 
     States administering a school lunch program through a formula 
     based on the ratio that the total number of lunches served in 
     the Program during the second preceding fiscal year bears to 
     the total number of such lunches served in all States in such 
     second preceding fiscal year: Provided further, That of such 
     funds, the Secretary may approve the reserve by States of up 
     to $20,000,000 for necessary enhancements to the State 
     Distributing Agency's commodity ordering and management 
     system to achieve compatibility with the Department's web-
     based supply chain management system: Provided further, That 
     of the funds remaining, the State shall provide competitive 
     grants to school food authorities based upon the need for 
     equipment assistance in participating schools with priority 
     given to schools in which not less than 50 percent of the 
     students are eligible for free or reduced price meals under 
     the Richard B. Russell National School Lunch Act and priority 
     given to schools purchasing equipment for the purpose of 
     offering more healthful foods and meals, in accordance with 
     standards established by the Secretary.

special supplemental nutrition program for women, infants, and children 
                                 (wic)

       For an additional amount for the special supplemental 
     nutrition program as authorized by section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786), to remain available 
     until September 30, 2010, $500,000,000, of which $380,000,000 
     shall be placed in reserve to be allocated as the Secretary 
     deems necessary, notwithstanding section 17(i) of such Act, 
     to support participation should cost or participation exceed 
     budget estimates, and of which $120,000,000 shall be for the 
     purposes specified in section 17(h)(10)(B)(ii): Provided, 
     That up to one percent of the funding provided for the 
     purposes specified in section 17(h)(10)(B)(ii) may be 
     reserved by the Secretary for Federal administrative 
     activities in support of those purposes.

                      commodity assistance program

       For an additional amount for the ``Commodity Assistance 
     Program'', to remain available until September 30, 2010, 
     $150,000,000, which the Secretary shall use to purchase a 
     variety of commodities as authorized by the Commodity Credit 
     Corporation or under section 32 of the Act entitled ``An Act 
     to amend the Agricultural Adjustment Act, and for other 
     purposes'', approved August 24, 1935 (7 U.S.C. 612c): 
     Provided, That the Secretary shall distribute the commodities 
     to States for distribution in accordance with section 214 of 
     the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
     U.S.C. 612c note): Provided further, That of the funds made 
     available, the Secretary may use up to $50,000,000 for costs 
     associated with the distribution of commodities.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 101.  Funds appropriated by this Act and made 
     available to the United States Department of Agriculture for 
     broadband direct loans and loan guarantees, as authorized 
     under title VI of the Rural Electrification Act of 1936 (7 
     U.S.C. 950bb) and for grants, shall be available for 
     broadband infrastructure in any area of the United States 
     notwithstanding title VI of the Rural Electrification Act of 
     1936: Provided, That at least 75 percent of the area served 
     by the projects receiving funds from such grants, loans, or 
     loan guarantees is in a rural area without sufficient access 
     to high speed broadband service to facilitate rural economic 
     development, as determined by the Secretary: Provided 
     further, That priority for awarding funds made available 
     under this paragraph shall be given to projects that provide 
     service to the highest proportion of rural residents that do 
     not have sufficient access to broadband service: Provided 
     further, That priority for awarding such funds shall be given 
     to project applications that demonstrate that, if the 
     application is approved, all project elements will be fully 
     funded: Provided further, That priority for awarding such 
     funds shall be given to activities that can commence promptly 
     following approval: Provided further, That the Department 
     shall submit a report on planned spending and actual 
     obligations describing the use of these funds not later than 
     90 days after the date of enactment of this Act, and 
     quarterly thereafter until all funds are obligated, to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate.
       Sec. 102.  Nutrition for Economic Recovery.
       (a) Maximum Benefit Increases.--
       (1) Economic recovery 1-month beginning stimulus payment.--
     For the first month that begins not less than 25 days after 
     the date of enactment of this Act, the Secretary of 
     Agriculture (referred to in this section as the 
     ``Secretary'') shall increase the cost of the thrifty food 
     plan for purposes of section 8(a) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2017(a)) by 85 percent.
       (2) Remainder of fiscal year 2009.--Beginning with the 
     second month that begins not less than 25 days after the date 
     of enactment of this Act, and for each subsequent month 
     through the month ending September 30, 2009, the Secretary 
     shall increase the cost of the thrifty food plan for purposes 
     of section 8(a) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2017(a)) by 12 percent.
       (3) Subsequent increase for fiscal year 2010.--Beginning on 
     October 1, 2009, and for each subsequent month through the 
     month ending September 30, 2010, the Secretary shall increase 
     the cost of the thrifty food plan for purposes of section 
     8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a)) 
     by an amount equal to 12 percent, less the percentage by 
     which the Secretary determines the thrifty food plan would 
     otherwise be adjusted on October 1, 2009, as required under 
     section 3(u) of that Act (7 U.S.C. 2012(u)), if the 
     percentage is less than 12 percent.
       (4) Subsequent increase for fiscal year 2011.--Beginning on 
     October 1, 2010, and for each subsequent month through the 
     month ending September 30, 2011, the Secretary shall increase 
     the cost of the thrifty food plan for purposes of section 
     8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(a)) 
     by an amount equal to 12 percent, less the sum of the 
     percentages by which the Secretary determines the thrifty 
     food plan would otherwise be adjusted on October 1, 2009 and 
     October 1, 2010, as required under section 3(u) of that Act 
     (7 U.S.C. 2012(u)), if the sum of such percentages is less 
     than 12 percent.
       (5) Termination of effectiveness.--Effective beginning 
     October 1, 2011, the authority provided by this subsection 
     terminates and has no effect.
       (b) Administration.--In carrying out this section, the 
     Secretary shall--
       (1) consider the benefit increases described in subsection 
     (a) to be a mass change;
       (2) require a simple process for States to notify 
     households of the changes in benefits;
       (3) consider section 16(c)(3)(A) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors 
     in the implementation of this section, without regard to the 
     120-day limit described in section 16(c)(3)(A) of that Act;
       (4) disregard the additional amount of benefits that a 
     household receives as a result of this section in determining 
     the amount of overissuances under section 13 of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2022) and the hours of 
     participation in a program under section 6(d), 20, or 26 of 
     that Act (7 U.S.C. 2015(d), 2029, 2035); and
       (5) set the tolerance level for excluding small errors for 
     the purposes of section 16(c) of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2025(c)) at $50 for the period that the 
     benefit increase under subsection (a) is in effect.
       (c) Administrative Expenses.--
       (1) In general.--For the costs of State administrative 
     expenses associated with carrying out this section and 
     administering the supplemental nutrition assistance program 
     established under the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.) (referred to in this section as the 
     ``supplemental nutrition assistance program'') during a 
     period of rising program caseloads, and for the expenses of 
     the Secretary under paragraph (6), the Secretary shall make 
     available $150,000,000 for each of fiscal years 2009 and 
     2010, to remain available through September 30, 2010.
       (2) Timing for fiscal year 2009.--Not later than 60 days 
     after the date of enactment of this Act, the Secretary shall 
     make available to States amounts for fiscal year 2009 under 
     paragraph (1).
       (3) Allocation of funds.--Except as provided in paragraph 
     (6), funds described in paragraph (1) shall be made available 
     to States that meet the requirements of paragraph (5) as 
     grants to State agencies for each fiscal year as follows:
       (A) 75 percent of the amounts available for each fiscal 
     year shall be allocated to States based on the share of each 
     State of households that participate in the supplemental 
     nutrition assistance program as reported to the Department of 
     Agriculture for the most recent 12-month period for which 
     data are available, adjusted by the Secretary (in the 
     discretion of the Secretary) for participation in disaster 
     programs under section 5(h) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014(h)); and
       (B) 25 percent of the amounts available for each fiscal 
     year shall be allocated to States based on the increase in 
     the number of households that participate in the supplemental 
     nutrition assistance program as reported to the Department of 
     Agriculture over the most recent 12-month period for which 
     data are available, adjusted by the Secretary (in the 
     discretion of the Secretary) for participation in disaster 
     programs under section 5(h) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014(h)).
       (4) Redistribution.--The Secretary shall determine an 
     appropriate procedure for redistribution of amounts allocated 
     to States

[[Page 3229]]

     that would otherwise be provided allocations under paragraph 
     (3) for a fiscal year but that do not meet the requirements 
     of paragraph (5).
       (5) Maintenance of effort.--
       (A) Definition of specified state administrative costs.--In 
     this paragraph:
       (i) In general.--The term ``specified State administrative 
     costs'' includes all State administrative costs under the 
     supplemental nutrition assistance program.
       (ii) Exclusions.--The term ``specified State administrative 
     costs'' does not include--

       (I) the costs of employment and training programs under 
     section 6(d), 20, or 26 of the Food and Nutrition Act of 2008 
     (7 U.S.C. 2015(d), 2029, 2035);
       (II) the costs of nutrition education under section 11(f) 
     of that Act (7 U.S.C. 2020(f)); and
       (III) any other costs the Secretary determines should be 
     excluded.

       (B) Requirement.--The Secretary shall make funds under this 
     subsection available only to States that, as determined by 
     the Secretary, maintain State expenditures on specified State 
     administrative costs.
       (6) Monitoring and evaluation.--Of the amounts made 
     available under paragraph (1), the Secretary may retain up to 
     $5,000,000 for the costs incurred by the Secretary in 
     monitoring the integrity and evaluating the effects of the 
     payments made under this section.
       (d) Food Distribution Program on Indian Reservations.--For 
     the costs of administrative expenses associated with the food 
     distribution program on Indian reservations established under 
     section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2013(b)), the Secretary shall make available $5,000,000, to 
     remain available until September 30, 2010.
       (e) Consolidated Block Grants for Puerto Rico and American 
     Samoa.--
       (1) Fiscal year 2009.--
       (A) In general.--For fiscal year 2009, the Secretary shall 
     increase by 12 percent the amount available for nutrition 
     assistance for eligible households under the consolidated 
     block grants for the Commonwealth of Puerto Rico and American 
     Samoa under section 19 of the Food and Nutrition Act of 2008 
     (7 U.S.C. 2028).
       (B) Availability of funds.--Funds made available under 
     subparagraph (A) shall remain available through September 30, 
     2010.
       (2) Fiscal year 2010.--For fiscal year 2010, the Secretary 
     shall increase the amount available for nutrition assistance 
     for eligible households under the consolidated block grants 
     for the Commonwealth of Puerto Rico and American Samoa under 
     section 19 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2028) by 12 percent, less the percentage by which the 
     Secretary determines the consolidated block grants would 
     otherwise be adjusted on October 1, 2009, as required by 
     section 19(a)(2)(A)(ii) of that Act (7 U.S.C. 
     2028(a)(2)(A)(ii)), if the percentage is less than 12 
     percent.
       (3) Fiscal year 2011.--For fiscal year 2011, the Secretary 
     shall increase the amount available for nutrition assistance 
     for eligible households under the consolidated block grants 
     for the Commonwealth of Puerto Rico and American Samoa under 
     section 19 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2028) by 12 percent, less the sum of the percentages by which 
     the Secretary determines the consolidated block grants would 
     otherwise be adjusted on October 1, 2009, and October 1, 
     2010, as required by section 19(a)(2)(A)(ii) of that Act (7 
     U.S.C. 2028(a)(2)(A)(ii)), if the sum of the percentages is 
     less than 12 percent.
       (f) Treatment of Jobless Workers.--
       (1) Remainder of fiscal year 2009 through fiscal year 
     2011.--Beginning with the first month that begins not less 
     than 25 days after the date of enactment of this Act and for 
     each subsequent month through September 30, 2011, eligibility 
     for supplemental nutrition assistance program benefits shall 
     not be limited under section 6(o)(2) of the Food and 
     Nutrition Act of 2008 unless an individual does not comply 
     with the requirements of a program offered by the State 
     agency that meets the standards of subparagraphs (B) or (C) 
     of that paragraph.
       (2) Fiscal year 2012 and thereafter.--Beginning on October 
     1, 2011, for the purposes of section 6(o) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency 
     shall disregard any period during which an individual 
     received benefits under the supplemental nutrition assistance 
     program prior to October 1, 2011.
       (g) Funding.--There are appropriated to the Secretary out 
     of funds of the Treasury not otherwise appropriated such sums 
     as are necessary to carry out this section.
       Sec. 103.  Agricultural Disaster Assistance Transition.  
     (a) Federal Crop Insurance Act.--Section 531(g) of the 
     Federal Crop Insurance Act (7 U.S.C. 1531(g)) is amended by 
     adding at the end the following:
       ``(7) 2008 transition assistance.--
       ``(A) In general.--Eligible producers on a farm described 
     in subparagraph (A) of paragraph (4) that failed to timely 
     pay the appropriate fee described in that subparagraph shall 
     be eligible for assistance under this section in accordance 
     with subparagraph (B) if the eligible producers on the farm--
       ``(i) pay the appropriate fee described in paragraph (4)(A) 
     not later than 90 days after the date of enactment of this 
     paragraph; and
       ``(ii)(I) in the case of each insurable commodity of the 
     eligible producers on the farm, excluding grazing land, agree 
     to obtain a policy or plan of insurance under subtitle A 
     (excluding a crop insurance pilot program under that 
     subtitle) for the next insurance year for which crop 
     insurance is available to the eligible producers on the farm 
     at a level of coverage equal to 70 percent or more of the 
     recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage; and
       ``(II) in the case of each noninsurable commodity of the 
     eligible producers on the farm, agree to file the required 
     paperwork, and pay the administrative fee by the applicable 
     State filing deadline, for the noninsured crop assistance 
     program for the 2009 crop year.
       ``(B) Amount of assistance.--Eligible producers on a farm 
     that meet the requirements of subparagraph (A) shall be 
     eligible to receive assistance under this section as if the 
     eligible producers on the farm--
       ``(i) in the case of each insurable commodity of the 
     eligible producers on the farm, had obtained a policy or plan 
     of insurance for the 2008 crop year at a level of coverage 
     not to exceed 70 percent or more of the recorded or appraised 
     average yield indemnified at 100 percent of the expected 
     market price, or an equivalent coverage; and
       ``(ii) in the case of each noninsurable commodity of the 
     eligible producers on the farm, had filed the required 
     paperwork, and paid the administrative fee by the applicable 
     State filing deadline, for the noninsured crop assistance 
     program for the 2008 crop year, except that in determining 
     yield under that program, the Secretary shall use a 
     percentage that is 70 percent.
       ``(C) Equitable relief.--Except as provided in subparagraph 
     (D), eligible producers on a farm that met the requirements 
     of paragraph (1) before the deadline described in paragraph 
     (4)(A) and received, or are eligible to receive, a disaster 
     assistance payment under this section for a production loss 
     during the 2008 crop year shall be eligible to receive an 
     additional amount equal to the greater of--
       ``(i) the amount that would have been calculated under 
     subparagraph (B) if the eligible producers on the farm had 
     paid the appropriate fee under that subparagraph; or
       ``(ii) the amount that would have been calculated under 
     subparagraph (A) of subsection (b)(3) if--

       ``(I) in clause (i) of that subparagraph, `120 percent' is 
     substituted for `115 percent'; and
       ``(II) in clause (ii) of that subparagraph, `125' is 
     substituted for `120 percent'.

       ``(D) Limitation.--For amounts made available under this 
     paragraph, the Secretary may make such adjustments as are 
     necessary to ensure that no producer receives a payment under 
     this paragraph for an amount in excess of the assistance 
     received by a similarly situated producer that had purchased 
     the same or higher level of crop insurance prior to the date 
     of enactment of this paragraph.
       ``(E) Authority of the secretary.--The Secretary may 
     provide such additional assistance as the Secretary considers 
     appropriate to provide equitable treatment for eligible 
     producers on a farm that suffered production losses in the 
     2008 crop year that result in multiyear production losses, as 
     determined by the Secretary.
       ``(F) Lack of access.--Notwithstanding any other provision 
     of this section, the Secretary may provide assistance under 
     this section to eligible producers on a farm that--
       ``(i) suffered a production loss due to a natural cause 
     during the 2008 crop year; and
       ``(ii) as determined by the Secretary--

       ``(I)(aa) except as provided in item (bb), lack access to a 
     policy or plan of insurance under subtitle A; or
       ``(bb) do not qualify for a written agreement because 1 or 
     more farming practices, which the Secretary has determined 
     are good farming practices, of the eligible producers on the 
     farm differ significantly from the farming practices used by 
     producers of the same crop in other regions of the United 
     States; and
       ``(II) are not eligible for the noninsured crop disaster 
     assistance program established by section 196 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7333).''.

       (b) Trade Act of 1974.--Section 901(g) of the Trade Act of 
     1974 (19 U.S.C. 2497(g)) is amended by adding at the end the 
     following:
       ``(7) 2008 transition assistance.--
       ``(A) In general.--Eligible producers on a farm described 
     in subparagraph (A) of paragraph (4) that failed to timely 
     pay the appropriate fee described in that subparagraph shall 
     be eligible for assistance under this section in accordance 
     with subparagraph (B) if the eligible producers on the farm--
       ``(i) pay the appropriate fee described in paragraph (4)(A) 
     not later than 90 days after the date of enactment of this 
     paragraph; and
       ``(ii)(I) in the case of each insurable commodity of the 
     eligible producers on the farm, excluding grazing land, agree 
     to obtain a policy or plan of insurance under the Federal 
     Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop 
     insurance pilot program under that Act) for the next 
     insurance year for

[[Page 3230]]

     which crop insurance is available to the eligible producers 
     on the farm at a level of coverage equal to 70 percent or 
     more of the recorded or appraised average yield indemnified 
     at 100 percent of the expected market price, or an equivalent 
     coverage; and
       ``(II) in the case of each noninsurable commodity of the 
     eligible producers on the farm, agree to file the required 
     paperwork, and pay the administrative fee by the applicable 
     State filing deadline, for the noninsured crop assistance 
     program for the 2009 crop year.
       ``(B) Amount of assistance.--Eligible producers on a farm 
     that meet the requirements of subparagraph (A) shall be 
     eligible to receive assistance under this section as if the 
     eligible producers on the farm--
       ``(i) in the case of each insurable commodity of the 
     eligible producers on the farm, had obtained a policy or plan 
     of insurance for the 2008 crop year at a level of coverage 
     not to exceed 70 percent or more of the recorded or appraised 
     average yield indemnified at 100 percent of the expected 
     market price, or an equivalent coverage; and
       ``(ii) in the case of each noninsurable commodity of the 
     eligible producers on the farm, had filed the required 
     paperwork, and paid the administrative fee by the applicable 
     State filing deadline, for the noninsured crop assistance 
     program for the 2008 crop year, except that in determining 
     yield under that program, the Secretary shall use a 
     percentage that is 70 percent.
       ``(C) Equitable relief.--Except as provided in subparagraph 
     (D), eligible producers on a farm that met the requirements 
     of paragraph (1) before the deadline described in paragraph 
     (4)(A) and received, or are eligible to receive, a disaster 
     assistance payment under this section for a production loss 
     during the 2008 crop year shall be eligible to receive an 
     additional amount equal to the greater of--
       ``(i) the amount that would have been calculated under 
     subparagraph (B) if the eligible producers on the farm had 
     paid the appropriate fee under that subparagraph; or
       ``(ii) the amount that would have been calculated under 
     subparagraph (A) of subsection (b)(3) if--

       ``(I) in clause (i) of that subparagraph, `120 percent' is 
     substituted for `115 percent'; and
       ``(II) in clause (ii) of that subparagraph, `125' is 
     substituted for `120 percent'.

       ``(D) Limitation.--For amounts made available under this 
     paragraph, the Secretary may make such adjustments as are 
     necessary to ensure that no producer receives a payment under 
     this paragraph for an amount in excess of the assistance 
     received by a similarly situated producer that had purchased 
     the same or higher level of crop insurance prior to the date 
     of enactment of this paragraph.
       ``(E) Authority of the secretary.--The Secretary may 
     provide such additional assistance as the Secretary considers 
     appropriate to provide equitable treatment for eligible 
     producers on a farm that suffered production losses in the 
     2008 crop year that result in multiyear production losses, as 
     determined by the Secretary.
       ``(F) Lack of access.--Notwithstanding any other provision 
     of this section, the Secretary may provide assistance under 
     this section to eligible producers on a farm that--
       ``(i) suffered a production loss due to a natural cause 
     during the 2008 crop year; and
       ``(ii) as determined by the Secretary--

       ``(I)(aa) except as provided in item (bb), lack access to a 
     policy or plan of insurance under subtitle A; or
       ``(bb) do not qualify for a written agreement because 1 or 
     more farming practices, which the Secretary has determined 
     are good farming practices, of the eligible producers on the 
     farm differ significantly from the farming practices used by 
     producers of the same crop in other regions of the United 
     States; and
       ``(II) are not eligible for the noninsured crop disaster 
     assistance program established by section 196 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7333).''.

       (c) Emergency Loans.--
       (1) In general.--For the principal amount of direct 
     emergency loans under section 321 of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961), $200,000,000.
       (2) Direct emergency loans.--For the cost of direct 
     emergency loans, including the cost of modifying loans, as 
     defined in section 502 of the Congressional Budget Act of 
     1974 (2 U.S.C. 661a), $28,440,000, to remain available until 
     September 30, 2010.
       (d) 2008 Aquaculture Assistance.--
       (1) Definitions.--In this subsection:
       (A) Eligible aquaculture producer.--The term ``eligible 
     aquaculture producer'' means an aquaculture producer that 
     during the 2008 calendar year, as determined by the 
     Secretary--
       (i) produced an aquaculture species for which feed costs 
     represented a substantial percentage of the input costs of 
     the aquaculture operation; and
       (ii) experienced a substantial price increase of feed costs 
     above the previous 5-year average.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) Grant program.--
       (A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use not more than 
     $50,000,000, to remain available until September 30, 2010, to 
     carry out a program of grants to States to assist eligible 
     aquaculture producers for losses associated with high feed 
     input costs during the 2008 calendar year.
       (B) Notification.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall notify the State 
     department of agriculture (or similar entity) in each State 
     of the availability of funds to assist eligible aquaculture 
     producers, including such terms as determined by the 
     Secretary to be necessary for the equitable treatment of 
     eligible aquaculture producers.
       (C) Provision of grants.--
       (i) In general.--The Secretary shall make grants to States 
     under this subsection on a pro rata basis based on the amount 
     of aquaculture feed used in each State during the 2007 
     calendar year, as determined by the Secretary.
       (ii) Timing.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall make grants to 
     States to provide assistance under this subsection.
       (D) Requirements.--The Secretary shall make grants under 
     this subsection only to States that demonstrate to the 
     satisfaction of the Secretary that the State will--
       (i) use grant funds to assist eligible aquaculture 
     producers;
       (ii) provide assistance to eligible aquaculture producers 
     not later than 60 days after the date on which the State 
     receives grant funds; and
       (iii) not later than 30 days after the date on which the 
     State provides assistance to eligible aquaculture producers, 
     submit to the Secretary a report that describes--

       (I) the manner in which the State provided assistance;
       (II) the amounts of assistance provided per species of 
     aquaculture; and
       (III) the process by which the State determined the levels 
     of assistance to eligible aquaculture producers.

       (3) Reduction in payments.--An eligible aquaculture 
     producer that receives assistance under this subsection shall 
     not be eligible to receive any other assistance under the 
     supplemental agricultural disaster assistance program 
     established under section 531 of the Federal Crop Insurance 
     Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974 
     (19 U.S.C. 2497) for any losses in 2008 relating to the same 
     species of aquaculture.
       (4) Report to congress.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall submit to 
     the appropriate committees of Congress a report that--
       (A) describes in detail the manner in which this subsection 
     has been carried out; and
       (B) includes the information reported to the Secretary 
     under paragraph (2)(D)(iii).
       (e) Administration.--There is hereby appropriated 
     $54,000,000 to carry out this section.
       Sec. 104. (a) Hereafter, in this section, the term 
     ``nonambulatory disabled cattle'' means cattle, other than 
     cattle that are less than 5 months old or weigh less than 500 
     pounds, subject to inspection under section 3(b) of the 
     Federal Meat Inspection Act (21 U.S.C. 603(b)) that cannot 
     rise from a recumbent position or walk, including cattle with 
     a broken appendage, severed tendon or ligament, nerve 
     paralysis, fractured vertebral column, or a metabolic 
     condition.
       (b) Hereafter, none of the funds made available under this 
     or any other Act may be used to pay the salaries or expenses 
     of any personnel of the Food Safety and Inspection Service to 
     pass through inspection any nonambulatory disabled cattle for 
     use as human food, regardless of the reason for the 
     nonambulatory status of the cattle or the time at which the 
     cattle became nonambulatory.
       Sec. 105.  State and Local Governments. Section 
     1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C. 
     1308(f)(6)(A)) is amended by inserting ``(other than the 
     conservation reserve program established under subchapter B 
     of chapter 1 of subtitle D of title XII of this Act)'' before 
     the period at the end.
       Sec. 106.  Except for title I of the Food, Conservation, 
     and Energy Act of 2008 (Public Law 110-246), Commodity Credit 
     Corporation funds provided in that Act shall be available for 
     administrative expenses, including technical assistance, 
     without regard to the limitation in 15 U.S.C. 714i.

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

                         DEPARTMENT OF COMMERCE

                    Bureau of Industry and Security

                     operations and administration

       For an additional amount for ``Operations and 
     Administration'', $20,000,000, to remain available until 
     September 30, 2010.

                  Economic Development Administration

                economic development assistance programs

       For an additional amount for ``Economic Development 
     Assistance Programs'', $150,000,000, to remain available 
     until September 30, 2010: Provided, That $50,000,000 shall be 
     for economic adjustment assistance as authorized by section 
     209 of the Public Works and Economic Development Act of 1965, 
     as amended (42 U.S.C. 3149): Provided further, That in 
     allocating the funds provided in the previous proviso, the 
     Secretary of Commerce shall give priority consideration to 
     areas of the Nation that have experienced

[[Page 3231]]

     sudden and severe economic dislocation and job loss due to 
     corporate restructuring.

                          Bureau of the Census

                     periodic censuses and programs

       For an additional amount for ``Periodic Censuses and 
     Programs'', $1,000,000,000, to remain available until 
     September 30, 2010.

       National Telecommunications and Information Administration

               broadband technology opportunities program

       For an amount for ``Broadband Technology Opportunities 
     Program'', $7,000,000,000, to remain available until 
     September 30, 2010: Provided, That of the funds provided 
     under this heading, $6,650,000,000 shall be expended pursuant 
     to section 201 of this Act, of which: not less than 
     $200,000,000 shall be available for competitive grants for 
     expanding public computer center capacity, including at 
     community colleges and public libraries; not less than 
     $250,000,000 shall be available for competitive grants for 
     innovative programs to encourage sustainable adoption of 
     broadband service; and $10,000,000 shall be transferred to 
     ``Department of Commerce, Office of Inspector General'' for 
     the purposes of audits and oversight of funds provided under 
     this heading and such funds shall remain available until 
     expended: Provided further, That 50 percent of the funds 
     provided in the previous proviso shall be used to support 
     projects in rural communities, which in part may be 
     transferred to the Department of Agriculture for 
     administration through the Rural Utilities Service if deemed 
     necessary and appropriate by the Secretary of Commerce, in 
     consultation with the Secretary of Agriculture, and only if 
     the Committees on Appropriations of the House and the Senate 
     are notified not less than 15 days in advance of the transfer 
     of such funds: Provided further, That of the funds provided 
     under this heading, up to $350,000,000 may be expended 
     pursuant to Public Law 110-385 (47 U.S.C. 1301 note) and for 
     the purposes of developing and maintaining a broadband 
     inventory map pursuant to section 201 of this Act: Provided 
     further, That of the funds provided under this heading, 
     amounts deemed necessary and appropriate by the Secretary of 
     Commerce, in consultation with the Federal Communications 
     Commission (FCC), may be transferred to the FCC for the 
     purposes of developing a national broadband plan or for 
     carrying out any other FCC responsibilities pursuant to 
     section 201 of this Act, and only if the Committees on 
     Appropriations of the House and the Senate are notified not 
     less than 15 days in advance of the transfer of such funds: 
     Provided further, That not more than 3 percent of funds 
     provided under this heading may be used for administrative 
     costs, and this limitation shall apply to funds which may be 
     transferred to the Department of Agriculture and the FCC.

                digital-to-analog converter box program

       For an amount for ``Digital-to-Analog Converter Box 
     Program'', $650,000,000, for additional coupons and related 
     activities under the program implemented under section 3005 
     of the Digital Television Transition and Public Safety Act of 
     2005, to remain available until September 30, 2010: Provided, 
     That of the amounts provided under this heading, $90,000,000 
     may be for education and outreach, including grants to 
     organizations for programs to educate vulnerable populations, 
     including senior citizens, minority communities, people with 
     disabilities, low-income individuals, and people living in 
     rural areas, about the transition and to provide one-on-one 
     assistance to vulnerable populations, including help with 
     converter box installation: Provided further, That the 
     amounts provided in the previous proviso may be transferred 
     to the Federal Communications Commission (Commission) if 
     deemed necessary and appropriate by the Secretary of Commerce 
     in consultation with the Commission, and only if the 
     Committees on Appropriations of the House and the Senate are 
     notified not less than 5 days in advance of transfer of such 
     funds: Provided further, That $2,000,000 of funds provided 
     under this heading shall be transferred to ``Department of 
     Commerce, Office of Inspector General'' for audits and 
     oversight of funds provided under this heading.

             National Institute of Standards and Technology

             scientific and technical research and services

       For an additional amount for ``Scientific and Technical 
     Research and Services'', $168,000,000, to remain available 
     until September 30, 2010.

                  construction of research facilities

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

            National Oceanic and Atmospheric Administration

                  operations, research, and facilities

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

               procurement, acquisition and construction

       For an additional amount for ``Procurement, Acquisition and 
     Construction'', $645,000,000, to remain available until 
     September 30, 2010.

                      Office of Inspector General

       For an additional amount for ``Office of Inspector 
     General'', $6,000,000, to remain available until September 
     30, 2012.

                         DEPARTMENT OF JUSTICE

                         General Administration

            tactical law enforcement wireless communications

       For an additional amount for ``Tactical Law Enforcement 
     Wireless Communications'', $100,000,000 for the costs of 
     developing and implementing a nationwide Integrated Wireless 
     network supporting Federal law enforcement, to remain 
     available until September 30, 2010.

                           Detention Trustee

       For an additional amount for ``Detention Trustee'', 
     $100,000,000, to remain available until September 30, 2010.

                      Office of Inspector General

       For an additional amount for ``Office of Inspector 
     General'', $2,000,000, to remain available until September 
     30, 2011.

                     United States Marshals Service

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $50,000,000, to remain available until September 30, 2010.

                              construction

       For an additional amount for ``Construction'', 
     $100,000,000, to remain available until September 30, 2010.

                    Federal Bureau of Investigation

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $75,000,000, to remain available until September 30, 2010.

                              construction

       For an additional amount for ``Construction'', 
     $300,000,000, to remain available until September 30, 2010.

                         Federal Prison System

                        buildings and facilities

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

               State and Local Law Enforcement Activities

                    Office on Violence Against Women

       violence against women prevention and prosecution programs

       For an additional amount for ``Violence Against Women 
     Prevention and Prosecution Programs'', $300,000,000 for 
     grants to combat violence against women, as authorized by 
     part T of the Omnibus Crime Control and Safe Streets Act of 
     1968 (42 U.S.C. 3711 et seq.): Provided, That, $50,000,000 
     shall be transitional housing assistance grants for victims 
     of domestic violence, stalking or sexual assault as 
     authorized by section 40299 of the Violent Crime Control and 
     Law Enforcement Act of 1994 (Public Law 103-322).

                       Office of Justice Programs

               state and local law enforcement assistance

       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $1,200,000,000 for the Edward Byrne 
     Memorial Justice Assistance Grant program as authorized by 
     subpart 1 of part E of title I of the Omnibus Crime Control 
     and Safe Street Act of 1968 (``1968 Act''), (except that 
     section 1001(c), and the special rules for Puerto Rico under 
     section 505(g), of the 1968 Act, shall not apply for purposes 
     of this Act), to remain available until September 30, 2010.
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $300,000,000 for competitive grants 
     to improve the functioning of the criminal justice system, to 
     assist victims of crime (other than compensation), and youth 
     mentoring grants, to remain available until September 30, 
     2010.
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $90,000,000, to remain available 
     until September 30, 2010, for competitive grants to provide 
     assistance and equipment to local law enforcement along the 
     Southern border and in High-Intensity Drug Trafficking Areas 
     to combat criminal narcotics activity stemming from the 
     Southern border, of which $10,000,000 shall be transferred to 
     ``Bureau of Alcohol, Tobacco, Firearms and Explosives, 
     Salaries and Expenses'' for the ATF Project Gunrunner.
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $300,000,000, to remain available 
     until September 30, 2010, for assistance to Indian tribes, 
     notwithstanding Public Law 108-199, division B, title I, 
     section 112(a)(1) (118 Stat. 62), of which--
       (1) $250,000,000 shall be available for grants under 
     section 20109 of subtitle A of title II of the Violent Crime 
     Control and Law Enforcement Act of 1994 (Public Law 103-322);
       (2) $25,000,000 shall be available for the Tribal Courts 
     Initiative; and
       (3) $25,000,000 shall be available for tribal alcohol and 
     substance abuse drug reduction assistance grants.

     For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $100,000,000, to remain available 
     until September 30, 2010, to be distributed by the Office for 
     Victims of Crime in accordance with

[[Page 3232]]

     section 1402(d)(4) of the Victims of Crime Act of 1984 
     (Public Law 98-473).
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $150,000,000, to remain available 
     until September 30, 2010, for assistance to law enforcement 
     in rural areas, to prevent and combat crime, especially drug-
     related crime.
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $50,000,000, to remain available 
     until September 30, 2010, for Internet Crimes Against 
     Children (ICAC) initiatives.

                  Community Oriented Policing Services

       For an additional amount for ``Community Oriented Policing 
     Services'', for grants under section 1701 of title I of the 
     1968 Omnibus Crime Control and Safe Streets Act (42 U.S.C. 
     3796dd) for hiring and rehiring of additional career law 
     enforcement officers under part Q of such title, and civilian 
     public safety personnel, notwithstanding subsection (i) of 
     such section and notwithstanding 42 U.S.C. 3796dd-3(c), 
     $1,000,000,000, to remain available until September 30, 2010.

                         Salaries and Expenses

       For an additional amount, not elsewhere specified in this 
     title, for management and administration and oversight of 
     programs within the Office on Violence Against Women, the 
     Office of Justice Programs, and the Community Oriented 
     Policing Services Office, $10,000,000, to remain available 
     until September 30, 2010.

                                SCIENCE

             National Aeronautics and Space Administration

                                science

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

                              aeronautics

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

                              exploration

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

                          cross agency support

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

                      office of inspector general

       For an additional amount for ``Office of Inspector 
     General'', $2,000,000, to remain available until September 
     30, 2011.

                      National Science Foundation

                    research and related activities

       For an additional amount for ``Research and Related 
     Activities'', $1,000,000,000, to remain available until 
     September 30, 2010.

          major research equipment and facilities construction

       For an additional amount for ``Major Research Equipment and 
     Facilities Construction'', $150,000,000, to remain available 
     until September 30, 2010.

                     education and human resources

       For an additional amount for ``Education and Human 
     Resources'', $50,000,000, to remain available until September 
     30, 2010.

                      office of inspector general

       For an additional amount for ``Office of Inspector 
     General'', $2,000,000, to remain available until September 
     30, 2011.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 201.  The Assistant Secretary of Commerce for 
     Communications and Information (Assistant Secretary), in 
     consultation with the Federal Communications Commission 
     (Commission) (and, with respect to rural areas, the Secretary 
     of Agriculture), shall establish a national broadband service 
     development and expansion program in conjunction with the 
     technology opportunities program, which shall be referred to 
     the Broadband Technology Opportunities Program. The Assistant 
     Secretary shall ensure that the program complements and 
     enhances and does not conflict with other Federal broadband 
     initiatives and programs.
       (1) The purposes of the program are to--
       (A) provide access to broadband service to citizens 
     residing in unserved areas of the United States;
       (B) provide improved access to broadband service to 
     citizens residing in underserved areas of the United States;
       (C) provide broadband education, awareness, training, 
     access, equipment, and support to--
       (i) schools, libraries, medical and healthcare providers, 
     community colleges and other institutions of higher 
     education, and other community support organizations and 
     entities to facilitate greater use of broadband service by or 
     through these organizations;
       (ii) organizations and agencies that provide outreach, 
     access, equipment, and support services to facilitate greater 
     use of broadband service by low-income, unemployed, aged, and 
     otherwise vulnerable populations; and
       (iii) job-creating strategic facilities located within a 
     State-designated economic zone, Economic Development District 
     designated by the Department of Commerce, Renewal Community 
     or Empowerment Zone designated by the Department of Housing 
     and Urban Development, or Enterprise Community designated by 
     the Department of Agriculture.
       (D) improve access to, and use of, broadband service by 
     public safety agencies; and
       (E) stimulate the demand for broadband, economic growth, 
     and job creation.
       (2) The Assistant Secretary may consult with the chief 
     executive officer of any State with respect to--
       (A) the identification of areas described in subsection 
     (1)(A) or (B) located in that State; and
       (B) the allocation of grant funds within that State for 
     projects in or affecting the State.
       (3) The Assistant Secretary shall--
       (A) establish and implement the grant program as 
     expeditiously as practicable;
       (B) ensure that all awards are made before the end of 
     fiscal year 2010;
       (C) seek such assurances as may be necessary or appropriate 
     from grantees under the program that they will substantially 
     complete projects supported by the program in accordance with 
     project timelines, not to exceed 2 years following an award; 
     and
       (D) report on the status of the program to the Committees 
     on Appropriations of the House and the Senate, the Committee 
     on Energy and Commerce of the House, and the Committee on 
     Commerce, Science, and Transportation of the Senate, every 90 
     days.
       (4) To be eligible for a grant under the program an 
     applicant shall--
       (A) be a State or political subdivision thereof, a 
     nonprofit foundation, corporation, institution or 
     association, Indian tribe, Native Hawaiian organization, or 
     other non-governmental entity in partnership with a State or 
     political subdivision thereof, Indian tribe, or Native 
     Hawaiian organization if the Assistant Secretary determines 
     the partnership consistent with the purposes this section;
       (B) submit an application, at such time, in such form, and 
     containing such information as the Assistant Secretary may 
     require;
       (C) provide a detailed explanation of how any amount 
     received under the program will be used to carry out the 
     purposes of this section in an efficient and expeditious 
     manner, including a demonstration that the project would not 
     have been implemented during the grant period without Federal 
     grant assistance;
       (D) demonstrate, to the satisfaction of the Assistant 
     Secretary, that it is capable of carrying out the project or 
     function to which the application relates in a competent 
     manner in compliance with all applicable Federal, State, and 
     local laws;
       (E) demonstrate, to the satisfaction of the Assistant 
     Secretary, that it will appropriate (if the applicant is a 
     State or local government agency) or otherwise 
     unconditionally obligate, from non-Federal sources, funds 
     required to meet the requirements of paragraph (5);
       (F) disclose to the Assistant Secretary the source and 
     amount of other Federal or State funding sources from which 
     the applicant receives, or has applied for, funding for 
     activities or projects to which the application relates; and
       (G) provide such assurances and procedures as the Assistant 
     Secretary may require to ensure that grant funds are used and 
     accounted for in an appropriate manner.
       (5) The Federal share of any project may not exceed 80 
     percent, except that the Assistant Secretary may increase the 
     Federal share of a project above 80 percent if--
       (A) the applicant petitions the Assistant Secretary for a 
     waiver; and
       (B) the Assistant Secretary determines that the petition 
     demonstrates financial need.
       (6) The Assistant Secretary may make competitive grants 
     under the program to--
       (A) acquire equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, and infrastructure for broadband services;
       (B) construct and deploy broadband service related 
     infrastructure;
       (C) ensure access to broadband service by community anchor 
     institutions;
       (D) facilitate access to broadband service by low-income, 
     unemployed, aged, and otherwise vulnerable populations in 
     order to provide educational and employment opportunities to 
     members of such populations;
       (E) construct and deploy broadband facilities that improve 
     public safety broadband communications services; and
       (F) undertake such other projects and activities as the 
     Assistant Secretary finds to be consistent with the purposes 
     for which the program is established.
       (7) The Assistant Secretary--
       (A) shall require any entity receiving a grant pursuant to 
     this section to report quarterly, in a format specified by 
     the Assistant Secretary, on such entity's use of the 
     assistance and progress fulfilling the objectives for which 
     such funds were granted, and the Assistant Secretary shall 
     make these reports available to the public;
       (B) may establish additional reporting and information 
     requirements for any recipient of any assistance made 
     available pursuant to this section;
       (C) shall establish appropriate mechanisms to ensure 
     appropriate use and compliance

[[Page 3233]]

     with all terms of any use of funds made available pursuant to 
     this section;
       (D) may, in addition to other authority under applicable 
     law, deobligate awards to grantees that demonstrate an 
     insufficient level of performance, or wasteful or fraudulent 
     spending, as defined in advance by the Assistant Secretary, 
     and award these funds competitively to new or existing 
     applicants consistent with this section; and
       (E) shall create and maintain a fully searchable database, 
     accessible on the Internet at no cost to the public, that 
     contains at least the name of each entity receiving funds 
     made available pursuant to this section, the purpose for 
     which such entity is receiving such funds, each quarterly 
     report submitted by the entity pursuant to this section, and 
     such other information sufficient to allow the public to 
     understand and monitor grants awarded under the program.
       (8) Concurrent with the issuance of the Request for 
     Proposal for grant applications pursuant to this section, the 
     Assistant Secretary shall, in coordination with the Federal 
     Communications Commission, publish the non-discrimination and 
     network interconnection obligations that shall be contractual 
     conditions of grants awarded under this section.
       (9) Within 1 year after the date of enactment of this Act, 
     the Commission shall complete a rulemaking to develop a 
     national broadband plan. In developing the plan, the 
     Commission shall--
       (A) consider the most effective and efficient national 
     strategy for ensuring that all Americans have access to, and 
     take advantage of, advanced broadband services;
       (B) have access to data provided to other Government 
     agencies under the Broadband Data Improvement Act (47 U.S.C. 
     1301 note);
       (C) evaluate the status of deployments of broadband 
     service, including the progress of projects supported by the 
     grants made pursuant to this section; and
       (D) develop recommendations for achieving the goal of 
     nationally available broadband service for the United States 
     and for promoting broadband adoption nationwide.
       (10) The Assistant Secretary shall develop and maintain a 
     comprehensive nationwide inventory map of existing broadband 
     service capability and availability in the United States that 
     entities and depicts the geographic extent to which broadband 
     service capability is deployed and available from a 
     commercial provider or public provider throughout each State: 
     Provided, That not later than 2 years after the date of the 
     enactment of the Act, the Assistant Secretary shall make the 
     broadband inventory map developed and maintained pursuant to 
     this section accessible to the public.
       Sec. 202.  The Assistant Secretary of Commerce for 
     Communications and Information may reissue any coupon issued 
     under section 3005(a) of the Digital Television Transition 
     and Public Safety Act of 2005 that has expired before use, 
     and shall cancel any unredeemed coupon reported as lost and 
     may issue a replacement coupon for the lost coupon.

                    TITLE III--DEPARTMENT OF DEFENSE

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $1,169,291,000, to remain available for obligation 
     until September 30, 2010.

                    Operation and Maintenance, Navy

       For an additional amount for ``Operation and Maintenance, 
     Navy'', $571,843,000, to remain available for obligation 
     until September 30, 2010.

                Operation and Maintenance, Marine Corps

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps'', $112,167,000, to remain available for 
     obligation until September 30, 2010.

                  Operation and Maintenance, Air Force

       For an additional amount for ``Operation and Maintenance, 
     Air Force'', $927,113,000, to remain available for obligation 
     until September 30, 2010.

                Operation and Maintenance, Army Reserve

       For an additional amount for ``Operation and Maintenance, 
     Army Reserve'', $79,543,000, to remain available for 
     obligation until September 30, 2010.

                Operation and Maintenance, Navy Reserve

       For an additional amount for ``Operation and Maintenance, 
     Navy Reserve'', $44,586,000, to remain available for 
     obligation until September 30, 2010.

            Operation and Maintenance, Marine Corps Reserve

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps Reserve'', $32,304,000, to remain available for 
     obligation until September 30, 2010.

              Operation and Maintenance, Air Force Reserve

       For an additional amount for ``Operation and Maintenance, 
     Air Force Reserve'', $10,674,000, to remain available for 
     obligation until September 30, 2010.

             Operation and Maintenance, Army National Guard

       For an additional amount for ``Operation and Maintenance, 
     Army National Guard'', $215,557,000, to remain available for 
     obligation until September 30, 2010.

             Operation and Maintenance, Air National Guard

       For an additional amount for ``Operation and Maintenance, 
     Air National Guard'', $20,922,000, to remain available for 
     obligation until September 30, 2010.

                              PROCUREMENT

                    Defense Production Act Purchases

       For an additional amount for ``Defense Production Act 
     Purchases'', $100,000,000, to remain available for obligation 
     until September 30, 2010.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

        Research, Development, Test and Evaluation, Defense-Wide

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Defense-Wide'', $200,000,000, to remain 
     available for obligation until September 30, 2010.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For an additional amount for ``Defense Health Program'', 
     $250,000,000 for operation and maintenance, to remain 
     available for obligation until September 30, 2010.

                    Office of the Inspector General

       For an additional amount for ``Office of the Inspector 
     General'', $12,000,000 for operation and maintenance, to 
     remain available for obligation until September 30, 2011, and 
     an additional $3,000,000 for such purposes, to remain 
     available until September 30, 2011.

                 TITLE IV--ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         Department of the Army

                       Corps of Engineers--Civil

                             investigations

       For an additional amount for ``Investigations'' for 
     expenses necessary where authorized by law for the collection 
     and study of basic information pertaining to river and 
     harbor, flood and storm damage reduction, shore protection, 
     aquatic ecosystem restoration, and related needs; for surveys 
     and detailed studies, and plans and specifications of 
     proposed river and harbor, flood and storm damage reduction, 
     shore protection, and aquatic ecosystem restoration projects 
     and related efforts prior to construction; for restudy of 
     authorized projects; and for miscellaneous investigations 
     and, when authorized by law, surveys and detailed studies, 
     and plans and specifications of projects prior to 
     construction, $25,000,000: Provided, That funds provided 
     under this heading in this title shall only be used for 
     programs, projects or activities that heretofore or hereafter 
     receive funds provided in Acts making appropriations 
     available for Energy and Water Development: Provided further, 
     That funds provided under this heading in this title shall be 
     used for programs, projects or activities or elements of 
     programs, projects or activities that can be completed within 
     the funds made available in that account and that will not 
     require new budget authority to complete: Provided further, 
     That for projects that are being completed with funds 
     appropriated in this Act that would otherwise be expired for 
     obligation, expired funds appropriated in this Act may be 
     used to pay the cost of associated supervision, inspection, 
     over engineering and design on those projects and on 
     subsequent claims, if any: Provided further, That the 
     Secretary shall have unlimited reprogramming authority for 
     these funds provided under this heading.

                              construction

       For an additional amount for ``Construction'' for expenses 
     necessary for the construction of river and harbor, flood and 
     storm damage reduction, shore protection, aquatic ecosystem 
     restoration, and related projects authorized by law, 
     $2,000,000,000, of which such sums as are necessary to cover 
     the Federal share of construction costs for facilities under 
     the Dredged Material Disposal Facilities program shall be 
     derived from the Harbor Maintenance Trust Fund as authorized 
     by Public Law 104-303: Provided, That not less than 
     $200,000,000 of the funds provided shall be for water-related 
     environmental infrastructure assistance: Provided further, 
     That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall 
     not apply to funds provided in this title: Provided further, 
     That notwithstanding any other provision of law, no funds 
     shall be drawn from the Inland Waterways Trust Fund, as 
     authorized in Public Law 99-662: Provided further, That funds 
     provided under this heading in this title shall only be used 
     for programs, projects or activities that heretofore or 
     hereafter receive funds provided in Acts making 
     appropriations available for Energy and Water Development: 
     Provided further, That funds provided under this heading in 
     this title shall be used for programs, projects or activities 
     or elements of programs, projects or activities that can be 
     completed within the funds made available in that account and 
     that will not require new budget authority to complete: 
     Provided further, That the limitation concerning total 
     project costs in section 902 of

[[Page 3234]]

     the Water Resources Development Act of 1986, as amended (33 
     U.S.C. 2280), shall not apply during fiscal year 2009 to any 
     project that received funds provided in this title: Provided 
     further, That funds appropriated under this heading may be 
     used by the Secretary of the Army, acting through the Chief 
     of Engineers, to undertake work authorized to be carried out 
     in accordance with section 14 of the Flood Control Act of 
     1946 (33 U.S.C. 701r); section 205 of the Flood Control Act 
     of 1948 (33 U.S.C. 701s); section 206 of the Water Resources 
     Development Act of 1996 (33 U.S.C. 2330); or section 1135 of 
     the Water Resources Development Act of 1986 (33 U.S.C. 
     2309a), notwithstanding the program cost limitations set 
     forth in those sections: Provided further, That for projects 
     that are being completed with funds appropriated in this Act 
     that would otherwise be expired for obligation, expired funds 
     appropriated in this Act may be used to pay the cost of 
     associated supervision, inspection, over engineering and 
     design on those projects and on subsequent claims, if any: 
     Provided further, That the Secretary shall have unlimited 
     reprogramming authority for these funds provided under this 
     heading.

                   mississippi river and tributaries

       For an additional amount for ``Mississippi River and 
     Tributaries'' for expenses necessary for flood damage 
     reduction projects and related efforts as authorized by law, 
     $500,000,000, of which such sums as are necessary to cover 
     the Federal share of operation and maintenance costs for 
     inland harbors shall be derived from the Harbor Maintenance 
     Trust Fund, pursuant to Public Law 99-662: Provided, That 
     funds provided under this heading in this title shall only be 
     used for programs, projects or activities that heretofore or 
     hereafter receive funds provided in Acts making 
     appropriations available for Energy and Water Development: 
     Provided further, That funds provided under this heading in 
     this title shall be used for programs, projects or activities 
     or elements of programs, projects or activities that can be 
     completed within the funds made available in that account and 
     that will not require new budget authority to complete: 
     Provided further, That the limitation concerning total 
     project costs in section 902 of the Water Resources 
     Development Act of 1986, as amended (33 U.S.C. 2280), shall 
     not apply during fiscal year 2009 to any project that 
     received funds provided in this title: Provided further, That 
     for projects that are being completed with funds appropriated 
     in this Act that would otherwise be expired for obligation, 
     expired funds appropriated in this Act may be used to pay the 
     cost of associated supervision, inspection, over engineering 
     and design on those projects and on subsequent claims, if 
     any: Provided further, That the Secretary shall have 
     unlimited reprogramming authority for these funds provided 
     under this heading.

                       operation and maintenance

       For an additional amount for ``Operation and Maintenance'' 
     for expenses necessary for the operation, maintenance, and 
     care of existing river and harbor, flood and storm damage 
     reduction, aquatic ecosystem restoration, and related 
     projects authorized by law, and for surveys and charting of 
     northern and northwestern lakes and connecting waters, 
     clearing and straightening channels, and removal of 
     obstructions to navigation, $1,900,000,000, of which such 
     sums as are necessary to cover the Federal share of operation 
     and maintenance costs for coastal harbors and channels, and 
     inland harbors shall be derived from the Harbor Maintenance 
     Trust Fund, pursuant to Public Law 99-662; and of which such 
     sums as become available under section 217 of the Water 
     Resources Development Act of 1996, Public Law 104-303, shall 
     be used to cover the cost of operation and maintenance of the 
     dredged material disposal facilities for which fees have been 
     collected: Provided, That funds provided under this heading 
     in this title shall only be used for programs, projects or 
     activities that heretofore or hereafter receive funds 
     provided in Acts making appropriations available for Energy 
     and Water Development: Provided further, That funds provided 
     under this heading in this title shall be used for programs, 
     projects or activities or elements of programs, projects or 
     activities that can be completed within the funds made 
     available in that account and that will not require new 
     budget authority to complete: Provided further, That 
     $90,000,000 of the funds provided under this heading shall be 
     used for activities described in section 9004 of Public Law 
     110-114: Provided further, That section 9006 of Public Law 
     110-114 shall not apply to funds provided in this title: 
     Provided further, That for projects that are being completed 
     with funds appropriated in this Act that would otherwise be 
     expired for obligation, expired funds appropriated in this 
     Act may be used to pay the cost of associated supervision, 
     inspection, over engineering and design on those projects and 
     on subsequent claims, if any: Provided further, That the 
     Secretary shall have unlimited reprogramming authority for 
     these funds provided under this heading.

                           regulatory program

       For an additional amount for ``Regulatory Program'' for 
     expenses necessary for administration of laws pertaining to 
     regulation of navigable waters and wetlands, $25,000,000 is 
     provided.

            formerly utilized sites remedial action program

       For an additional amount for ``Formerly Utilized Sites 
     Remedial Action Program'' for expenses necessary to clean up 
     contamination from sites in the United States resulting from 
     work performed as part of the Nation's early atomic energy 
     program, $100,000,000: Provided further, That funds provided 
     under this heading in this title shall be used for programs, 
     projects or activities or elements of programs, projects or 
     activities that can be completed within the funds made 
     available in that account and that will not require new 
     budget authority to complete: Provided further, That for 
     projects that are being completed with funds appropriated in 
     this Act that would otherwise be expired for obligation, 
     expired funds appropriated in this Act may be used to pay the 
     cost of associated supervision, inspection, over engineering 
     and design on those projects and on subsequent claims, if 
     any: Provided further, That the Secretary shall have 
     unlimited reprogramming authority for these funds provided 
     under this heading.

                 flood control and coastal emergencies

       For an additional amount for ``Flood Control and Coastal 
     Emergencies'' for expenses necessary for pre-placement of 
     materials and equipment, advance measures and other 
     activities authorized by law, $50,000,000 is provided.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation

                      water and related resources

       For an additional amount for management, development, and 
     restoration of water and related natural resources and for 
     related activities, including the operation, maintenance, and 
     rehabilitation of reclamation and other facilities, 
     participation in fulfilling related Federal responsibilities 
     to Native Americans, and related grants to, and cooperative 
     and other agreements with, State and local governments, 
     federally recognized Indian tribes, and others, 
     $1,400,000,000; of which such amounts as may be necessary may 
     be advanced to the Colorado River Dam Fund: Provided, That of 
     the total appropriated, the amount for program activities 
     that can be financed by the Reclamation Fund or the Bureau of 
     Reclamation special fee account established by 16 U.S.C. 
     460l-6a(i) shall be derived from that Fund or account: 
     Provided further, That funds contributed under 43 U.S.C. 395 
     are available until expended for the purposes for which 
     contributed: Provided further, That funds advanced under 43 
     U.S.C. 397a shall be credited to this account and are 
     available until expended for the same purposes as the sums 
     appropriated under this heading: Provided further, That funds 
     provided under this heading in this title shall only be used 
     for programs, projects or activities that heretofore or 
     hereafter receive funds provided in Acts making 
     appropriations available for Energy and Water Development: 
     Provided further, That funds provided in this Act shall be 
     used for elements of projects, programs or activities that 
     can be completed within these funding amounts and not create 
     budgetary obligations in future fiscal years: Provided 
     further, That $50,000,000 of the funds provided under this 
     heading may be transferred to the Department of the Interior 
     for programs, projects and activities authorized by the 
     Central Utah Project Completion Act (titles II-V of Public 
     Law 102-575): Provided further, That $50,000,000 of the funds 
     provided under this heading may be used for programs, 
     projects, and activities authorized by the California Bay-
     Delta Restoration Act (Public Law 108-361): Provided further, 
     That not less than $60,000,000 of the funds provided under 
     this heading shall be used for rural water projects and shall 
     be expended primarily on water intake and treatment 
     facilities of such projects: Provided further, That not less 
     than $10,000,000 of the funds provided under this heading 
     shall be used for a bureau-wide inspection of canals program 
     in urbanized areas: Provided further, That not less than 
     $110,000,000 of the funds provided under this heading shall 
     be used for water reclamation and reuse projects (title 16 of 
     Public Law 102-575): Provided further, That the costs of 
     reimbursable activities, other than for maintenance and 
     rehabilitation, carried out with funds provided in this Act 
     shall be repaid pursuant to existing authorities and 
     agreements: Provided further, That the costs of maintenance 
     and rehabilitation activities carried out with funds provided 
     in this Act shall be repaid pursuant to existing authority, 
     except the length of repayment period shall be determined on 
     needs-based criteria to be established and adopted by the 
     Commissioner, but in no case shall the repayment period 
     exceed 25 years: Provided further, That for projects that are 
     being completed with funds appropriated in this Act that 
     would otherwise be expired for obligation, expired funds 
     appropriated in this Act may be used to pay the cost of 
     associated supervision, inspection, over engineering and 
     design on those projects and on subsequent claims, if any: 
     Provided further, That the Secretary shall have unlimited 
     reprogramming authority for these funds provided under this 
     heading.

[[Page 3235]]



                          DEPARTMENT OF ENERGY

                            Energy Programs

                 energy efficiency and renewable energy

       For an additional amount for ``Energy Efficiency and 
     Renewable Energy'', $14,398,000,000, for necessary expenses, 
     to remain available until September 30, 2010: Provided, That 
     $4,200,000,000 shall be available for Energy Efficiency and 
     Conservation Block Grants for implementation of programs 
     authorized under subtitle E of title V of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17151 et 
     seq.), of which $2,100,000,000 is available through the 
     formula in subtitle E: Provided further, That the remaining 
     $2,100,000,000 shall be awarded on a competitive basis only 
     to competitive grant applicants from States in which the 
     Governor certifies to the Secretary of Energy that the 
     applicable State regulatory authority will implement the 
     integrated resource planning and rate design modifications 
     standards required to be considered under paragraphs (16) and 
     (17) of section 111(d) of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2621(d)(16) and (17)); and 
     the Governor will take all actions within his or her 
     authority to ensure that the State, or the applicable units 
     of local government that have authority to adopt building 
     codes, will implement--
       (A) building energy codes for residential buildings that 
     the Secretary determines are likely to meet or exceed the 
     2009 International Energy Conservation Code;
       (B) building energy codes for commercial buildings that the 
     Secretary determines are likely to meet or exceed the ANSI/
     ASHRAE/IESNA Standard 90.1-2007; and
       (C) a plan for implementing and enforcing the building 
     energy codes described in subparagraphs (A) and (B) that is 
     likely to ensure that at least 90 percent of the new and 
     renovated residential and commercial building space will meet 
     the standards within 8 years after the date of enactment of 
     this Act:

     Provided further, That $2,000,000,000 shall be available for 
     grants for the manufacturing of advanced batteries and 
     components and the Secretary shall provide facility funding 
     awards under this section to manufacturers of advanced 
     battery systems and vehicle batteries that are produced in 
     the United States, including advanced lithium ion batteries, 
     hybrid electrical systems, component manufacturers, and 
     software designers: Provided further, That notwithstanding 
     section 3304 of title 5, United States Code, and without 
     regard to the provisions of sections 3309 through 3318 of 
     such title 5, the Secretary of Energy, upon a determination 
     that there is a severe shortage of candidates or a critical 
     hiring need for particular positions, may from within the 
     funds provided, recruit and directly appoint highly qualified 
     individuals into the competitive service: Provided further, 
     That such authority shall not apply to positions in the 
     Excepted Service or the Senior Executive Service: Provided 
     further, That any action authorized herein shall be 
     consistent with the merit principles of section 2301 of such 
     title 5, and the Department shall comply with the public 
     notice requirements of section 3327 of such title 5.

              Electricity Delivery and Energy Reliability

       For an additional amount for ``Electricity Delivery and 
     Energy Reliability'', $4,500,000,000, for necessary expenses, 
     to remain available until September 30, 2010: Provided, That 
     $100,000,000 shall be available for worker training 
     activities: Provided further, That notwithstanding section 
     3304 of title 5, United States Code, and without regard to 
     the provisions of sections 3309 through 3318 of such title 5, 
     the Secretary of Energy, upon a determination that there is a 
     severe shortage of candidates or a critical hiring need for 
     particular positions, may from within the funds provided, 
     recruit and directly appoint highly qualified individuals 
     into the competitive service: Provided further, That such 
     authority shall not apply to positions in the Excepted 
     Service or the Senior Executive Service: Provided further, 
     That any action authorized herein shall be consistent with 
     the merit principles of section 2301 of such title 5, and the 
     Department shall comply with the public notice requirements 
     of section 3327 of such title 5: Provided, That for the 
     purpose of facilitating the development of regional 
     transmission plans, the Office of Electricity Delivery and 
     Energy Reliability within the Department of Energy is 
     provided $80,000,000 within the available funds to conduct a 
     resource assessment and an analysis of future demand and 
     transmission requirements: Provided further, That the Office 
     of Electricity Delivery and Energy Reliability will provide 
     technical assistance to the North American Electric 
     Reliability Corporation, the regional reliability entities, 
     the States, and other transmission owners and operators for 
     the formation of interconnection-based transmission plans for 
     the Eastern and Western Interconnections and ERCOT: Provided 
     further, That such assistance may include modeling, support 
     to regions and States for the development of coordinated 
     State electricity policies, programs, laws, and regulations: 
     Provided further, That $10,000,000 is provided to implement 
     section 1305 of Public Law 110-140.

                 Fossil Energy Research and Development

       For an additional amount for ``Fossil Energy Research and 
     Development'', $4,600,000,000, to remain available until 
     September 30, 2010: Provided, That $2,000,000,000 is 
     available for one or more near zero emissions powerplant(s): 
     Provided further, $1,000,000,000 is available for selections 
     under the Department's Clean Coal Power Initiative Round III 
     Funding Opportunity Announcement; notwithstanding the 
     mandatory eligibility requirements of the Funding Opportunity 
     Announcement, the Department shall consider applications that 
     utilize petroleum coke for some or all of the project's fuel 
     input: Provided further, $1,520,000,000 is available for a 
     competitive solicitation pursuant to section 703 of Public 
     Law 110-140 for projects that demonstrate carbon capture from 
     industrial sources: Provided further, That awards for such 
     projects may include plant efficiency improvements for 
     integration with carbon capture technology.

                   Non-Defense Environmental Cleanup

       For an additional amount for ``Non-Defense Environmental 
     Cleanup'', $483,000,000, to remain available until September 
     30, 2010.

      Uranium Enrichment Decontamination and Decommissioning Fund

       For an additional amount for ``Uranium Enrichment 
     Decontamination and Decommissioning Fund'', $390,000,000, to 
     remain available until September 30, 2010, of which 
     $70,000,000 shall be available in accordance with title X, 
     subtitle A of the Energy Policy Act of 1992.

                                Science

       For an additional amount for ``Science'', $330,000,000, to 
     remain available until September 30, 2010.

         Title 17--Innovative Technology Loan Guarantee Program

       Subject to section 502 of the Congressional Budget Act of 
     1974, commitments to guarantee loans under section 1702(b)(2) 
     of the Energy Policy Act of 2005, shall not exceed a total 
     principal amount of $50,000,000,000 for eligible projects, to 
     remain available until committed: Provided, That these 
     amounts are in addition to any authority provided elsewhere 
     in this Act and this and previous fiscal years: Provided 
     further, That such sums as are derived from amounts received 
     from borrowers pursuant to section 1702(b)(2) of the Energy 
     Policy Act of 2005 under this heading in this and prior Acts, 
     shall be collected in accordance with section 502(7) of the 
     Congressional Budget Act of 1974: Provided further, That the 
     source of such payment received from borrowers is not a loan 
     or other debt obligation that is guaranteed by the Federal 
     Government: Provided further, That pursuant to section 
     1702(b)(2) of the Energy Policy Act of 2005, no 
     appropriations are available to pay the subsidy cost of such 
     guarantees: Provided further, That none of the loan guarantee 
     authority made available in this Act shall be available for 
     commitments to guarantee loans under section 1702(b)(2) of 
     the Energy Policy Act of 2005 for any projects where funds, 
     personnel, or property (tangible or intangible) of any 
     Federal agency, instrumentality, personnel or affiliated 
     entity are expected to be used (directly or indirectly) 
     through acquisitions, contracts, demonstrations, exchanges, 
     grants, incentives, leases, procurements, sales, other 
     transaction authority, or other arrangements, to support the 
     project or to obtain goods or services from the project: 
     Provided further, That none of the loan guarantee authority 
     made available in this Act shall be available under section 
     1702(b)(2) of the Energy Policy Act of 2005 for any project 
     unless the Director of the Office of Management and Budget 
     has certified in advance in writing that the loan guarantee 
     and the project comply with the provisions under this title: 
     Provided further, That for an additional amount for the cost 
     of guaranteed loans authorized by section 1702(b)(1) and 
     section 1705 of the Energy Policy Act of 2005, 
     $8,500,000,000, available until expended, to pay the costs of 
     guarantees made under this section: Provided further, That of 
     the amount provided for Title XVII, $15,000,000 shall be used 
     for administrative expenses in carrying out the guaranteed 
     loan program.

                    Office of the Inspector General

       For necessary expenses of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended, $5,000,000, to remain 
     available until September 30, 2012, and an additional 
     $10,000,000 for such purposes, to remain available until 
     September 30, 2012.

                    ATOMIC ENERGY DEFENSE ACTIVITIES

                National Nuclear Security Administration

                           weapons activities

       For an additional amount for weapons activities, 
     $1,000,000,000, to remain available until September 30, 2010.

               Environmental and Other Defense Activities

                     defense environmental cleanup

       For an additional amount for ``Defense Environmental 
     Cleanup'', $5,527,000,000, to remain available until 
     September 30, 2010.

[[Page 3236]]



Construction, Rehabilitation, Operation, and Maintenance, Western Area 
                          Power Administration

       For carrying out the functions authorized by title III, 
     section 302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 
     7152), and other related activities including conservation 
     and renewable resources programs as authorized, $10,000,000, 
     to remain available until expended: Provided, That the 
     Administrator shall establish such personnel staffing levels 
     as he deems necessary to economically and efficiently 
     complete the activities pursued under the authority granted 
     by section 402 of this Act: Provided further, That this 
     appropriation is non-reimbursable.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 401.  Bonneville Power Administration Borrowing 
     Authority. For the purposes of providing funds to assist in 
     financing the construction, acquisition, and replacement of 
     the transmission system of the Bonneville Power 
     Administration and to implement the authority of the 
     Administrator of the Bonneville Power Administration under 
     the Pacific Northwest Electric Power Planning and 
     Conservation Act (16 U.S.C. 839 et seq.), an additional 
     $3,250,000,000 in borrowing authority is made available under 
     the Federal Columbia River Transmission System Act (16 U.S.C. 
     838 et seq.), to remain outstanding at any time.
       Sec. 402.  Western Area Power Administration Borrowing 
     Authority. The Hoover Power Plant Act of 1984 (Public Law 98-
     381) is amended by adding at the end the following:

                    ``TITLE III--BORROWING AUTHORITY

     ``SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING 
                   AUTHORITY.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Western Area Power Administration.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(b) Authority.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, subject to paragraphs (2) through (5)--
       ``(A) the Western Area Power Administration may borrow 
     funds from the Treasury; and
       ``(B) the Secretary shall, without further appropriation 
     and without fiscal year limitation, loan to the Western Area 
     Power Administration, on such terms as may be fixed by the 
     Administrator and the Secretary, such sums (not to exceed, in 
     the aggregate (including deferred interest), $3,250,000,000 
     in outstanding repayable balances at any one time) as, in the 
     judgment of the Administrator, are from time to time required 
     for the purpose of--
       ``(i) constructing, financing, facilitating, planning, 
     operating, maintaining, or studying construction of new or 
     upgraded electric power transmission lines and related 
     facilities with at least one terminus within the area served 
     by the Western Area Power Administration; and
       ``(ii) delivering or facilitating the delivery of power 
     generated by renewable energy resources constructed or 
     reasonably expected to be constructed after the date of 
     enactment of this section.
       ``(2) Interest.--The rate of interest to be charged in 
     connection with any loan made pursuant to this subsection 
     shall be fixed by the Secretary, taking into consideration 
     market yields on outstanding marketable obligations of the 
     United States of comparable maturities as of the date of the 
     loan.
       ``(3) Refinancing.--The Western Area Power Administration 
     may refinance loans taken pursuant to this section within the 
     Treasury.
       ``(4) Participation.--The Administrator may permit other 
     entities to participate in the financing, construction and 
     ownership projects financed under this section.
       ``(5) Congressional review of disbursement.--Effective upon 
     the date of enactment of this section, the Administrator 
     shall have the authority to have utilized $1,750,000,000 at 
     any one time. If the Administrator seeks to borrow funds 
     above $1,750,000,000, the funds will be disbursed unless 
     there is enacted, within 90 calendar days of the first such 
     request, a joint resolution that rescinds the remainder of 
     the balance of the borrowing authority provided in this 
     section.
       ``(c) Transmission Line and Related Facility Projects.--
       ``(1) In general.--For repayment purposes, each 
     transmission line and related facility project in which the 
     Western Area Power Administration participates pursuant to 
     this section shall be treated as separate and distinct from--
       ``(A) each other such project; and
       ``(B) all other Western Area Power Administration power and 
     transmission facilities.
       ``(2) Proceeds.--The Western Area Power Administration 
     shall apply the proceeds from the use of the transmission 
     capacity from an individual project under this section to the 
     repayment of the principal and interest of the loan from the 
     Treasury attributable to that project, after reserving such 
     funds as the Western Area Power Administration determines are 
     necessary--
       ``(A) to pay for any ancillary services that are provided; 
     and
       ``(B) to meet the costs of operating and maintaining the 
     new project from which the revenues are derived.
       ``(3) Source of revenue.--Revenue from the use of projects 
     under this section shall be the only source of revenue for--
       ``(A) repayment of the associated loan for the project; and
       ``(B) payment of expenses for ancillary services and 
     operation and maintenance.
       ``(4) Limitation on authority.--Nothing in this section 
     confers on the Administrator any additional authority or 
     obligation to provide ancillary services to users of 
     transmission facilities developed under this section.
       ``(5) Treatment of certain revenues.--Revenue from 
     ancillary services provided by existing Federal power systems 
     to users of transmission projects funded pursuant to this 
     section shall be treated as revenue to the existing power 
     system that provided the ancillary services.
       ``(d) Certification.--
       ``(1) In general.--For each project in which the Western 
     Area Power Administration participates pursuant to this 
     section, the Administrator shall certify, prior to committing 
     funds for any such project, that--
       ``(A) the project is in the public interest;
       ``(B) the project will not adversely impact system 
     reliability or operations, or other statutory obligations; 
     and
       ``(C) it is reasonable to expect that the proceeds from the 
     project shall be adequate to make repayment of the loan.
       ``(2) Forgiveness of balances.--
       ``(A) In general.--If, at the end of the useful life of a 
     project, there is a remaining balance owed to the Treasury 
     under this section, the balance shall be forgiven.
       ``(B) Unconstructed projects.--Funds expended to study 
     projects that are considered pursuant to this section but 
     that are not constructed shall be forgiven.
       ``(C) Notification.--The Administrator shall notify the 
     Secretary of such amounts as are to be forgiven under this 
     paragraph.
       ``(e) Public Processes.--
       ``(1) Policies and practices.--Prior to requesting any 
     loans under this section, the Administrator shall use a 
     public process to develop practices and policies that 
     implement the authority granted by this section.
       ``(2) Requests for interest.--In the course of selecting 
     potential projects to be funded under this section, the 
     Administrator shall seek Requests For Interest from entities 
     interested in identifying potential projects through one or 
     more notices published in the Federal Register.''
       Sec. 403.  Technical Corrections to the Energy Independence 
     and Security Act of 2007. Title XIII of the Energy 
     Independence and Security Act of 2007 (15 U.S.C. 17381 and 
     following) is amended as follows:
       (1) By amending subparagraph (A) of section 1304(b)(3) to 
     read as follows:
       ``(A) In general.--In carrying out the initiative, the 
     Secretary shall provide financial support to smart grid 
     demonstration projects including those in rural areas and/or 
     areas where the majority of generation and transmission 
     assets are controlled by a tax-exempt entity.''.
       (2) By amending subparagraph (C) of section 1304(b)(3) to 
     read as follows:
       ``(C) Federal share of cost of technology investments.--The 
     Secretary shall provide to an electric utility described in 
     subparagraph (B) or to other parties financial assistance for 
     use in paying an amount equal to not more than 50 percent of 
     the cost of qualifying advanced grid technology investments 
     made by the electric utility or other party to carry out a 
     demonstration project.''.
       (3) By inserting a new subparagraph (E) after 1304(b)(3)(D) 
     as follows:
       ``(E) Availability of data.--The Secretary shall establish 
     and maintain a smart grid information clearinghouse in a 
     timely manner which will make data from smart grid 
     demonstration projects and other sources available to the 
     public. As a condition of receiving financial assistance 
     under this subsection, a utility or other participant in a 
     smart grid demonstration project shall provide such 
     information as the Secretary may require to become available 
     through the smart grid information clearinghouse in the form 
     and within the timeframes as directed by the Secretary. The 
     Secretary shall assure that business proprietary information 
     and individual customer information is not included in the 
     information made available through the clearinghouse.''.
       (4) By amending paragraph (2) of section 1304(c) to read as 
     follows:
       ``(2) to carry out subsection (b), such sums as may be 
     necessary.''.
       (5) By amending subsection (a) of section 1306 by striking 
     ``reimbursement of one-fifth (20 percent)'' and inserting 
     ``grants of up to one-half (50 percent)''.
       (6) By striking the last sentence of subsection (b)(9) of 
     section 1306.
       (7) By striking ``are eligible for'' in subsection (c)(1) 
     of section 1306 and inserting ``utilize''.
       (8) By amending subsection (e) of section 1306 to read as 
     follows:
       ``(e) The Secretary shall--
       ``(1) establish within 60 days after the enactment of the 
     American Recovery and Reinvestment Act of 2009 procedures by 
     which applicants can obtain grants of not more than one-half 
     of their documented costs;

[[Page 3237]]

       ``(2) establish procedures to ensure that there is no 
     duplication or multiple payment for the same investment or 
     costs, that the grant goes to the party making the actual 
     expenditures for Qualifying Smart Grid Investments, and that 
     the grants made have significant effect in encouraging and 
     facilitating the development of a smart grid;
       ``(3) maintain public records of grants made, recipients, 
     and qualifying Smart Grid investments which have received 
     grants;
       ``(4) establish procedures to provide advance payment of 
     moneys up to the full amount of the grant award; and
       ``(5) have and exercise the discretion to deny grants for 
     investments that do not qualify in the reasonable judgment of 
     the Secretary.''.
       Sec. 404.  Temporary Stimulus Loan Guarantee Program.  (a) 
     Amendment.--Title XVII of the Energy Policy Act of 2005 (42 
     U.S.C. 16511 et seq.) is amended by adding the following at 
     the end:

     ``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF 
                   RENEWABLE ENERGY AND ELECTRIC POWER 
                   TRANSMISSION PROJECTS.

       ``(a) In General.--Notwithstanding section 1703, the 
     Secretary may make guarantees under this section only for 
     commercial technology projects under subsection (b) that will 
     reach financial close not later than September 30, 2012.
       ``(b) Categories.--Projects from only the following 
     categories shall be eligible for support under this section:
       ``(1) Renewable energy systems.
       ``(2) Electric power transmission systems.
       ``(c) Authorization Limit.--There are authorized to be 
     appropriated $10,000,000,000 to the Secretary for fiscal 
     years 2009 through 2012 to provide the cost of guarantees 
     made under section.
       ``(d) Sunset.--The authority to enter into guarantees under 
     this section shall expire on September 30, 2012.''.
       (b) Table of Contents Amendment.--The table of contents for 
     the Energy Policy Act of 2005 is amended by inserting after 
     the item relating to section 1704 the following new item:

``Sec. 1705. Temporary program for rapid deployment of renewable energy 
              and electric power transmission projects.''.

       Sec. 405.  Weatherization Program Amendments. (a) Income 
     Level.--Section 412(7) of the Energy Conservation and 
     Production Act (42 U.S.C. 6862(7)) is amended by striking 
     ``150 percent'' both places it appears and inserting ``200 
     percent''.
       (b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) 
     of the Energy Conservation and Production Act (42 U.S.C. 
     6865(c)(1)) is amended by striking ``$2,500'' and inserting 
     ``$5,000''.
       (c) Training and Technical Assistance.--Section 416 of the 
     Energy Conservation and Production Act (42 U.S.C. 6866) is 
     amended by striking ``10 percent'' and inserting ``up to 20 
     percent''.
       Sec. 406.  Technical Corrections to Public Utility 
     Regulatory Policies Act of 1978. (a) Section 111(d) of the 
     Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2621(d)) is amended by redesignating paragraph (16) relating 
     to consideration of smart grid investments (added by section 
     1307(a) of Public Law 110-140) as paragraph (18) and by 
     redesignating paragraph (17) relating to smart grid 
     information (added by section 1308(a) of Public Law 110-140) 
     as paragraph (19).
       (b) Subsections (b) and (d) of section 112 of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) are 
     each amended by striking ``(17) through (18)'' in each place 
     it appears and inserting ``(16) through (19)''.

           TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                       DEPARTMENT OF THE TREASURY

   Community Development Financial Institutions Fund Program Account

       For an additional amount for ``Community Development 
     Financial Institutions Fund Program Account'', $250,000,000, 
     to remain available until September 30, 2010, for qualified 
     applicants under the fiscal year 2008 and 2009 funding rounds 
     of the Community Development Financial Institutions Program, 
     of which up to $20,000,000 may be for financial assistance, 
     technical assistance, training and outreach programs, 
     including up to $5,000 for subsistence expenses, designed to 
     benefit Native American, Native Hawaiian, and Alaskan Native 
     communities and provided primarily through qualified 
     community development lender organizations with experience 
     and expertise in community development banking and lending in 
     Indian country, Native American organizations, tribes and 
     tribal organizations and other suitable providers and up to 
     $5,000,000 may be used for administrative expenses: Provided, 
     That for purposes of the fiscal year 2008 and 2009 funding 
     rounds, the following statutory provisions are hereby waived: 
     12 U.S.C. 4707(e) and 12 U.S.C. 4707(d): Provided further, 
     That no awardee, together with its subsidiaries and 
     affiliates, may be awarded more than 15 percent of the 
     aggregate funds available during each of fiscal years 2008 
     and 2009 from the Community Development Financial 
     Institutions Program: Provided further, That no later than 60 
     days after the date of enactment of this Act, the Department 
     of the Treasury shall submit to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     a detailed expenditure plan for funds provided under this 
     heading.

                          DISTRICT OF COLUMBIA

                            Federal Payments

 federal payment to the district of columbia water and sewer authority

       For a Federal payment to the District of Columbia Water and 
     Sewer Authority, $125,000,000, to remain available until 
     September 30, 2010, to continue implementation of the 
     Combined Sewer Overflow Long-Term Control Plan: Provided, 
     That the District of Columbia Water and Sewer Authority 
     provide a 100 percent match for this payment: Provided 
     further, That no later than 60 days after the date of 
     enactment of this Act, the District of Columbia Water and 
     Sewer Authority shall submit to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     a detailed expenditure plan for funds provided under this 
     heading: Provided further, That such expenditure plan shall 
     include a description of each specific project, how specific 
     projects will further the objectives of the Long-Term Control 
     Plan, and all funding sources for each project.

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities

                         federal buildings fund

                 limitations on availability of revenue

                     (including transfer of funds)

       For an additional amount to be deposited in the Federal 
     Buildings Fund, $5,548,000,000, to carry out the purposes of 
     the Fund, of which not less than $1,400,000,000 shall be 
     available for Federal buildings and United States 
     courthouses, not less than $1,200,000,000 shall be available 
     for border stations, and not less than $2,500,000,000 shall 
     be available for measures necessary to convert GSA facilities 
     to High-Performance Green Buildings, as defined in section 
     401 of Public Law 110-140: Provided, That not to exceed 
     $108,000,000 of the amounts provided under this heading may 
     be expended for rental of space, related to leasing of 
     temporary space in connection with projects funded under this 
     heading: Provided further, That not to exceed $127,000,000 of 
     the amounts provided under this heading may be expended for 
     building operations, for the administrative costs of 
     completing projects funded under this heading: Provided 
     further, That not less than $5,000,000,000 of the funds 
     provided under this heading shall be obligated by September 
     30, 2010: Provided further, That the Administrator of General 
     Services is authorized to initiate design, construction, 
     repair, alteration, and other projects through existing 
     authorities of the Administrator: Provided further, That the 
     General Services Administration shall submit a detailed plan, 
     by project, regarding the use of funds made available in this 
     Act to the Committees on Appropriations of the House of 
     Representatives and the Senate within 60 days of enactment of 
     this Act: Provided further, That of the amounts provided for 
     converting GSA facilities to High-Performance Green 
     Buildings, $4,000,000 shall be transferred to and merged with 
     ``Government-Wide Policy'', for carrying out the provisions 
     of section 436 of the Energy Independence and Security Act of 
     2007 (Public Law 110-140), establishing an Office of Federal 
     High-Performance Green Buildings, to remain available until 
     September 30, 2010: Provided further, That within the overall 
     amount to be deposited into the Fund, $448,000,000 shall 
     remain available until September 30, 2011, for the 
     development and construction of the headquarters for the 
     Department of Homeland Security, except that none of the 
     preceding provisos shall apply to amounts made available 
     under this proviso.

        Energy-Efficient Federal Motor Vehicle Fleet Procurement

       For capital expenditures and necessary expenses of 
     acquiring motor vehicles with higher fuel economy, including: 
     hybrid vehicles; neighborhood electric vehicles; electric 
     vehicles; and commercially-available, plug-in hybrid 
     vehicles, $300,000,000, to remain available until September 
     30, 2011.

                      Office of Inspector General

       For an additional amount for the Office of the Inspector 
     General, to remain available until September 30, 2011, 
     $2,000,000 and an additional $5,000,000 for such purposes, to 
     remain available until September 30, 2012.

           RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

       For necessary expenses of the Recovery Act Accountability 
     and Transparency Board to carry out the provisions of title 
     XV of this Act, $7,000,000, to remain available until 
     September 30, 2010.

                     SMALL BUSINESS ADMINISTRATION

                         Salaries and Expenses

       For an additional amount, to remain available until 
     September 30, 2010, $84,000,000, of which $24,000,000 is for 
     marketing, management, and technical assistance under section 
     7(m) of the Small Business Act (15 U.S.C. 636(m)(4)) by 
     intermediaries that make microloans under the microloan 
     program, of which $15,000,000 is for lender oversight 
     activities as authorized in section 501(c) of this title, and 
     of which $20,000,000 is for improving, streamlining, and 
     automating information technology systems related to lender

[[Page 3238]]

     processes and lender oversight: Provided, That no later than 
     60 days after the date of enactment of this Act, the Small 
     Business Administration shall submit to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     a detailed expenditure plan for funds provided under the 
     heading ``Small Business Administration'' in this Act.

                      Office of Inspector General

       For an additional amount for the Office of Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, $10,000,000, to remain available until 
     September 30, 2011.

                 Surety Bond Guarantees Revolving Fund

       For additional capital for the Surety Bond Guarantees 
     Revolving Fund, authorized by the Small Business Investment 
     Act of 1958, $15,000,000, to remain available until expended.

                     Business Loans Program Account

       For an additional amount for the cost of direct loans, 
     $6,000,000, to remain available until September 30, 2010, and 
     for an additional amount for the cost of guaranteed loans, 
     $615,000,000, to remain available until September 30, 2010: 
     Provided, That of the amount for the cost of guaranteed 
     loans, $515,000,000 shall be for loan subsidies and loan 
     modifications for loans to small business concerns authorized 
     in section 501(a) of this title; and $100,000,000 shall be 
     for loan subsidies and loan modifications for loans to small 
     business concerns authorized in section 501(b) of this title: 
     Provided further, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974.

        Administrative Provisions--Small Business Administration

       Sec. 501.  Economic Stimulus for Small Business Concerns.  
     (a) Temporary Fee Elimination for the 7(a) Loan Program.--
     Until September 30, 2010, and to the extent that the cost of 
     such elimination of fees is offset by appropriations, with 
     respect to each loan guaranteed under section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) for which the 
     application is approved on or after the date of enactment of 
     this Act, the Administrator shall--
       (1) in lieu of the fee otherwise applicable under section 
     7(a)(23)(A) of the Small Business Act (15 U.S.C. 
     636(a)(23)(A)), collect no fee; and
       (2) in lieu of the fee otherwise applicable under section 
     7(a)(18)(A) of the Small Business Act (15 U.S.C. 
     636(a)(18)(A)), collect no fee.
       (b) Temporary Fee Elimination for the 504 Loan Program.--
       (1) In General.--Until September 30, 2010, and to the 
     extent the cost of such elimination in fees is offset by 
     appropriations, with respect to each project or loan 
     guaranteed by the Administrator under title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for 
     which an application is approved or pending approval on or 
     after the date of enactment of this Act--
       (A) the Administrator shall, in lieu of the fee otherwise 
     applicable under section 503(d)(2) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
       (B) a development company shall, in lieu of the processing 
     fee under section 120.971(a)(1) of title 13, Code of Federal 
     Regulations (relating to fees paid by borrowers), or any 
     successor thereto, collect no fee.
       (2) Reimbursement for Waived Fees.--
       (A) In General.--To the extent that the cost of such 
     payments is offset by appropriations, the Administrator shall 
     reimburse each development company that does not collect a 
     processing fee pursuant to paragraph (1)(B).
       (B) Amount.--The payment to a development company under 
     subparagraph (A) shall be in an amount equal to 1.5 percent 
     of the net debenture proceeds for which the development 
     company does not collect a processing fee pursuant to 
     paragraph (1)(B).
       (c) Temporary Fee Elimination of Lender Oversight Fees.--
     Until September 30, 2010, and to the extent the cost of such 
     elimination in fees is offset by appropriations, the 
     Administrator shall, in lieu of the fee otherwise applicable 
     under section 5(b)(14) of the Small Business Act (15 U.S.C. 
     634(b)(14)), collect no fee.
       (d) Application of Fee Eliminations.--The Administrator 
     shall eliminate fees under subsections (a), (b), and (c) 
     until the amount provided for such purposes, as applicable, 
     under the headings ``Salaries and Expenses'' and ``Business 
     Loans Program Account'' under the heading ``Small Business 
     Administration'' under this Act are expended.
       Sec. 502.  Financial Assistance Program Improvements.  (a) 
     7(a) Loan Maximum Amount.--Section 7(a)(3)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking 
     ``$1,500,000 (or if the gross loan amount would exceed 
     $2,000,000)'' and inserting ``$2,250,000 (or if the gross 
     loan amount would exceed $3,000,000)''.
       (b) Small Business Investment Companies.--
       (1) Maximum leverage.--Section 303(b) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683(b)) is amended--
       (A) in paragraph (2), by striking subparagraphs (A), (B), 
     and (C) and inserting the following:
       ``(A) In general.--The maximum amount of outstanding 
     leverage made available to any 1 company licensed under 
     section 301(c) may not exceed the lesser of--
       ``(i) 300 percent of the private capital of the company; or
       ``(ii) $150,000,000.
       ``(B) Multiple licenses under common control.--The maximum 
     amount of outstanding leverage made available to 2 or more 
     companies licensed under section 301(c) that are commonly 
     controlled (as determined by the Administrator) may not 
     exceed $225,000,000.
       ``(C) Investments in low-income geographic areas.--
       ``(i) In general.--The maximum amount of outstanding 
     leverage made available to--

       ``(I) any 1 company described in clause (ii) may not exceed 
     the lesser of--

       ``(aa) 300 percent of private capital of the company; or
       ``(bb) $175,000,000; and

       ``(II) 2 or more companies described in clause (ii) that 
     are commonly controlled (as determined by the Administrator) 
     may not exceed $250,000,000.

       ``(ii) Applicability.--A company described in this clause 
     is a company licensed under section 301(c) that certifies in 
     writing that not less than 50 percent of the dollar amount of 
     investments of that company shall be made in companies that 
     are located in a low-income geographic area (as that term is 
     defined in section 351).''; and
       (B) by striking paragraph (4).
       (2) Investments in smaller enterprises.--Section 303(d) of 
     the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) 
     is amended to read as follows:
       ``(d) Investments in Smaller Enterprises.--The 
     Administrator shall require each licensee, as a condition of 
     approval of an application for leverage, to certify in 
     writing that not less than 25 percent of the aggregate dollar 
     amount of financings of that licensee shall be provided to 
     smaller enterprises.''.
       (3) Maximum investment in a company.--Section 306(a) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is 
     amended by striking ``20 per centum'' and inserting ``30 
     percent''.
       (c) Maximum 504 Loan Size.--Section 502(2)(A) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is 
     amended--
       (1) in clause (i), by striking ``$1,500,000'' and inserting 
     ``$3,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$3,500,000''; and
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''.
       Sec. 503.  Low-Interest Refinancing. Section 502 of the 
     Small Business Investment Act of 1958 (15 U.S.C. 696) is 
     amended by adding at the end the following:
       ``(7) Permissible debt financing.--A financing under this 
     title may include refinancing of existing indebtedness, in an 
     amount not to exceed 50 percent of the projected cost of the 
     project financed under this title, if--
       ``(A) the project financed under this title involves the 
     expansion of a small business concern;
       ``(B) the existing indebtedness is collateralized by fixed 
     assets;
       ``(C) the existing indebtedness was incurred for the 
     benefit of the small business concern;
       ``(D) the proceeds of the existing indebtedness were used 
     to acquire land (including a building situated thereon), to 
     construct or expand a building thereon, or to purchase 
     equipment;
       ``(E) the borrower has been current on all payments due on 
     the existing indebtedness for not less than 1 year preceding 
     the proposed date of refinancing;
       ``(F) the financing under this title will provide better 
     terms or a better rate of interest than exists on the 
     existing indebtedness on the proposed date of refinancing;
       ``(G) the financing under this title is not being used to 
     refinance any debt guaranteed by the Government; and
       ``(H) the financing under this title will be used only 
     for--
       ``(i) refinancing existing indebtedness; or
       ``(ii) costs relating to the project financed under this 
     title.''.
       Sec. 504.  Definitions. Under the heading ``Small Business 
     Administration'' in this title--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``development company'' has the meaning given 
     the term ``development companies'' in section 103 of the 
     Small Business Investment Act of 1958 (15 U.S.C. 662); and
       (3) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632).

     SEC. 505. SURETY BONDS.

       (a) Maximum Bond Amount.--Section 411(a)(1) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is 
     amended--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by striking ``$2,000,000'' and inserting 
     ``$5,000,000''; and
       (3) by adding at the end the following:
       ``(B) The Administrator may guarantee a surety under 
     subparagraph (A) for a total work order or contract amount 
     that does not

[[Page 3239]]

     exceed $10,000,000, if a contracting officer of a Federal 
     agency certifies that such a guarantee is necessary.''.
       (b) Size Standards.--Section 410 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 694a) is amended by adding 
     at the end the following:
       ``(9) Notwithstanding any other provision of law or any 
     rule, regulation, or order of the Administration, for 
     purposes of sections 410, 411, and 412 the term `small 
     business concern' means a business concern that meets the 
     size standard for the primary industry in which such business 
     concern, and the affiliates of such business concern, is 
     engaged, as determined by the Administrator in accordance 
     with the North American Industry Classification System.''.
       (c) Sunset.--The amendments made by this section shall 
     remain in effect until September 30, 2010.
       Sec. 506.--Office of Inspector General. For an additional 
     amount for ``Treasury Office of Inspector General for Tax 
     Administration'', $7,000,000, to remain available until 
     September 30, 2012, for oversight and audit of programs 
     grants and activities funded under this title.

               TITLE VI--DEPARTMENT OF HOMELAND SECURITY

                    DEPARTMENT OF HOMELAND SECURITY

              Office of the Under Secretary for Management

       For an additional amount for the ``Office of the Under 
     Secretary for Management'', $198,000,000, to remain available 
     until September 30, 2011, solely for planning, design, and 
     construction costs, including site security, information 
     technology infrastructure, fixtures, and related costs to 
     consolidate the Department of Homeland Security headquarters: 
     Provided, That no later than 60 days after the date of 
     enactment of this Act, the Secretary of Homeland Security, in 
     consultation with the Administrator of General Services, 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives a plan for the 
     expenditure of these funds.

                      office of inspector general

       For an additional amount for the ``Office of Inspector 
     General'', $5,000,000, to remain available until September 
     30, 2012, for oversight and audit of programs, grants, and 
     projects funded under this title.

                   U.S. Customs and Border Protection

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $198,000,000, to remain available until September 30, 2010, 
     of which $100,800,000 shall be for the procurement and 
     deployment of non-intrusive inspection systems to improve 
     port security; and of which $97,200,000 shall be for 
     procurement and deployment of tactical communications 
     equipment and radios: Provided, That no later than 45 days 
     after the date of enactment of this Act, the Secretary of 
     Homeland Security shall submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan for expenditure of these funds.

        border security fencing, infrastructure, and technology

       For an additional amount for ``Border Security Fencing, 
     Infrastructure, and Technology'', $200,000,000, to remain 
     available until September 30, 2010, for expedited development 
     and deployment of border security technology on the Southwest 
     border: Provided, That no later than 45 days after the date 
     of enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives a plan for 
     expenditure of these funds.

                              construction

       For an additional amount for ``Construction'', 
     $800,000,000, to remain available until expended, solely for 
     planning, management, design, alteration, and construction of 
     U.S. Customs and Border Protection owned land border ports of 
     entry: Provided, That no later than 45 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives a plan for 
     expenditure of these funds.

                U.S. Immigration and Customs Enforcement

                        automation modernization

       For an additional amount for ``Automation Modernization'', 
     $27,800,000, to remain available until September 30, 2010, 
     for the procurement and deployment of tactical communications 
     equipment and radios: Provided, That no later than 45 days 
     after the date of enactment of this Act, the Secretary of 
     Homeland Security shall submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan for expenditure of these funds.

                 Transportation Security Administration

                           aviation security

       For an additional amount for ``Aviation Security'', 
     $1,000,000,000, to remain available until September 30, 2010, 
     for procurement and installation of checked baggage 
     explosives detection systems and checkpoint explosives 
     detection equipment: Provided, That no later than 45 days 
     after the date of enactment of this Act, the Secretary of 
     Homeland Security shall submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan for the expenditure of these funds.

                              Coast Guard

              acquisition, construction, and improvements

       For an additional amount for ``Acquisition, Construction, 
     and Improvements'', $450,000,000, to remain available until 
     September 30, 2010, of which $195,000,000 shall be for shore 
     facilities and aids to navigation facilities; and of which 
     $255,000,000 shall be for priority procurements due to 
     materials and labor cost increases, and to repair, renovate, 
     assess, or improve vessels: Provided, That amounts made 
     available for the activities under this heading shall be 
     available for all necessary expenses related to the oversight 
     and management of such activities: Provided further, That no 
     later than 45 days after the date of enactment of this Act, 
     the Secretary of Homeland Security shall submit to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives a plan for the expenditure of these funds.

                         alteration of bridges

       For an additional amount for ``Alteration of Bridges'', 
     $240,400,000, to remain available until September 30, 2010, 
     for alteration or removal of obstructive bridges, as 
     authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 
     516): Provided, That no later than 45 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives a plan for the 
     expenditure of these funds.

                  Federal Emergency Management Agency

                     management and administration

       For an additional amount for ``Management and 
     Administration'', $6,000,000 for the acquisition of 
     communications response vehicles to be deployed in response 
     to a disaster or a national security event.

                        state and local programs

       For an additional amount for grants, $950,000,000, to be 
     allocated as follows:
       (1) $100,000,000, to remain available until September 30, 
     2010, for Public Transportation Security Assistance, Railroad 
     Security Assistance, and Systemwide Amtrak Security Upgrades 
     under sections 1406, 1513, and 1514 of the Implementing 
     Recommendations of the 9/11 Commission Act of 2007 (Public 
     Law 110-53; 6 U.S.C. 1135, 1163, and 1164).
       (2) $100,000,000, to remain available until September 30, 
     2010, for Port Security Grants in accordance with 46 U.S.C. 
     70107, notwithstanding 46 U.S.C. 70107(c).
       (3) $250,000,000, to remain available until September 30, 
     2010, for upgrading, modifying, or constructing emergency 
     operations centers under section 614 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, 
     notwithstanding section 614(c) of that Act or for upgrading, 
     modifying, or constructing State and local fusion centers as 
     defined by section 210A(j)(1) of the Homeland Security Act of 
     2002 (6 U.S.C. 124h(j)(1)).
       (4) $500,000,000 for construction to upgrade or modify 
     critical infrastructure, as defined in section 1016(e) of the 
     USA PATRIOT Act of 2001 (42 U.S.C. 5195c(e)), to mitigate 
     consequences related to potential damage from all-hazards: 
     Provided, That funds in this paragraph shall remain available 
     until September 30, 2011: Provided further, That 5 percent 
     shall be for program administration: Provided further, That 
     no later than 60 days after the date of enactment of this 
     Act, the Secretary of Homeland Security shall submit to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives a plan for expenditure of these funds.

                     firefighter assistance grants

       For an additional amount for competitive grants, 
     $500,000,000, to remain available until September 30, 2010, 
     for modifying, upgrading, or constructing State and local 
     fire stations: Provided, That up to 5 percent shall be for 
     program administration: Provided further, That no grant shall 
     exceed $15,000,000.

            disaster assistance direct loan program account

       Notwithstanding section 417(b) of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act, the amount of 
     any such loan issued pursuant to this section for major 
     disasters occurring in calendar year 2008 may exceed 
     $5,000,000, and may be equal to not more than 50 percent of 
     the annual operating budget of the local government in any 
     case in which that local government has suffered a loss of 25 
     percent or more in tax revenues: Provided, That the cost of 
     modifying such loans shall be as defined in section 502 of 
     the Congressional Budget Act of 1974 (2 U.S.C. 661a).

                       emergency food and shelter

       For an additional amount to carry out the emergency food 
     and shelter program pursuant to title III of the McKinney-
     Vento Homeless Assistance Act (42 U.S.C. 11331 et seq.), 
     $100,000,000: Provided, That total administrative costs shall 
     not exceed 3.5 percent of the total amount made available 
     under this heading.

[[Page 3240]]



                Federal Law Enforcement Training Center

     acquisition, construction, improvements, and related expenses

       For an additional amount for ``Acquisition, Construction, 
     Improvements, and Related Expenses'', $15,000,000, to remain 
     available until September 30, 2010, for security systems and 
     law enforcement upgrades for all Federal Law Enforcement 
     Training Center facilities: Provided, That no later than 45 
     days after the date of enactment of this Act, the Secretary 
     of Homeland Security shall submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan for the expenditure of these funds.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 601.  Notwithstanding any other provision of law, the 
     President shall establish an arbitration panel under the 
     Federal Emergency Management Agency public assistance program 
     to expedite the recovery efforts from Hurricanes Katrina, 
     Rita, Gustav, and Ike within the Gulf Coast Region. The 
     arbitration panel shall have sufficient authority regarding 
     the award or denial of disputed public assistance 
     applications for covered hurricane damage under section 403, 
     406, or 407 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170b, 5172, or 5173) for 
     a project the total amount of which is more than $500,000.
       Sec. 602.  The Administrator of the Federal Emergency 
     Management Agency may not prohibit or restrict the use of 
     funds designated under the hazard mitigation grant program 
     for damage caused by Hurricanes Katrina and Rita if the 
     homeowner who is an applicant for assistance under such 
     program commenced work otherwise eligible for hazard 
     mitigation grant program assistance under section 404 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5170c) without approval in writing from the 
     Administrator.

         TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                   management of lands and resources

       For an additional amount for ``Management of Lands and 
     Resources'', $135,000,000, to remain available until 
     September 30, 2010.

                              construction

       For an additional amount for ``Construction'', 
     $180,000,000, to remain available until September 30, 2010.

                        wildland fire management

       For an additional amount for ``Wildland Fire Management'', 
     $15,000,000, to remain available until September 30, 2010.

                United States Fish and Wildlife Service

                          resource management

       For an additional amount for ``Resource Management'', 
     $165,000,000, to remain available until September 30, 2010.

                              construction

       For an additional amount for ``Construction'', 
     $110,000,000, to remain available until September 30, 2010.

                         National Park Service

                 operation of the national park system

       For an additional amount for ``Operation of the National 
     Park System'', $158,000,000, to remain available until 
     September 30, 2010.

                              construction

       For an additional amount for ``Construction'', 
     $589,000,000, to remain available until September 30, 2010.

                    United States Geological Survey

                 surveys, investigations, and research

       For an additional amount for ``Surveys, Investigations, and 
     Research'', $135,000,000, to remain available until September 
     30, 2010.

                        Bureau of Indian Affairs

                      operation of indian programs

       For an additional amount for ``Operation of Indian 
     Programs'', $40,000,000, to remain available until September 
     30, 2010, of which $20,000,000 shall be for the housing 
     improvement program.

                              construction

       For an additional amount for ``Construction'', 
     $522,000,000, to remain available until September 30, 2010.

                 indian guaranteed loan program account

       For an additional amount for ``Indian Guaranteed Loan 
     Program Account'', $10,000,000, to remain available until 
     September 30, 2010.

                          DEPARTMENTAL OFFICES

                            Insular Affairs

                       assistance to territories

       For an additional amount for ``Assistance to Territories'', 
     $62,000,000, to remain available until September 30, 2010.

                      Office of Inspector General

                         salaries and expenses

       For an additional amount for ``Office of Inspector 
     General'', $7,600,000, to remain available until September 
     30, 2011, and an additional $7,400,000 for such purposes, to 
     remain available until September 30, 2011.

                        Department-Wide Programs

                    central hazardous materials fund

       For an additional amount for ``Central Hazardous Materials 
     Fund'', $20,000,000, to remain available until September 30, 
     2010.

                     ENVIROMENTAL PROTECTION AGENCY

                     Hazardous Substance Superfund

                     (including transfers of funds)

       For an additional amount for ``Hazardous Substance 
     Superfund'', $600,000,000, to remain available until 
     September 30, 2010, as a payment from general revenues to the 
     Hazardous Substance Superfund, to carry out remedial actions: 
     Provided, That the Administrator may retain up to 2 percent 
     of the funds appropriated herein for Superfund remedial 
     actions for program oversight and support purposes, and may 
     transfer those funds to other accounts as needed.

          Leaking Underground Storage Tank Trust Fund Program

       For an additional amount for ``Leaking Underground Storage 
     Tank Trust Fund Program'', $200,000,0000, to remain available 
     until September 30, 2010, for cleanup activities: Provided, 
     That none of these funds shall be subject to cost share 
     requirements.

                   State and Tribal Assistance Grants

                     (including transfers of funds)

       For an additional amount for ``State and Tribal Assistance 
     Grants'', $6,400,000,000, to remain available until September 
     30, 2010, of which $4,000,000,000 shall be for making 
     capitalization grants for the Clean Water State Revolving 
     Funds under title VI of the Federal Water Pollution Control 
     Act, as amended; of which $2,000,000,000 shall be for making 
     capitalization grants for the Drinking Water State Revolving 
     Fund under section 1452 of the Safe Drinking Water Act, as 
     amended; of which $100,000,000 shall be available for 
     Brownfields remediation grants pursuant to section 104(k)(3) 
     of the Comprehensive Environmental Response, Compensation and 
     Liability Act of 1980, as amended; and of which $300,000,000 
     shall be for Diesel Emission Reduction Act grants pursuant to 
     title VII, subtitle G of the Energy Policy Act of 2005, as 
     amended: Provided, That notwithstanding the priority ranking 
     they would otherwise receive under each program, priority for 
     funds appropriated herein for the Clean Water State Revolving 
     Funds and Drinking Water State Revolving Funds (Revolving 
     Funds) shall be allocated to projects that are ready to 
     proceed to construction within 180 days of enactment of this 
     Act: Provided further, That the Administrator of the 
     Environmental Protection Agency (Administrator) may 
     reallocate funds appropriated herein for the Revolving Funds 
     that are not under binding commitments to proceed to 
     construction within 180 days of enactment of this Act: 
     Provided further, That notwithstanding any other provision of 
     law, financial assistance provided from funds appropriated 
     herein for the Revolving Funds may include additional 
     subsidization, including forgiveness of principal and 
     negative interest loans: Provided further, That not less than 
     15 percent of the funds appropriated herein for the Revolving 
     Funds shall be designated for green infrastructure, water 
     efficiency improvements or other environmentally innovative 
     projects: Provided further, That notwithstanding the 
     limitation on amounts specified in section 518(c) of the 
     Federal Water Pollution Control Act, up to a total of 1.5 
     percent of the funds appropriated herein for the Clean Water 
     State Revolving Funds may be reserved by the Administrator 
     for tribal grants under section 518(c) of such Act: Provided 
     further, That section 1452(k) of the Safe Drinking Water Act 
     shall not apply to amounts appropriated herein for the 
     Drinking Water State Revolving Funds: Provided further, That 
     the Administrator may exceed the 30 percent limitation on 
     State grants for funds appropriated herein for Diesel 
     Emission Reduction Act grants if the Administrator determines 
     such action will expedite allocation of funds: Provided 
     further, That none of the funds appropriated herein shall be 
     subject to cost share requirements: Provided further, That 
     the Administrator may retain up to 0.25 percent of the funds 
     appropriated herein for the Clean Water State Revolving Funds 
     and Drinking Water State Revolving Funds and up to 1.5 
     percent of the funds appropriated herein for the Diesel 
     Emission Reduction Act grants program for program oversight 
     and support purposes and may transfer those funds to other 
     accounts as needed.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                  capital improvement and maintenance

       For an additional amount for ``Capital Improvement and 
     Maintenance'', $650,000,000, to remain available until 
     September 30, 2010, which shall include remediation of 
     abandoned mine sites and support costs necessary to carry out 
     this work.

                        wildland fire management

       For an additional amount for ``Wildland Fire Management'', 
     $485,000,000, to remain available until September 30, 2010, 
     for hazardous fuels reduction and hazard mitigation 
     activities in areas at high risk of catastrophic wildfire, of 
     which $260,000,000 is available for work on State and private 
     lands using all the authorities available to the Forest 
     Service: Provided, That of the funds provided for State and 
     private land fuels reduction activities, up to $50,000,000 
     may be used to make grants for the purpose of creating 
     incentives for increased use of biomass from national forest 
     lands.

[[Page 3241]]



                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                         indian health services

       For an additional amount for ``Indian Health Services'', 
     $135,000,000, to remain available until September 30, 2010, 
     of which $50,000,000 is for contract health services; and of 
     which $85,000,000 is for health information technology: 
     Provided, That the amount made available for health 
     information technology activities may be used for both 
     telehealth services development and related infrastructure 
     requirements that are typically funded through the ``Indian 
     Health Facilities'' account: Provided further, That 
     notwithstanding any other provision of law, health 
     information technology funds provided within this title shall 
     be allocated at the discretion of the Director of the Indian 
     Health Service.

                        indian health facilities

       For an additional amount for ``Indian Health Facilities'', 
     $410,000,000, to remain available until September 30, 2010: 
     Provided, That for the purposes of this Act, spending caps 
     included within the annual appropriation for ``Indian Health 
     Facilities'' for the purchase of medical equipment shall not 
     apply.

                        SMITHSONIAN INSTITUTION

                           Facilities Capital

       For an additional amount for ``Facilities Capital'', 
     $75,000,000, to remain available until September 30, 2010.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 701. (a) Within 30 days of enactment of this Act, each 
     agency receiving funds under this title shall submit a 
     general plan for the expenditure of such funds to the House 
     and Senate Committees on Appropriations.
       (b) Within 90 days of enactment of this Act, each agency 
     receiving funds under this title shall submit to the 
     Committees a report containing detailed project level 
     information associated with the general plan submitted 
     pursuant to subsection (a).
       Sec. 702.  In carrying out the work for which funds in this 
     title are being made available, the Secretary of the Interior 
     and the Secretary of Agriculture may utilize the Public Lands 
     Corps, Youth Conservation Corps, Job Corps and other related 
     partnerships with Federal, State, local, tribal or non-profit 
     groups that serve young adults.

   TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND 
                    EDUCATION, AND RELATED AGENCIES

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

       For an additional amount for ``Training and Employment 
     Services'' for activities authorized by the Workforce 
     Investment Act of 1998 (``WIA''), $3,250,000,000, which shall 
     be available on the date of enactment of this Act, as 
     follows:
       (1) $500,000,000 for adult employment and training 
     activities, including supportive services and needs-related 
     payments described in section 134(e)(2) and (3) of the WIA: 
     Provided, That a priority use of these funds shall be 
     services to individuals described in 134(d)(4)(E) of the WIA;
       (2) $1,200,000,000 for grants to the States for youth 
     activities, including summer employment for youth: Provided, 
     That no portion of such funds shall be reserved to carry out 
     section 127(b)(1)(A) of the WIA: Provided further, That for 
     purposes of section 127(b)(1)(C)(iv) of the WIA, funds 
     available for youth activities shall be allotted as if the 
     total amount available for youth activities in the fiscal 
     year does not exceed $1,000,000,000: Provided further, That, 
     with respect to the youth activities provided with such 
     funds, section 101(13)(A) of the WIA shall be applied by 
     substituting ``age 24'' for ``age 21'': Provided further, 
     That the work readiness performance indicator described in 
     section 136(b)(2)(A)(ii)(I) of the WIA shall be the only 
     measure of performance used to assess the effectiveness of 
     youth activities provided with such funds;
       (3) $1,000,000,000 for grants to the States for dislocated 
     worker employment and training activities;
       (4) $200,000,000 for national emergency grants;
       (5) $250,000,000 under the dislocated worker national 
     reserve for a program of competitive grants for worker 
     training in high growth and emerging industry sectors and 
     assistance under 132(b)(2)(A) of the WIA: Provided, That the 
     Secretary of Labor shall give priority when awarding such 
     grants to projects that prepare workers for careers in energy 
     efficiency and renewable energy as described in section 
     171(e)(1)(B) of the WIA and for careers in the health care 
     sector; and
       (6) $100,000,000 for YouthBuild activities as described in 
     section 173A of the WIA: Provided, That for program years 
     2008 and 2009, the YouthBuild program may serve an individual 
     who has dropped out of high school and re-enrolled in an 
     alternative school, if that re-enrollment is part of a 
     sequential service strategy:
       Provided, That funds made available in this paragraph shall 
     remain available through June 30, 2010: Provided further, 
     That a local board may award a contract to an institution of 
     higher education if the local board determines that it would 
     facilitate the training of multiple individuals in high-
     demand occupations, if such contract does not limit customer 
     choice.

            community service employment for older americans

       For an additional amount for ``Community Service Employment 
     for Older Americans'' for carrying out title V of the Older 
     Americans Act of 1965, $120,000,000, which shall be available 
     on the date of enactment of this Act and shall remain 
     available through June 30, 2010: Provided, That funds shall 
     be allotted within 30 days of such enactment to current 
     grantees in proportion to their allotment in program year 
     2008: Provided further, That funds made available under this 
     heading in this Act may, in accordance with section 517(c) of 
     the Older Americans Act of 1965, be recaptured and 
     reobligated.

     state unemployment insurance and employment service operations

       For an additional amount for ``State Unemployment Insurance 
     and Employment Service Operations'' for grants to States in 
     accordance with section 6 of the Wagner-Peyser Act, 
     $400,000,000, which may be expended from the Employment 
     Security Administration account in the Unemployment Trust 
     Fund: Provided, That such funds shall be available on the 
     date of enactment of this Act and remain available to the 
     States through September 30, 2010: Provided further, That 
     $250,000,000 of such funds shall be used by States for 
     reemployment services for unemployment insurance claimants 
     (including the integrated Employment Service and Unemployment 
     Insurance information technology required to identify and 
     serve the needs of such claimants): Provided further, That 
     the Secretary of Labor shall establish planning and reporting 
     procedures necessary to provide oversight of funds used for 
     reemployment services.

                        Departmental Management

                          office of job corps

       For an additional amount for ``Office of Job Corps'' for 
     construction, alteration and repairs of buildings and other 
     facilities, $160,000,000, which shall remain available 
     through June 30, 2010: Provided, That the Secretary of Labor 
     may transfer up to 15 percent of such funds to meet the 
     operational needs of Job Corps Centers, which may include 
     training for careers in the energy efficiency, renewable 
     energy, and environmental protection industries: Provided 
     further, That not later than 90 days after the date of 
     enactment of this Act, the Secretary shall provide to the 
     Committee on Appropriations of the House of Representatives 
     and the Senate an operating plan describing the planned uses 
     of funds available in this paragraph.

                      office of inspector general

       For an additional amount for the ``Office of Inspector 
     General'', $3,000,000, which shall remain available through 
     September 30, 2011, for salaries and expenses necessary for 
     oversight and audit of programs, grants, and projects funded 
     in this Act and administered by the Department of Labor.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                     health resources and services

       For an additional amount for ``Health Resources and 
     Services'', $1,958,000,000, which shall remain available 
     through September 30, 2010, of which $88,000,000 shall be for 
     necessary expenses related to leasing and renovating a 
     headquarters building for Public Health Service agencies and 
     other components of the Department of Health and Human 
     Services, including renovation and fit-out costs, and of 
     which $1,870,000,000 shall be for grants for construction, 
     renovation and equipment for health centers receiving 
     operating grants under section 330 of the Public Health 
     Service Act, notwithstanding the limitation in section 
     330(e)(3).

               Centers for Disease Control and Prevention

                disease control, research, and training

       For an additional amount for ``Disease Control, Research, 
     and Training'' for acquisition of real property, equipment, 
     construction, and renovation of facilities, including 
     necessary repairs and improvements to leased laboratories, 
     $412,000,000, which shall remain available through September 
     30, 2010: Provided, That notwithstanding any other provision 
     of law, the Centers for Disease Control and Prevention may 
     award a single contract or related contracts for development 
     and construction of facilities that collectively include the 
     full scope of the project: Provided further, That the 
     solicitation and contract shall contain the clause 
     ``availability of funds'' found at 48 CFR 52.232-18.

                     National Institutes of Health

                 national center for research resources

       For an additional amount for ``National Center for Research 
     Resources'', $300,000,000, which shall be available through 
     September 30, 2010, for shared instrumentation and other 
     capital research equipment.

                         office of the director

                     (including transfer of funds)

       For an additional amount for ``Office of the Director'', 
     $2,700,000,000, which shall be available through September 
     30, 2010: Provided,

[[Page 3242]]

     That $1,350,000,000 shall be transferred to the Institutes 
     and Centers of the National Institutes of Health and to the 
     Common Fund established under section 402A(c)(1) of the 
     Public Health Service Act in proportion to the appropriations 
     otherwise made to such Institutes, Centers, and Common Fund 
     for fiscal year 2009: Provided further, That these funds 
     shall be used to support additional scientific research and 
     shall be merged with and be available for the same purposes 
     as the appropriation or fund to which transferred: Provided 
     further, That this transfer authority is in addition to any 
     other transfer authority available to the National Institutes 
     of Health: Provided further, That none of these funds may be 
     transferred to ``National Institutes of Health--Buildings and 
     Facilities'', the Center for Scientific Review, the Center 
     for Information Technology, the Clinical Center, the Global 
     Fund for HIV/AIDS, Tuberculosis and Malaria, or the Office of 
     the Director (except for the transfer to the Common Fund).
       The additional amount available for `Office of the 
     Director' in the previous sentence shall be increased by 
     $6,500,000,000: Provided, That a total of $7,850,000,000 
     shall be transferred pursuant to such sentence: Provided 
     further, That any amounts in this sentence shall be 
     designated as an emergency requirement and necessary to meet 
     emergency needs pursuant to section 204(a) of S. Con. Res. 21 
     (110th Congress) and section 301(b)(2) of S. Con. Res. 70 
     (110th Congress), the concurrent resolutions on the budget 
     for fiscal years 2008 and 2009.

                        buildings and facilities

       For an additional amount for ``Buildings and Facilities'', 
     $500,000,000, which shall be available through September 30, 
     2010, to fund high-priority repair, construction and 
     improvement projects for National Institutes of Health 
     facilities on the Bethesda, Maryland campus and other agency 
     locations.

               Agency for Healthcare Research and Quality

                    healthcare research and quality

                     (including transfer of funds)

       For an additional amount for ``Healthcare Research and 
     Quality'' to carry out titles III and IX of the Public Health 
     Service Act, part A of title XI of the Social Security Act, 
     and section 1013 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003, $700,000,000 for 
     comparative clinical effectiveness research, which shall 
     remain available through September 30, 2010: Provided, That 
     of the amount appropriated in this paragraph, $400,000,000 
     shall be transferred to the Office of the Director of the 
     National Institutes of Health (``Office of the Director'') to 
     conduct or support comparative clinical effectiveness 
     research under section 301 and title IV of the Public Health 
     Service Act: Provided further, That funds transferred to the 
     Office of the Director may be transferred to the Institutes 
     and Centers of the National Institutes of Health and to the 
     Common Fund established under section 402A(c)(1) of the 
     Public Health Service Act: Provided further, That this 
     transfer authority is in addition to any other transfer 
     authority available to the National Institutes of Health: 
     Provided further, That within the amount available in this 
     paragraph for the Agency for Healthcare Research and Quality, 
     not more than 1 percent shall be made available for 
     additional full-time equivalents.
       In addition, $400,000,000 shall be available for 
     comparative clinical effectiveness research to be allocated 
     at the discretion of the Secretary of Health and Human 
     Services (``Secretary'') and shall remain available through 
     September 30, 2010: Provided, That the funding appropriated 
     in this paragraph shall be used to accelerate the development 
     and dissemination of research assessing the comparative 
     clinical effectiveness of health care treatments and 
     strategies, including through efforts that: (1) conduct, 
     support, or synthesize research that compares the clinical 
     outcomes, effectiveness, and appropriateness of items, 
     services, and procedures that are used to prevent, diagnose, 
     or treat diseases, disorders, and other health conditions and 
     (2) encourage the development and use of clinical registries, 
     clinical data networks, and other forms of electronic health 
     data that can be used to generate or obtain outcomes data: 
     Provided further, That the Secretary shall enter into a 
     contract with the Institute of Medicine, for which no more 
     than $1,500,000 shall be made available from funds provided 
     in this paragraph, to produce and submit a report to the 
     Congress and the Secretary by not later than June 30, 2009 
     that includes recommendations on the national priorities for 
     comparative clinical effectiveness research to be conducted 
     or supported with the funds provided in this paragraph and 
     that considers input from stakeholders: Provided further, 
     That the Secretary shall consider any recommendations of the 
     Federal Coordinating Council for Comparative Clinical 
     Effectiveness Research established by section 802 of this Act 
     and any recommendations included in the Institute of Medicine 
     report pursuant to the preceding proviso in designating 
     activities to receive funds provided in this paragraph and 
     may make grants and contracts with appropriate entities, 
     which may include agencies within the Department of Health 
     and Human Services and other governmental agencies, as well 
     as private sector entities, that have demonstrated experience 
     and capacity to achieve the goals of comparative clinical 
     effectiveness research: Provided further, That the Secretary 
     shall publish information on grants and contracts awarded 
     with the funds provided under this heading within a 
     reasonable time of the obligation of funds for such grants 
     and contracts and shall disseminate research findings from 
     such grants and contracts to clinicians, patients, and the 
     general public, as appropriate: Provided further, That, to 
     the extent feasible, the Secretary shall ensure that the 
     recipients of the funds provided by this paragraph offer an 
     opportunity for public comment on the research: Provided 
     further, That the Secretary shall provide the Committees on 
     Appropriations of the House of Representatives and the 
     Senate, the Committee on Energy and Commerce and the 
     Committee on Ways and Means of the House of Representatives, 
     and the Committee on Health, Education, Labor, and Pensions 
     and the Committee on Finance of the Senate with an annual 
     report on the research conducted or supported through the 
     funds provided under this heading.

                Administration for Children and Families

   payments to states for the child care and development block grant

       For an additional amount for ``Payments to States for the 
     Child Care and Development Block Grant'' for carrying out the 
     Child Care and Development Block Grant Act of 1990, 
     $2,000,000,000, which shall remain available through 
     September 30, 2010: Provided, That funds provided under this 
     heading shall be used to supplement, not supplant State 
     general revenue funds for child care assistance for low-
     income families: Provided further, That, in addition to the 
     amounts required to be reserved by the States under section 
     658G of such Act, $255,186,000 shall be reserved by the 
     States for activities authorized under section 658G, of which 
     $93,587,000 shall be for activities that improve the quality 
     of infant and toddler care.

                      social services block grant

       For an additional amount for ``Social Services Block 
     Grant,'' $400,000,000: Provided, That notwithstanding section 
     2003 of the Social Security Act, funds shall be allocated to 
     States on the basis of unemployment: Provided further, That 
     these funds shall be obligated to States within 60 calendar 
     days from the date they become available for obligation.

                children and families services programs

       For an additional amount for ``Children and Families 
     Services Programs'' for carrying out activities under the 
     Head Start Act, $500,000,000, which shall remain available 
     through September 30, 2010. In addition, $550,000,000, which 
     shall remain available through September 30, 2010, is hereby 
     appropriated for expansion of Early Head Start programs, as 
     described in section 645A of such Act: Provided, That of the 
     funds provided in this sentence, up to 10 percent shall be 
     available for the provision of training and technical 
     assistance to such programs consistent with section 
     645A(g)(2) of such Act, and up to 3 percent shall be 
     available for monitoring the operation of such programs 
     consistent with section 641A of such Act.
       For an additional amount for ``Children and Families 
     Services Programs'' for carrying out activities under 
     sections 674 through 679 of the Community Services Block 
     Grant Act, $200,000,000, which shall remain available through 
     September 30, 2010: Provided, That of the funds provided 
     under this paragraph, no part shall be subject to paragraph 
     (3) of section 674(b) of such Act: Provided further, That not 
     less than 5 percent of the funds allotted to a State from the 
     appropriation under this paragraph shall be used under 
     section 675C(b)(1) for benefits enrollment coordination 
     activities relating to the identification and enrollment of 
     eligible individuals and families in Federal, State and local 
     benefit programs.

                        Administration on Aging

                        aging services programs

       For an additional amount for ``Aging Services Programs,'' 
     $100,000,000, of which $67,000,000 shall be for Congregate 
     Nutrition Services and $33,000,000 shall be for Home-
     Delivered Nutrition Services: Provided, That these funds 
     shall remain available through September 30, 2010.

                        Office of the Secretary

  office of the national coordinator for health information technology

                     (including transfer of funds)

       For an additional amount for ``Office of the National 
     Coordinator for Health Information Technology'', 
     $3,000,000,000, to carry out title XIII of this Act which 
     shall be available until expended: Provided, That of this 
     amount, the Secretary of Health and Human Services shall 
     transfer $20,000,000 to the Director of the National 
     Institute of Standards and Technology in the Department of 
     Commerce for continued work on advancing health care 
     information enterprise integration through activities such as 
     technical standards analysis and establishment of conformance 
     testing infrastructure so long as such activities are 
     coordinated with the Office of the National Coordinator for 
     Health Information Technology: Provided further, That funds 
     available under this heading shall become available for 
     obligation only upon

[[Page 3243]]

     submission of an annual operating plan by the Secretary to 
     the Committees on Appropriations of the House of 
     Representatives and the Senate: Provided further, That the 
     Secretary shall provide to the Committees on Appropriations 
     of the House of Representatives and the Senate a report on 
     the actual obligations, expenditures, and unobligated 
     balances for each major set of activities not later than 
     November 1, 2009 and every 6 months thereafter as long as 
     funding under this heading is available for obligation or 
     expenditure.

                    office of the inspector general

       For an additional amount for the Office of the Inspector 
     General, $4,000,000 which shall remain available until 
     September 30, 2012, and an additional $15,000,000 for such 
     purposes, to remain available until September 30, 2012.

                        DEPARTMENT OF EDUCATION

                    Education for the Disadvantaged

       For an additional amount for carrying out title I of the 
     Elementary and Secondary Education Act of 1965, 
     $12,400,000,000, which shall be available through September 
     30, 2010: Provided, That $5,500,000,000 shall be for targeted 
     grants under section 1125, $5,500,000,000 shall be for 
     education finance incentive grants under section 1125A, and 
     $1,400,000,000 shall be for school improvement grants under 
     section 1003(g): Provided further, That each local 
     educational agency receiving funds available under this 
     paragraph for sections 1125 and 1125A shall use not less than 
     15 percent of such funds for activities serving children who 
     are eligible pursuant to section 1115(b)(1)(A)(ii) and 
     programs in section 1112(b)(1)(K): Provided further, That 
     each local educational agency receiving funds available under 
     this paragraph shall be required to file with the State 
     educational agency, no later than December 1, 2009, a school-
     by-school listing of per-pupil educational expenditures from 
     State and local sources during the 2008-2009 academic year.

                      School Improvement Programs

       For an additional amount for ``School Improvement 
     Programs,'' $1,070,000,000, which shall be available through 
     September 30, 2010, for carrying out activities authorized by 
     part D of title II of the Elementary and Secondary Education 
     Act of 1965, and subtitle B of title VII of the McKinney-
     Vento Homeless Assistance Act (``McKinney-Vento''): Provided, 
     That the Secretary shall allot $70,000,000 for grants under 
     McKinney-Vento to each State in proportion to the number of 
     homeless students identified by the State during the 2007-
     2008 school year relative to the number of such children 
     identified nationally during that school year: Provided 
     further, That State educational agencies shall subgrant the 
     McKinney-Vento funds to local educational agencies on a 
     competitive basis or according to a formula based on the 
     number of homeless students identified by the local 
     educational agencies in the State: Provided further, That the 
     Secretary shall distribute the McKinney-Vento funds to the 
     States not later than 60 days after the date of the enactment 
     of this Act: Provided further, That each State shall subgrant 
     the McKinney-Vento funds to local educational agencies not 
     later than 120 days after receiving its grant from the 
     Secretary.

                           special education

       For an additional amount for ``Special Education'' for 
     carrying out parts B and C of the Individuals with 
     Disabilities Education Act (``IDEA''), $13,500,000,000, which 
     shall remain available through September 30, 2010: Provided, 
     That if every State, as defined by section 602(31) of the 
     IDEA, reaches its maximum allocation under section 
     611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, 
     such funds shall be proportionally allocated to each State 
     subject to the maximum amounts contained in section 611(a)(2) 
     of the IDEA: Provided further, That by July 1, 2009, the 
     Secretary of Education shall reserve the amount needed for 
     grants under section 643(e) of the IDEA, with any remaining 
     funds to be allocated in accordance with section 643(c) of 
     the IDEA: Provided further, That the amount for section 
     611(b)(2) of the IDEA shall be equal to the lesser of the 
     amount available for that activity during fiscal year 2008, 
     increased by the amount of inflation as specified in section 
     619(d)(2)(B), or the percentage increase in the funds 
     appropriated under section 611(i): Provided further, That 
     each local educational agency receiving funds available under 
     this paragraph for part B shall use not less than 15 percent 
     for special education and related services to children 
     described in section 619(a) of the IDEA.

            Rehabilitation Services and Disability Research

       For an additional amount for ``Rehabilitation Services and 
     Disability Research'' for providing grants to States to carry 
     out the Vocational Rehabilitation Services program under part 
     B of title I and parts B and C of chapter 1 and chapter 2 of 
     title VII of the Rehabilitation Act of 1973, $610,000,000, 
     which shall remain available through September 30, 2010: 
     Provided, That $500,000,000 shall be available for part B of 
     title I of the Rehabilitation Act: Provided further, That 
     funds provided herein shall not be considered in determining 
     the amount required to be appropriated under section 
     100(b)(1) of the Rehabilitation Act of 1973 in any fiscal 
     year: Provided further, That, notwithstanding section 
     7(14)(A), the Federal share of the costs of vocational 
     rehabilitation services provided with the funds provided 
     herein shall be 100 percent.

                      Student Financial Assistance

       For an additional amount for ``Student Financial 
     Assistance'' to carry out subpart 1 of part A of title IV of 
     the Higher Education Act of 1965, $13,869,000,000: Provided, 
     That such funds shall be used to increase the maximum Pell 
     Grant by $281 for award year 2009-2010, to increase the 
     maximum Pell Grant by $400 for the award year 2010-2011, and 
     to reduce or eliminate the Pell Grant shortfall: Provided 
     further, That these funds shall remain available through 
     September 30, 2011.
       For an additional amount for ``Student Financial 
     Assistance'' to carry out part E of title IV of the Higher 
     Education Act of 1965, $61,000,000: Provided, That these 
     funds shall remain available through September 30, 2010.

                            Higher Education

       For an additional amount for ``Higher Education'' for 
     carrying out activities under part A of title II of the 
     Higher Education Act of 1965, $50,000,000: Provided, That 
     these funds shall remain available through September 30, 
     2010.

                        Departmental Management

                    office of the inspector general

       For an additional amount for the ``Office of the Inspector 
     General'', $4,000,000, which shall remain available through 
     September 30, 2012, for salaries and expenses necessary for 
     oversight and audit of programs, grants, and projects funded 
     in this Act and administered by the Department of Education 
     and an additional $10,000,000 for such purposes, to remain 
     available until September 30, 2012.

                            RELATED AGENCIES

             CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

                           Operating Expenses

                     (including transfer of funds)

       For an additional amount for ``Operating Expenses'' to 
     carry out the Domestic Volunteer Service Act of 1973 (``1973 
     Act'') and the National and Community Service Act of 1990 
     (``1990 Act''), $160,000,000, to remain available through 
     September 30, 2010: Provided, That funds made available in 
     this paragraph may be used to provide adjustments to awards 
     under subtitle C of title I of the 1990 Act made prior to 
     September 30, 2010 for which the Chief Executive Officer of 
     the Corporation for National and Community Service (``CEO'') 
     determines that a waiver of the Federal share limitation is 
     warranted under section 2521.70 of title 45 of the Code of 
     Federal Regulations: Provided further, That of the amount 
     made available in this paragraph, not less than $6,000,000 
     shall be transferred to ``Salaries and Expenses'' for 
     necessary expenses relating to information technology 
     upgrades: Provided further, That of the amount provided in 
     this paragraph, $10,000,000 shall be available for additional 
     members in the Civilian Community Corps authorized under 
     subtitle E of title I of the 1990 Act: Provided further, That 
     of the amount provided in this paragraph, $1,000,000 shall be 
     made available for a one-time supplement grant to State 
     commissions on national and community service under section 
     126(a) of the 1990 Act without regard to the limitation on 
     Federal share under section 126(a)(2) of the 1990 Act: 
     Provided further, That of the amount made available in this 
     paragraph, not less than $13,000,000 shall be for research 
     activities authorized under subtitle H of title I of the 1990 
     Act: Provided further, That of the amount made available in 
     this paragraph, not less than $65,000,000 shall be for 
     programs under title I, part A of the 1973 Act: Provided 
     further, That funds provided in the previous proviso shall 
     not be made available in connection with cost-share 
     agreements authorized under section 192A(g)(10) of the 1990 
     Act: Provided further, That of the funds available under this 
     heading, up to 20 percent of funds allocated to grants 
     authorized under section 124(b) of title I, subtitle C of the 
     1990 Act may be used to administer, reimburse, or support any 
     national service program under section 129(d)(2) of the 1990 
     Act: Provided further, That, except as provided herein and in 
     addition to requirements identified herein, funds provided in 
     this paragraph shall be subject to the terms and conditions 
     under which funds were appropriated in fiscal year 2008: 
     Provided further, That the CEO shall provide the Committees 
     on Appropriations of the House of Representatives and the 
     Senate a fiscal year 2009 operating plan for the funds 
     appropriated in this paragraph prior to making any Federal 
     obligations of such funds in fiscal year 2009, but not later 
     than 90 days after the date of enactment of this Act, and a 
     fiscal year 2010 operating plan for such funds prior to 
     making any Federal obligations of such funds in fiscal year 
     2010, but not later than November 1, 2009, that detail the 
     allocation of resources and the increased number of members 
     supported by the AmeriCorps programs: Provided further, That 
     the CEO shall provide to the Committees on Appropriations of 
     the House of Representatives and the Senate a report on the 
     actual obligations, expenditures, and unobligated balances 
     for each activity funded under this heading not later than 
     November 1, 2009, and

[[Page 3244]]

     every 6 months thereafter as long as funding provided under 
     this heading is available for obligation or expenditure.

                    Office of the Inspector General

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

                         National Service Trust

                     (including transfer of funds)

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

                     SOCIAL SECURITY ADMINISTRATION

                 Limitation on Administrative Expenses

                     (including transfer of funds)

       For an additional amount for ``Limitation on Administrative 
     Expenses'', $890,000,000 shall be available as follows:
       (1) $750,000,000 shall remain available until expended for 
     necessary expenses of the replacement of the National 
     Computer Center and the information technology costs 
     associated with such Center: Provided, That the Commissioner 
     of Social Security shall notify the Committees on 
     Appropriations of the House of Representatives and the Senate 
     not later than 10 days prior to each public notice soliciting 
     bids related to site selection and construction: Provided 
     further, That unobligated balances of funds not needed for 
     this purpose may be used as described in subparagraph (2); 
     and
       (2) $140,000,000 shall be available through September 30, 
     2010 for information technology acquisitions and research, 
     which may include research and activities to facilitate the 
     adoption of electronic medical records in disability claims 
     and the transfer of funds to ``Supplemental Security Income'' 
     to carry out activities under section 1110 of the Social 
     Security Act: Provided further, That not later than 10 days 
     prior to the obligation of such funds, the Commissioner shall 
     provide to the Committees on Appropriations of the House of 
     Representatives and the Senate an operating plan describing 
     the planned uses of such funds.

                      Office of Inspector General

       For an additional amount for the ``Office of Inspector 
     General'', $3,000,000, which shall remain available through 
     September 30, 2012, for salaries and expenses necessary for 
     oversight and audit of programs, projects, and activities 
     funded in this Act and administered by the Social Security 
     Administration.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 801.  Report on the Impact of Past and Future Minimum 
     Wage Increases.  (a) In General.--Section 8104 of the U.S. 
     Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
     Accountability Appropriations Act, 2007 (Public Law 110-28; 
     121 Stat. 189) is amended to read as follows:

     ``SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM 
                   WAGE INCREASES.

       ``(a) Study.--Beginning on the date that is 60 days after 
     the date of enactment of this Act, and every year thereafter 
     until the minimum wage in the respective territory is $7.25 
     per hour, the Government Accountability Office shall conduct 
     a study to--
       ``(1) assess the impact of the minimum wage increases that 
     occurred in American Samoa and the Commonwealth of the 
     Northern Mariana Islands in 2007 and 2008, as required under 
     Public Law 110-28, on the rates of employment and the living 
     standards of workers, with full consideration of the other 
     factors that impact rates of employment and the living 
     standards of workers such as inflation in the cost of food, 
     energy, and other commodities; and
       ``(2) estimate the impact of any further wage increases on 
     rates of employment and the living standards of workers in 
     American Samoa and the Commonwealth of the Northern Mariana 
     Islands, with full consideration of the other factors that 
     may impact the rates of employment and the living standards 
     of workers, including assessing how the profitability of 
     major private sector firms may be impacted by wage increases 
     in comparison to other factors such as energy costs and the 
     value of tax benefits.
       ``(b) Report.--No earlier than March 15, 2009, and not 
     later than April 15, 2009, the Government Accountability 
     Office shall transmit its first report to Congress concerning 
     the findings of the study required under subsection (a). The 
     Government Accountability Office shall transmit any 
     subsequent reports to Congress concerning the findings of a 
     study required by subsection (a) between March 15 and April 
     15 of each year.
       ``(c) Economic Information.--To provide sufficient economic 
     data for the conduct of the study under subsection (a)--
       ``(1) the Department of Labor shall include and separately 
     report on American Samoa and the Commonwealth of the Northern 
     Mariana Islands in its household surveys and establishment 
     surveys;
       ``(2) the Bureau of Economic Analysis of the Department of 
     Commerce shall include and separately report on American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     its gross domestic product data; and
       ``(3) the Bureau of the Census of the Department of 
     Commerce shall include and separately report on American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     its population estimates and demographic profiles from the 
     American Community Survey,
     with the same regularity and to the same extent as the 
     Department or each Bureau collects and reports such data for 
     the 50 States. In the event that the inclusion of American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     such surveys and data compilations requires time to structure 
     and implement, the Department of Labor, the Bureau of 
     Economic Analysis, and the Bureau of the Census (as the case 
     may be) shall in the interim annually report the best 
     available data that can feasibly be secured with respect to 
     such territories. Such interim reports shall describe the 
     steps the Department or the respective Bureau will take to 
     improve future data collection in the territories to achieve 
     comparability with the data collected in the United States. 
     The Department of Labor, the Bureau of Economic Analysis, and 
     the Bureau of the Census, together with the Department of the 
     Interior, shall coordinate their efforts to achieve such 
     improvements.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of enactment of this Act.
       Sec. 802.  Federal Coordinating Council for Comparative 
     Clinical Effectiveness Research.  (a) Establishment.--There 
     is hereby established a Federal Coordinating Council for 
     Comparative Clinical Effectiveness Research (in this section 
     referred to as the ``Council'').
       (b) Purpose; Duties.--The Council shall--
       (1) assist the offices and agencies of the Federal 
     Government, including the Departments of Health and Human 
     Services, Veterans Affairs, and Defense, and other Federal 
     departments or agencies, to coordinate the conduct or support 
     of comparative clinical effectiveness and related health 
     services research; and
       (2) advise the President and Congress on--
       (A) strategies with respect to the infrastructure needs of 
     comparative clinical effectiveness research within the 
     Federal Government;
       (B) appropriate organizational expenditures for comparative 
     clinical effectiveness research by relevant Federal 
     departments and agencies; and
       (C) opportunities to assure optimum coordination of 
     comparative clinical effectiveness and related health 
     services research conducted or supported by relevant Federal 
     departments and agencies, with the goal of reducing 
     duplicative efforts and encouraging coordinated and 
     complementary use of resources.
       (c) Membership.--
       (1) Number and appointment.--The Council shall be composed 
     of not more than 15 members, all of whom are senior Federal 
     officers or employees with responsibility for health-related 
     programs, appointed by the President, acting through the 
     Secretary of Health and Human Services (in this section 
     referred to as the ``Secretary''). Members shall first be 
     appointed to the Council not later than 30 days after the 
     date of the enactment of this Act.
       (2) Members.--
       (A) In general.--The members of the Council shall include 
     one senior officer or employee from each of the following 
     agencies:
       (i) The Agency for Healthcare Research and Quality.
       (ii) The Centers for Medicare and Medicaid Services.
       (iii) The National Institutes of Health.
       (iv) The Office of the National Coordinator for Health 
     Information Technology.
       (v) The Food and Drug Administration.
       (vi) The Veterans Health Administration within the 
     Department of Veterans Affairs.
       (vii) The office within the Department of Defense 
     responsible for management of the Department of Defense 
     Military Health Care System.
       (B) Qualifications.--At least half of the members of the 
     Council shall be physicians or other experts with clinical 
     expertise.
       (3) Chairman; vice chairman.--The Secretary shall serve as 
     Chairman of the Council and shall designate a member to serve 
     as Vice Chairman.
       (d) Reports.--
       (1) Initial report.--Not later than June 30, 2009, the 
     Council shall submit to the President and the Congress a 
     report containing information describing Federal activities 
     on comparative clinical effectiveness

[[Page 3245]]

     research and recommendations for additional investments in 
     such research conducted or supported from funds made 
     available for allotment by the Secretary for comparative 
     clinical effectiveness research in this Act.
       (2) Annual report.--The Council shall submit to the 
     President and Congress an annual report regarding its 
     activities and recommendations concerning the infrastructure 
     needs, appropriate organizational expenditures and 
     opportunities for better coordination of comparative clinical 
     effectiveness research by relevant Federal departments and 
     agencies.
       (e) Staffing; Support.--From funds made available for 
     allotment by the Secretary for comparative clinical 
     effectiveness research in this Act, the Secretary shall make 
     available not more than 1 percent to the Council for staff 
     and administrative support.

                          (transfer of funds)

       Sec. 803. (a) Not more than 1 percent of the funds made 
     available to the Department of Labor in this title may be 
     transferred by the Secretary of Labor to ``Employment and 
     Training Administration--Program Administration'', 
     ``Employment Standards Administration--Salaries and 
     Expenses'', ``Occupational Safety and Health Administration--
     Salaries and Expenses'' and ``Departmental Management--
     Salaries and Expenses'' for expenses necessary to administer 
     and coordinate funds made available to the Department of 
     Labor in this title; oversee and evaluate the use of such 
     funds; and enforce applicable laws and regulations governing 
     worker rights and protections associated with the funds made 
     available in this Act.
       (b) Not later than 10 days prior to obligating any funds 
     proposed to be transferred under subsection (a), the 
     Secretary shall provide to the Committees on Appropriations 
     of the House of Representatives and the Senate an operating 
     plan describing the planned uses of each amount proposed to 
     be transferred.
       (c) Funds transferred under this section may be available 
     for obligation through September 30, 2010.
       Sec. 804.  Eligible Employees in the Recreational Marine 
     Industry. Section 2(3)(F) of the Longshore and Harbor 
     Workers' Compensation Act (33 U.S.C. 902(3)(F)) is amended--
       (1) by striking ``, repair or dismantle''; and
       (2) by striking the semicolon and inserting ``, or 
     individuals employed to repair any recreational vessel, or to 
     dismantle any part of a recreational vessel in connection 
     with the repair of such vessel;''.

                      TITLE IX--LEGISLATIVE BRANCH

                    GOVERNMENT ACCOUNTABILITY OFFICE

                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'' of 
     the Government Accountability Office, $20,000,000, to remain 
     available until September 30, 2010.

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 901.  Government Accountability Office Reviews and 
     Reports.  (a) Reviews and Reports.--
       (1) In General.--The Comptroller General shall conduct 
     bimonthly reviews and prepare reports on such reviews on the 
     use by selected State and localities of funds made available 
     in this Act. Such reports, along with any audits conducted by 
     the Comptroller General of such funds, shall be posted on the 
     Internet and linked to the website established under this Act 
     by the Recovery Accountability and Transparency Board.
       (2) Redactions.--Any portion of a report or audit under 
     this subsection may be redacted when made publicly available, 
     if that portion would disclose information that is not 
     subject to disclosure under section 552 of title 5, United 
     States Code (commonly known as the Freedom of Information 
     Act).
       (b) Examination of Records.--The Comptroller General may 
     examine any records related to obligations of funds made 
     available in this Act.
       Sec. 902.  Access of Government Accountability Office. Each 
     contract awarded using funds made available in this Act shall 
     provide that the Comptroller General and his representatives 
     are authorized--
       (1) to examine any records of the contractor or any of its 
     subcontractors, or any State or local agency administering 
     such contract, that directly pertain to, and involve 
     transactions relating to, the contract or subcontract; and
       (2) to interview any current employee regarding such 
     transactions.

   TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED 
                                AGENCIES

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

       For an additional amount for ``Military Construction, 
     Army'', $637,875,000, to remain available until September 30, 
     2013, of which $84,100,000 shall be for child development 
     centers; $481,000,000 shall be for warrior transition 
     complexes; and $42,400,000 shall be for health and dental 
     clinics (including acquisition, construction, installation, 
     and equipment): Provided, That notwithstanding any other 
     provision of law, such funds may be obligated and expended to 
     carry out planning and design and military construction 
     projects in the United States not otherwise authorized by 
     law: Provided further, That of the funds provided under this 
     heading, not to exceed $30,375,000 shall be available for 
     study, planning, design, and architect and engineer services: 
     Provided further, That within 30 days of enactment of this 
     Act the Secretary of the Army shall submit to the Committees 
     on Appropriations of both Houses of Congress an expenditure 
     plan for funds provided under this heading prior to 
     obligation.

              Military Construction, Navy and Marine Corps

       For an additional amount for ``Military Construction, Navy 
     and Marine Corps'', $990,092,000, to remain available until 
     September 30, 2013, of which $172,820,000 shall be for child 
     development centers; $174,304,000 shall be for barracks; 
     $125,000,000 shall be for health clinic replacement, and 
     $494,362,000 shall be for energy conservation and alternative 
     energy projects (including acquisition, construction, 
     installation, and equipment): Provided, That notwithstanding 
     any other provision of law, such funds may be obligated and 
     expended to carry out planning and design and military 
     construction projects in the United States not otherwise 
     authorized by law: Provided further, That of the funds 
     provided under this heading, not to exceed $23,606,000 shall 
     be available for study, planning, design, and architect and 
     engineer services: Provided further, That within 30 days of 
     enactment of this Act the Secretary of the Navy shall submit 
     to the Committees on Appropriations of both Houses of 
     Congress an expenditure plan for funds provided under this 
     heading prior to obligation.

                    Military Construction, Air Force

       For an additional amount for ``Military Construction, Air 
     Force'', $871,332,000, to remain available until September 
     30, 2013, of which $80,100,000 shall be for child development 
     centers; $612,246,000 shall be for dormitories; and 
     $138,100,000 shall be for health clinics (including 
     acquisition, construction, installation, and equipment): 
     Provided, That notwithstanding any other provision of law, 
     such funds may be obligated and expended to carry out 
     planning and design and military construction projects in the 
     United States not otherwise authorized by law: Provided 
     further, That of the funds provided under this heading, not 
     to exceed $40,886,000 shall be available for study, planning, 
     design, and architect and engineer services: Provided 
     further, That within 30 days of enactment of this Act the 
     Secretary of the Air Force shall submit to the Committees on 
     Appropriations of both Houses of Congress an expenditure plan 
     for funds provided under this heading prior to obligation.

                  Military Construction, Defense-Wide

       For an additional amount for ``Military Construction, 
     Defense-Wide'', $118,560,000 for the Energy Conservation 
     Investment Program, to remain available until September 30, 
     2010: Provided, That notwithstanding any other provision of 
     law, such funds may be obligated and expended to carry out 
     planning and design and military construction projects in the 
     United States not otherwise authorized by law: Provided 
     further, That within 30 days of enactment of this Act the 
     Secretary of Defense shall submit to the Committees on 
     Appropriations of both Houses of Congress an expenditure plan 
     for funds provided under this heading prior to obligation.

               Military Construction, Army National Guard

       For an additional amount for ``Military Construction, Army 
     National Guard'', $150,000,000 for readiness centers 
     (including construction, acquisition, expansion, 
     rehabilitation, and conversion), to remain available until 
     September 30, 2013: Provided, That notwithstanding any other 
     provision of law, such funds may be obligated and expended to 
     carry out planning and design and military construction 
     projects in the United States not otherwise authorized by 
     law: Provided further, That within 30 days of enactment of 
     this Act the Director of the Army National Guard shall submit 
     to the Committees on Appropriations of both Houses of 
     Congress an expenditure plan for funds provided under this 
     heading prior to obligation.

               Military Construction, Air National Guard

       For an additional amount for ``Military Construction, Air 
     National Guard'', $110,000,000, to remain available until 
     September 30, 2013: Provided, That notwithstanding any other 
     provision of law, such funds may be obligated and expended to 
     carry out planning and design and military construction 
     projects in the United States not otherwise authorized by 
     law: Provided further, That within 30 days of enactment of 
     this Act the Director of the Air National Guard shall submit 
     to the Committees on Appropriations of both Houses of 
     Congress an expenditure plan for funds provided under this 
     heading prior to obligation.

                   Family Housing Construction, Army

       For an additional amount for ``Family Housing Construction, 
     Army'', $34,570,000, to remain available until September 30, 
     2013: Provided, That notwithstanding any other provision of 
     law, such funds may be obligated and expended to carry out 
     planning and design and military construction

[[Page 3246]]

     projects in the United States not otherwise authorized by 
     law: Provided further, That within 30 days of enactment of 
     this Act the Secretary of the Army shall submit to the 
     Committees on Appropriations of both Houses of Congress an 
     expenditure plan for funds provided under this heading prior 
     to obligation.

             Family Housing Operation and Maintenance, Army

       For an additional amount for ``Family Housing Operation and 
     Maintenance, Army'', $3,932,000: Provided, That 
     notwithstanding any other provision of law, such funds may be 
     obligated and expended for operation and maintenance and 
     minor construction projects in the United States not 
     otherwise authorized by law.

                 Family Housing Construction, Air Force

       For an additional amount for ``Family Housing Construction, 
     Air Force'', $80,100,000, to remain available until September 
     30, 2013: Provided, That notwithstanding any other provision 
     of law, such funds may be obligated and expended to carry out 
     planning and design and military construction projects in the 
     United States not otherwise authorized by law: Provided 
     further, That within 30 days of enactment of this Act the 
     Secretary of the Air Force shall submit to the Committees on 
     Appropriations of both Houses of Congress an expenditure plan 
     for funds provided under this heading prior to obligation.

          Family Housing Operation and Maintenance, Air Force

       For an additional amount for ``Family Housing Operation and 
     Maintenance, Air Force'', $16,461,000: Provided, That 
     notwithstanding any other provision of law, such funds may be 
     obligated and expended for operation and maintenance and 
     minor construction projects in the United States not 
     otherwise authorized by law.

                       Homeowners Assistance Fund

       For an additional amount for ``Homeowners Assistance 
     Fund'', established by section 1013 of the Demonstration 
     Cities and Metropolitan Development Act of 1966, as amended 
     (42 U.S.C. 3374), $410,973,000, to remain available until 
     expended.

                        Administrative Provision

       Sec. 1001. (a) Temporary Expansion of Homeowners Assistance 
     Plan To Respond to Mortgage Foreclosure and Credit Crisis. 
     Section 1013 of the Demonstration Cities and Metropolitan 
     Development Act of 1966 (42 U.S.C. 3374) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (1), (2), and (3) as 
     clauses (i), (ii), and (iii), respectively, and indenting 
     such subparagraphs, as so redesignated, 6 ems from the left 
     margin;
       (B) by striking ``Notwithstanding any other provision of 
     law'' and inserting the following:
       ``(1) Acquisition of property at or near military 
     installations that have been ordered to be closed.--
     Notwithstanding any other provision of law'';
       (C) by striking ``if he determines'' and inserting ``if--
       ``(A) the Secretary determines--'';
       (D) in clause (iii), as redesignated by subparagraph (A), 
     by striking the period at the end and inserting ``; or''; and
       (E) by adding at the end the following:
       ``(B) the Secretary determines--
       ``(i) that the conditions in clauses (i) and (ii) of 
     subparagraph (A) have been met;
       ``(ii) that the closing or realignment of the base or 
     installation resulted from a realignment or closure carried 
     out under the 2005 round of defense base closure and 
     realignment under the Defense Base Closure and Realignment 
     Act of 1990 (part XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note);
       ``(iii) that the property was purchased by the owner before 
     July 1, 2006;
       ``(iv) that the property was sold by the owner between July 
     1, 2006, and September 30, 2012, or an earlier end date 
     designated by the Secretary;
       ``(v) that the property is the primary residence of the 
     owner; and
       ``(vi) that the owner has not previously received benefit 
     payments authorized under this subsection.
       ``(2) Homeowner assistance for wounded members of the armed 
     forces, department of defense and united states coast guard 
     civilian employees, and their spouses.--Notwithstanding any 
     other provision of law, the Secretary of Defense is 
     authorized to acquire title to, hold, manage, and dispose of, 
     or, in lieu thereof, to reimburse for certain losses upon 
     private sale of, or foreclosure against, any property 
     improved with a one- or two-family dwelling which was at the 
     time of the relevant wound, injury, or illness, the primary 
     residence of--
       ``(A) any member of the Armed Forces in medical transition 
     who--
       ``(i) incurred a wound, injury, or illness in the line of 
     duty during a deployment in support of the Armed Forces;
       ``(ii) is disabled to a degree of 30 percent or more as a 
     result of such wound, injury, or illness, as determined by 
     the Secretary of Defense or the Secretary of Veterans 
     Affairs; and
       ``(iii) is reassigned in furtherance of medical treatment 
     or rehabilitation, or due to medical retirement in connection 
     with such disability;
       ``(B) any civilian employee of the Department of Defense or 
     the United States Coast Guard who--
       ``(i) was wounded, injured, or became ill in the line of 
     duty during a forward deployment in support of the Armed 
     Forces; and
       ``(ii) is reassigned in furtherance of medical treatment, 
     rehabilitation, or due to medical retirement resulting from 
     the sustained disability; or
       ``(C) the spouse of a member of the Armed Forces or a 
     civilian employee of the Department of Defense or the United 
     States Coast Guard if--
       ``(i) the member or employee was killed in the line of duty 
     during a deployment in support of the Armed Forces or died 
     from a wound, injury, or illness incurred in the line of duty 
     during such a deployment; and
       ``(ii) the spouse relocates from such residence within 2 
     years after the death of such member or employee.
       ``(3) Temporary homeowner assistance for members of the 
     armed forces permanently reassigned during specified mortgage 
     crisis.--Notwithstanding any other provision of law, the 
     Secretary of Defense is authorized to acquire title to, hold, 
     manage, and dispose of, or, in lieu thereof, to reimburse for 
     certain losses upon private sale of, or foreclosure against, 
     any property improved with a one- or two-family dwelling 
     situated at or near a military base or installation, if the 
     Secretary determines--
       ``(A) that the owner is a member of the Armed Forces 
     serving on permanent assignment;
       ``(B) that the owner is permanently reassigned by order of 
     the United States Government to a duty station or home port 
     outside a 50-mile radius of the base or installation;
       ``(C) that the reassignment was ordered between February 1, 
     2006, and September 30, 2012, or an earlier end date 
     designated by the Secretary;
       ``(D) that the property was purchased by the owner before 
     July 1, 2006;
       ``(E) that the property was sold by the owner between July 
     1, 2006, and September 30, 2012, or an earlier end date 
     designated by the Secretary;
       ``(F) that the property is the primary residence of the 
     owner; and
       ``(G) that the owner has not previously received benefit 
     payments authorized under this subsection.'';
       (2) in subsection (b), by striking ``this section'' each 
     place it appears and inserting ``subsection (a)(1)'';
       (3) in subsection (c)--
       (A) by striking ``Such persons'' and inserting the 
     following:
       ``(1) Homeowner assistance related to closed military 
     installations.--
       ``(A) In general.--Such persons'';
       (B) by striking ``set forth above shall elect either (1) to 
     receive'' and inserting the following: ``set forth in 
     subsection (a)(1) shall elect either--
       ``(i) to receive'';
       (C) by striking ``difference between (A) 95 per centum'' 
     and all that follows through ``(B) the fair market value'' 
     and inserting the following: ``difference between--

       ``(I) 95 per centum of the fair market value of their 
     property (as such value is determined by the Secretary of 
     Defense) prior to public announcement of intention to close 
     all or part of the military base or installation; and
       ``(II) the fair market value'';

       (D) by striking ``time of the sale, or (2) to receive'' and 
     inserting the following: ``time of the sale; or
       ``(ii) to receive'';
       (E) by striking ``outstanding mortgages. The Secretary may 
     also pay a person who elects to receive a cash payment under 
     clause (1) of the preceding sentence an amount'' and 
     inserting ``outstanding mortgages.
       ``(B) Reimbursement of expenses.--The Secretary may also 
     pay a person who elects to receive a cash payment under 
     subparagraph (A) an amount''; and
       (F) by striking ``best interest of the Federal Government. 
     Cash payment'' and inserting the following: ``best interest 
     of the United States.
       ``(2) Homeowner assistance for wounded individuals and 
     their spouses.--
       ``(A) In general.--Persons eligible under the criteria set 
     forth in subsection (a)(2) may elect either--
       ``(i) to receive a cash payment as compensation for losses 
     which may be or have been sustained in a private sale, in an 
     amount not to exceed the difference between--

       ``(I) 95 per centum of prior fair market value of their 
     property (as such value is determined by the Secretary of 
     Defense); and
       ``(II) the fair market value of such property (as such 
     value is so determined) at the time of the wound, injury, or 
     illness qualifying the individual for benefits under 
     subsection (a)(2); or

       ``(ii) to receive, as purchase price for their property an 
     amount not to exceed 90 per centum of prior fair market value 
     as such value is determined by the Secretary of Defense, or 
     the amount of the outstanding mortgages.
       ``(B) Determination of benefits.--The Secretary may also 
     pay a person who elects

[[Page 3247]]

     to receive a cash payment under subparagraph (A) an amount 
     that the Secretary determines appropriate to reimburse the 
     person for the costs incurred by the person in the sale of 
     the property if the Secretary determines that such payment 
     will benefit the person and is in the best interest of the 
     United States.
       ``(3) Homeowner assistance for permanently reassigned 
     individuals.--
       ``(A) In general.--Persons eligible under the criteria set 
     forth in subsection (a)(3) may elect either--
       ``(i) to receive a cash payment as compensation for losses 
     which may be or have been sustained in a private sale, in an 
     amount not to exceed the difference between--

       ``(I) 95 per centum of prior fair market value of their 
     property (as such value is determined by the Secretary of 
     Defense); and
       ``(II) the fair market value of such property (as such 
     value is so determined) at the time the person received 
     change of permanent station orders; or

       ``(ii) to receive, as purchase price for their property an 
     amount not to exceed 90 per centum of prior fair market value 
     as such value is determined by the Secretary of Defense, or 
     the amount of the outstanding mortgages.
       ``(B) Determination of benefits.--The Secretary may also 
     pay a person who elects to receive a cash payment under 
     subparagraph (A) an amount that the Secretary determines 
     appropriate to reimburse the person for the costs incurred by 
     the person in the sale of the property if the Secretary 
     determines that such payment will benefit the person and is 
     in the best interest of the United States.
       ``(4) Compensation and limitations related to foreclosures 
     and encumbrances.--Cash payment'';
       (4) by striking subsection (g);
       (5) in subsection (l), by striking ``(a)(2)'' and inserting 
     ``(a)(1)(A)(ii)'';
       (6) in subsection (m), by striking ``this section'' and 
     inserting ``subsection (a)(1)'';
       (7) in subsection (n)--
       (A) in paragraph (1), by striking ``this section'' and 
     inserting ``subsection (a)(1)''; and
       (B) in paragraph (2), by striking ``this section'' and 
     inserting ``subsection (a)(1)'';
       (8) in subsection (o)--
       (A) in paragraph (1), by striking ``this section'' and 
     inserting ``subsection (a)(1)'';
       (B) in paragraph (2), by striking ``this section'' and 
     inserting ``subsection (a)(1)''; and
       (C) by striking paragraph (4); and
       (9) by adding at the end the following new subsection:
       ``(p) Definitions.--In this section:
       ``(1) the term `Armed Forces' has the meaning given the 
     term `armed forces' in section 101(a) of title 10, United 
     States Code;
       ``(2) the term `civilian employee' has the meaning given 
     the term `employee' in section 2105(a) of title 5, United 
     States Code;
       ``(3) the term `medical transition', in the case of a 
     member of the Armed Forces, means a member who--
       ``(A) is in Medical Holdover status;
       ``(B) is in Active Duty Medical Extension status;
       ``(C) is in Medical Hold status;
       ``(D) is in a status pending an evaluation by a medical 
     evaluation board;
       ``(E) has a complex medical need requiring six or more 
     months of medical treatment; or
       ``(F) is assigned or attached to an Army Warrior Transition 
     Unit, an Air Force Patient Squadron, a Navy Patient 
     Multidisciplinary Care Team, or a Marine Patient Affairs 
     Team/Wounded Warrior Regiment; and
       ``(4) the term `nonappropriated fund instrumentality 
     employee' means a civilian employee who--
       ``(A) is a citizen of the United States; and
       ``(B) is paid from nonappropriated funds of Army and Air 
     Force Exchange Service, Navy Resale and Services Support 
     Office, Marine Corps exchanges, or any other instrumentality 
     of the United States under the jurisdiction of the Armed 
     Forces which is conducted for the comfort, pleasure, 
     contentment, or physical or mental improvement of members of 
     the Armed Forces.''.
       (b) Clerical Amendment.--Such section is further amended in 
     the section heading by inserting ``and certain property owned 
     by members of the armed forces, department of defense and 
     united states coast guard civilian employees, and surviving 
     spouses'' after ``ordered to be closed''.
       (c) Authority to Use Appropriated Funds.--Notwithstanding 
     subsection (i) of such section, amounts appropriated or 
     otherwise made available by this title under the heading 
     ``Homeowners Assistance Fund'' may be used for the Homeowners 
     Assistance Fund established under such section.

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration

                     medical support and compliance

       For an additional amount for ``Medical Support and 
     Compliance'', $5,000,000, to remain available until September 
     30, 2010, to support contract administration and energy 
     initiative execution at the Veterans Health Administration.

                           medical facilities

       For an additional amount for ``Medical Facilities'', 
     $1,370,459,000, to remain available until September 30, 2010, 
     of which $1,047,313,000 shall be for facility condition 
     assessment deficiencies and non-recurring maintenance at 
     existing medical facilities; and $323,146,000 shall be for 
     energy efficiency initiatives.

                    national cemetery administration

       For an additional amount for ``National Cemetery 
     Administration'', $64,961,000, to remain available until 
     September 30, 2010, of which $59,476,000 shall be for capital 
     infrastructure and memorial and monument repairs; and 
     $5,485,000 shall be for energy efficiency initiatives.

                      Departmental Administration

                       general operating expenses

       For an additional amount for ``General Operating 
     Expenses'', $1,125,000, to remain available until September 
     30, 2010, for additional Full Time Equivalent salary and 
     expenses for major construction project administration and 
     execution and energy initiative execution.

                     information technology systems

       For an additional amount for ``Information Technology 
     Systems'', $195,000,000, to remain available until September 
     30, 2010, of which $145,000,000 shall be for the Veterans 
     Benefits Administration's development of paperless claims 
     processing; and $50,000,000 shall be for the development of 
     systems required to implement chapter 33 of title 38, United 
     States Code.

                      office of inspector general

       For an additional amount for ``Office of Inspector 
     General'', $4,400,000, to remain available until September 
     30, 2011, for oversight and audit of programs, grants and 
     projects funded under this title.

                      construction, major projects

       For an additional amount for ``Construction, Major 
     Projects'', $1,105,333,000, to remain available until 
     September 30, 2013, which shall be for acceleration and 
     construction of ongoing and planned construction, including 
     physical security construction, of major medical facilities 
     and National Cemeteries consistent with the Department of 
     Veterans Affairs' Five Year Capital Plan: Provided, That 
     notwithstanding any other provision of law, such funds may be 
     obligated and expended to carry out planning and design and 
     major medical facility construction not otherwise authorized 
     by law: Provided further, That within 30 days of enactment of 
     this Act the Secretary of Veterans Affairs shall submit to 
     the Committees on Appropriations of both Houses of Congress 
     an expenditure plan for funds provided under this heading 
     prior to obligation.

                      construction, minor projects

       For an additional amount for ``Construction, Minor 
     Projects'', $939,836,000, to remain available until September 
     30, 2010, of which $860,742,000 shall be for Veterans Health 
     Administration minor construction; $20,300,000 shall be for 
     Veterans Benefits Administration minor construction, 
     including $300,000 for energy efficiency initiatives; and 
     $29,012,000 shall be for National Cemetery Administration 
     minor construction.

       grants for construction of state extended care facilities

       For an additional amount for ``Grants for Construction of 
     State Extended Care Facilities'', $257,986,000, to remain 
     available until September 30, 2010, for grants to assist 
     States to acquire or construct State nursing home and 
     domiciliary facilities and to remodel, modify, or alter 
     existing hospital, nursing home, and domiciliary facilities 
     in State homes, for furnishing care to veterans as authorized 
     by sections 8131 through 8137 of title 38, United States 
     Code.

                        Administrative Provision

       Sec. 1002.  Payments to Eligible Persons Who Served in the 
     United States Armed Forces in the Far East During World War 
     II.  (a) Findings.--Congress makes the following findings:
       (1) The Philippine islands became a United States 
     possession in 1898 when they were ceded from Spain following 
     the Spanish-American War.
       (2) During World War II, Filipinos served in a variety of 
     units, some of which came under the direct control of the 
     United States Armed Forces.
       (3) The regular Philippine Scouts, the new Philippine 
     Scouts, the Guerrilla Services, and more than 100,000 members 
     of the Philippine Commonwealth Army were called into the 
     service of the United States Armed Forces of the Far East on 
     July 26, 1941, by an executive order of President Franklin D. 
     Roosevelt.
       (4) Even after hostilities had ceased, wartime service of 
     the new Philippine Scouts continued as a matter of law until 
     the end of 1946, and the force gradually disbanded and was 
     disestablished in 1950.
       (5) Filipino veterans who were granted benefits prior to 
     the enactment of the so-called Rescissions Acts of 1946 
     (Public Laws 79-301 and 79-391) currently receive full 
     benefits under laws administered by the Secretary of Veterans 
     Affairs, but under section 107 of title 38, United States 
     Code, the service of certain other Filipino veterans is 
     deemed not to be active service for purposes of such laws.
       (6) These other Filipino veterans only receive certain 
     benefits under title 38, United States Code, and, depending 
     on where they legally reside, are paid such benefit amounts 
     at reduced rates.

[[Page 3248]]

       (7) The benefits such veterans receive include service-
     connected compensation benefits paid under chapter 11 of 
     title 38, United States Code, dependency indemnity 
     compensation survivor benefits paid under chapter 13 of title 
     38, United States Code, and burial benefits under chapters 23 
     and 24 of title 38, United States Code, and such benefits are 
     paid to beneficiaries at the rate of $0.50 per dollar 
     authorized, unless they lawfully reside in the United States.
       (8) Dependents' educational assistance under chapter 35 of 
     title 38, United States Code, is also payable for the 
     dependents of such veterans at the rate of $0.50 per dollar 
     authorized, regardless of the veterans' residency.
       (b) Compensation Fund.--
       (1) In General.--There is in the general fund of the 
     Treasury a fund to be known as the ``Filipino Veterans Equity 
     Compensation Fund'' (in this section referred to as the 
     ``compensation fund'').
       (2) Availability of Funds.--Subject to the availability of 
     appropriations for such purpose, amounts in the fund shall be 
     available to the Secretary of Veterans Affairs without fiscal 
     year limitation to make payments to eligible persons in 
     accordance with this section.
       (c) Payments.--
       (1) In General.--The Secretary may make a payment from the 
     compensation fund to an eligible person who, during the one-
     year period beginning on the date of the enactment of this 
     Act, submits to the Secretary a claim for benefits under this 
     section. The application for the claim shall contain such 
     information and evidence as the Secretary may require.
       (2) Payment to Surviving Spouse.--If an eligible person who 
     has filed a claim for benefits under this section dies before 
     payment is made under this section, the payment under this 
     section shall be made instead to the surviving spouse, if 
     any, of the eligible person.
       (d) Eligible Persons.--An eligible person is any person 
     who--
       (1) served--
       (A) before July 1, 1946, in the organized military forces 
     of the Government of the Commonwealth of the Philippines, 
     while such forces were in the service of the Armed Forces of 
     the United States pursuant to the military order of the 
     President dated July 26, 1941, including among such military 
     forces organized guerrilla forces under commanders appointed, 
     designated, or subsequently recognized by the Commander in 
     Chief, Southwest Pacific Area, or other competent authority 
     in the Army of the United States; or
       (B) in the Philippine Scouts under section 14 of the Armed 
     Forces Voluntary Recruitment Act of 1945 (59 Stat. 538); and
       (2) was discharged or released from service described in 
     paragraph (1) under conditions other than dishonorable.
       (e) Payment Amounts.--Each payment under this section shall 
     be--
       (1) in the case of an eligible person who is not a citizen 
     of the United States, in the amount of $9,000; and
       (2) in the case of an eligible person who is a citizen of 
     the United States, in the amount of $15,000.
       (f) Limitation.--The Secretary may not make more than one 
     payment under this section for each eligible person described 
     in subsection (d).
       (g) Clarification of Treatment of Payments Under Certain 
     Laws.--Amounts paid to a person under this section--
       (1) shall be treated for purposes of the internal revenue 
     laws of the United States as damages for human suffering; and
       (2) shall not be included in income or resources for 
     purposes of determining--
       (A) eligibility of an individual to receive benefits 
     described in section 3803(c)(2)(C) of title 31, United States 
     Code, or the amount of such benefits;
       (B) eligibility of an individual to receive benefits under 
     title VIII of the Social Security Act, or the amount of such 
     benefits; or
       (C) eligibility of an individual for, or the amount of 
     benefits under, any other Federal or federally assisted 
     program.
       (h) Release.--
       (1) In General.--Except as provided in paragraph (2), the 
     acceptance by an eligible person or surviving spouse, as 
     applicable, of a payment under this section shall be final, 
     and shall constitute a complete release of any claim against 
     the United States by reason of any service described in 
     subsection (d).
       (2) Payment of Prior Eligibility Status.--Nothing in this 
     section shall prohibit a person from receiving any benefit 
     (including health care, survivor, or burial benefits) which 
     the person would have been eligible to receive based on laws 
     in effect as of the day before the date of the enactment of 
     this Act.
       (i) Recognition of Service.--The service of a person as 
     described in subsection (d) is hereby recognized as active 
     military service in the Armed Forces for purposes of, and to 
     the extent provided in, this section.
       (j) Administration.--
       (1) The Secretary shall promptly issue application forms 
     and instructions to ensure the prompt and efficient 
     administration of the provisions of this section.
       (2) The Secretary shall administer the provisions of this 
     section in a manner consistent with applicable provisions of 
     title 38, United States Code, and other provisions of law, 
     and shall apply the definitions in section 101 of such title 
     in the administration of such provisions, except to the 
     extent otherwise provided in this section.
       (k) Reports.--The Secretary shall include, in documents 
     submitted to Congress by the Secretary in support of the 
     President's budget for each fiscal year, detailed information 
     on the operation of the compensation fund, including the 
     number of applicants, the number of eligible persons 
     receiving benefits, the amounts paid out of the compensation 
     fund, and the administration of the compensation fund for the 
     most recent fiscal year for which such data is available.
       (l) Authorization of Appropriation.--There is authorized to 
     be appropriated to the compensation fund $198,000,000, to 
     remain available until expended, to make payments under this 
     section.

                             RELATED AGENCY

                      DEPARTMENT OF DEFENSE--CIVIL

                       Cemeterial Expenses, Army

                          salary and expenses

       For an additional amount for ``Cemeterial Expenses, Army'', 
     $60,300,000, to remain available until September 30, 2010, 
     for land development, columbarium construction, and 
     relocation of utilities at Arlington National Cemetery.

       TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

       For an additional amount for ``Diplomatic and Consular 
     Programs'' for urgent domestic facilities requirements, 
     $90,000,000, to remain available until September 30, 2010, of 
     which up to $20,000,000 shall be available for passport 
     facilities and systems, and up to $65,000,000 shall be 
     available for a consolidated security training facility in 
     the United States and should be obligated in accordance with 
     United States General Services Administration site selection 
     procedures: Provided, That the Secretary of State shall 
     submit to the Committees on Appropriations within 90 days of 
     enactment of this Act a detailed spending plan for funds 
     appropriated under this heading: Provided further, That with 
     respect to the funds made available for passport facilities 
     and systems, such plan shall be developed in consultation 
     with the Department of Homeland Security and the General 
     Services Administration and shall coordinate and co-locate, 
     to the extent feasible, the construction of passport agencies 
     with other Federal facilities.

                        capital investment fund

       For an additional amount for ``Capital Investment Fund'', 
     $228,000,000, to remain available until September 30, 2010, 
     which shall be available for information technology security 
     and upgrades to support mission-critical operations: 
     Provided, That the Secretary of State and the Administrator 
     of the United States Agency for International Development 
     shall coordinate information technology systems, where 
     appropriate, to increase efficiencies and eliminate 
     redundancies, to include co-location of backup information 
     management facilities: Provided further, That the Secretary 
     of State shall submit to the Committees on Appropriations 
     within 90 days of enactment of this Act a detailed spending 
     plan for funds appropriated under this heading.

                      office of inspector general

       For an additional amount for ``Office of Inspector 
     General'' for oversight requirements, $1,500,000, to remain 
     available until September 30, 2011.

                       INTERNATIONAL COMMISSIONS

 International Boundary and Water Commission, United States and Mexico

                              construction

                     (including transfer of funds)

       For an additional amount for ``Construction'' for the water 
     quantity program to meet immediate repair and rehabilitation 
     requirements, $224,000,000, to remain available until 
     September 30, 2010: Provided, That up to $2,000,000 may be 
     transferred to, and merged with, funds available under the 
     heading ``International Boundary and Water Commission, United 
     States and Mexico--Salaries and Expenses'': Provided, That 
     the Secretary of State shall submit to the Committees on 
     Appropriations within 90 days of enactment of this Act a 
     detailed spending plan for funds appropriated under this 
     heading.

           UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

                  Funds Appropriated to the President

                        capital investment fund

       For an additional amount for ``Capital Investment Fund'', 
     $58,000,000, to remain available until September 30, 2010, 
     which shall be available for information technology 
     modernization programs and implementation of the Global 
     Acquisition System: Provided, That the Administrator of the 
     United States Agency for International Development shall 
     submit to the Committees on Appropriations within 90 days of 
     enactment of this Act a detailed spending plan for funds 
     appropriated under this heading.

[[Page 3249]]



   Operating Expenses of the United States Agency for International 
                Development Office of Inspector General

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development Office of 
     Inspector General'' for oversight requirements, $500,000, to 
     remain available until September 30, 2011.

   TITLE XII--TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND 
                            RELATED AGENCIES

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

supplemental discretionary grants for a national surface transportation 
                                 system

       For an additional amount for capital investments in surface 
     transportation infrastructure, $5,500,000,000, to remain 
     available until September 30, 2011: Provided, That the 
     Secretary of Transportation shall distribute funds provided 
     under this heading as discretionary grants to be awarded to 
     State and local governments on a competitive basis for 
     projects that will have a significant impact on the Nation, a 
     metropolitan area, or a region: Provided further, That 
     projects eligible for funding provided under this heading 
     shall include, but not be limited to, highway or bridge 
     projects eligible under title 23, United States Code, 
     including interstate rehabilitation, improvements to the 
     rural collector road system, the reconstruction of overpasses 
     and interchanges, bridge replacements, seismic retrofit 
     projects for bridges, and road realignments; public 
     transportation projects eligible under chapter 53 of title 
     49, United States Code, including investments in projects 
     participating in the New Starts or Small Starts programs that 
     will expedite the completion of those projects and their 
     entry into revenue service; passenger and freight rail 
     transportation projects; and port infrastructure investments, 
     including projects that connect ports to other modes of 
     transportation and improve the efficiency of freight 
     movement: Provided further, That of the amount made available 
     under this paragraph, the Secretary may use an amount not to 
     exceed $200,000,000 for the purpose of paying the subsidy 
     costs of projects eligible for federal credit assistance 
     under chapter 6 of title 23, United States Code, if the 
     Secretary finds that such use of the funds would advance the 
     purposes of this paragraph: Provided further, That in 
     distributing funds provided under this heading, the Secretary 
     shall take such measures so as to ensure an equitable 
     geographic distribution of funds and an appropriate balance 
     in addressing the needs of urban and rural communities: 
     Provided further, That a grant funded under this heading 
     shall be not less than $20,000,000 and not greater than 
     $500,000,000: Provided further, That the Federal share of the 
     costs for which an expenditure is made under this heading may 
     be up to 100 percent: Provided further, That the Secretary 
     shall give priority to projects that require an additional 
     share of Federal funds in order to complete an overall 
     financing package, and to projects that are expected to be 
     completed within 3 years of enactment of this Act: Provided 
     further, That the Secretary shall publish criteria on which 
     to base the competition for any grants awarded under this 
     heading not later than 75 days after enactment of this Act: 
     Provided further, That the Secretary shall require 
     applications for funding provided under this heading to be 
     submitted not later than 180 days after enactment of this 
     Act, and announce all projects selected to be funded from 
     such funds not later than 1 year after enactment of this Act: 
     Provided further, That the Secretary shall require all 
     additional applications to be submitted not later than 1 year 
     after enactment of this Act, and announce not later than 180 
     days following such 1-year period all additional projects 
     selected to be funded with funds withdrawn from States and 
     grantees and transferred from ``Supplemental Grants for 
     Highway Investments'' and ``Supplemental Grants for Public 
     Transit Investment'': Provided further, That projects 
     conducted using funds provided under this heading must comply 
     with the requirements of subchapter IV of chapter 31 of title 
     40, United States Code: Provided further, That the Secretary 
     may retain up to $5,000,000 of the funds provided under this 
     heading, and may transfer portions of those funds to the 
     Administrators of the Federal Highway Administration, the 
     Federal Transit Administration, the Federal Railroad 
     Administration and the Maritime Administration, to fund the 
     award and oversight of grants made under this heading.

                    Federal Aviation Administration

           supplemental funding for facilities and equipment

       For an additional amount for necessary investments in 
     Federal Aviation Administration infrastructure, $200,000,000: 
     Provided, That funding provided under this heading shall be 
     used to make improvements to power systems, air route traffic 
     control centers, air traffic control towers, terminal radar 
     approach control facilities, and navigation and landing 
     equipment: Provided further, That priority be given to such 
     projects or activities that will be completed within 2 years 
     of enactment of this Act: Provided further, That amounts made 
     available under this heading may be provided through grants 
     in addition to the other instruments authorized under section 
     106(l)(6) of title 49, United States Code: Provided further, 
     That the Federal share of the costs for which an expenditure 
     is made under this heading shall be 100 percent: Provided 
     further, That amounts provided under this heading may be used 
     for expenses the agency incurs in administering this program: 
     Provided further, That not more than 60 days after enactment 
     of this Act, the Administrator shall establish a process for 
     applying, reviewing and awarding grants and cooperative and 
     other transaction agreements, including the form and content 
     of an application, and requirements for the maintenance of 
     records that are necessary to facilitate an effective audit 
     of the use of the funding provided: Provided further, That 
     section 50101 of title 49, United States Code, shall apply to 
     funds provided under this heading.

        supplemental discretionary grants for airport investment

       For an additional amount for capital expenditures 
     authorized under sections 47102(3) and 47504(c) of title 49, 
     United States Code, and for the procurement, installation and 
     commissioning of runway incursion prevention devices and 
     systems at airports of such title, $1,100,000,000: Provided, 
     That the Secretary of Transportation shall distribute funds 
     provided under this heading as discretionary grants to 
     airports, with priority given to those projects that 
     demonstrate to his or her satisfaction their ability to be 
     completed within 2 years of enactment of this Act, and serve 
     to supplement and not supplant planned expenditures from 
     airport-generated revenues or from other State and local 
     sources on such activities: Provided further, That the 
     Federal share payable of the costs for which a grant is made 
     under this heading shall be 100 percent: Provided further, 
     That the amount made available under this heading shall not 
     be subject to any limitation on obligations for the Grants-
     in-Aid for Airports program set forth in any Act: Provided 
     further, That section 50101 of title 49, United States Code, 
     shall apply to funds provided under this heading: Provided 
     further, That projects conducted using funds provided under 
     this heading must comply with the requirements of subchapter 
     IV of chapter 31 of title 40, United States Code: Provided 
     further, That the Administrator of the Federal Aviation 
     Administration may retain and transfer to ``Federal Aviation 
     Administration, Operations'' up to one-quarter of 1 percent 
     of the funds provided under this heading to fund the award 
     and oversight by the Administrator of grants made under this 
     heading.

                     Federal Highway Administration

               supplemental grants for highway investment

       For an additional amount for restoration, repair, 
     construction and other activities eligible under paragraph 
     (b) of section 133 of title 23, United States Code, 
     $27,060,000,000: Provided, That funds provided under this 
     heading shall be apportioned to States using the formula set 
     forth in section 104(b)(3) of such title: Provided further, 
     That 180 days following the date of such apportionment, the 
     Secretary of Transportation shall withdraw from each State an 
     amount equal to 50 percent of the funds awarded to that 
     grantee less the amount of funding obligated, and the 
     Secretary shall redistribute such amounts to other States 
     that have had no funds withdrawn under this proviso in the 
     manner described in section 120(c) of division K of Public 
     Law 110-161: Provided further, That 1 year following the date 
     of such apportionment, the Secretary shall withdraw from each 
     recipient of funds apportioned under this heading any 
     unobligated funds and transfer such funds to ``Supplemental 
     Discretionary Grants for a National Surface Transportation 
     System'': Provided further, That at the request of a State, 
     the Secretary of Transportation may provide an extension of 
     such 1-year period only to the extent that he or she feels 
     satisfied that the State has encountered extreme conditions 
     that create an unworkable bidding environment or other 
     extenuating circumstances: Provided further, That before 
     granting a such an extension, the Secretary shall send a 
     letter to the House and Senate Committees on Appropriations 
     that provides a thorough justification for the extension: 
     Provided further, That the provisions of subsections 
     133(d)(3) and 133(d)(4) of title 23, United States Code, 
     shall apply to funds apportioned under this heading, except 
     that the percentage of funds to be allocated to local 
     jurisdictions shall be 40 percent and such allocation, 
     notwithstanding any other provision of law, shall be 
     conducted in all states within the United States: Provided 
     further, That funds allocated to such urbanized areas and 
     other areas shall not be subject to the redistribution of 
     amounts required 180 days following the date of apportionment 
     of funds provided under this heading: Provided further, That 
     funds apportioned under this heading may be used for, but not 
     be limited to, projects that address stormwater runoff, 
     investments in passenger and freight rail transportation, and 
     investments in port infrastructure: Provided further, that 
     each State shall use not less than 5 percent of funds 
     apportioned to it for activities eligible under subsections 
     149(b) and (c) of title 23, United States Code: Provided 
     further, That of the funds provided

[[Page 3250]]

     under this heading, $60,000,000 shall be for capital 
     expenditures eligible under section 147 of title 23, United 
     States Code: Provided further, That the Secretary of 
     Transportation shall distribute such $60,000,000 as 
     competitive discretionary grants to States, with priority 
     given to those projects that demonstrate to his or her 
     satisfaction their ability to be completed within 2 years of 
     enactment of this Act: Provided further, That of the funds 
     provided under this heading, $500,000,000 shall be for 
     investments in transportation at Indian reservations and 
     Federal lands, and administered in accordance with chapter 2 
     of title 23, United States Code: Provided further, That of 
     the funds identified in the preceding proviso, $320,000,000 
     shall be for the Indian Reservation Roads program, 
     $100,000,000 shall be for the Park Roads and Parkways 
     program, $70,000,000 shall be for the Forest Highway Program, 
     and $10,000,000 shall be for the Refuge Roads program: 
     Provided further, That for investments at Indian reservations 
     and Federal lands, priority shall be given to capital 
     investments, and to projects and activities that can be 
     completed within 2 years of enactment of this Act: Provided 
     further, That 1 year following the enactment of this Act, to 
     ensure the prompt use of the $500,000,000 provided for 
     investments at Indian reservations and Federal lands, the 
     Secretary shall have the authority to redistribute 
     unobligated funds within the respective program for which the 
     funds were appropriated: Provided further, That up to 4 
     percent of the funding provided for Indian Reservation Roads 
     may be used by the Secretary of the Interior for program 
     management and oversight and project-related administrative 
     expenses: Provided further, That section 134(f)(3)(C)(ii)(II) 
     of title 23, United States Code, shall not apply to funds 
     provided under this heading: Provided further, That the 
     Federal share payable on account of any project or activity 
     carried out with funds made available under this heading 
     shall be at the option of the recipient, and may be up to 100 
     percent of the total cost thereof: Provided further, That 
     funding provided under this heading shall be in addition to 
     any and all funds provided for fiscal years 2008 and 2009 in 
     any other Act for ``Federal-aid Highways'' and shall not 
     affect the distribution of funds provided for ``Federal-aid 
     Highways'' in any other Act: Provided further, That the 
     amount made available under this heading shall not be subject 
     to any limitation on obligations for Federal-aid highways or 
     highway safety construction programs set forth in any Act: 
     Provided further, That projects conducted using funds 
     provided under this heading must comply with the requirements 
     of subchapter IV of chapter 31 of title 40, United States 
     Code: Provided further, That section 313 of title 23, United 
     States Code, shall apply to funds provided under this 
     heading: Provided further, That section 1101(b) of Public Law 
     109-59 shall apply to funds apportioned under this heading: 
     Provided further, That for the purposes of the definition of 
     States for this paragraph, sections 101(a)(32) of title 23, 
     United States Code, shall apply: Provided further, That the 
     Administrator of the Federal Highway Administration may 
     retain up to $12,000,000 of the funds provided under this 
     heading to carry out the function of the ``Federal Highway 
     Administration, Limitation on Administrative Expenses'' and 
     to fund the oversight by the Administrator of projects and 
     activities carried out with funds made available to the 
     Federal Highway Administration in this Act.

                    Federal Railroad Administration

   supplemental grants to states for intercity passenger rail service

       For an additional amount for discretionary grants to States 
     to pay for the cost of projects described in paragraphs 
     (2)(A) and (2)(B) of section 24401 of title 49, United States 
     Code, and subsection (b) of section 24105 of such title, 
     $250,000,000: Provided, That to be eligible for assistance 
     under this paragraph, the specific project must be on a 
     Statewide Transportation Improvement Plan at the time of the 
     application to qualify: Provided further, That the Secretary 
     of Transportation shall give priority to projects that 
     demonstrate an ability to be completed within 2 years of 
     enactment of this Act, and to projects that improve the 
     safety and reliability of intercity passenger trains: 
     Provided further, That the Federal share payable of the costs 
     for which a grant is made under this heading shall be 100 
     percent: Provided further, That projects conducted using 
     funds provided under this heading must comply with the 
     requirements of subchapter IV of chapter 31 of title 40, 
     United States Code: Provided further, That section 24405(a) 
     of title 49, United States Code, shall apply to funds 
     provided under this heading: Provided further, That the 
     Administrator of the Federal Railroad Administration may 
     retain and transfer to ``Federal Railroad Administration, 
     Safety and Operations'' up to one-quarter of 1 percent of the 
     funds provided under this heading to fund the award and 
     oversight by the Administrator of grants made under this 
     heading.

    supplemental capital grants to the national railroad passenger 
                              corporation

       For an additional amount for the immediate investment in 
     capital projects necessary to maintain and improve national 
     intercity passenger rail service, including the 
     rehabilitation of rolling stock, $850,000,000: Provided, That 
     funds made available under this heading shall be allocated 
     directly to the National Railroad Passenger Corporation: 
     Provided further, That the Board of Directors of the 
     corporation shall take measures to ensure that priority is 
     given to capital projects that expand passenger rail 
     capacity: Provided further, That the Board of Directors shall 
     take measures to ensure that projects funded under this 
     heading shall be completed within 2 years of enactment of 
     this Act, and shall serve to supplement and not supplant 
     planned expenditures for such activities from other Federal, 
     State, local and corporate sources: Provided further, That 
     said Board of Directors shall certify to the House and Senate 
     Committees on Appropriations in writing their compliance with 
     the preceding proviso: Provided further, That section 
     24305(f) of title 49, United States Code, shall apply to 
     funds provided under this heading: Provided further, That not 
     more than 50 percent of the funds provided under this heading 
     may be used for capital projects along the Northeast 
     Corridor.

                    high-speed rail corridor program

       To make grants for high-speed rail projects under the 
     provisions of section 26106 of title 49, United States Code, 
     $2,000,000,000, to remain available until September 30, 2011: 
     Provided, That the Federal share payable of the costs for 
     which a grant is made under this heading shall be 100 
     percent: Provided further, That the Administrator of the 
     Federal Railroad Administration may retain and transfer to 
     ``Federal Railroad Administration, Safety and Operations'' up 
     to one-quarter of 1 percent of the funds provided under this 
     heading to fund the award and oversight by the Administrator 
     of grants made under this paragraph.

                     Federal Transit Administration

           supplemental grants for public transit investment

       For an additional amount for capital expenditures 
     authorized under section 5302(a)(1) of title 49, United 
     States Code, $8,400,000,000: Provided, That the Secretary of 
     Transportation shall apportion 71 percent of the funds 
     apportioned under this heading using the formula set forth in 
     subsections (a) through (c) of section 5336 of title 49, 
     United States Code, 19 percent of the funds apportioned under 
     this heading using the formula set forth in section 5340 of 
     such title, and 10 percent of the funding apportioned under 
     this heading using the formula set forth in subsection 
     5311(c) of such title: Provided further, That 180 days 
     following the date of such apportionment, the Secretary shall 
     withdraw from each grantee an amount equal to 50 percent of 
     the funds awarded to that grantee less the amount of funding 
     obligated, and the Secretary shall redistribute such amounts 
     to other grantees that have had no funds withdrawn under this 
     proviso utilizing whatever method he or she deems appropriate 
     to ensure that all funds provided under this paragraph shall 
     be utilized promptly: Provided further, That 1 year following 
     the date of such apportionment, the Secretary shall withdraw 
     from each grantee any unobligated funds and transfer such 
     funds to ``Supplemental Discretionary Grants for a National 
     Surface Transportation System'': Provided further, That at 
     the request of a grantee, the Secretary of Transportation may 
     provide an extension of such 1-year periods if he or she 
     feels satisfied that the grantee has encountered an 
     unworkable bidding environment or other extenuating 
     circumstances: Provided further, That before granting such an 
     extension, the Secretary shall send a letter to the House and 
     Senate Committees on Appropriations that provides a thorough 
     justification for the extension: Provided further, That of 
     the funds apportioned using the formula set forth in 
     subsection 5311(c) of title 49, United States Code, 2 percent 
     shall be made available for section 5311(c)(1): Provided 
     further, That of the funding provided under this heading, 
     $200,000,000 shall be distributed as discretionary grants to 
     public transit agencies for capital investments that will 
     assist in reducing the energy consumption or greenhouse gas 
     emissions of their public transportation systems: Provided 
     further, That for such grants on energy-related investments, 
     priority shall be given to projects based on the total energy 
     savings that are projected to result from the investment, and 
     projected energy savings as a percentage of the total energy 
     usage of the public transit agency: Provided further, That 
     the Federal share of the costs for which any grant is made 
     under this heading shall be at the option of the recipient, 
     and may be up to 100 percent: Provided further, That the 
     amount made available under this heading shall not be subject 
     to any limitation on obligations for transit programs set 
     forth in any Act: Provided further, That section 1101(b) of 
     Public Law 109-59 shall apply to funds apportioned under this 
     heading: Provided further, That the funds appropriated under 
     this heading shall be subject to subsection 5323(j) and 
     section 5333 of title 49, United States Code as well as 
     sections 5304 and 5305 of said title, as appropriate, but 
     shall not be comingled with funds available under the Formula 
     and Bus Grants account: Provided further, That the 
     Administrator of the Federal Transit Administration may 
     retain up to $3,000,000 of the

[[Page 3251]]

     funds provided under this heading to carry out the function 
     of ``Federal Transit Administration, Administrative 
     Expenses'' and to fund the oversight of grants made under 
     this heading by the Administrator.

                        Maritime Administration

         supplemental grants for assistance to small shipyards

       To make grants to qualified shipyards as authorized under 
     section 3506 of Public Law 109-163 or section 54101 of title 
     46, United States Code, $100,000,000: Provided, That the 
     Secretary of Transportation shall institute measures to 
     ensure that funds provided under this heading shall be 
     obligated within 180 days of the date of their distribution: 
     Provided further, That the Maritime Administrator may retain 
     and transfer to ``Maritime Administration, Operations and 
     Training'' up to 2 percent of the funds provided under this 
     heading to fund the award and oversight by the Administrator 
     of grants made under this heading.

                      Office of Inspector General

                         salaries and expenses

       For an additional amount for necessary expenses of the 
     Office of Inspector General to carry out the provisions of 
     the Inspector General Act of 1978, as amended, $7,750,000, to 
     remain available until September 30, 2011, and an additional 
     $12,250,000 for such purposes, to remain available until 
     September 30, 2012: Provided, That the funding made available 
     under this heading shall be used for conducting audits and 
     investigations of projects and activities carried out with 
     funds made available in this Act to the Department of 
     Transportation and to the National Railroad Passenger 
     Corporation: Provided further, That the Inspector General 
     shall have all necessary authority, in carrying out the 
     duties specified in the Inspector General Act, as amended (5 
     U.S.C. App. 3), to investigate allegations of fraud, 
     including false statements to the Government (18 U.S.C. 
     1001), by any person or entity that is subject to regulation 
     by the Department.

            GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION

       Sec. 1201.  Section 5309(g)(4)(A) of title 49, United 
     States Code, is amended by striking ``or an amount equivalent 
     to the last 3 fiscal years of funding allocated under 
     subsections (m)(1)(A) and (m)(2)(A)(ii)'' and inserting ``or 
     the sum of the funds available for the next 3 fiscal years 
     beyond the current fiscal year, assuming an annual growth of 
     the program of 10 percent''.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                  Native American Housing Block Grants

       For an additional amount for ``Native American Housing 
     Block Grants'', as authorized under title I of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (``NAHASDA'') (25 U.S.C. 4111 et seq.), $510,000,000, to 
     remain available until September 30, 2011: Provided, That 
     $255,000,000 of the amount provided under this heading shall 
     be distributed according to the same funding formula used in 
     fiscal year 2008: Provided further, That in selecting 
     projects to be funded, recipients shall give priority to 
     projects that can award contracts based on bids within 180 
     days from the date that funds are available to recipients: 
     Provided further, That the Secretary shall obligate 
     $255,000,000 of the amount provided under this heading for 
     competitive grants to eligible entities that apply for funds 
     authorized under NAHASDA: Provided further, That in awarding 
     competitive funds, the Secretary shall give priority to 
     projects that will spur construction and rehabilitation and 
     will create employment opportunities for low-income and 
     unemployed persons: Provided further, That recipients of 
     funds under this heading shall obligate 100 percent of such 
     funds within 1 year of the date of enactment of this Act, 
     expend at least 50 percent of such funds within 2 years of 
     the date on which funds become available to such 
     jurisdictions for obligation, and expend 100 percent of such 
     funds within 3 years of such date: Provided further, That if 
     a recipient fails to comply with either the 1-year obligation 
     requirement or the 2-year expenditure requirement, the 
     Secretary shall recapture all remaining funds awarded to the 
     recipient and reallocate such funds to recipients that are in 
     compliance with those requirements: Provided further, That if 
     a recipient fails to comply with the 3-year expenditure 
     requirement, the Secretary shall recapture the balance of the 
     funds awarded to the recipient: Provided further, That, 
     notwithstanding any other provision of this paragraph, the 
     Secretary may institute measures to ensure participation in 
     the formula and competitive allocation of funds provided 
     under this paragraph by any housing entity eligible to 
     receive funding under title VIII of NAHASDA (25 U.S.C. 4221 
     et seq.): Provided further, That in administering funds 
     provided in this heading, the Secretary may waive any 
     provision of any statute or regulation that the Secretary 
     administers in connection with the obligation by the 
     Secretary or the use by the recipient of these funds except 
     for requirements imposed by this heading and requirements 
     related to fair housing, nondiscrimination, labor standards, 
     and the environment, upon a finding that such waiver is 
     required to facilitate the timely use of such funds and would 
     not be inconsistent with the overall purpose of the statute 
     or regulation: Provided further, That, of the funds made 
     available under this heading, up to 1 percent shall be 
     available for staffing, training, technical assistance, 
     technology, monitoring, research and evaluation activities: 
     Provided further, That any funds made available under this 
     heading used by the Secretary for personnel expenses shall be 
     transferred to and merged with funding provided to 
     ``Personnel Compensation and Benefits, Office of Public and 
     Indian Housing'': Provided further, That any funds made 
     available under this heading used by the Secretary for 
     training or other administrative expenses shall be 
     transferred to and merged with funding provided to 
     ``Administration, Operations, and Management'', for non-
     personnel expenses of the Department of Housing and Urban 
     Development: Provided further, That any funds made available 
     under this heading used by the Secretary for technology shall 
     be transferred to and merged with the funding provided to 
     ``Working Capital Fund''.

                      Public Housing Capital Fund

       For an additional amount for the ``Public Housing Capital 
     Fund'' to carry out capital and management activities for 
     public housing agencies, as authorized under section 9 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437g) (the 
     ``Act''), $5,000,000,000, to remain available until September 
     30, 2011: Provided, That the Secretary of Housing and Urban 
     Development shall allocate $3,000,000,000 of this amount by 
     the formula authorized under section 9(d)(2) of the Act, 
     except that the Secretary may determine not to allocate 
     funding to public housing agencies currently designated as 
     troubled or to public housing agencies that elect not to 
     accept such funding: Provided further, That the Secretary 
     shall make available $2,000,000,000 by competition for 
     priority investments, including investments that leverage 
     private sector funding or financing for renovations and 
     energy conservation retrofit investments: Provided further, 
     That public housing agencies shall prioritize capital 
     projects that are already underway or included in the 5-year 
     capital fund plans required by the Act (42 U.S.C. 1437c-
     1(a)): Provided further, That in allocating competitive 
     grants under this heading, the Secretary shall give priority 
     consideration to the rehabilitation of vacant rental units: 
     Provided further, That notwithstanding any other provision of 
     law, (1) funding provided herein may not be used for 
     operating or rental assistance activities, and (2) any 
     restriction of funding to replacement housing uses shall be 
     inapplicable: Provided further, That notwithstanding any 
     other provision of law, the Secretary shall institute 
     measures to ensure that funds provided under this heading 
     shall serve to supplement and not supplant expenditures from 
     other Federal, State, or local sources or funds independently 
     generated by the grantee: Provided further, That 
     notwithstanding section 9(j), public housing agencies shall 
     obligate 100 percent of the funds within 1 year of the date 
     of enactment of this Act, shall expend at least 60 percent of 
     funds within 2 years of the date on which funds become 
     available to the agency for obligation, and shall expend 100 
     percent of the funds within 3 years of such date: Provided 
     further, That if a public housing agency fails to comply with 
     either the 1-year obligation requirement or the 2-year 
     expenditure requirement, the Secretary shall recapture all 
     remaining funds awarded to the public housing agency and 
     reallocate such funds to agencies that are in compliance with 
     those requirements: Provided further, That if a public 
     housing agency fails to comply with the 3-year expenditure 
     requirement, the Secretary shall recapture the balance of the 
     funds awarded to the public housing agency: Provided further, 
     That in administering funds provided in this heading, the 
     Secretary may waive any provision of any statute or 
     regulation that the Secretary administers in connection with 
     the obligation by the Secretary or the use by the recipient 
     of these funds except for requirements imposed by this 
     heading and requirements related to conditions on use of 
     funds for development and modernization, fair housing, non-
     discrimination, labor standards, and the environment, upon a 
     finding that such waiver is required to facilitate the timely 
     use of such funds and would not be inconsistent with the 
     overall purpose of the statute or regulation: Provided 
     further, That of the funds made available under this heading, 
     up to 1 percent shall be available for staffing, training, 
     technical assistance, technology, monitoring, research and 
     evaluation activities: Provided further, That any funds made 
     available under this heading used by the Secretary for 
     personnel expenses shall be transferred to and merged with 
     funding provided to ``Personnel Compensation and Benefits, 
     Office of Public and Indian Housing'': Provided further, That 
     any funds made available under this heading used by the 
     Secretary for training or other administrative expenses shall 
     be transferred to and merged with funding provided to 
     ``Administration, Operations, and Management'', for non-
     personnel expenses of the Department of Housing and Urban 
     Development: Provided further, That any funds made available 
     under this heading used by the Secretary for technology shall 
     be transferred to and merged with the funding provided to 
     ``Working Capital Fund''.

[[Page 3252]]



                  Home Investment Partnerships Program

       For an additional amount for the ``HOME Investment 
     Partnerships Program'' as authorized under title II of the 
     Cranston-Gonzalez National Affordable Housing Act (the 
     ``Act''), $250,000,000, to remain available until September 
     30, 2011: Provided, That except as specifically provided 
     herein, funds provided under this heading shall be 
     distributed pursuant to the formula authorized by section 217 
     of the Act: Provided further, That the Secretary may 
     establish a minimum grant size: Provided further, That 
     participating jurisdictions shall obligate 100 percent of the 
     funds within 1 year of the date of enactment of this Act, 
     shall expend at least 60 percent of funds within 2 years of 
     the date on which funds become available to the participating 
     jurisdiction for obligation and shall expend 100 percent of 
     the funds within 3 years of such date: Provided further, That 
     if a participating jurisdiction fails to comply with either 
     the 1-year obligation requirement or the 2-year expenditure 
     requirement, the Secretary shall recapture all remaining 
     funds awarded to the participating jurisdiction and 
     reallocate such funds to participating jurisdictions that are 
     in compliance with those requirements: Provided further, That 
     if a participating jurisdiction fails to comply with the 3-
     year expenditure requirement, the Secretary shall recapture 
     the balance of the funds awarded to the participating 
     jurisdiction: Provided further, That in administering funds 
     under this heading, the Secretary may waive any provision of 
     any statute or regulation that the Secretary administers in 
     connection with the obligation by the Secretary or the use by 
     the recipient of these funds except for requirements imposed 
     by this heading and requirements related to fair housing, 
     non-discrimination, labor standards and the environment, upon 
     a finding that such waiver is required to facilitate the 
     timely use of such funds and would not be inconsistent with 
     the overall purpose of the statute or regulation: Provided 
     further, That the Secretary may use funds provided under this 
     heading to provide incentives to grantees to use funding for 
     investments in energy efficiency and green building 
     technology: Provided further, That such incentives may 
     include allocation of up to 20 percent of funds made 
     available under this heading other than pursuant to the 
     formula authorized by section 217 of the Act: Provided 
     further, That, of the funds made available under this 
     heading, up to 1 percent shall be available for staffing, 
     training, technical assistance, technology, monitoring, 
     research and evaluation activities: Provided further, That 
     any funds made available under this heading used by the 
     Secretary for personnel expenses shall be transferred to and 
     merged with funding provided to ``Personnel Compensation and 
     Benefits, Office of Community Planning and Development'': 
     Provided further, That any funds made available under this 
     heading used by the Secretary for training or other 
     administrative expenses shall be transferred to and merged 
     with funding provided to ``Administration, Operations, and 
     Management'', for non-personnel expenses of the Department of 
     Housing and Urban Development: Provided further, That any 
     funds made available under this heading used by the Secretary 
     for technology shall be transferred to and merged with the 
     funding provided to ``Working Capital Fund''.
       For an additional amount for capital investments in low-
     income housing tax credit projects, $2,000,000,000, to remain 
     available until September 30, 2011: Provided, That the funds 
     shall be allocated to States under the HOME program under 
     this Heading shall be made available to State housing finance 
     agencies in an amount totaling $2,000,000,000, subject to any 
     changes made to a State allocation for the benefit of a State 
     by the Secretary of Housing and Urban Development for areas 
     that have suffered from disproportionate job loss and 
     foreclosure: Provided further, That the Secretary, in 
     consultation with the States, shall determine the amount of 
     funds each State shall have available under HOME: Provided 
     further, That the State housing finance agencies (including 
     for purposes throughout this heading any entity that is 
     responsible for distributing low-income housing tax credits) 
     or as appropriate as an entity as a gap financer, shall 
     distribute these funds competitively under this heading to 
     housing developers for projects eligible for funding (such 
     terms including those who may have received funding) under 
     the low-income housing tax credit program as provided under 
     section 42 of the I.R.C. of 1986, with a review of both the 
     decisionmaking and process for the award by the Secretary of 
     Housing and Urban Development: Provided further, That funds 
     under this heading must be awarded by State housing finance 
     agencies within 120 days of enactment of the Act and 
     obligated by the developer of the low-income housing tax 
     credit project within one year of the date of enactment of 
     this Act, shall expend 75 percent of the funds within two 
     years of the date on which the funds become available, and 
     shall expend 100 percent of the funds within 3 years of such 
     date: Provided further, That failure by a developer to expend 
     funds within the parameters required within the previous 
     proviso shall result in a redistribution of these funds by a 
     State housing finance agency or by the Secretary if there is 
     a more deserving project in another jurisdiction: Provided 
     further, That projects awarded tax credits within 3 years 
     prior to the date of enactment of this Act shall be eligible 
     for funding under this heading: Provided further, That as 
     part of the review, the Secretary shall ensure equitable 
     distribution of funds and an appropriate balance in 
     addressing the needs of urban and rural communities with a 
     special priority on areas that have suffered from excessive 
     job loss and foreclosures: Provided further, That State 
     housing finance agencies shall give priority to projects that 
     require an additional share of Federal funds in order to 
     complete an overall funding package, and to projects that are 
     expected to be completed within 3 years of enactment: 
     Provided further, That any assistance provided to an eligible 
     low-income housing tax credit project under this heading 
     shall be made in the same manner and be subject to the same 
     limitations (including rent, income, and use restrictions) as 
     an allocation of the housing credit amount allocated by the 
     State housing finance agency under section 42 of the I.R.C. 
     of 1986, except that such assistance shall not be limited by, 
     or otherwise affect (except as provided in subsection 
     (h)(3)(J) of such section), the State housing finance agency 
     applicable to such agency: Provided further, That the State 
     housing finance agency shall perform asset management 
     functions to ensure compliance with section 42 of the I.R.C. 
     of 1986, and the long term viability of buildings funded by 
     assistance under this heading: Provided further, That the 
     term basis (as such term is defined in such section 42) of a 
     qualified low-income housing tax credit building receiving 
     assistance under this heading shall not be reduced by the 
     amount of any grant described under this heading: Provided 
     further, That the Secretary shall collect all information 
     related to the award of Federal funds from state housing 
     finance agencies and establish an internet site that shall 
     identify all projects selected for an award, including the 
     amount of the award as well as the process and all 
     information that was used to make the award decision.

                      Homelessness Prevention Fund

       For homelessness prevention activities, $1,500,000,000, to 
     remain available until September 30, 2011: Provided, That 
     funds provided under this heading shall be used for the 
     provision of short-term or medium-term rental assistance; 
     housing relocation and stabilization services including 
     housing search, mediation or outreach to property owners, 
     credit repair, security or utility deposits, utility 
     payments, rental assistance for a final month at a location, 
     and moving cost assistance; or other appropriate homelessness 
     prevention activities: Provided further, That grantees 
     receiving such assistance shall collect data on the use of 
     the funds awarded and persons served with this assistance in 
     the Homeless Management Information System (HMIS) or other 
     comparable database: Provided further, That grantees may use 
     up to 5 percent of any grant for administrative costs: 
     Provided further, That funding made available under this 
     heading shall be allocated to eligible grantees (as defined 
     and designated in sections 411 and 412 of subtitle B of title 
     IV of the McKinney-Vento Homeless Assistance Act, (the 
     ``Act'')) pursuant to the formula authorized by section 413 
     of the Act: Provided further, That the Secretary may 
     establish a minimum grant size: Provided further, That 
     grantees shall expend at least 75 percent of funds within 2 
     years of the date that funds became available to them for 
     obligation, and 100 percent of funds within 3 years of such 
     date, and the Secretary may recapture unexpended funds in 
     violation of the 2-year expenditure requirement and 
     reallocate such funds to grantees in compliance with that 
     requirement: Provided further, That the Secretary may waive 
     statutory or regulatory provisions (except provisions for 
     fair housing, nondiscrimination, labor standards, and the 
     environment) necessary to facilitate the timely expenditure 
     of funds: Provided further, That the Secretary shall publish 
     a notice to establish such requirements as may be necessary 
     to carry out the provisions of this section within 30 days of 
     enactment of the Act and that this notice shall take effect 
     upon issuance: Provided further, That of the funds provided 
     under this heading, up to 1.5 percent shall be available for 
     staffing, training, technical assistance, technology, 
     monitoring, research and evaluation activities: Provided 
     further, That any funds made available under this heading 
     used by the Secretary for personnel expense shall be 
     transferred to and merged with funding provided to 
     ``Community Planning and Development Personnel Compensation 
     and Benefits'': Provided further, That any funds made 
     available under this heading used by the Secretary for 
     training or other administrative expenses shall be 
     transferred to and merged with funding provided to 
     ``Administration, Operations, and Management'' for non-
     personnel expenses of the Department of Housing and Urban 
     Development: Provided further, That any funding made 
     available under this heading used by the Secretary for 
     technology shall be transferred to and merged with the 
     funding provided to ``Working Capital Fund.''

  Assisted Housing Stability and Energy and Green Retrofit Investments

       For assistance to owners of properties receiving project-
     based assistance pursuant to

[[Page 3253]]

     section 202 of the Housing Act of 1959 (12 U.S.C. 17012), 
     section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013), or section 8 of the United 
     States Housing Act of 1937 as amended (42 U.S.C. 1437f), 
     $2,250,000,000, of which $2,132,000,000 shall be for an 
     additional amount for paragraph (1) under the heading 
     ``Project-Based Rental Assistance'' in Public Law 110-161 for 
     payments to owners for 12-month periods, and of which 
     $118,000,000 shall be for grants or loans for energy retrofit 
     and green investments in such assisted housing: Provided, 
     That projects funded with grants or loans provided under this 
     heading must comply with the requirements of subchapter IV of 
     chapter 31 of title 40, United States Code: Provided further, 
     That such grants or loans shall be provided through the 
     existing policies, procedures, contracts, and transactional 
     infrastructure of the authorized programs administered by the 
     Office of Affordable Housing Preservation of the Department 
     of Housing and Urban Development, on such terms and 
     conditions as the Secretary of Housing and Urban Development 
     deems appropriate to ensure the maintenance and preservation 
     of the property, the continued operation and maintenance of 
     energy efficiency technologies, and the timely expenditure of 
     funds: Provided further, That the Secretary may provide 
     incentives to owners to undertake energy or green retrofits 
     as a part of such grant or loan terms, including, but not 
     limited to, investment fees to cover oversight and 
     implementation costs incurred by said owner, or to encourage 
     job creation for low-income or very low-income individuals: 
     Provided further, That the grants or loans shall include a 
     financial assessment and physical inspection of such 
     property: Provided further, That eligible owners must have at 
     least a satisfactory management review rating, be in 
     substantial compliance with applicable performance standards 
     and legal requirements, and commit to an additional period of 
     affordability determined by the Secretary, but of not fewer 
     than 15 years: Provided further, That the Secretary shall 
     undertake appropriate underwriting and oversight with respect 
     to grant and loan transactions and may set aside up to 5 
     percent of the funds made available under this heading for 
     grants or loans for such purpose: Provided further, That the 
     Secretary shall take steps necessary to ensure that owners 
     receiving funding for energy and green retrofit investments 
     under this heading shall expend such funding within 2 years 
     of the date they received the funding: Provided further, That 
     the Secretary may waive or modify statutory or regulatory 
     requirements with respect to any existing grant, loan, or 
     insurance mechanism authorized to be used by the Secretary to 
     enable or facilitate the accomplishment of investments 
     supported with funds made available under this heading for 
     grants or loans: Provided further, That of the funds provided 
     under this heading, up to 1.5 percent shall be available for 
     staffing, training, technical assistance, technology, 
     monitoring, research and evaluation activities: Provided 
     further, That funding made available under this heading and 
     used by the Secretary for personnel expenses shall be 
     transferred to and merged with funding provided to ``Housing 
     Compensation and Benefits'': Provided further, That any 
     funding made available under this heading used by the 
     Secretary for training and other administrative expenses 
     shall be transferred to and merged with funding provided to 
     ``Administration, Operations and Management'' for non-
     personnel expenses of the Department of Housing and Urban 
     Development: Provided further, That any funding made 
     available under this heading used by the Secretary for 
     technology shall be transferred to and merged with funding 
     provided to ``Working Capital Fund.''

            Office of Healthy Homes and Lead Hazard Control

       For an additional amount for the ``Lead Hazard Reduction'', 
     as authorized by section 1011 of the Residential Lead-Based 
     Paint Hazard Reduction Act of 1992, $100,000,000, to remain 
     available until September 30, 2011: Provided, That funds 
     shall be awarded first to applicant jurisdictions which had 
     applied under the Lead-Based Paint Hazard Control Grant 
     Program Notice of Funding Availability for fiscal year 2008, 
     and were found in the application review to be qualified for 
     award, but were not awarded because of funding limitations, 
     and that any funds which remain after reservation of funds 
     for such grants shall be added to the amount of funds to be 
     awarded under the Lead-Based Paint Hazard Control Grant 
     Program Notice of Funding Availability for fiscal year 2009: 
     Provided further, That each applicant jurisdiction for the 
     Lead-Based Paint Hazard control Grant Program Notice of 
     Funding Availability for fiscal year 2009 shall submit a 
     detailed plan and strategy that demonstrates adequate 
     capacity that is acceptable to the Secretary to carry out the 
     proposed use of funds: Provided further, That recipients of 
     funds under this heading shall obligate 100 percent of such 
     funds within 1 year of the date of enactment of this Act, 
     expend at least 75 percent of such funds within 2 years of 
     the date on which funds become available to such 
     jurisdictions for obligation, and expend 100 percent of such 
     funds within 3 years of such date: Provided further, That if 
     a recipient fails to comply with either the 1-year obligation 
     requirement or the 2-year expenditure requirement, the 
     Secretary shall recapture all remaining funds awarded to the 
     recipient and reallocate such funds to recipients that are in 
     compliance with those requirements: Provided further, That if 
     a recipient fails to comply with the 3-year expenditure 
     requirement, the Secretary shall recapture the balance of the 
     funds awarded to the recipient: Provided further, That in 
     administering funds provided in this heading, the Secretary 
     may waive any provision of any statute or regulation that the 
     Secretary administers in connection with the obligation by 
     the Secretary or the use by the recipient of these funds 
     except for requirements imposed by this heading and 
     requirements related to fair housing, nondiscrimination, 
     labor standards, and the environment, upon a finding that 
     such waiver is required to facilitate the timely use of such 
     funds and would not be inconsistent with the overall purpose 
     of the statute or regulation: Provided further, That, of the 
     funds made available under this heading, up to 1 percent 
     shall be available for staffing, training, technical 
     assistance, technology, monitoring, research and evaluation 
     activities: Provided further, That any funds made available 
     under this heading used by the Secretary for personnel 
     expenses shall be transferred to and merged with funding 
     provided to ``Personnel Compensation and Benefits, Office of 
     Healthy Homes and Lead Hazard Control'': Provided further, 
     That any funds made available under this heading used by the 
     Secretary for training or other administrative expenses shall 
     be transferred to and merged with funding provided to 
     ``Administration, Operations, and Management'', for non-
     personnel expenses of the Department of Housing and Urban 
     Development: Provided further, That any funds made available 
     under this heading used by the Secretary for technology shall 
     be transferred to and merged with the funding provided to 
     ``Working Capital Fund''.

                      Office of Inspector General

       For an additional amount for the necessary salaries and 
     expenses of the Office of Inspector General in carrying out 
     the Inspector General Act of 1978, as amended, $2,750,000, to 
     remain available until September 30, 2011, and an additional 
     $12,250,000 for such purposes, to remain available until 
     September 30, 2012: Provided, That the Inspector General 
     shall have independent authority over all personnel issues 
     within this office.

               TITLE XIII--HEALTH INFORMATION TECHNOLOGY

     SEC. 1301. SHORT TITLE.

       This title may be cited as the ``Health Information 
     Technology for Economic and Clinical Health Act'' or the 
     ``HITECH Act''.

         Subtitle A--Promotion of Health Information Technology

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

     SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is 
     amended by adding at the end the following:

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

     ``SEC. 3000. DEFINITIONS.

       ``In this title:
       ``(1) Certified ehr technology.--The term `certified EHR 
     technology' means a qualified electronic health record and 
     that is certified pursuant to section 3001(c)(5) as meeting 
     standards adopted under section 3004 that are applicable to 
     the type of record involved (as determined by the Secretary, 
     such as an ambulatory electronic health record for office-
     based physicians or an inpatient hospital electronic health 
     record for hospitals).
       ``(2) Enterprise integration.--The term `enterprise 
     integration' means the electronic linkage of health care 
     providers, health plans, the government, and other interested 
     parties, to enable the electronic exchange and use of health 
     information among all the components in the health care 
     infrastructure in accordance with applicable law, and such 
     term includes related application protocols and other related 
     standards.
       ``(3) Health care provider.--The term `health care 
     provider' means a hospital, skilled nursing facility, nursing 
     facility, home health entity, or other long-term care 
     facility, health care clinic, community mental health center 
     (as defined in section 1913(b)), renal dialysis facility, 
     blood center, ambulatory surgical center described in section 
     1833(i) of the Social Security Act, emergency medical 
     services provider, Federally qualified health center, group 
     practice (as defined in section 1877(h)(4) of the Social 
     Security Act), a pharmacist, a pharmacy, a laboratory, a 
     physician (as defined in section 1861(r) of the Social 
     Security Act), a practitioner (as described in section 
     1842(b)(18)(C) of the Social Security Act), a provider 
     operated by, or under contract with, the Indian Health 
     Service or by an Indian tribe (as defined in the Indian Self-
     Determination and Education Assistance Act), tribal 
     organization, or urban Indian organization (as defined in 
     section 4 of the Indian Health Care Improvement Act), a rural 
     health clinic, a covered entity under section 340B, and any 
     other category of facility or clinician determined 
     appropriate by the Secretary.

[[Page 3254]]

       ``(4) Health information.--The term `health information' 
     has the meaning given such term in section 1171(4) of the 
     Social Security Act.
       ``(5) Health information technology.--The term `health 
     information technology' includes hardware, software, 
     integrated technologies and related licenses, intellectual 
     property, upgrades, and packaged solutions sold as services 
     for use by health care entities for the electronic creation, 
     maintenance, access or exchange of health information.
       ``(6) Health plan.--The term `health plan' has the meaning 
     given such term in section 1171(5) of the Social Security 
     Act.
       ``(7) Hit policy committee.--The term `HIT Policy 
     Committee' means such Committee established under section 
     3002(a).
       ``(8) Hit standards committee.--The term `HIT Standards 
     Committee' means such Committee established under section 
     3003(a).
       ``(9) Individually identifiable health information.--The 
     term `individually identifiable health information' has the 
     meaning given such term in section 1171(6) of the Social 
     Security Act.
       ``(10) Laboratory.--The term `laboratory' has the meaning 
     given such term in section 353(a).
       ``(11) National coordinator.--The term `National 
     Coordinator' means the head of the Office of the National 
     Coordinator for Health Information Technology established 
     under section 3001(a).
       ``(12) Pharmacist.--The term `pharmacist' has the meaning 
     given such term in section 804(2) of the Federal Food, Drug, 
     and Cosmetic Act.
       ``(13) Qualified electronic health record.--The term 
     `qualified electronic health record' means an electronic 
     record of health-related information on an individual that--
       ``(A) includes patient demographic and clinical health 
     information, such as medical history and problem lists; and
       ``(B) has the capacity--
       ``(i) to provide clinical decision support;
       ``(ii) to support physician order entry;
       ``(iii) to capture and query information relevant to health 
     care quality; and
       ``(iv) to exchange electronic health information with, and 
     integrate such information from other sources.
       ``(14) State.--The term `State' means each of the several 
     States, the District of Columbia, Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, and the Northern Mariana 
     Islands.

        ``Subtitle A--Promotion of Health Information Technology

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

       ``(a) Establishment.--There is established within the 
     Department of Health and Human Services an Office of the 
     National Coordinator for Health Information Technology 
     (referred to in this section as the `Office'). The Office 
     shall be headed by a National Coordinator who shall be 
     appointed by the Secretary and shall report directly to the 
     Secretary.
       ``(b) Purpose.--The National Coordinator shall perform the 
     duties under subsection (c) in a manner consistent with the 
     development of a nationwide health information technology 
     infrastructure that allows for the electronic use and 
     exchange of information and that--
       ``(1) ensures that each patient's health information is 
     secure and protected, in accordance with applicable law;
       ``(2) improves health care quality, reduces medical errors, 
     and advances the delivery of patient-centered medical care;
       ``(3) reduces health care costs resulting from 
     inefficiency, medical errors, inappropriate care, duplicative 
     care, and incomplete information;
       ``(4) provides appropriate information to help guide 
     medical decisions at the time and place of care;
       ``(5) ensures the inclusion of meaningful public input in 
     such development of such infrastructure;
       ``(6) improves the coordination of care and information 
     among hospitals, laboratories, physician offices, and other 
     entities through an effective infrastructure for the secure 
     and authorized exchange of health care information;
       ``(7) improves public health activities and facilitates the 
     early identification and rapid response to public health 
     threats and emergencies, including bioterror events and 
     infectious disease outbreaks;
       ``(8) facilitates health and clinical research and health 
     care quality;
       ``(9) promotes early detection, prevention, and management 
     of chronic diseases;
       ``(10) promotes a more effective marketplace, greater 
     competition, greater systems analysis, increased consumer 
     choice, and improved outcomes in health care services; and
       ``(11) improves efforts to reduce health disparities.
       ``(c) Duties of the National Coordinator.--
       ``(1) Standards.--The National Coordinator shall--
       ``(A) review and determine whether to endorse each 
     standard, implementation specification, and certification 
     criterion for the electronic exchange and use of health 
     information that is recommended by the HIT Standards 
     Committee under section 3003 for purposes of adoption under 
     section 3004;
       ``(B) make such determinations under subparagraph (A), and 
     report to the Secretary such determinations, not later than 
     45 days after the date the recommendation is received by the 
     Coordinator;
       ``(C) review Federal health information technology 
     investments to ensure that Federal health information 
     technology programs are meeting the objectives of the 
     strategic plan published under paragraph (3); and
       ``(D) provide comments and advice regarding specific 
     Federal health information technology programs, at the 
     request of the Office of Management and Budget.
       ``(2) Hit policy coordination.--
       ``(A) In general.--The National Coordinator shall 
     coordinate health information technology policy and programs 
     of the Department with those of other relevant executive 
     branch agencies with a goal of avoiding duplication of 
     efforts and of helping to ensure that each agency undertakes 
     health information technology activities primarily within the 
     areas of its greatest expertise and technical capability and 
     in a manner towards a coordinated national goal.
       ``(B) Hit policy and standards committees.--The National 
     Coordinator shall be a leading member in the establishment 
     and operations of the HIT Policy Committee and the HIT 
     Standards Committee and shall serve as a liaison among those 
     two Committees and the Federal Government.
       ``(3) Strategic plan.--
       ``(A) In general.--The National Coordinator shall, in 
     consultation with other appropriate Federal agencies 
     (including the National Institute of Standards and 
     Technology), update the Federal Health IT Strategic Plan 
     (developed as of June 3, 2008) to include specific 
     objectives, milestones, and metrics with respect to the 
     following:
       ``(i) The electronic exchange and use of health information 
     and the enterprise integration of such information.
       ``(ii) The utilization of an electronic health record for 
     each person in the United States by 2014.
       ``(iii) The incorporation of privacy and security 
     protections for the electronic exchange of an individual's 
     individually identifiable health information.
       ``(iv) Ensuring security methods to ensure appropriate 
     authorization and electronic authentication of health 
     information and specifying technologies or methodologies for 
     rendering health information unusable, unreadable, or 
     indecipherable.
       ``(v) Specifying a framework for coordination and flow of 
     recommendations and policies under this subtitle among the 
     Secretary, the National Coordinator, the HIT Policy 
     Committee, the HIT Standards Committee, and other health 
     information exchanges and other relevant entities.
       ``(vi) Methods to foster the public understanding of health 
     information technology.
       ``(vii) Strategies to enhance the use of health information 
     technology in improving the quality of health care, reducing 
     medical errors, reducing health disparities, improving public 
     health, increasing prevention and coordination with community 
     resources, and improving the continuity of care among health 
     care settings.
       ``(viii) Specific plans for ensuring that populations with 
     unique needs, such as children, are appropriately addressed 
     in the technology design, as appropriate, which may include 
     technology that automates enrollment and retention for 
     eligible individuals.
       ``(B) Collaboration.--The strategic plan shall be updated 
     through collaboration of public and private entities.
       ``(C) Measurable outcome goals.--The strategic plan update 
     shall include measurable outcome goals.
       ``(D) Publication.--The National Coordinator shall 
     republish the strategic plan, including all updates.
       ``(4) Website.--The National Coordinator shall maintain and 
     frequently update an Internet website on which there is 
     posted information on the work, schedules, reports, 
     recommendations, and other information to ensure transparency 
     in promotion of a nationwide health information technology 
     infrastructure.
       ``(5) Harmonization.--The Secretary may recognize an entity 
     or entities for the purpose of harmonizing or updating 
     standards and implementation specifications in order to 
     achieve uniform and consistent implementation of the 
     standards and implementation specifications.
       ``(6) Certification.--
       ``(A) In general.--The National Coordinator, in 
     consultation with the Director of the National Institute of 
     Standards and Technology, shall recognize a program or 
     programs for the voluntary certification of health 
     information technology as being in compliance with applicable 
     certification criteria adopted under this subtitle. Such 
     program shall include, as appropriate, testing of the 
     technology in accordance with section 14201(b) of the Health 
     Information Technology for Economic and Clinical Health Act.
       ``(B) Certification criteria described.--In this title, the 
     term `certification criteria' means, with respect to 
     standards and implementation specifications for health 
     information technology, criteria to establish that

[[Page 3255]]

     the technology meets such standards and implementation 
     specifications.
       ``(6) Reports and publications.--
       ``(A) Report on additional funding or authority needed.--
     Not later than 12 months after the date of the enactment of 
     this title, the National Coordinator shall submit to the 
     appropriate committees of jurisdiction of the House of 
     Representatives and the Senate a report on any additional 
     funding or authority the Coordinator or the HIT Policy 
     Committee or HIT Standards Committee requires to evaluate and 
     develop standards, implementation specifications, and 
     certification criteria, or to achieve full participation of 
     stakeholders in the adoption of a nationwide health 
     information technology infrastructure that allows for the 
     electronic use and exchange of health information.
       ``(B) Implementation report.--The National Coordinator 
     shall prepare a report that identifies lessons learned from 
     major public and private health care systems in their 
     implementation of health information technology, including 
     information on whether the technologies and practices 
     developed by such systems may be applicable to and usable in 
     whole or in part by other health care providers.
       ``(C) Assessment of impact of hit on communities with 
     health disparities and uninsured, underinsured, and medically 
     underserved areas.--The National Coordinator shall assess and 
     publish the impact of health information technology in 
     communities with health disparities and in areas with a high 
     proportion of individuals who are uninsured, underinsured, 
     and medically underserved individuals (including urban and 
     rural areas) and identify practices to increase the adoption 
     of such technology by health care providers in such 
     communities, and the use of health information technology to 
     reduce and better manage chronic diseases.
       ``(D) Evaluation of benefits and costs of the electronic 
     use and exchange of health information.--The National 
     Coordinator shall evaluate and publish evidence on the 
     benefits and costs of the electronic use and exchange of 
     health information and assess to whom these benefits and 
     costs accrue.
       (E) Resource requirements.--The National Coordinator shall 
     estimate and publish resources required annually to reach the 
     goal of utilization of an electronic health record for each 
     person in the United States by 2014, including--
       (i) the required level of Federal funding;
       (ii) expectations for regional, State, and private 
     investment;
       (iii) the expected contributions by volunteers to 
     activities for the utilization of such records; and
       (iv) the resources needed to establish or expand education 
     programs in medical and health informatics and health 
     information management to train health care and information 
     technology students and provide a health information 
     technology workforce sufficient to ensure the rapid and 
     effective deployment and utilization of health information 
     technologies.
       ``(7) Assistance.--The National Coordinator may provide 
     financial assistance to consumer advocacy groups and not-for-
     profit entities that work in the public interest for purposes 
     of defraying the cost to such groups and entities to 
     participate under, whether in whole or in part, the National 
     Technology Transfer Act of 1995 (15 U.S.C. 272 note).
       ``(8) Governance for nationwide health information 
     network.--The National Coordinator shall establish a 
     governance mechanism for the nationwide health information 
     network.
       ``(d) Detail of Federal Employees.--
       ``(1) In general.--Upon the request of the National 
     Coordinator, the head of any Federal agency is authorized to 
     detail, with or without reimbursement from the Office, any of 
     the personnel of such agency to the Office to assist it in 
     carrying out its duties under this section.
       ``(2) Effect of detail.--Any detail of personnel under 
     paragraph (1) shall--
       ``(A) not interrupt or otherwise affect the civil service 
     status or privileges of the Federal employee; and
       ``(B) be in addition to any other staff of the Department 
     employed by the National Coordinator.
       ``(3) Acceptance of detailees.--Notwithstanding any other 
     provision of law, the Office may accept detailed personnel 
     from other Federal agencies without regard to whether the 
     agency described under paragraph (1) is reimbursed.
       ``(e) Chief Privacy Officer of the Office of the National 
     Coordinator.--Not later than 12 months after the date of the 
     enactment of this title, the Secretary shall appoint a Chief 
     Privacy Officer of the Office of the National Coordinator, 
     whose duty it shall be to advise the National Coordinator on 
     privacy, security, and data stewardship of electronic health 
     information and to coordinate with other Federal agencies 
     (and similar privacy officers in such agencies), with State 
     and regional efforts, and with foreign countries with regard 
     to the privacy, security, and data stewardship of electronic 
     individually identifiable health information.

     ``SEC. 3002. HIT POLICY COMMITTEE.

       ``(a) Establishment.--There is established a HIT Policy 
     Committee to make policy recommendations to the National 
     Coordinator relating to the implementation of a nationwide 
     health information technology infrastructure, including 
     implementation of the strategic plan described in section 
     3001(c)(3).
       ``(b) Duties.--
       ``(1) Recommendations on health information technology 
     infrastructure.--The HIT Policy Committee shall recommend a 
     policy framework for the development and adoption of a 
     nationwide health information technology infrastructure that 
     permits the electronic exchange and use of health information 
     as is consistent with the strategic plan under section 
     3001(c)(3) and that includes the recommendations under 
     paragraph (2). The Committee shall update such 
     recommendations and make new recommendations as appropriate.
       ``(2) Specific areas of standard development.--
       ``(A) In general.--The HIT Policy Committee shall recommend 
     the areas in which standards, implementation specifications, 
     and certification criteria are needed for the electronic 
     exchange and use of health information for purposes of 
     adoption under section 3004 and shall recommend an order of 
     priority for the development, harmonization, and recognition 
     of such standards, specifications, and certification criteria 
     among the areas so recommended. Such standards and 
     implementation specifications shall include named standards, 
     architectures, and software schemes for the authentication 
     and security of individually identifiable health information 
     and other information as needed to ensure the reproducible 
     development of common solutions across disparate entities.
       ``(B) Areas required for consideration.--For purposes of 
     subparagraph (A), the HIT Policy Committee shall make 
     recommendations for at least the following areas:
       ``(i) Technologies that protect the privacy of health 
     information and promote security in a qualified electronic 
     health record, including for the segmentation and protection 
     from disclosure of specific and sensitive individually 
     identifiable health information with the goal of minimizing 
     the reluctance of patients to seek care (or disclose 
     information about a condition) because of privacy concerns, 
     in accordance with applicable law, and for the use and 
     disclosure of limited data sets of such information.
       ``(ii) A nationwide health information technology 
     infrastructure that allows for the electronic use and 
     accurate exchange of health information.
       ``(iii) The utilization of a certified electronic health 
     record for each person in the United States by 2014.
       ``(iv) Technologies that as a part of a qualified 
     electronic health record allow for an accounting of 
     disclosures made by a covered entity (as defined for purposes 
     of regulations promulgated under section 264(c) of the Health 
     Insurance Portability and Accountability Act of 1996) for 
     purposes of treatment, payment, and health care operations 
     (as such terms are defined for purposes of such regulations).
       ``(v) The use of certified electronic health records to 
     improve the quality of health care, such as by promoting the 
     coordination of health care and improving continuity of 
     health care among health care providers, by reducing medical 
     errors, by improving population health, reducing chronic 
     disease, and by advancing research and education.
       ``(vi) The use of electronic systems to ensure the 
     comprehensive collection of patient demographic data, 
     including, at a minimum, race, ethnicity, primary language, 
     and gender information.
       ``(vii) Technologies and design features that address the 
     needs of children and other vulnerable populations.
       ``(C) Other areas for consideration.--In making 
     recommendations under subparagraph (A), the HIT Policy 
     Committee may consider the following additional areas:
       ``(i) The appropriate uses of a nationwide health 
     information infrastructure, including for purposes of--

       ``(I) the collection of quality data and public reporting;
       ``(II) biosurveillance and public health;
       ``(III) medical and clinical research; and
       ``(IV) drug safety.

       ``(ii) Self-service technologies that facilitate the use 
     and exchange of patient information and reduce wait times.
       ``(iii) Telemedicine technologies, in order to reduce 
     travel requirements for patients in remote areas.
       ``(iv) Technologies that facilitate home health care and 
     the monitoring of patients recuperating at home.
       ``(v) Technologies that help reduce medical errors.
       ``(vi) Technologies that facilitate the continuity of care 
     among health settings.
       ``(vii) Technologies that meet the needs of diverse 
     populations.
       ``(viii) Methods to facilitate secure access by an 
     individual to such individual's protected health information.
       ``(ix) Methods, guidelines, and safeguards to facilitate 
     secure access to patient information by a family member, 
     caregiver, or guardian acting on behalf of a patient due to 
     age-related and other disability, cognitive impairment, or 
     dementia that prevents a patient from accessing the patient's 
     individually identifiable health information.
       ``(x) Any other technology that the HIT Policy Committee 
     finds to be among the

[[Page 3256]]

     technologies with the greatest potential to improve the 
     quality and efficiency of health care.
       ``(3) Forum.--The HIT Policy Committee shall serve as a 
     forum for broad stakeholder input with specific expertise in 
     policies relating to the matters described in paragraphs (1) 
     and (2).
       ``(4) Consistency with evaluation conducted under mippa.--
       ``(A) Requirement for consistency.--The HIT Policy 
     Committee shall ensure that recommendations made under 
     paragraph (2)(B)(vi) are consistent with the evaluation 
     conducted under section 1809(a) of the Social Security Act.
       ``(B) Scope.--Nothing in subparagraph (A) shall be 
     construed to limit the recommendations under paragraph 
     (2)(B)(vi) to the elements described in section 1809(a)(3) of 
     the Social Security Act.
       ``(C) Timing.--The requirement under subparagraph (A) shall 
     be applicable to the extent that evaluations have been 
     conducted under section 1809(a) of the Social Security Act, 
     regardless of whether the report described in subsection (b) 
     of such section has been submitted.
       ``(c) Membership and Operations.--
       ``(1) In general.--The National Coordinator shall provide 
     leadership in the establishment and operations of the HIT 
     Policy Committee.
       ``(2) Membership.--The HIT Policy Committee shall be 
     composed of members to be appointed as follows:
       ``(A) One member shall be appointed by the Secretary.
       ``(B) One member shall be appointed by the Secretary of 
     Veterans Affairs who shall represent the Department of 
     Veterans Affairs.
       ``(C) One member shall be appointed by the Secretary of 
     Defense who shall represent the Department of Defense.
       ``(D) One member shall be appointed by the Majority Leader 
     of the Senate.
       ``(E) One member shall be appointed by the Minority Leader 
     of the Senate.
       ``(F) One member shall be appointed by the Speaker of the 
     House of Representatives.
       ``(G) One member shall be appointed by the Minority Leader 
     of the House of Representatives.
       ``(H) Eleven members shall be appointed by the Comptroller 
     General of the United States, of whom--
       ``(i) three members shall represent patients or consumers;
       ``(ii) one member shall represent health care providers;
       ``(iii) one member shall be from a labor organization 
     representing health care workers;
       ``(iv) one member shall have expertise in privacy and 
     security;
       ``(v) one member shall have expertise in improving the 
     health of vulnerable populations;
       ``(vi) one member shall represent health plans or other 
     third party payers;
       ``(vii) one member shall represent information technology 
     vendors;
       ``(viii) one member shall represent purchasers or 
     employers; and
       ``(ix) one member shall have expertise in health care 
     quality measurement and reporting.
       ``(3) Chairperson and vice chairperson.--The HIT Policy 
     Committee shall designate one member to serve as the 
     chairperson and one member to serve as the vice chairperson 
     of the Policy Committee.
       ``(4) National coordinator.--The National Coordinator shall 
     serve as a member of the HIT Policy Committee and act as a 
     liaison among the HIT Policy Committee, the HIT Standards 
     Committee, and the Federal Government.
       ``(5) Participation.--The members of the HIT Policy 
     Committee appointed under paragraph (2) shall represent a 
     balance among various sectors of the health care system so 
     that no single sector unduly influences the recommendations 
     of the Policy Committee.
       ``(6) Terms.--
       ``(A) In general.--The terms of the members of the HIT 
     Policy Committee shall be for 3 years, except that the 
     Comptroller General shall designate staggered terms for the 
     members first appointed.
       ``(B) Vacancies.--Any member appointed to fill a vacancy in 
     the membership of the HIT Policy Committee that occurs prior 
     to the expiration of the term for which the member's 
     predecessor was appointed shall be appointed only for the 
     remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has been 
     appointed. A vacancy in the HIT Policy Committee shall be 
     filled in the manner in which the original appointment was 
     made.
       ``(7) Outside involvement.--The HIT Policy Committee shall 
     ensure an adequate opportunity for the participation of 
     outside advisors, including individuals with expertise in--
       ``(A) health information privacy and security;
       ``(B) improving the health of vulnerable populations;
       ``(C) health care quality and patient safety, including 
     individuals with expertise in the measurement and use of 
     health information technology to capture data to improve 
     health care quality and patient safety;
       ``(D) long-term care and aging services;
       ``(E) medical and clinical research; and
       ``(F) data exchange and developing health information 
     technology standards and new health information technology.
       ``(8) Quorum.--Ten members of the HIT Policy Committee 
     shall constitute a quorum for purposes of voting, but a 
     lesser number of members may meet and hold hearings.
       ``(9) Failure of initial appointment.--If, on the date that 
     is 45 days after the date of enactment of this title, an 
     official authorized under paragraph (2) to appoint one or 
     more members of the HIT Policy Committee has not appointed 
     the full number of members that such paragraph authorizes 
     such official to appoint--
       ``(A) the number of members that such official is 
     authorized to appoint shall be reduced to the number that 
     such official has appointed as of that date; and
       ``(B) the number prescribed in paragraph (8) as the quorum 
     shall be reduced to the smallest whole number that is greater 
     than one-half of the total number of members who have been 
     appointed as of that date.
       ``(10) Consideration.--The National Coordinator shall 
     ensure that the relevant recommendations and comments from 
     the National Committee on Vital and Health Statistics are 
     considered in the development of policies.
       ``(d) Application of Faca.--The Federal Advisory Committee 
     Act (5 U.S.C. App.), other than section 14 of such Act, shall 
     apply to the HIT Policy Committee.
       ``(e) Publication.--The Secretary shall provide for 
     publication in the Federal Register and the posting on the 
     Internet website of the Office of the National Coordinator 
     for Health Information Technology of all policy 
     recommendations made by the HIT Policy Committee under this 
     section.

     ``SEC. 3003. HIT STANDARDS COMMITTEE.

       ``(a) Establishment.--There is established a committee to 
     be known as the HIT Standards Committee to recommend to the 
     National Coordinator standards, implementation 
     specifications, and certification criteria for the electronic 
     exchange and use of health information for purposes of 
     adoption under section 3004, consistent with the 
     implementation of the strategic plan described in section 
     3001(c)(3) and beginning with the areas listed in section 
     3002(b)(2)(B) in accordance with policies developed by the 
     HIT Policy Committee.
       ``(b) Duties.--
       ``(1) Standard development.--
       ``(A) In general.--The HIT Standards Committee shall 
     recommend to the National Coordinator standards, 
     implementation specifications, and certification criteria 
     described in subsection (a) that have been developed, 
     harmonized, or recognized by the HIT Standards Committee. The 
     HIT Standards Committee shall update such recommendations and 
     make new recommendations as appropriate, including in 
     response to a notification sent under section 3004(b)(2). 
     Such recommendations shall be consistent with the latest 
     recommendations made by the HIT Policy Committee.
       ``(B) Pilot testing of standards and implementation 
     specifications.--In the development, harmonization, or 
     recognition of standards and implementation specifications, 
     the HIT Standards Committee shall, as appropriate, provide 
     for the testing of such standards and specifications by the 
     National Institute for Standards and Technology under section 
     14201 of the Health Information Technology for Economic and 
     Clinical Health Act.
       ``(C) Consistency.--The standards, implementation 
     specifications, and certification criteria recommended under 
     this subsection shall be consistent with the standards for 
     information transactions and data elements adopted pursuant 
     to section 1173 of the Social Security Act.
       ``(2) Forum.--The HIT Standards Committee shall serve as a 
     forum for the participation of a broad range of stakeholders 
     to provide input on the development, harmonization, and 
     recognition of standards, implementation specifications, and 
     certification criteria necessary for the development and 
     adoption of a nationwide health information technology 
     infrastructure that allows for the electronic use and 
     exchange of health information.
       ``(3) Schedule.--Not later than 90 days after the date of 
     the enactment of this title, the HIT Standards Committee 
     shall develop a schedule for the assessment of policy 
     recommendations developed by the HIT Policy Committee under 
     section 3002. The HIT Standards Committee shall update such 
     schedule annually. The Secretary shall publish such schedule 
     in the Federal Register.
       ``(4) Public input.--The HIT Standards Committee shall 
     conduct open public meetings and develop a process to allow 
     for public comment on the schedule described in paragraph (3) 
     and recommendations described in this subsection. Under such 
     process comments shall be submitted in a timely manner after 
     the date of publication of a recommendation under this 
     subsection.
       ``(5) Consideration.--The National Coordinator shall ensure 
     that the relevant recommendations and comments from the 
     National Committee on Vital and Health Statistics are 
     considered in the development of standards.
       ``(c) Membership and Operations.--

[[Page 3257]]

       ``(1) In general.--The National Coordinator shall provide 
     leadership in the establishment and operations of the HIT 
     Standards Committee.
       ``(2) Membership.--The membership of the HIT Standards 
     Committee shall at least reflect providers, ancillary 
     healthcare workers, consumers, purchasers, health plans, 
     technology vendors, researchers, relevant Federal agencies, 
     and individuals with technical expertise on health care 
     quality, privacy and security, and on the electronic exchange 
     and use of health information.
       ``(3) Broad participation.--There is broad participation in 
     the HIT Standards Committee by a variety of public and 
     private stakeholders, either through membership in the 
     Committee or through another means.
       ``(4) Chairperson; vice chairperson.--The HIT Standards 
     Committee may designate one member to serve as the 
     chairperson and one member to serve as the vice chairperson.
       ``(5) Department membership.--The Secretary shall be a 
     member of the HIT Standards Committee. The National 
     Coordinator shall act as a liaison among the HIT Standards 
     Committee, the HIT Policy Committee, and the Federal 
     Government.
       ``(6) Balance among sectors.--In developing the procedures 
     for conducting the activities of the HIT Standards Committee, 
     the HIT Standards Committee shall act to ensure a balance 
     among various sectors of the health care system so that no 
     single sector unduly influences the actions of the HIT 
     Standards Committee.
       ``(7) Assistance.--For the purposes of carrying out this 
     section, the Secretary may provide or ensure that financial 
     assistance is provided by the HIT Standards Committee to 
     defray in whole or in part any membership fees or dues 
     charged by such Committee to those consumer advocacy groups 
     and not for profit entities that work in the public interest 
     as a part of their mission.
       ``(d) Open and Public Process.--In providing for the 
     establishment of the HIT Standards Committee pursuant to 
     subsection (a), the Secretary shall ensure the following:
       ``(1) Consensus approach; open process.--The HIT Standards 
     Committee shall use a consensus approach and a fair and open 
     process to support the development, harmonization, and 
     recognition of standards described in subsection (a)(1).
       ``(2) Participation of outside advisers.--The HIT Standards 
     Committee shall ensure an adequate opportunity for the 
     participation of outside advisors, including individuals with 
     expertise in--
       ``(A) health information privacy;
       ``(B) health information security;
       ``(C) health care quality and patient safety, including 
     individuals with expertise in utilizing health information 
     technology to improve healthcare quality and patient safety;
       ``(D) long-term care and aging services; and
       ``(E) data exchange and developing health information 
     technology standards and new health information technology.
       ``(3) Open meetings.--Plenary and other regularly scheduled 
     formal meetings of the HIT Standards Committee (or 
     established subgroups thereof) shall be open to the public.
       ``(4) Publication of meeting notices and materials prior to 
     meetings.--The HIT Standards Committee shall develop and 
     maintain an Internet website on which it publishes, prior to 
     each meeting, a meeting notice, a meeting agenda, and meeting 
     materials.
       ``(5) Opportunity for public comment.--The HIT Standards 
     Committee shall develop a process that allows for public 
     comment during the process by which the Entity develops, 
     harmonizes, or recognizes standards and implementation 
     specifications.
       ``(e) Voluntary Consensus Standard Body.--The provisions of 
     section 12(d) of the National Technology Transfer and 
     Advancement Act of 1995 (15 U.S.C. 272 note) and the Office 
     of Management and Budget circular 119 shall apply to the HIT 
     Standards Committee.
       ``(f) Publication.--The Secretary shall provide for 
     publication in the Federal Register and the posting on the 
     Internet website of the Office of the National Coordinator 
     for Health Information Technology of all recommendations made 
     by the HIT Standards Committee under this section.

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

       ``(a) Process for Adoption of Endorsed Recommendations.--
       ``(1) Review of endorsed standards, implementation 
     specifications, and certification criteria.--Not later than 
     90 days after the date of receipt of standards, 
     implementation specifications, or certification criteria 
     endorsed under section 3001(c), the Secretary, in 
     consultation with representatives of other relevant Federal 
     agencies, shall jointly review such standards, implementation 
     specifications, or certification criteria and shall determine 
     whether or not to propose adoption of such standards, 
     implementation specifications, or certification criteria.
       ``(2) Determination to adopt standards, implementation 
     specifications, and certification criteria.--If the Secretary 
     determines--
       ``(A) to propose adoption of any grouping of such 
     standards, implementation specifications, or certification 
     criteria, the Secretary shall, by regulation, determine 
     whether or not to adopt such grouping of standards, 
     implementation specifications, or certification criteria; or
       ``(B) not to propose adoption of any grouping of standards, 
     implementation specifications, or certification criteria, the 
     Secretary shall notify the National Coordinator and the HIT 
     Standards Committee in writing of such determination and the 
     reasons for not proposing the adoption of such 
     recommendation.
       ``(3) Publication.--The Secretary shall provide for 
     publication in the Federal Register of all determinations 
     made by the Secretary under paragraph (1).
       ``(b) Adoption of Standards, Implementation Specifications, 
     and Certification Criteria.--
       ``(1) In general.--Not later than December 31, 2009, the 
     Secretary shall, through the rulemaking process described in 
     section 3003, adopt an initial set of standards, 
     implementation specifications, and certification criteria for 
     the areas required for consideration under section 
     3002(b)(2)(B).
       ``(2) Application of current standards, implementation 
     specifications, and certification criteria.--The standards, 
     implementation specifications, and certification criteria 
     adopted before the date of the enactment of this title 
     through the process existing through the Office of the 
     National Coordinator for Health Information Technology may be 
     applied towards meeting the requirement of paragraph (1).
       ``(3) Subsequent standards activity.--The Secretary shall 
     adopt additional standards, implementation specifications, 
     and certification criteria as necessary and consistent with 
     the schedule published under section 3003(b)(2).

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

       ``For requirements relating to the application and use by 
     Federal agencies of the standards and implementation 
     specifications adopted under section 3004, see section 13111 
     of the Health Information Technology for Economic and 
     Clinical Health Act.

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

       ``(a) In General.--Except as provided under section 13112 
     of the Health Information Technology for Economic and 
     Clinical Health Act, any standard or implementation 
     specification adopted under section 3004 shall be voluntary 
     with respect to private entities.
       ``(b) Rule of Construction.--Nothing in this subtitle shall 
     be construed to require that a private entity that enters 
     into a contract with the Federal Government apply or use the 
     standards and implementation specifications adopted under 
     section 3004 with respect to activities not related to the 
     contract.

     ``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

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

     SEC. 3008. TRANSITIONS.

       ``(a) ONCHIT.--Nothing in section 3001 shall be construed 
     as requiring the creation of a new entity to the extent that 
     the Office of the National Coordinator for Health Information 
     Technology established pursuant to Executive Order 13335 is 
     consistent with the provisions of section 3001.
       ``(b) National EHealth Collaborative.--Nothing in sections 
     3002 or 3003 or this subsection shall be construed as 
     prohibiting the National eHealth Collaborative from modifying 
     its charter, duties, membership, and any other structure or 
     function required to be consistent with the requirements of a 
     voluntary consensus standards body so as to

[[Page 3258]]

     allow the Secretary to recognize the National eHealth 
     Collaborative as the HIT Standards Committee.
       ``(c) Consistency of Recommendations.--In carrying out 
     section 3003(b)(1)(A), until recommendations are made by the 
     HIT Policy Committee, recommendations of the HIT Standards 
     Committee shall be consistent with the most recent 
     recommendations made by such AHIC Successor, Inc.

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

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

     SEC. 13102. TECHNICAL AMENDMENT.

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

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

     SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED 
                   STANDARDS AND IMPLEMENTATION SPECIFICATIONS.

       (a) Spending on Health Information Technology Systems.--As 
     each agency (as defined in the Executive Order issued on 
     August 22, 2006, relating to promoting quality and efficient 
     health care in Federal government administered or sponsored 
     health care programs) implements, acquires, or upgrades 
     health information technology systems used for the direct 
     exchange of individually identifiable health information 
     between agencies and with non-Federal entities, it shall 
     utilize, where available, health information technology 
     systems and products that meet standards and implementation 
     specifications adopted under section 3004(b) of the Public 
     Health Service Act, as added by section 13101.
       (b) Federal Information Collection Activities.--With 
     respect to a standard or implementation specification adopted 
     under section 3004(b) of the Public Health Service Act, as 
     added by section 13101, the President shall take measures to 
     ensure that Federal activities involving the broad collection 
     and submission of health information are consistent with such 
     standard or implementation specification, respectively, 
     within three years after the date of such adoption.
       (c) Application of Definitions.--The definitions contained 
     in section 3000 of the Public Health Service Act, as added by 
     section 13101, shall apply for purposes of this part.

     SEC. 13112. APPLICATION TO PRIVATE ENTITIES.

       Each agency (as defined in such Executive Order issued on 
     August 22, 2006, relating to promoting quality and efficient 
     health care in Federal government administered or sponsored 
     health care programs) shall require in contracts or 
     agreements with health care providers, health plans, or 
     health insurance issuers that as each provider, plan, or 
     issuer implements, acquires, or upgrades health information 
     technology systems, it shall utilize, where available, health 
     information technology systems and products that meet 
     standards and implementation specifications adopted under 
     section 3004(b) of the Public Health Service Act, as added by 
     section 13101.

     SEC. 13113. STUDY AND REPORTS.

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


           general provisions--hope for homeowners amendments

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

          Subtitle B--Testing of Health Information Technology

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

       (a) Pilot Testing of Standards and Implementation 
     Specifications.--In coordination with the HIT Standards 
     Committee established under section 3003 of the Public Health 
     Service Act, as added by section 13101, with respect to the 
     development of standards and implementation specifications 
     under such section, the Director of the National Institute 
     for Standards and Technology shall test such standards and 
     implementation specifications, as appropriate, in order to 
     assure the efficient implementation and use of such standards 
     and implementation specifications.
       (b) Voluntary Testing Program.--In coordination with the 
     HIT Standards Committee established under section 3003 of the

[[Page 3259]]

     Public Health Service Act, as added by section 13101, with 
     respect to the development of standards and implementation 
     specifications under such section, the Director of the 
     National Institute of Standards and Technology shall support 
     the establishment of a conformance testing infrastructure, 
     including the development of technical test beds. The 
     development of this conformance testing infrastructure may 
     include a program to accredit independent, non-Federal 
     laboratories to perform testing.

     SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

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

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

                    PART I--GRANTS AND LOANS FUNDING

     SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

       Title XXX of the Public Health Service Act, as added by 
     section 13101, is amended by adding at the end the following 
     new subtitle:

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

     ``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH 
                   INFORMATION TECHNOLOGY INFRASTRUCTURE.

       ``(a) In General.--The Secretary of Health and Human 
     Services shall, using amounts appropriated under section 
     3018, invest in the infrastructure necessary to allow for and 
     promote the electronic exchange and use of health information 
     for each individual in the United States consistent with the 
     goals outlined in the strategic plan developed by the 
     National Coordinator (and, as available) under section 3001. 
     To the greatest extent practicable, the Secretary shall 
     ensure that any funds so appropriated shall be used for the 
     acquisition of health information technology that meets 
     standards and certification criteria adopted before the date 
     of the enactment of this title until such date as the 
     standards are adopted under section 3004. The Secretary shall 
     invest funds through the different agencies with expertise in 
     such goals, such as the Office of the National Coordinator 
     for Health Information Technology, the Health Resources and 
     Services Administration, the Agency for Healthcare Research 
     and Quality, the Centers of Medicare & Medicaid Services, the 
     Centers for Disease Control and Prevention, and the Indian 
     Health Service to support the following:
       ``(1) Health information technology architecture that will 
     support the nationwide electronic exchange and use of health 
     information in a secure, private, and accurate manner, 
     including connecting health information exchanges, and which 
     may include updating and implementing the infrastructure 
     necessary within different agencies of the Department of 
     Health and Human Services to support the electronic use and 
     exchange of health information.
       ``(2) Development and adoption of appropriate certified 
     electronic health records for categories of providers not 
     eligible for support under title XVIII or XIX of the Social 
     Security Act for the adoption of such records.
       ``(3) Training on and dissemination of information on best 
     practices to integrate health information technology, 
     including electronic health records, into a provider's 
     delivery of care, consistent with best practices learned from 
     the Health Information Technology Research Center developed 
     under section 3012, including community health centers 
     receiving assistance under section 330 of the Public Health 
     Service Act, covered entities under section 340B of such Act, 
     and providers participating in one or more of the programs 
     under titles XVIII, XIX, and XXI of the Social Security Act 
     (relating to Medicare, Medicaid, and the State Children's 
     Health Insurance Program).
       ``(4) Infrastructure and tools for the promotion of 
     telemedicine, including coordination among Federal agencies 
     in the promotion of telemedicine.
       ``(5) Promotion of the interoperability of clinical data 
     repositories or registries.
       ``(6) Promotion of technologies and best practices that 
     enhance the protection of health information by all holders 
     of individually identifiable health information.
       ``(7) Improve and expand the use of health information 
     technology by public health departments.
       ``(8) Provide $300,000,000 to support regional or sub-
     national efforts towards health information exchange.
       ``(b) Coordination.--The Secretary shall ensure funds under 
     this section are used in a coordinated manner with other 
     health information promotion activities.
       ``(c) Additional Use of Funds.--In addition to using funds 
     as provided in subsection (a), the Secretary may use amounts 
     appropriated under section 3018 to carry out activities that 
     are provided for under laws in effect on the date of 
     enactment of this title.

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

       ``(a) Health Information Technology Extension Program.--To 
     assist health care providers to adopt, implement, and 
     effectively use certified EHR technology that allows for the 
     electronic exchange and use of health information, the 
     Secretary, acting through the Office of the National 
     Coordinator, shall establish a health information technology 
     extension program to provide health information technology 
     assistance services to be carried out through the Department 
     of Health and Human Services. The National Coordinator shall 
     consult with other Federal agencies with demonstrated 
     experience and expertise in information technology services, 
     such as the National Institute of Standards and Technology, 
     in developing and implementing this program.
       ``(b) Health Information Technology Research Center.--
       ``(1) In general.--The Secretary shall create a Health 
     Information Technology Research Center (in this section 
     referred to as the `Center') to provide technical assistance 
     and develop or recognize best practices to support and 
     accelerate efforts to adopt, implement, and effectively 
     utilize health information technology that allows for the 
     electronic exchange and use of information in compliance with 
     standards, implementation specifications, and certification 
     criteria adopted under section 3004(b).
       ``(2) Input.--The Center shall incorporate input from--
       ``(A) other Federal agencies with demonstrated experience 
     and expertise in information technology services such as the 
     National Institute of Standards and Technology;
       ``(B) users of health information technology, such as 
     providers and their support and clerical staff and others 
     involved in the

[[Page 3260]]

     care and care coordination of patients, from the health care 
     and health information technology industry; and
       ``(C) others as appropriate.
       ``(3) Purposes.--The purposes of the Center are to--
       ``(A) provide a forum for the exchange of knowledge and 
     experience;
       ``(B) accelerate the transfer of lessons learned from 
     existing public and private sector initiatives, including 
     those currently receiving Federal financial support;
       ``(C) assemble, analyze, and widely disseminate evidence 
     and experience related to the adoption, implementation, and 
     effective use of health information technology that allows 
     for the electronic exchange and use of information including 
     through the regional centers described in subsection (c);
       ``(D) provide technical assistance for the establishment 
     and evaluation of regional and local health information 
     networks to facilitate the electronic exchange of information 
     across health care settings and improve the quality of health 
     care;
       ``(E) provide technical assistance for the development and 
     dissemination of solutions to barriers to the exchange of 
     electronic health information; and
       ``(F) learn about effective strategies to adopt and utilize 
     health information technology in medically underserved 
     communities.
       ``(c) Health Information Technology Regional Extension 
     Centers.--
       ``(1) In general.--The Secretary shall provide assistance 
     for the creation and support of regional centers (in this 
     subsection referred to as `regional centers') to provide 
     technical assistance and disseminate best practices and other 
     information learned from the Center to support and accelerate 
     efforts to adopt, implement, and effectively utilize health 
     information technology that allows for the electronic 
     exchange and use of information in compliance with standards, 
     implementation specifications, and certification criteria 
     adopted under section 3004. Activities conducted under this 
     subsection shall be consistent with the strategic plan 
     developed by the National Coordinator (and, as available) 
     under section 3001.
       ``(2) Affiliation.--Regional centers shall be affiliated 
     with any United States-based nonprofit institution or 
     organization, or group thereof, that applies and is awarded 
     financial assistance under this section. Individual awards 
     shall be decided on the basis of merit.
       ``(3) Objective.--The objective of the regional centers is 
     to enhance and promote the adoption of health information 
     technology through--
       ``(A) assistance with the implementation, effective use, 
     upgrading, and ongoing maintenance of health information 
     technology, including electronic health records, to 
     healthcare providers nationwide;
       ``(B) broad participation of individuals from industry, 
     universities, and State governments;
       ``(C) active dissemination of best practices and research 
     on the implementation, effective use, upgrading, and ongoing 
     maintenance of health information technology, including 
     electronic health records, to health care providers in order 
     to improve the quality of healthcare and protect the privacy 
     and security of health information;
       ``(D) participation, to the extent practicable, in health 
     information exchanges;
       ``(E) utilization, when appropriate, of the expertise and 
     capability that exists in federal agencies other than the 
     Department; and
       ``(F) integration of health information technology, 
     including electronic health records, into the initial and 
     ongoing training of health professionals and others in the 
     healthcare industry that would be instrumental to improving 
     the quality of healthcare through the smooth and accurate 
     electronic use and exchange of health information.
       ``(4) Regional assistance.--Each regional center shall aim 
     to provide assistance and education to all providers in a 
     region, but shall prioritize any direct assistance first to 
     the following:
       ``(A) Public or not-for-profit hospitals or critical access 
     hospitals.
       ``(B) Federally qualified health centers (as defined in 
     section 1861(aa)(4) of the Social Security Act).
       ``(C) Entities that are located in rural and other areas 
     that serve uninsured, underinsured, and medically underserved 
     individuals (regardless of whether such area is urban or 
     rural).
       ``(D) Individual or small group practices (or a consortium 
     thereof) that are primarily focused on primary care.
       ``(5) Financial support.--The Secretary may provide 
     financial support to any regional center created under this 
     subsection for a period not to exceed four years. The 
     Secretary may not provide more than 50 percent of the capital 
     and annual operating and maintenance funds required to create 
     and maintain such a center, except in an instance of national 
     economic conditions which would render this cost-share 
     requirement detrimental to the program and upon notification 
     to Congress as to the justification to waive the cost-share 
     requirement.
       ``(6) Notice of program description and availability of 
     funds.--The Secretary shall publish in the Federal Register, 
     not later than 90 days after the date of the enactment of 
     this Act, a draft description of the program for establishing 
     regional centers under this subsection. Such description 
     shall include the following:
       ``(A) A detailed explanation of the program and the 
     programs goals.
       ``(B) Procedures to be followed by the applicants.
       ``(C) Criteria for determining qualified applicants.
       ``(D) Maximum support levels expected to be available to 
     centers under the program.
       ``(7) Application review.--The Secretary shall subject each 
     application under this subsection to merit review. In making 
     a decision whether to approve such application and provide 
     financial support, the Secretary shall consider at a minimum 
     the merits of the application, including those portions of 
     the application regarding--
       ``(A) the ability of the applicant to provide assistance 
     under this subsection and utilization of health information 
     technology appropriate to the needs of particular categories 
     of health care providers;
       ``(B) the types of service to be provided to health care 
     providers;
       ``(C) geographical diversity and extent of service area; 
     and
       ``(D) the percentage of funding and amount of in-kind 
     commitment from other sources.
       ``(8) Biennial evaluation.--Each regional center which 
     receives financial assistance under this subsection shall be 
     evaluated biennially by an evaluation panel appointed by the 
     Secretary. Each evaluation panel shall be composed of private 
     experts, none of whom shall be connected with the center 
     involved, and of Federal officials. Each evaluation panel 
     shall measure the involved center's performance against the 
     objective specified in paragraph (3). The Secretary shall not 
     continue to provide funding to a regional center unless its 
     evaluation is overall positive.
       ``(9) Continuing support.--After the second year of 
     assistance under this subsection a regional center may 
     receive additional support under this subsection if it has 
     received positive evaluations and a finding by the Secretary 
     that continuation of Federal funding to the center was in the 
     best interest of provision of health information technology 
     extension services.

     ``SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION 
                   TECHNOLOGY.

       ``(a) In General.--The Secretary, acting through the 
     National Coordinator, shall establish a program in accordance 
     with this section to facilitate and expand the electronic 
     movement and use of health information among organizations 
     according to nationally recognized standards.
       ``(b) Planning Grants.--The Secretary may award a grant to 
     a State or qualified State-designated entity (as described in 
     subsection (d)) that submits an application to the Secretary 
     at such time, in such manner, and containing such information 
     as the Secretary may specify, for the purpose of planning 
     activities described in subsection (b).
       ``(c) Implementation Grants.--The Secretary may award a 
     grant to a State or qualified State designated entity that--
       ``(1) has submitted, and the Secretary has approved, a plan 
     described in subsection (c) (regardless of whether such plan 
     was prepared using amounts awarded under paragraph (1)); and
       ``(2) submits an application at such time, in such manner, 
     and containing such information as the Secretary may specify.
       ``(d) Use of Funds.--Amounts received under a grant under 
     subsection (a)(3) shall be used to conduct activities to 
     facilitate and expand the electronic movement and use of 
     health information among organizations according to 
     nationally recognized standards through activities that 
     include--
       ``(1) enhancing broad and varied participation in the 
     authorized and secure nationwide electronic use and exchange 
     of health information;
       ``(2) identifying State or local resources available 
     towards a nationwide effort to promote health information 
     technology;
       ``(3) complementing other Federal grants, programs, and 
     efforts towards the promotion of health information 
     technology;
       ``(4) providing technical assistance for the development 
     and dissemination of solutions to barriers to the exchange of 
     electronic health information;
       ``(5) promoting effective strategies to adopt and utilize 
     health information technology in medically underserved 
     communities;
       ``(6) assisting patients in utilizing health information 
     technology;
       ``(7) encouraging clinicians to work with Health 
     Information Technology Regional Extension Centers as 
     described in section 3012, to the extent they are available 
     and valuable;
       ``(8) supporting public health agencies' authorized use of 
     and access to electronic health information;
       ``(9) promoting the use of electronic health records for 
     quality improvement including through quality measures 
     reporting;
       ``(10) establishing and supporting health record banking 
     models to further consumer-based consent models that promote 
     lifetime access to qualified health records, if such 
     activities are included in the plan described in

[[Page 3261]]

     subsection (e), and may contain smart card functionality; and
       ``(11) such other activities as the Secretary may specify.
       ``(e) Plan.--
       ``(1) In general.--A plan described in this subsection is a 
     plan that describes the activities to be carried out by a 
     State or by the qualified State-designated entity within such 
     State to facilitate and expand the electronic movement and 
     use of health information among organizations according to 
     nationally recognized standards and implementation 
     specifications.
       ``(2) Required elements.--A plan described in paragraph (1) 
     shall--
       ``(A) be pursued in the public interest;
       ``(B) be consistent with the strategic plan developed by 
     the National Coordinator (and, as available) under section 
     3001;
       ``(C) include a description of the ways the State or 
     qualified State-designated entity will carry out the 
     activities described in subsection (b); and
       ``(D) contain such elements as the Secretary may require.
       ``(f) Qualified State-Designated Entity.--For purposes of 
     this section, to be a qualified State-designated entity, with 
     respect to a State, an entity shall--
       ``(1) be designated by the State as eligible to receive 
     awards under this section;
       ``(2) be a not-for-profit entity with broad stakeholder 
     representation on its governing board;
       ``(3) demonstrate that one of its principal goals is to use 
     information technology to improve health care quality and 
     efficiency through the authorized and secure electronic 
     exchange and use of health information;
       ``(4) adopt nondiscrimination and conflict of interest 
     policies that demonstrate a commitment to open, fair, and 
     nondiscriminatory participation by stakeholders; and
       ``(5) conform to such other requirements as the Secretary 
     may establish.
       ``(g) Required Consultation.--In carrying out activities 
     described in subsections (a)(2) and (a)(3), a State or 
     qualified State-designated entity shall consult with and 
     consider the recommendations of--
       ``(1) health care providers (including providers that 
     provide services to low income and underserved populations);
       ``(2) health plans;
       ``(3) patient or consumer organizations that represent the 
     population to be served;
       ``(4) health information technology vendors;
       ``(5) health care purchasers and employers;
       ``(6) public health agencies;
       ``(7) health professions schools, universities and 
     colleges;
       ``(8) clinical researchers;
       ``(9) other users of health information technology such as 
     the support and clerical staff of providers and others 
     involved in the care and care coordination of patients; and
       ``(10) such other entities, as may be determined 
     appropriate by the Secretary.
       ``(h) Continuous Improvement.--The Secretary shall annually 
     evaluate the activities conducted under this section and 
     shall, in awarding grants under this section, implement the 
     lessons learned from such evaluation in a manner so that 
     awards made subsequent to each such evaluation are made in a 
     manner that, in the determination of the Secretary, will lead 
     towards the greatest improvement in quality of care, decrease 
     in costs, and the most effective authorized and secure 
     electronic exchange of health information.
       ``(i) Required Match.--
       ``(1) In general.--For a fiscal year (beginning with fiscal 
     year 2011), the Secretary may not make a grant under 
     subsection (a) to a State unless the State agrees to make 
     available non-Federal contributions (which may include in-
     kind contributions) toward the costs of a grant awarded under 
     subsection (a)(3) in an amount equal to--
       ``(A) for fiscal year 2011, not less than $1 for each $10 
     of Federal funds provided under the grant;
       ``(B) for fiscal year 2012, not less than $1 for each $7 of 
     Federal funds provided under the grant; and
       ``(C) for fiscal year 2013 and each subsequent fiscal year, 
     not less than $1 for each $3 of Federal funds provided under 
     the grant.
       ``(2) Authority to require state match for fiscal years 
     before fiscal year 2011.--For any fiscal year during the 
     grant program under this section before fiscal year 2011, the 
     Secretary may determine the extent to which there shall be 
     required a non-Federal contribution from a State receiving a 
     grant under this section.

     ``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES 
                   FOR THE DEVELOPMENT OF LOAN PROGRAMS TO 
                   FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED 
                   EHR TECHNOLOGY.

       ``(a) In General.--The National Coordinator may award 
     competitive grants to eligible entities for the establishment 
     of programs for loans to health care providers to conduct the 
     activities described in subsection (e).
       ``(b) Eligible Entity Defined.--For purposes of this 
     subsection, the term `eligible entity' means a State or 
     Indian tribe (as defined in the Indian Self-Determination and 
     Education Assistance Act) that--
       ``(1) submits to the National Coordinator an application at 
     such time, in such manner, and containing such information as 
     the National Coordinator may require;
       ``(2) submits to the National Coordinator a strategic plan 
     in accordance with subsection (d) and provides to the 
     National Coordinator assurances that the entity will update 
     such plan annually in accordance with such subsection;
       ``(3) provides assurances to the National Coordinator that 
     the entity will establish a Loan Fund in accordance with 
     subsection (c);
       ``(4) provides assurances to the National Coordinator that 
     the entity will not provide a loan from the Loan Fund to a 
     health care provider unless the provider agrees to--
       ``(A) submit reports on quality measures adopted by the 
     Federal Government (by not later than 90 days after the date 
     on which such measures are adopted), to--
       ``(i) the Director of the Centers for Medicare & Medicaid 
     Services (or his or her designee), in the case of an entity 
     participating in the Medicare program under title XVIII of 
     the Social Security Act or the Medicaid program under title 
     XIX of such Act; or
       ``(ii) the Secretary in the case of other entities;
       ``(B) demonstrate to the satisfaction of the Secretary 
     (through criteria established by the Secretary) that any 
     certified EHR technology purchased, improved, or otherwise 
     financially supported under a loan under this section is used 
     to exchange health information in a manner that, in 
     accordance with law and standards (as adopted under section 
     3005) applicable to the exchange of information, improves the 
     quality of health care, such as promoting care coordination;
       ``(C) comply with such other requirements as the entity or 
     the Secretary may require;
       ``(D) include a plan on how healthcare providers involved 
     intend to maintain and support the certified EHR technology 
     over time; and
       ``(E) include a plan on how the healthcare providers 
     involved intend to maintain and support the certified EHR 
     technology that would be purchased with such loan, including 
     the type of resources expected to be involved and any such 
     other information as the State or Indian tribe, respectively, 
     may require; and
       ``(5) agrees to provide matching funds in accordance with 
     subsection (i).
       ``(c) Establishment of Fund.--For purposes of subsection 
     (b)(3), an eligible entity shall establish a certified EHR 
     technology loan fund (referred to in this subsection as a 
     `Loan Fund') and comply with the other requirements contained 
     in this section. A grant to an eligible entity under this 
     section shall be deposited in the Loan Fund established by 
     the eligible entity. No funds authorized by other provisions 
     of this title to be used for other purposes specified in this 
     title shall be deposited in any Loan Fund.
       ``(d) Strategic Plan.--
       ``(1) In general.--For purposes of subsection (b)(2), a 
     strategic plan of an eligible entity under this subsection 
     shall identify the intended uses of amounts available to the 
     Loan Fund of such entity.
       ``(2) Contents.--A strategic plan under paragraph (1), with 
     respect to a Loan Fund of an eligible entity, shall include 
     for a year the following:
       ``(A) A list of the projects to be assisted through the 
     Loan Fund during such year.
       ``(B) A description of the criteria and methods established 
     for the distribution of funds from the Loan Fund during the 
     year.
       ``(C) A description of the financial status of the Loan 
     Fund as of the date of submission of the plan.
       ``(D) The short-term and long-term goals of the Loan Fund.
       ``(e) Use of Funds.--Amounts deposited in a Loan Fund, 
     including loan repayments and interest earned on such 
     amounts, shall be used only for awarding loans or loan 
     guarantees, making reimbursements described in subsection 
     (g)(4)(A), or as a source of reserve and security for 
     leveraged loans, the proceeds of which are deposited in the 
     Loan Fund established under subsection (a). Loans under this 
     section may be used by a health care provider to--
       ``(1) facilitate the purchase of certified EHR technology;
       ``(2) enhance the utilization of certified EHR technology 
     (which may include costs associated with upgrading health 
     information technology so that it meets criteria necessary to 
     be a certified EHR technology);
       ``(3) train personnel in the use of such technology; or
       ``(4) improve the secure electronic exchange of health 
     information.
       ``(f) Types of Assistance.--Except as otherwise limited by 
     applicable State law, amounts deposited into a Loan Fund 
     under this subsection may only be used for the following:
       ``(1) To award loans that comply with the following:
       ``(A) The interest rate for each loan shall not exceed the 
     market interest rate.
       ``(B) The principal and interest payments on each loan 
     shall commence not later than 1 year after the date the loan 
     was awarded, and each loan shall be fully amortized not later 
     than 10 years after the date of the loan.
       ``(C) The Loan Fund shall be credited with all payments of 
     principal and interest on each loan awarded from the Loan 
     Fund.

[[Page 3262]]

       ``(2) To guarantee, or purchase insurance for, a local 
     obligation (all of the proceeds of which finance a project 
     eligible for assistance under this subsection) if the 
     guarantee or purchase would improve credit market access or 
     reduce the interest rate applicable to the obligation 
     involved.
       ``(3) As a source of revenue or security for the payment of 
     principal and interest on revenue or general obligation bonds 
     issued by the eligible entity if the proceeds of the sale of 
     the bonds will be deposited into the Loan Fund.
       ``(4) To earn interest on the amounts deposited into the 
     Loan Fund.
       ``(5) To make reimbursements described in subsection 
     (g)(4)(A).
       ``(g) Administration of Loan Funds.--
       ``(1) Combined financial administration.--An eligible 
     entity may (as a convenience and to avoid unnecessary 
     administrative costs) combine, in accordance with applicable 
     State law, the financial administration of a Loan Fund 
     established under this subsection with the financial 
     administration of any other revolving fund established by the 
     entity if otherwise not prohibited by the law under which the 
     Loan Fund was established.
       ``(2) Cost of administering fund.--Each eligible entity may 
     annually use not to exceed 4 percent of the funds provided to 
     the entity under a grant under this subsection to pay the 
     reasonable costs of the administration of the programs under 
     this section, including the recovery of reasonable costs 
     expended to establish a Loan Fund which are incurred after 
     the date of the enactment of this title.
       ``(3) Guidance and regulations.--The National Coordinator 
     shall publish guidance and promulgate regulations as may be 
     necessary to carry out the provisions of this section, 
     including--
       ``(A) provisions to ensure that each eligible entity 
     commits and expends funds allotted to the entity under this 
     subsection as efficiently as possible in accordance with this 
     title and applicable State laws; and
       ``(B) guidance to prevent waste, fraud, and abuse.
       ``(4) Private sector contributions.--
       ``(A) In general.--A Loan Fund established under this 
     subsection may accept contributions from private sector 
     entities, except that such entities may not specify the 
     recipient or recipients of any loan issued under this 
     subsection. An eligible entity may agree to reimburse a 
     private sector entity for any contribution made under this 
     subparagraph, except that the amount of such reimbursement 
     may not be greater than the principal amount of the 
     contribution made.
       ``(B) Availability of information.--An eligible entity 
     shall make publicly available the identity of, and amount 
     contributed by, any private sector entity under subparagraph 
     (A) and may issue letters of commendation or make other 
     awards (that have no financial value) to any such entity.
       ``(h) Matching Requirements.--
       ``(1) In general.--The National Coordinator may not make a 
     grant under subsection (a) to an eligible entity unless the 
     entity agrees to make available (directly or through 
     donations from public or private entities) non-Federal 
     contributions in cash to the costs of carrying out the 
     activities for which the grant is awarded in an amount equal 
     to not less than $1 for each $5 of Federal funds provided 
     under the grant.
       ``(2) Determination of amount of non-federal 
     contribution.--In determining the amount of non-Federal 
     contributions that an eligible entity has provided pursuant 
     to subparagraph (A), the National Coordinator may not include 
     any amounts provided to the entity by the Federal Government.
       ``(i) Effective Date.--The Secretary may not make an award 
     under this section prior to January 1, 2010.

     ``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION 
                   TECHNOLOGY INTO CLINICAL EDUCATION.

       ``(a) In General.--The Secretary may award grants under 
     this section to carry out demonstration projects to develop 
     academic curricula integrating certified EHR technology in 
     the clinical education of health professionals. Such awards 
     shall be made on a competitive basis and pursuant to peer 
     review.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), an entity shall--
       ``(1) submit to the Secretary an application at such time, 
     in such manner, and containing such information as the 
     Secretary may require;
       ``(2) submit to the Secretary a strategic plan for 
     integrating certified EHR technology in the clinical 
     education of health professionals to reduce medical errors, 
     increase access to prevention, reduce chronic diseases, and 
     enhance health care quality;
       ``(3) be--
       ``(A) a school of medicine, osteopathic medicine, 
     dentistry, or pharmacy, a graduate program in behavioral or 
     mental health, or any other graduate health professions 
     school;
       ``(B) a graduate school of nursing or physician assistant 
     studies;
       ``(C) a consortium of two or more schools described in 
     subparagraph (A) or (B); or
       ``(D) an institution with a graduate medical education 
     program in medicine, osteopathic medicine, dentistry, 
     pharmacy, nursing, or physician assistance studies.
       ``(4) provide for the collection of data regarding the 
     effectiveness of the demonstration project to be funded under 
     the grant in improving the safety of patients, the efficiency 
     of health care delivery, and in increasing the likelihood 
     that graduates of the grantee will adopt and incorporate 
     certified EHR technology, in the delivery of health care 
     services; and
       ``(5) provide matching funds in accordance with subsection 
     (d).
       ``(c) Use of Funds.--
       ``(1) In general.--With respect to a grant under subsection 
     (a), an eligible entity shall--
       ``(A) use grant funds in collaboration with 2 or more 
     disciplines; and
       ``(B) use grant funds to integrate certified EHR technology 
     into community-based clinical education.
       ``(2) Limitation.--An eligible entity shall not use amounts 
     received under a grant under subsection (a) to purchase 
     hardware, software, or services.
       ``(d) Financial Support.--The Secretary may not provide 
     more than 50 percent of the costs of any activity for which 
     assistance is provided under subsection (a), except in an 
     instance of national economic conditions which would render 
     the cost-share requirement under this subsection detrimental 
     to the program and upon notification to Congress as to the 
     justification to waive the cost-share requirement.
       ``(e) Evaluation.--The Secretary shall take such action as 
     may be necessary to evaluate the projects funded under this 
     section and publish, make available, and disseminate the 
     results of such evaluations on as wide a basis as is 
     practicable.
       ``(f) Reports.--Not later than 1 year after the date of 
     enactment of this title, and annually thereafter, the 
     Secretary shall submit to the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Finance of the 
     Senate, and the Committee on Energy and Commerce of the House 
     of Representatives a report that--
       ``(1) describes the specific projects established under 
     this section; and
       ``(2) contains recommendations for Congress based on the 
     evaluation conducted under subsection (e).

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

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

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

       ``(a) Reports.--The Secretary may require that an entity 
     receiving assistance under this title shall submit to the 
     Secretary, not later than the date that is 1 year after the 
     date of receipt of such assistance, a report that includes--
       ``(1) an analysis of the effectiveness of such activities 
     for which the entity receives such assistance, as compared to 
     the goals for such activities; and
       ``(2) an analysis of the impact of the project on 
     healthcare quality and safety.
       ``(b) Requirement To Improve Quality of Care and Decrease 
     in Costs.--The National Coordinator shall annually evaluate 
     the activities conducted under this title and shall, in 
     awarding grants, implement the lessons learned from such 
     evaluation in a manner so that awards made subsequent to each 
     such evaluation are made in a manner that, in the 
     determination of the National Coordinator, will result in the 
     greatest improvement in the quality and efficiency of health 
     care.

[[Page 3263]]



     ``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

       ``For the purposes of carrying out this subtitle, there is 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 2009 through 2013. Amounts so 
     appropriated shall remain available until expended.''.

                          Subtitle D--Privacy

     SEC. 13400. DEFINITIONS.

       In this subtitle, except as specified otherwise:
       (1) Breach.--The term ``breach'' means the unauthorized 
     acquisition, access, use, or disclosure of protected health 
     information which compromises the security, privacy, or 
     integrity of protected health information maintained by or on 
     behalf of a person. Such term does not include any 
     unintentional acquisition, access, use, or disclosure of such 
     information by an employee or agent of the covered entity or 
     business associate involved if such acquisition, access, use, 
     or disclosure, respectively, was made in good faith and 
     within the course and scope of the employment or other 
     contractual relationship of such employee or agent, 
     respectively, with the covered entity or business associate 
     and if such information is not further acquired, accessed, 
     used, or disclosed by such employee or agent.
       (2) Business associate.--The term ``business associate'' 
     has the meaning given such term in section 160.103 of title 
     45, Code of Federal Regulations.
       (3) Covered entity.--The term ``covered entity'' has the 
     meaning given such term in section 160.103 of title 45, Code 
     of Federal Regulations.
       (4) Disclose.--The terms ``disclose'' and ``disclosure'' 
     have the meaning given the term ``disclosure'' in section 
     160.103 of title 45, Code of Federal Regulations.
       (5) Electronic health record.--The term ``electronic health 
     record'' means an electronic record of health-related 
     information on an individual that is created, gathered, 
     managed, and consulted by authorized health care clinicians 
     and staff.
       (6) Health care operations.--The term ``health care 
     operation'' has the meaning given such term in section 
     164.501 of title 45, Code of Federal Regulations.
       (7) Health care provider.--The term ``health care 
     provider'' has the meaning given such term in section 160.103 
     of title 45, Code of Federal Regulations.
       (8) Health plan.--The term ``health plan'' has the meaning 
     given such term in section 1171(5) of the Social Security 
     Act.
       (9) National coordinator.--The term ``National 
     Coordinator'' means the head of the Office of the National 
     Coordinator for Health Information Technology established 
     under section 3001(a) of the Public Health Service Act, as 
     added by section 13101.
       (10) Payment.--The term ``payment'' has the meaning given 
     such term in section 164.501 of title 45, Code of Federal 
     Regulations.
       (11) Personal health record.--The term ``personal health 
     record'' means an electronic record of individually 
     identifiable health information on an individual that can be 
     drawn from multiple sources and that is managed, shared, and 
     controlled by or for the individual.
       (12) Protected health information.--The term ``protected 
     health information'' has the meaning given such term in 
     section 160.103 of title 45, Code of Federal Regulations.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (14) Security.--The term ``security'' has the meaning given 
     such term in section 164.304 of title 45, Code of Federal 
     Regulations.
       (15) State.--The term ``State'' means each of the several 
     States, the District of Columbia, Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, and the Northern Mariana 
     Islands.
       (16) Treatment.--The term ``treatment'' has the meaning 
     given such term in section 164.501 of title 45, Code of 
     Federal Regulations.
       (17) Use.--The term ``use'' has the meaning given such term 
     in section 160.103 of title 45, Code of Federal Regulations.
       (18) Vendor of personal health records.--The term ``vendor 
     of personal health records'' means an entity, other than a 
     covered entity (as defined in paragraph (3)), that offers or 
     maintains a personal health record.

      PART I--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

     SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES 
                   TO BUSINESS ASSOCIATES OF COVERED ENTITIES; 
                   ANNUAL GUIDANCE ON SECURITY PROVISIONS.

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

     SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.

       (a) In General.--A covered entity that accesses, maintains, 
     retains, modifies, records, stores, destroys, or otherwise 
     holds, uses, or discloses unsecured protected health 
     information (as defined in subsection (h)(1)) shall, in the 
     case of a breach of such information that is discovered by 
     the covered entity, notify each individual whose unsecured 
     protected health information has been, or is reasonably 
     believed by the covered entity to have been, accessed, 
     acquired, or disclosed as a result of such breach.
       (b) Notification of Covered Entity by Business Associate.--
     A business associate of a covered entity that accesses, 
     maintains, retains, modifies, records, stores, destroys, or 
     otherwise holds, uses, or discloses unsecured protected 
     health information shall, following the discovery of a breach 
     of such information, notify the covered entity of such 
     breach. Such notice shall include the identification of each 
     individual whose unsecured protected health information has 
     been, or is reasonably believed by the business associate to 
     have been, accessed, acquired, or disclosed during such 
     breach.
       (c) Breaches Treated as Discovered.--For purposes of this 
     section, a breach shall be treated as discovered by a covered 
     entity or by a business associate as of the first day on 
     which such breach is known to such entity or associate, 
     respectively, (including any person, other than the 
     individual committing the breach, that is an employee, 
     officer, or other agent of such entity or associate, 
     respectively) or should reasonably have been known to such 
     entity or associate (or person) to have occurred.
       (d) Timeliness of Notification.--
       (1) In general.--Subject to subsection (g), all 
     notifications required under this section shall be made 
     without unreasonable delay and in no case later than 60 
     calendar days after the discovery of a breach by the covered 
     entity involved (or business associate involved in the case 
     of a notification required under subsection (b)).
       (2) Burden of proof.--The covered entity involved (or 
     business associate involved in the case of a notification 
     required under subsection (b)), shall have the burden of 
     demonstrating that all notifications were made as required 
     under this part, including evidence demonstrating the 
     necessity of any delay.
       (e) Methods of Notice.--
       (1) Individual notice.--Notice required under this section 
     to be provided to an individual, with respect to a breach, 
     shall be provided promptly and in the following form:
       (A) Written notification by first-class mail to the 
     individual (or the next of kin of the individual if the 
     individual is deceased) at the last known address of the 
     individual or the next of kin, respectively, or, if specified 
     as a preference by the individual, by electronic mail. The 
     notification may be provided in one or more mailings as 
     information is available.
       (B) In the case in which there is insufficient, or out-of-
     date contact information (including a phone number, email 
     address, or any other form of appropriate communication) that 
     precludes direct written (or, if specified by the individual 
     under subparagraph (A), electronic) notification to the 
     individual, a substitute form of notice shall be provided, 
     including, in the case that there are 10 or more individuals 
     for which there is insufficient or out-of-date contact 
     information, a conspicuous posting for a period determined by 
     the Secretary on the home page of the Web site of the covered 
     entity involved or notice in major print or broadcast media, 
     including major media in geographic areas where the 
     individuals affected by the breach likely reside. Such a 
     notice in media or web posting will include a toll-free phone 
     number where an individual can learn whether or not the 
     individual's unsecured protected health information is 
     possibly included in the breach.
       (C) In any case deemed by the covered entity involved to 
     require urgency because of possible imminent misuse of 
     unsecured protected health information, the covered entity, 
     in addition to notice provided under subparagraph (A), may 
     provide information to individuals by telephone or other 
     means, as appropriate.
       (2) Media notice.--Notice shall be provided to prominent 
     media outlets serving a State

[[Page 3264]]

     or jurisdiction, following the discovery of a breach 
     described in subsection (a), if the unsecured protected 
     health information of more than 500 residents of such State 
     or jurisdiction is, or is reasonably believed to have been, 
     accessed, acquired, or disclosed during such breach.
       (3) Notice to secretary.--Notice shall be provided to the 
     Secretary by covered entities of unsecured protected health 
     information that has been acquired or disclosed in a breach. 
     If the breach was with respect to 500 or more individuals 
     than such notice must be provided immediately. If the breach 
     was with respect to less than 500 individuals, the covered 
     entity may maintain a log of any such breach occurring and 
     annually submit such a log to the Secretary documenting such 
     breaches occurring during the year involved.
       (4) Posting on hhs public website.--The Secretary shall 
     make available to the public on the Internet website of the 
     Department of Health and Human Services a list that 
     identifies each covered entity involved in a breach described 
     in subsection (a) in which the unsecured protected health 
     information of more than 500 individuals is acquired or 
     disclosed.
       (f) Content of Notification.--Regardless of the method by 
     which notice is provided to individuals under this section, 
     notice of a breach shall include, to the extent possible, the 
     following:
       (1) A brief description of what happened, including the 
     date of the breach and the date of the discovery of the 
     breach, if known.
       (2) A description of the types of unsecured protected 
     health information that were involved in the breach (such as 
     full name, Social Security number, date of birth, home 
     address, account number, or disability code).
       (3) The steps individuals should take to protect themselves 
     from potential harm resulting from the breach.
       (4) A brief description of what the covered entity involved 
     is doing to investigate the breach, to mitigate losses, and 
     to protect against any further breaches.
       (5) Contact procedures for individuals to ask questions or 
     learn additional information, which shall include a toll-free 
     telephone number, an e-mail address, Web site, or postal 
     address.
       (g) Delay of Notification Authorized for Law Enforcement 
     Purposes.--If a law enforcement official determines that a 
     notification, notice, or posting required under this section 
     would impede a criminal investigation or cause damage to 
     national security, such notification, notice, or posting 
     shall be delayed in the same manner as provided under section 
     164.528(a)(2) of title 45, Code of Federal Regulations, in 
     the case of a disclosure covered under such section.
       (h) Unsecured Protected Health Information.--
       (1) Definition.--
       (A) In general.--Subject to subparagraph (B), for purposes 
     of this section, the term ``unsecured protected health 
     information'' means protected health information that is not 
     secured through the use of a technology or methodology 
     specified by the Secretary in the guidance issued under 
     paragraph (2).
       (B) Exception in case timely guidance not issued.--In the 
     case that the Secretary does not issue guidance under 
     paragraph (2) by the date specified in such paragraph, for 
     purposes of this section, the term ``unsecured protected 
     health information'' shall mean protected health information 
     that is not secured by a technology standard that renders 
     protected health information unusable, unreadable, or 
     indecipherable to unauthorized individuals and is developed 
     or endorsed by a standards developing organization that is 
     accredited by the American National Standards Institute.
       (2) Guidance.--For purposes of paragraph (1) and section 
     13407(f)(3), not later than the date that is 60 days after 
     the date of the enactment of this Act, the Secretary shall, 
     after consultation with stakeholders, issue (and annually 
     update) guidance specifying the technologies and 
     methodologies that render protected health information 
     unusable, unreadable, or indecipherable to unauthorized 
     individuals.
       (i) Report to Congress on Breaches.--
       (1) In general.--Not later than 12 months after the date of 
     the enactment of this Act and annually thereafter, the 
     Secretary shall prepare and submit to the Committee on 
     Finance and the Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Ways and Means 
     and the Committee on Energy and Commerce of the House of 
     Representatives a report containing the information described 
     in paragraph (2) regarding breaches for which notice was 
     provided to the Secretary under subsection (e)(3).
       (2) Information.--The information described in this 
     paragraph regarding breaches specified in paragraph (1) shall 
     include--
       (A) the number and nature of such breaches; and
       (B) actions taken in response to such breaches.
       (j) Regulations; Effective Date.--To carry out this 
     section, the Secretary of Health and Human Services shall 
     promulgate interim final regulations by not later than the 
     date that is 180 days after the date of the enactment of this 
     title. The provisions of this section shall apply to breaches 
     that are discovered on or after the date that is 30 days 
     after the date of publication of such interim final 
     regulations.

     SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.

       (a) Regional Office Privacy Advisors.--Not later than 6 
     months after the date of the enactment of this Act, the 
     Secretary shall designate an individual in each regional 
     office of the Department of Health and Human Services to 
     offer guidance and education to covered entities, business 
     associates, and individuals on their rights and 
     responsibilities related to Federal privacy and security 
     requirements for protected health information.
       (b) Education Initiative on Uses of Health Information.--
     Not later than 12 months after the date of the enactment of 
     this Act, the Office for Civil Rights within the Department 
     of Health and Human Services shall develop and maintain a 
     multi-faceted national education initiative to enhance public 
     transparency regarding the uses of protected health 
     information, including programs to educate individuals about 
     the potential uses of their protected health information, the 
     effects of such uses, and the rights of individuals with 
     respect to such uses. Such programs shall be conducted in a 
     variety of languages and present information in a clear and 
     understandable manner.

     SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES 
                   TO BUSINESS ASSOCIATES OF COVERED ENTITIES.

       (a) Application of Contract Requirements.--In the case of a 
     business associate of a covered entity that obtains or 
     creates protected health information pursuant to a written 
     contract (or other written arrangement) described in section 
     164.502(e)(2) of title 45, Code of Federal Regulations, with 
     such covered entity, the business associate may use and 
     disclose such protected health information only if such use 
     or disclosure, respectively, is in compliance with each 
     applicable requirement of section 164.504(e) of such title. 
     The additional requirements of this subtitle that relate to 
     privacy and that are made applicable with respect to covered 
     entities shall also be applicable to such a business 
     associate and shall be incorporated into the business 
     associate agreement between the business associate and the 
     covered entity.
       (b) Application of Knowledge Elements Associated With 
     Contracts.--Section 164.504(e)(1)(ii) of title 45, Code of 
     Federal Regulations, shall apply to a business associate 
     described in subsection (a), with respect to compliance with 
     such subsection, in the same manner that such section applies 
     to a covered entity, with respect to compliance with the 
     standards in sections 164.502(e) and 164.504(e) of such 
     title, except that in applying such section 164.504(e)(1)(ii) 
     each reference to the business associate, with respect to a 
     contract, shall be treated as a reference to the covered 
     entity involved in such contract.
       (c) Application of Civil and Criminal Penalties.--In the 
     case of a business associate that violates any provision of 
     subsection (a) or (b), the provisions of sections 1176 and 
     1177 of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6) 
     shall apply to the business associate with respect to such 
     violation in the same manner as such provisions apply to a 
     person who violates a provision of part C of title XI of such 
     Act.

     SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF 
                   HEALTH INFORMATION; ACCOUNTING OF CERTAIN 
                   PROTECTED HEALTH INFORMATION DISCLOSURES; 
                   ACCESS TO CERTAIN INFORMATION IN ELECTRONIC 
                   FORMAT.

       (a) Requested Restrictions on Certain Disclosures of Health 
     Information.--In the case that an individual requests under 
     paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code 
     of Federal Regulations, that a covered entity restrict the 
     disclosure of the protected health information of the 
     individual, notwithstanding paragraph (a)(1)(ii) of such 
     section, the covered entity must comply with the requested 
     restriction if--
       (1) except as otherwise required by law, the disclosure is 
     to a health plan for purposes of carrying out payment or 
     health care operations (and is not for purposes of carrying 
     out treatment); and
       (2) the protected health information pertains solely to a 
     health care item or service for which the health care 
     provider involved has been paid out of pocket in full.
       (b) Disclosures Required To Be Limited to the Limited Data 
     Set or the Minimum Necessary.--
       (1) In general.--
       (A) In general.--Subject to subparagraph (B), a covered 
     entity shall be treated as being in compliance with section 
     164.502(b)(1) of title 45, Code of Federal Regulations, with 
     respect to the use, disclosure, or request of protected 
     health information described in such section, only if the 
     covered entity limits such protected health information, to 
     the extent practicable, to the limited data set (as defined 
     in section 164.514(e)(2) of such title) or, if needed by such 
     entity, to the minimum necessary to accomplish the intended 
     purpose of such use, disclosure, or request, respectively.
       (B) Guidance.--Not later than 18 months after the date of 
     the enactment of this section, the Secretary shall issue 
     guidance on what constitutes ``minimum necessary'' for

[[Page 3265]]

     purposes of subpart E of part 164 of title 45, Code of 
     Federal Regulation. In issuing such guidance the Secretary 
     shall take into consideration the guidance under section 
     13424(c) and the information necessary to improve patient 
     outcomes and to detect, prevent, and manage chronic disease.
       (C) Sunset.--Subparagraph (A) shall not apply on and after 
     the effective date on which the Secretary issues the guidance 
     under subparagraph (B).
       (2) Determination of minimum necessary.--For purposes of 
     paragraph (1), in the case of the disclosure of protected 
     health information, the covered entity or business associate 
     disclosing such information shall determine what constitutes 
     the minimum necessary to accomplish the intended purpose of 
     such disclosure.
       (3) Application of exceptions.--The exceptions described in 
     section 164.502(b)(2) of title 45, Code of Federal 
     Regulations, shall apply to the requirement under paragraph 
     (1) as of the effective date described in section 13423 in 
     the same manner that such exceptions apply to section 
     164.502(b)(1) of such title before such date.
       (4) Rule of construction.--Nothing in this subsection shall 
     be construed as affecting the use, disclosure, or request of 
     protected health information that has been de-identified.
       (c) Accounting of Certain Protected Health Information 
     Disclosures Required if Covered Entity Uses Electronic Health 
     Record.--
       ``(1) In general.--In applying section 164.528 of title 45, 
     Code of Federal Regulations, in the case that a covered 
     entity uses or maintains an electronic health record with 
     respect to protected health information--
       ``(A) the exception under paragraph (a)(1)(i) of such 
     section shall not apply to disclosures through an electronic 
     health record made by such entity of such information; and
       ``(B) an individual shall have a right to receive an 
     accounting of disclosures described in such paragraph of such 
     information made by such covered entity during only the three 
     years prior to the date on which the accounting is requested.
       ``(2) Regulations.--The Secretary shall promulgate 
     regulations on what disclosures must be included in an 
     accounting referred to in paragraph (1)(A) and what 
     information must be collected about each such disclosure not 
     later than 18 months after the date on which the Secretary 
     adopts standards on accounting for disclosure described in 
     the section 3002(b)(2)(B)(iv) of the Public Health Service 
     Act, as added by section 13101. Such regulations shall only 
     require such information to be collected through an 
     electronic health record in a manner that takes into account 
     the interests of individuals in learning when their protected 
     health information was disclosed and to whom it was 
     disclosed, and the usefulness of such information to the 
     individual, and takes into account the administrative and 
     cost burden of accounting for such disclosures.
       ``(3) Construction.--Nothing in this subsection shall be 
     construed as--
       ``(A) requiring a covered entity to account for disclosures 
     of protected health information that are not made by such 
     covered entity; or
       ``(B) requiring a business associate of a covered entity to 
     account for disclosures of protected health information that 
     are not made by such business associate.
       ``(4) Reasonable fee.--A covered entity may impose a 
     reasonable fee on an individual for an accounting performed 
     under paragraph (1)(B). Any such fee shall not be greater 
     than the entity's labor costs in responding to the request.
       ``(5) Effective date.--
       ``(A) Current users of electronic records.--In the case of 
     a covered entity insofar as it acquired an electronic health 
     record as of January 1, 2009, paragraph (1) shall apply to 
     disclosures, with respect to protected health information, 
     made by the covered entity from such a record on and after 
     January 1, 2014.
       ``(B) Others.--In the case of a covered entity insofar as 
     it acquires an electronic health record after January 1, 
     2009, paragraph (1) shall apply to disclosures, with respect 
     to protected health information, made by the covered entity 
     from such record on and after the later of the following:
       ``(i) January 1, 2011; or
       ``(ii) the date that it acquires an electronic health 
     record.
       ``(C) Later date.--The Secretary may set an effective date 
     that is later that the date specified under subparagraph (A) 
     or (B) if the Secretary determines that such later date it 
     necessary, but in no case may the date specified under--
       ``(i) subparagraph (A) be later than 2018; or
       ``(ii) subparagraph (B) be later than 2014.
       (d) Review of Health Care Operations.--Not later than 18 
     months after the date of the enactment of this title, the 
     Secretary shall review and evaluate the definition of health 
     care operations under section 164.501 of title 45, Code of 
     Federal Regulations, and to the extent appropriate, eliminate 
     by regulation activities that can reasonably and efficiently 
     be conducted through the use of information that is de-
     identified (in accordance with the requirements of section 
     164.514(b) of such title) or that should require a valid 
     authorization for use or disclosure. In promulgating such 
     regulations, the Secretary shall not require that data be de-
     identified or require valid authorization for use or 
     disclosure for activities within a covered entity described 
     in paragraph (1) of the definition of health care operations 
     under such section 164.501. In promulgating such regulations, 
     the Secretary may choose to narrow or clarify activities that 
     the Secretary chooses to retain in the definition of health 
     care operations and the Secretary shall take into account the 
     report under section 13424(d). In such regulations the 
     Secretary shall specify the date on which such regulations 
     shall apply to disclosures made by a covered entity, but in 
     no case would such date be sooner than the date that is 24 
     months after the date of the enactment of this section. 
     Nothing in this subsection may be construed to supersede any 
     provision under subsection (e) or section 13406(a).
       (e) Prohibition on Sale of Electronic Health Records or 
     Protected Health Information Obtained From Electronic Health 
     Records.--
       (1) In general.--Except as provided in paragraph (2), a 
     covered entity or business associate shall not directly or 
     indirectly receive remuneration in exchange for any protected 
     health information of an individual unless the covered entity 
     obtained from the individual, in accordance with section 
     164.508 of title 45, Code of Federal Regulations, a valid 
     authorization that includes, in accordance with such section, 
     a specification of whether the protected health information 
     can be further exchanged for remuneration by the entity 
     receiving protected health information of that individual.
       (2) Exceptions.--Paragraph (1) shall not apply in the 
     following cases:
       (A) The purpose of the exchange is for research or public 
     health activities (as described in sections 164.501, 
     164.512(i), and 164.512(b) of title 45, Code of Federal 
     Regulations).
       (B) The purpose of the exchange is for the treatment of the 
     individual, subject to any regulation that the Secretary may 
     promulgate to prevent protected health information from 
     inappropriate access, use, or disclosure.
       (C) The purpose of the exchange is the health care 
     operation specifically described in subparagraph (iv) of 
     paragraph (6) of the definition of healthcare operations in 
     section 164.501 of title 45, Code of Federal Regulations.
       (D) The purpose of the exchange is for remuneration that is 
     provided by a covered entity to a business associate for 
     activities involving the exchange of protected health 
     information that the business associate undertakes on behalf 
     of and at the specific request of the covered entity pursuant 
     to a business associate agreement.
       (E) The purpose of the exchange is to provide an individual 
     with a copy of the individual's protected health information 
     pursuant to section 164.524 of title 45, Code of Federal 
     Regulations.
       (F) The purpose of the exchange is otherwise determined by 
     the Secretary in regulations to be similarly necessary and 
     appropriate as the exceptions provided in subparagraphs (A) 
     through (E).
       (3) Regulations.--Not later than 18 months after the date 
     of enactment of this title, the Secretary shall promulgate 
     regulations to carry out this subsection. In promulgating 
     such regulations, the Secretary--
       (A) shall evaluate the impact of restricting the exception 
     described in paragraph (2)(A) to require that the price 
     charged for the purposes described in such paragraph reflects 
     the costs of the preparation and transmittal of the data for 
     such purpose, on research or public health activities, 
     including those conducted by or for the use of the Food and 
     Drug Administration; and
       (B) may further restrict the exception described in 
     paragraph (2)(A) to require that the price charged for the 
     purposes described in such paragraph reflects the costs of 
     the preparation and transmittal of the data for such purpose, 
     if the Secretary finds that such further restriction will not 
     impede such research or public health activities.
       (4) Effective date.--Paragraph (1) shall apply to exchanges 
     occurring on or after the date that is 6 months after the 
     date of the promulgation of final regulations implementing 
     this subsection.
       (f) Access to Certain Information in Electronic Format.--In 
     applying section 164.524 of title 45, Code of Federal 
     Regulations, in the case that a covered entity uses or 
     maintains an electronic health record with respect to 
     protected health information of an individual--
       (1) the individual shall have a right to obtain from such 
     covered entity a copy of such information in an electronic 
     format; and
       (2) notwithstanding paragraph (c)(4) of such section, any 
     fee that the covered entity may impose for providing such 
     individual with a copy of such information (or a summary or 
     explanation of such information) if such copy (or summary or 
     explanation) is in an electronic form shall not be greater 
     than the entity's labor costs in responding to the request 
     for the copy (or summary or explanation).

     SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH 
                   CARE OPERATIONS.

       (a) Marketing.--

[[Page 3266]]

       (1) In general.--A communication by a covered entity or 
     business associate that is about a product or service and 
     that encourages recipients of the communication to purchase 
     or use the product or service shall not be considered a 
     health care operation for purposes of subpart E of part 164 
     of title 45, Code of Federal Regulations, unless the 
     communication is made as described in subparagraph (i), (ii), 
     or (iii) of paragraph (1) of the definition of marketing in 
     section 164.501 of such title.
       (2) Payment for certain communications.--A communication by 
     a covered entity or business associate that is described in 
     subparagraph (i), (ii), or (iii) of paragraph (1) of the 
     definition of marketing in section 164.501 of title 45, Code 
     of Federal Regulations, shall not be considered a health care 
     operation for purposes of subpart E of part 164 of title 45, 
     Code of Federal Regulations if the covered entity receives or 
     has received direct or indirect payment in exchange for 
     making such communication, except where--
       (A) such communication describes only a health care item or 
     service that has previously been prescribed for or 
     administered to the recipient of the communication, or a 
     family member of such recipient;
       (B) each of the following conditions apply--
       (i) the communication is made by the covered entity; and
       (ii) the covered entity making such communication obtains 
     from the recipient of the communication, in accordance with 
     section 164.508 of title 45, Code of Federal Regulations, a 
     valid authorization (as described in paragraph (b) of such 
     section) with respect to such communication; or
       (C) each of the following conditions apply--
       (i) the communication is made on behalf of the covered 
     entity;
       (ii) the communication is consistent with the written 
     contract (or other written arrangement described in section 
     164.502(e)(2) of such title) between such business associate 
     and covered entity; and
       (iii) the business associate making such communication, or 
     the covered entity on behalf of which the communication is 
     made, obtains from the recipient of the communication, in 
     accordance with section 164.508 of title 45, Code of Federal 
     Regulations, a valid authorization (as described in paragraph 
     (b) of such section) with respect to such communication.
       (c) Effective Date.--This section shall apply to 
     contracting occurring on or after the effective date 
     specified under section 13423.

     SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR 
                   VENDORS OF PERSONAL HEALTH RECORDS AND OTHER 
                   NON-HIPAA COVERED ENTITIES.

       (a) In General.--In accordance with subsection (c), each 
     vendor of personal health records, following the discovery of 
     a breach of security of unsecured PHR identifiable health 
     information that is in a personal health record maintained or 
     offered by such vendor, and each entity described in clause 
     (ii) or (iii) of section 13424(b)(1)(A), following the 
     discovery of a breach of security of such information that is 
     obtained through a product or service provided by such 
     entity, shall--
       (1) notify each individual who is a citizen or resident of 
     the United States whose unsecured PHR identifiable health 
     information was acquired by an unauthorized person as a 
     result of such a breach of security; and
       (2) notify the Federal Trade Commission.
       (b) Notification by Third Party Service Providers.--A third 
     party service provider that provides services to a vendor of 
     personal health records or to an entity described in clause 
     (ii) or (iii) of section 13424(b)(1)(A) in connection with 
     the offering or maintenance of a personal health record or a 
     related product or service and that accesses, maintains, 
     retains, modifies, records, stores, destroys, or otherwise 
     holds, uses, or discloses unsecured PHR identifiable health 
     information in such a record as a result of such services 
     shall, following the discovery of a breach of security of 
     such information, notify such vendor or entity, respectively, 
     of such breach. Such notice shall include the identification 
     of each individual whose unsecured PHR identifiable health 
     information has been, or is reasonably believed to have been, 
     accessed, acquired, or disclosed during such breach.
       (c) Application of Requirements for Timeliness, Method, and 
     Content of Notifications.--Subsections (c), (d), (e), and (f) 
     of section 13402 shall apply to a notification required under 
     subsection (a) and a vendor of personal health records, an 
     entity described in subsection (a) and a third party service 
     provider described in subsection (b), with respect to a 
     breach of security under subsection (a) of unsecured PHR 
     identifiable health information in such records maintained or 
     offered by such vendor, in a manner specified by the Federal 
     Trade Commission.
       (d) Notification of the Secretary.--Upon receipt of a 
     notification of a breach of security under subsection (a)(2), 
     the Federal Trade Commission shall notify the Secretary of 
     such breach.
       (e) Enforcement.--A violation of subsection (a) or (b) 
     shall be treated as an unfair and deceptive act or practice 
     in violation of a regulation under section 18(a)(1)(B) of the 
     Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) 
     regarding unfair or deceptive acts or practices.
       (f) Definitions.--For purposes of this section:
       (1) Breach of security.--The term ``breach of security'' 
     means, with respect to unsecured PHR identifiable health 
     information of an individual in a personal health record, 
     acquisition of such information without the authorization of 
     the individual.
       (2) Phr identifiable health information.--The term ``PHR 
     identifiable health information'' means individually 
     identifiable health information, as defined in section 
     1171(6) of the Social Security Act (42 U.S.C. 1320d(6)), and 
     includes, with respect to an individual, information--
       (A) that is provided by or on behalf of the individual; and
       (B) that identifies the individual or with respect to which 
     there is a reasonable basis to believe that the information 
     can be used to identify the individual.
       (3) Unsecured phr identifiable health information.--
       (A) In general.--Subject to subparagraph (B), the term 
     ``unsecured PHR identifiable health information'' means PHR 
     identifiable health information that is not protected through 
     the use of a technology or methodology specified by the 
     Secretary in the guidance issued under section 13402(h)(2).
       (B) Exception in case timely guidance not issued.--In the 
     case that the Secretary does not issue guidance under section 
     13402(h)(2) by the date specified in such section, for 
     purposes of this section, the term ``unsecured PHR 
     identifiable health information'' shall mean PHR identifiable 
     health information that is not secured by a technology 
     standard that renders protected health information unusable, 
     unreadable, or indecipherable to unauthorized individuals and 
     that is developed or endorsed by a standards developing 
     organization that is accredited by the American National 
     Standards Institute.
       (g) Regulations; Effective Date; Sunset.--
       (1) Regulations; effective date.--To carry out this 
     section, the Federal Trade Commission shall, in accordance 
     with section 553 of title 5, United States Code, promulgate 
     interim final regulations by not later than the date that is 
     180 days after the date of the enactment of this section. The 
     provisions of this section shall apply to breaches of 
     security that are discovered on or after the date that is 30 
     days after the date of publication of such interim final 
     regulations.
       (2) Sunset.--The provisions of this section shall not apply 
     to breaches of security occurring on or after the earlier of 
     the following the dates:
       (A) The date on which a standard relating to requirements 
     for entities that are not covered entities that includes 
     requirements relating to breach notification has been 
     promulgated by the Secretary.
       (B) The date on which a standard relating to requirements 
     for entities that are not covered entities that includes 
     requirements relating to breach notification has been 
     promulgated by the Federal Trade Commission and has taken 
     effect.

     SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN 
                   ENTITIES.

       Each organization, with respect to a covered entity, that 
     provides data transmission of protected health information to 
     such entity (or its business associate) and that requires 
     access on a routine basis to such protected health 
     information, such as a Health Information Exchange 
     Organization, Regional Health Information Organization, E-
     prescribing Gateway, or each vendor that contracts with a 
     covered entity to allow that covered entity to offer a 
     personal health record to patients as part of its electronic 
     health record, is required to enter into a written contract 
     (or other written arrangement) described in section 
     164.502(e)(2) of title 45, Code of Federal Regulations and a 
     written contract (or other arrangement) described in section 
     164.308(b) of such title, with such entity and shall be 
     treated as a business associate of the covered entity for 
     purposes of the provisions of this subtitle and subparts C 
     and E of part 164 of title 45, Code of Federal Regulations, 
     as such provisions are in effect as of the date of enactment 
     of this title.

     SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL 
                   DISCLOSURES CRIMINAL PENALTIES.

       Section 1177(a) of the Social Security Act (42 U.S.C. 
     1320d-6(a)) is amended by adding at the end the following new 
     sentence: ``For purposes of the previous sentence, a person 
     (including an employee or other individual) shall be 
     considered to have obtained or disclosed individually 
     identifiable health information in violation of this part if 
     the information is maintained by a covered entity (as defined 
     in the HIPAA privacy regulation described in section 
     1180(b)(3)) and the individual obtained or disclosed such 
     information without authorization.''.

     SEC. 13410. IMPROVED ENFORCEMENT.

       (a) In General.--Section 1176 of the Social Security Act 
     (42 U.S.C. 1320d-5) is amended--

[[Page 3267]]

       (1) in subsection (b)(1), by striking ``the act constitutes 
     an offense punishable under section 1177'' and inserting ``a 
     penalty has been imposed under section 1177 with respect to 
     such act''; and
       (2) by adding at the end the following new subsection:
       ``(c) Noncompliance Due to Willful Neglect.--
       ``(1) In general.--A violation of a provision of this part 
     due to willful neglect is a violation for which the Secretary 
     is required to impose a penalty under subsection (a)(1).
       ``(2) Required investigation.--For purposes of paragraph 
     (1), the Secretary shall formally investigate any complaint 
     of a violation of a provision of this part if a preliminary 
     investigation of the facts of the complaint indicate such a 
     possible violation due to willful neglect.''.
       (b) Effective Date; Regulations.--
       (1) The amendments made by subsection (a) shall apply to 
     penalties imposed on or after the date that is 24 months 
     after the date of the enactment of this title.
       (2) Not later than 18 months after the date of the 
     enactment of this title, the Secretary of Health and Human 
     Services shall promulgate regulations to implement such 
     amendments.
       (c) Distribution of Certain Civil Monetary Penalties 
     Collected.--
       (1) In general.--Subject to the regulation promulgated 
     pursuant to paragraph (3), any civil monetary penalty or 
     monetary settlement collected with respect to an offense 
     punishable under this subtitle or section 1176 of the Social 
     Security Act (42 U.S.C. 1320d-5) insofar as such section 
     relates to privacy or security shall be transferred to the 
     Office of Civil Rights of the Department of Health and Human 
     Services to be used for purposes of enforcing the provisions 
     of this subtitle and subparts C and E of part 164 of title 
     45, Code of Federal Regulations, as such provisions are in 
     effect as of the date of enactment of this Act.
       (2) Gao report.--Not later than 18 months after the date of 
     the enactment of this title, the Comptroller General shall 
     submit to the Secretary a report including recommendations 
     for a methodology under which an individual who is harmed by 
     an act that constitutes an offense referred to in paragraph 
     (1) may receive a percentage of any civil monetary penalty or 
     monetary settlement collected with respect to such offense.
       (3) Establishment of methodology to distribute percentage 
     of cmps collected to harmed individuals.--Not later than 3 
     years after the date of the enactment of this title, the 
     Secretary shall establish by regulation and based on the 
     recommendations submitted under paragraph (2), a methodology 
     under which an individual who is harmed by an act that 
     constitutes an offense referred to in paragraph (1) may 
     receive a percentage of any civil monetary penalty or 
     monetary settlement collected with respect to such offense.
       (4) Application of methodology.--The methodology under 
     paragraph (3) shall be applied with respect to civil monetary 
     penalties or monetary settlements imposed on or after the 
     effective date of the regulation.
       (d) Tiered Increase in Amount of Civil Monetary 
     Penalties.--
       (1) In general.--Section 1176(a)(1) of the Social Security 
     Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who 
     violates a provision of this part a penalty of not more 
     than'' and all that follows and inserting the following: 
     ``who violates a provision of this part--
       ``(A) in the case of a violation of such provision in which 
     it is established that the person did not know (and by 
     exercising reasonable diligence would not have known) that 
     such person violated such provision, a penalty for each such 
     violation of an amount that is at least the amount described 
     in paragraph (3)(A) but not to exceed the amount described in 
     paragraph (3)(D);
       ``(B) in the case of a violation of such provision in which 
     it is established that the violation was due to reasonable 
     cause and not to willful neglect, a penalty for each such 
     violation of an amount that is at least the amount described 
     in paragraph (3)(B) but not to exceed the amount described in 
     paragraph (3)(D); and
       ``(C) in the case of a violation of such provision in which 
     it is established that the violation was due to willful 
     neglect--
       ``(i) if the violation is corrected as described in 
     subsection (b)(3)(A), a penalty in an amount that is at least 
     the amount described in paragraph (3)(C) but not to exceed 
     the amount described in paragraph (3)(D); and
       ``(ii) if the violation is not corrected as described in 
     such subsection, a penalty in an amount that is at least the 
     amount described in paragraph (3)(D).
     In determining the amount of a penalty under this section for 
     a violation, the Secretary shall base such determination on 
     the nature and extent of the violation and the nature and 
     extent of the harm resulting from such violation.''.
       (2) Tiers of penalties described.--Section 1176(a) of such 
     Act (42 U.S.C. 1320d-5(a)) is further amended by adding at 
     the end the following new paragraph:
       ``(3) Tiers of penalties described.--For purposes of 
     paragraph (1), with respect to a violation by a person of a 
     provision of this part--
       ``(A) the amount described in this subparagraph is $100 for 
     each such violation, except that the total amount imposed on 
     the person for all such violations of an identical 
     requirement or prohibition during a calendar year may not 
     exceed $25,000;
       ``(B) the amount described in this subparagraph is $1,000 
     for each such violation, except that the total amount imposed 
     on the person for all such violations of an identical 
     requirement or prohibition during a calendar year may not 
     exceed $100,000;
       ``(C) the amount described in this subparagraph is $10,000 
     for each such violation, except that the total amount imposed 
     on the person for all such violations of an identical 
     requirement or prohibition during a calendar year may not 
     exceed $250,000; and
       ``(D) the amount described in this subparagraph is $50,000 
     for each such violation, except that the total amount imposed 
     on the person for all such violations of an identical 
     requirement or prohibition during a calendar year may not 
     exceed $1,500,000.''.
       (3) Conforming amendments.--Section 1176(b) of such Act (42 
     U.S.C. 1320d-5(b)) is amended--
       (A) by striking paragraph (2) and redesignating paragraphs 
     (3) and (4) as paragraphs (2) and (3), respectively; and
       (B) in paragraph (2), as so redesignated--
       (i) in subparagraph (A), by striking ``in subparagraph (B), 
     a penalty may not be imposed under subsection (a) if'' and 
     all that follows through ``the failure to comply is 
     corrected'' and inserting ``in subparagraph (B) or subsection 
     (a)(1)(C), a penalty may not be imposed under subsection (a) 
     if the failure to comply is corrected''; and
       (ii) in subparagraph (B), by striking ``(A)(ii)'' and 
     inserting ``(A)'' each place it appears.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to violations occurring after the date of the 
     enactment of this title.
       (e) Enforcement Through State Attorneys General.--
       (1) In general.--Section 1176 of the Social Security Act 
     (42 U.S.C. 1320d-5) is amended by adding at the end the 
     following new subsection:
       ``(d) Enforcement by State Attorneys General.--
       ``(1) Civil action.--Except as provided in subsection (b), 
     in any case in which the attorney general of a State has 
     reason to believe that an interest of one or more of the 
     residents of that State has been or is threatened or 
     adversely affected by any person who violates a provision of 
     this part, the attorney general of the State, as parens 
     patriae, may bring a civil action on behalf of such residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction--
       ``(A) to enjoin further such violation by the defendant; or
       ``(B) to obtain damages on behalf of such residents of the 
     State, in an amount equal to the amount determined under 
     paragraph (2).
       ``(2) Statutory damages.--
       ``(A) In general.--For purposes of paragraph (1)(B), the 
     amount determined under this paragraph is the amount 
     calculated by multiplying the number of violations by up to 
     $100. For purposes of the preceding sentence, in the case of 
     a continuing violation, the number of violations shall be 
     determined consistent with the HIPAA privacy regulations (as 
     defined in section 1180(b)(3)) for violations of subsection 
     (a).
       ``(B) Limitation.--The total amount of damages imposed on 
     the person for all violations of an identical requirement or 
     prohibition during a calendar year may not exceed $25,000.
       ``(C) Reduction of damages.--In assessing damages under 
     subparagraph (A), the court may consider the factors the 
     Secretary may consider in determining the amount of a civil 
     money penalty under subsection (a) under the HIPAA privacy 
     regulations.
       ``(3) Attorney fees.--In the case of any successful action 
     under paragraph (1), the court, in its discretion, may award 
     the costs of the action and reasonable attorney fees to the 
     State.
       ``(4) Notice to secretary.--The State shall serve prior 
     written notice of any action under paragraph (1) upon the 
     Secretary and provide the Secretary with a copy of its 
     complaint, except in any case in which such prior notice is 
     not feasible, in which case the State shall serve such notice 
     immediately upon instituting such action. The Secretary shall 
     have the right--
       ``(A) to intervene in the action;
       ``(B) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(C) to file petitions for appeal.
       ``(5) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this section shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State.
       ``(6) Venue; service of process.--
       ``(A) Venue.--Any action brought under paragraph (1) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.

[[Page 3268]]

       ``(B) Service of process.--In an action brought under 
     paragraph (1), process may be served in any district in which 
     the defendant--
       ``(i) is an inhabitant; or
       ``(ii) maintains a physical place of business.
       ``(7) Limitation on state action while federal action is 
     pending.--If the Secretary has instituted an action against a 
     person under subsection (a) with respect to a specific 
     violation of this part, no State attorney general may bring 
     an action under this subsection against the person with 
     respect to such violation during the pendency of that action.
       ``(8) Application of cmp statute of limitation.--A civil 
     action may not be instituted with respect to a violation of 
     this part unless an action to impose a civil money penalty 
     may be instituted under subsection (a) with respect to such 
     violation consistent with the second sentence of section 
     1128A(c)(1).''.
       (2) Conforming amendments.--Subsection (b) of such section, 
     as amended by subsection (d)(3), is amended--
       (A) in paragraph (1), by striking ``A penalty may not be 
     imposed under subsection (a)'' and inserting ``No penalty may 
     be imposed under subsection (a) and no damages obtained under 
     subsection (d)'';
       (B) in paragraph (2)(A)--
       (i) after ``subsection (a)(1)(C),'', by striking ``a 
     penalty may not be imposed under subsection (a)'' and 
     inserting ``no penalty may be imposed under subsection (a) 
     and no damages obtained under subsection (d)''; and
       (ii) in clause (ii), by inserting ``or damages'' after 
     ``the penalty'';
       (C) in paragraph (2)(B)(i), by striking ``The period'' and 
     inserting ``With respect to the imposition of a penalty by 
     the Secretary under subsection (a), the period''; and
       (D) in paragraph (3), by inserting ``and any damages under 
     subsection (d)'' after ``any penalty under subsection (a)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to violations occurring after the date of the 
     enactment of this Act.
       (f) Allowing Continued Use of Corrective Action.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(e) Allowing Continued Use of Corrective Action.--Nothing 
     in this section shall be construed as preventing the Office 
     of Civil Rights of the Department of Health and Human 
     Services from continuing, in its discretion, to use 
     corrective action without a penalty in cases where the person 
     did not know (and by exercising reasonable diligence would 
     not have known) of the violation involved.''.

     SEC. 13411. AUDITS.

       The Secretary shall provide for periodic audits to ensure 
     that covered entities and business associates that are 
     subject to the requirements of this subtitle and subparts C 
     and E of part 164 of title 45, Code of Federal Regulations, 
     as such provisions are in effect as of the date of enactment 
     of this Act, comply with such requirements.

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

     SEC. 13421. RELATIONSHIP TO OTHER LAWS.

       (a) Application of Hipaa State Preemption.--Section 1178 of 
     the Social Security Act (42 U.S.C. 1320d-7) shall apply to a 
     provision or requirement under this subtitle in the same 
     manner that such section applies to a provision or 
     requirement under part C of title XI of such Act or a 
     standard or implementation specification adopted or 
     established under sections 1172 through 1174 of such Act.
       (b) Health Insurance Portability and Accountability Act.--
     The standards governing the privacy and security of 
     individually identifiable health information promulgated by 
     the Secretary under sections 262(a) and 264 of the Health 
     Insurance Portability and Accountability Act of 1996 shall 
     remain in effect to the extent that they are consistent with 
     this subtitle. The Secretary shall by rule amend such Federal 
     regulations as required to make such regulations consistent 
     with this subtitle. In carrying out the preceding sentence, 
     the Secretary shall revise the definition of ``psychotherapy 
     notes'' in section 164.501 of title 45, Code of Federal 
     Regulations, to include test data that is related to direct 
     responses, scores, items, forms, protocols, manuals, or other 
     materials that are part of a mental health evaluation, as 
     determined by the mental health professional providing 
     treatment or evaluation.

     SEC. 13422. REGULATORY REFERENCES.

       Each reference in this subtitle to a provision of the Code 
     of Federal Regulations refers to such provision as in effect 
     on the date of the enactment of this title (or to the most 
     recent update of such provision).

     SEC. 13423. EFFECTIVE DATE.

       Except as otherwise specifically provided, the provisions 
     of part I shall take effect on the date that is 12 months 
     after the date of the enactment of this title.

     SEC. 13424. STUDIES, REPORTS, GUIDANCE.

       (a) Report on Compliance.--
       (1) In general.--For the first year beginning after the 
     date of the enactment of this Act and annually thereafter, 
     the Secretary shall prepare and submit to the Committee on 
     Health, Education, Labor, and Pensions of the Senate and the 
     Committee on Ways and Means and the Committee on Energy and 
     Commerce of the House of Representatives a report concerning 
     complaints of alleged violations of law, including the 
     provisions of this subtitle as well as the provisions of 
     subparts C and E of part 164 of title 45, Code of Federal 
     Regulations, (as such provisions are in effect as of the date 
     of enactment of this Act) relating to privacy and security of 
     health information that are received by the Secretary during 
     the year for which the report is being prepared. Each such 
     report shall include, with respect to such complaints 
     received during the year--
       (A) the number of such complaints;
       (B) the number of such complaints resolved informally, a 
     summary of the types of such complaints so resolved, and the 
     number of covered entities that received technical assistance 
     from the Secretary during such year in order to achieve 
     compliance with such provisions and the types of such 
     technical assistance provided;
       (C) the number of such complaints that have resulted in the 
     imposition of civil monetary penalties or have been resolved 
     through monetary settlements, including the nature of the 
     complaints involved and the amount paid in each penalty or 
     settlement;
       (D) the number of compliance reviews conducted and the 
     outcome of each such review;
       (E) the number of subpoenas or inquiries issued;
       (F) the Secretary's plan for improving compliance with and 
     enforcement of such provisions for the following year; and
       (G) the number of audits performed and a summary of audit 
     findings pursuant to section 13411.
       (2) Availability to public.--Each report under paragraph 
     (1) shall be made available to the public on the Internet 
     website of the Department of Health and Human Services.
       (b) Study and Report on Application of Privacy and Security 
     Requirements to Non-Hipaa Covered Entities.--
       (1) Study.--Not later than one year after the date of the 
     enactment of this title, the Secretary, in consultation with 
     the Federal Trade Commission, shall conduct a study, and 
     submit a report under paragraph (2), on privacy and security 
     requirements for entities that are not covered entities or 
     business associates as of the date of the enactment of this 
     title, including--
       (A) requirements relating to security, privacy, and 
     notification in the case of a breach of security or privacy 
     (including the applicability of an exemption to notification 
     in the case of individually identifiable health information 
     that has been rendered unusable, unreadable, or 
     indecipherable through technologies or methodologies 
     recognized by appropriate professional organization or 
     standard setting bodies to provide effective security for the 
     information) that should be applied to--
       (i) vendors of personal health records;
       (ii) entities that offer products or services through the 
     website of a vendor of personal health records;
       (iii) entities that are not covered entities and that offer 
     products or services through the websites of covered entities 
     that offer individuals personal health records;
       (iv) entities that are not covered entities and that access 
     information in a personal health record or send information 
     to a personal health record; and
       (v) third party service providers used by a vendor or 
     entity described in clause (i), (ii), (iii), or (iv) to 
     assist in providing personal health record products or 
     services;
       (B) a determination of which Federal government agency is 
     best equipped to enforce such requirements recommended to be 
     applied to such vendors, entities, and service providers 
     under subparagraph (A); and
       (C) a timeframe for implementing regulations based on such 
     findings.
       (2) Report.--The Secretary shall submit to the Committee on 
     Finance, the Committee on Health, Education, Labor, and 
     Pensions, and the Committee on Commerce of the Senate and the 
     Committee on Ways and Means and the Committee on Energy and 
     Commerce of the House of Representatives a report on the 
     findings of the study under paragraph (1) and shall include 
     in such report recommendations on the privacy and security 
     requirements described in such paragraph.
       (c) Guidance on Implementation Specification To De-Identify 
     Protected Health Information.--Not later than 12 months after 
     the date of the enactment of this title, the Secretary shall, 
     in consultation with stakeholders, issue guidance on how best 
     to implement the requirements for the de-identification of 
     protected health information under section 164.514(b) of 
     title 45, Code of Federal Regulations.
       (d) Gao Report on Treatment Disclosures.--Not later than 
     one year after the date of the enactment of this title, the 
     Comptroller General of the United States shall submit to the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate and the Committee on Ways and Means and the Committee 
     on Energy and Commerce of the House of Representatives a 
     report on the best practices related to the disclosure among 
     health care providers of protected health information of an 
     individual for purposes of treatment of such individual. Such 
     report shall include an examination of the

[[Page 3269]]

     best practices implemented by States and by other entities, 
     such as health information exchanges and regional health 
     information organizations, an examination of the extent to 
     which such best practices are successful with respect to the 
     quality of the resulting health care provided to the 
     individual and with respect to the ability of the health care 
     provider to manage such best practices, and an examination of 
     the use of electronic informed consent for disclosing 
     protected health information for treatment, payment, and 
     health care operations.
       (e) Report Required.--Not later than 1 year after the date 
     of enactment of this section, the Government Accountability 
     Office shall submit to Congress and the Secretary of Health 
     and Human Services a report on the impact of any of the 
     provisions of, or amendments made by, this division or 
     division B that are related to the Health Insurance 
     Portability and Accountability Act of 1996 and section 552a 
     of title 5, United States Code, on health insurance premiums 
     and overall health care costs.

                 TITLE XIV--STATE FISCAL STABILIZATION

                        DEPARTMENT OF EDUCATION

                    State Fiscal Stabilization Fund

       For necessary expenses for a State Fiscal Stabilization 
     Fund, $39,000,000,000, which shall be administered by the 
     Department of Education, and shall be available through 
     September 30, 2010.

                     GENERAL PROVISIONS--THIS TITLE

     SEC. 1401. ALLOCATIONS.

       (a) Outlying Areas.--The Secretary of Education shall first 
     allocate one-half of 1 percent to the outlying areas on the 
     basis of their respective needs, as determined by the 
     Secretary, for activities consistent with this title under 
     such terms and conditions as the Secretary may determine.
       (b) Administration and Oversight.--The Secretary may 
     reserve up to $25,000,000 for administration and oversight of 
     this title, including for program evaluation.
       (c) Reservation for Additional Programs.--After reserving 
     funds under subsections (a) and (b), the Secretary shall 
     reserve $7,500,000,000 for grants under sections 1406 and 
     1407.
       (d) State Allocations.--After carrying out subsections (a), 
     (b), and (c), the Secretary shall allocate the remaining 
     funds made available to carry out this title to the States as 
     follows:
       (1) 61 percent on the basis of their relative population of 
     individuals aged 5 through 24.
       (2) 39 percent on the basis of their relative total 
     population.
       (e) State Grants.--From funds allocated under subsection 
     (d), the Secretary shall make grants to the Governor of each 
     State.
       (f) Reallocation.--The Governor shall return to the 
     Secretary any funds received under subsection (e) that the 
     Governor does not obligate within 1 year of receiving a 
     grant, and the Secretary shall reallocate such funds to the 
     remaining States in accordance with subsection (d).

     SEC. 1402. STATE USES OF FUNDS.

       Education Fund.--(a) In general.--The Governor shall use 
     the State's allocation under section 1401 for the support of 
     elementary, secondary, and postsecondary education and, as 
     applicable, early childhood education programs and services.
       (b) Restoring 2008 state support for education.--
       (1) In general.--The Governor shall first use the funds 
     described in subsection (a)--
       (A) to provide the amount of funds, through the State's 
     principal elementary and secondary funding formula, that is 
     needed to restore State support for elementary and secondary 
     education to the fiscal year 2008 level; and where 
     applicable, to allow existing State formula increases for 
     fiscal years 2009, 2010, and 2011 to be implemented and allow 
     funding for phasing in State equity and adequacy adjustments 
     that were enacted prior to July 1, 2008; and
       (B) to provide the amount of funds to public institutions 
     of higher education in the State that is needed to restore 
     State support for postsecondary education to the fiscal year 
     2008 level.
       (2) Shortfall.--If the Governor determines that the amount 
     of funds available under subsection (a) is insufficient to 
     restore State support for education to the levels described 
     in subparagraphs (A) and (B) of paragraph (1), the Governor 
     shall allocate those funds between those clauses in 
     proportion to the relative shortfall in State support for the 
     education sectors described in those clauses.
       (c) Subgrants to improve basic programs operated by local 
     educational agencies.--After carrying out subsection (b), the 
     Governor shall use any funds remaining under subsection (a) 
     to provide local educational agencies in the State with 
     subgrants based on their relative shares of funding under 
     part A of title I of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year 
     for which data are available.

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

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

     SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

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

     SEC. 1405. STATE APPLICATIONS.

       (a) In General.--The Governor of a State desiring to 
     receive an allocation under section 1401 shall submit an 
     application at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       (b) Application.--The Governor shall--
       (1) include the assurances described in subsection (d);
       (2) provide baseline data that demonstrates the State's 
     current status in each of the areas described in such 
     assurances; and
       (3) describe how the State intends to use its allocation.
       (c) Incentive Grant Application.--The Governor of a State 
     seeking a grant under section 1406 shall--
       (1) submit an application for consideration;
       (2) describe the status of the State's progress in each of 
     the areas described in subsection (d);
       (3) describe the achievement and graduation rates of public 
     elementary and secondary school students in the State, and 
     the strategies the State is employing to help ensure that all 
     subgroups of students identified in 1111(b)(2) of ESEA in the 
     State continue making progress toward meeting the State's 
     student academic achievement standards;
       (4) describe how the State would use its grant funding to 
     improve student academic achievement in the State, including 
     how it will allocate the funds to give priority to high-need 
     schools and local educational agencies; and
       (5) include a plan for evaluating its progress in closing 
     achievement gaps.
       (d) Assurances.--An application under subsection (b) shall 
     include the following assurances:
       (1) Maintenance of effort.--
       (A) Elementary and secondary education.--The State will, in 
     each of fiscal years 2009 and 2010, maintain State support 
     for elementary and secondary education at least at the level 
     of such support in fiscal year 2006.
       (B) Higher education.--The State will, in each of fiscal 
     years 2009 and 2010, maintain State support for public 
     institutions of higher education (not including support for 
     capital projects or for research and development) at least at 
     the level of such support in fiscal year 2006.
       (2) Achieving equity in teacher distribution.--The State 
     will take action, including activities outlined in section 
     2113(c) of ESEA, to increase the number, and improve the 
     distribution, of effective teachers and principals in high-
     poverty schools and local educational agencies throughout the 
     State.
       (3) Improving collection and use of data.--The State will 
     establish a longitudinal data system that includes the 
     elements described in section 6401(e)(2)(D) of the America 
     COMPETES Act (20 U.S.C. 9871).
       (4) Standards and assessments.--The State--
       (A) will enhance the quality of academic assessments 
     described in section 1111(b)(3) of ESEA (20 U.S.C. 
     6311(b)(3)) through activities such as those described in 
     section 6112(a) of such Act (20 U.S.C. 7301a(a));
       (B) will comply with the requirements of paragraphs 
     (3)(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C. 
     6311(b)) and section 612(a)(16) of IDEA (20 U.S.C. 
     1412(a)(16)) related to the inclusion of children with 
     disabilities and limited English proficient students in State 
     assessments, the development of valid and reliable 
     assessments for those students, and the provision of 
     accommodations that enable their participation in State 
     assessments; and
       (C) will take steps to improve State academic content 
     standards and student academic achievement standards 
     consistent with 6401(e)(1)(A)(ii) of the America COMPETES 
     Act.
       (5) will ensure compliance with the requirements of section 
     1116(a)(7)(C)(iv) and section 1116(a)(8)(B) with respect to 
     schools identified under such sections.

     SEC. 1406. STATE INCENTIVE GRANTS.

       (a) In General.--From the total amount reserved under 
     section 1401(c) that is not used for section 1407, the 
     Secretary shall, in fiscal year 2010, make grants to States 
     that have made significant progress in meeting the objectives 
     of paragraphs (2), (3), (4), and (5) of section 1405(d).
       (b) Basis for Grants.--The Secretary shall determine which 
     States receive grants

[[Page 3270]]

     under this section, and the amount of those grants, on the 
     basis of information provided in State applications under 
     section 1405 and such other criteria as the Secretary 
     determines appropriate.
       (c) Subgrants to Local Educational Agencies.--Each State 
     receiving a grant under this section shall use at least 50 
     percent of the grant to provide local educational agencies in 
     the State with subgrants based on their relative shares of 
     funding under part A of title I of ESEA (20 U.S.C. 6311 et 
     seq.) for the most recent year.

     SEC. 1407. INNOVATION FUND.

       (a) In General.--
       (1) Eligible entity.--For the purposes of this section, the 
     term ``eligible entity'' means--
       (A) A local educational agency; or
       (B) a partnership between a nonprofit organization and--
       (i) one or more local educational agencies;
       (ii) or a consortium of schools.
       (2) Program established.--From the total amount reserved 
     under section 1401(c), the Secretary may reserve up to 
     $650,000,000 to establish an Innovation Fund, which shall 
     consist of academic achievement awards that recognize 
     eligible entities that meet the requirements described in 
     subsection (b).
       (3) Basis for awards.--The Secretary shall make awards to 
     eligible entities that have made significant gains in closing 
     the achievement gap as described in subsection (b)(1)--
       (A) to allow such eligible entities to expand their work 
     and serve as models for best practices;
       (B) to allow such eligible entities to work in partnership 
     with the private sector and the philanthropic community; and
       (C) to identify and document best practices that can be 
     shared, and taken to scale based on demonstrated success.
       (b) Eligibility.--To be eligible for such an award, an 
     eligible entity shall--
       (1) have significantly closed the achievement gaps between 
     groups of students described in section 1111(b)(2) of ESEA 
     (20 U.S.C. 6311(b)(2));
       (2) have exceeded the State's annual measurable objectives 
     consistent with such section 1111(b)(2) for 2 or more 
     consecutive years or have demonstrated success in 
     significantly increasing student academic achievement for all 
     groups of students described in such section through another 
     measure, such as measures described in section 1111(c)(2) of 
     ESEA;
       (3) have made significant improvement in other areas, such 
     as graduation rates or increased recruitment and placement of 
     high-quality teachers and school leaders, as demonstrated 
     with meaningful data; and
       (4) demonstrate that they have established partnerships 
     with the private sector, which may include philanthropic 
     organizations, and that the private sector will provide 
     matching funds in order to help bring results to scale.

     SEC. 1408. STATE REPORTS.

       A State receiving funds under this title shall submit a 
     report to the Secretary, at such time and in such manner as 
     the Secretary may require, that describes--
       (1) the uses of funds provided under this title within the 
     State;
       (2) how the State distributed the funds it received under 
     this title;
       (3) the number of jobs that the Governor estimates were 
     saved or created with funds the State received under this 
     title;
       (4) tax increases that the Governor estimates were averted 
     because of the availability of funds from this title;
       (5) the State's progress in reducing inequities in the 
     distribution of teachers, in implementing a State student 
     longitudinal data system, and in developing and implementing 
     valid and reliable assessments for limited English proficient 
     students and children with disabilities;
       (6) the tuition and fee increases for in-State students 
     imposed by public institutions of higher education in the 
     State during the period of availability of funds under this 
     title, and a description of any actions taken by the State to 
     limit those increases; and
       (7) the extent to which public institutions of higher 
     education maintained, increased, or decreased enrollment of 
     in-State students, including students eligible for Pell 
     Grants or other need-based financial assistance.

     SEC. 1409. EVALUATION.

       The Comptroller General of the United States shall conduct 
     evaluations of the programs under sections 1406 and 1407 
     which shall include, but not be limited to, the criteria used 
     for the awards made, the States selected for awards, award 
     amounts, how each State used the award received, and the 
     impact of this funding on the progress made toward closing 
     achievement gaps.

     SEC. 1410. SECRETARY'S REPORT TO CONGRESS.

       The Secretary shall submit a report to the Committee on 
     Education and Labor of the House of Representatives, the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate, and the Committees on Appropriations of the House of 
     Representatives and of the Senate, not less than 6 months 
     following the submission of the State reports, that evaluates 
     the information provided in the State reports under section 
     1408.

     SEC. 1411. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

       No recipient of funds under this title shall use such funds 
     to provide financial assistance to students to attend private 
     elementary or secondary schools, unless such funds are used 
     to provide special education and related services to children 
     with disabilities, as authorized by the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.).

     SEC. 1412. DEFINITIONS.

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

     SEC. 1413. REGULATORY RELIEF.

       (a) Waiver Authority.--Subject to subsections (b) and (c), 
     the Secretary of Education may, as applicable, waive or 
     modify, in order to ease fiscal burdens, any requirement 
     relating to the following:
       (1) Maintenance of effort.
       (2) The use of Federal funds to supplement, not supplant, 
     non-Federal funds.
       (b) Duration.--A waiver under this section shall be for 
     fiscal years 2009 and 2010.
       (c) Limitations.--
       (1) Relation to idea.--Nothing in this section shall be 
     construed to permit the Secretary to waive or modify any 
     provision of the Individuals with Disabilities Education Act 
     (20 U.S.C. 1400 et seq.), except as described in a(1) and 
     a(2).
       (2) Maintenance of effort.--If the Secretary grants a 
     waiver or modification under this section waiving or 
     modifying a requirement relating to maintenance of effort for 
     fiscal years 2009 and 2010, the level of effort required for 
     fiscal year 2011 shall not be reduced because of the waiver 
     or modification.

 TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND RECOVERY 
                       INDEPENDENT ADVISORY PANEL

     SEC. 1501. DEFINITIONS.

       In this title:
       (1) Agency.--The term ``agency'' has the meaning given 
     under section 551 of title 5, United States Code.
       (2) Board.--The term ``Board'' means the Recovery 
     Accountability and Transparency Board established in section 
     1511.
       (3) Chairperson.--The term ``Chairperson'' means the 
     Chairperson of the Board.
       (4) Covered funds.--The term ``covered funds'' means any 
     funds that are expended or obligated--
       (A) from appropriations made under this Act; and
       (B) under any other authorities provided under this Act.
       (5) Panel.--The term ``Panel'' means the Recovery 
     Independent Advisory Panel established in section 1531.

       Subtitle A--Recovery Accountability and Transparency Board

     SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND 
                   TRANSPARENCY BOARD.

       There is established the Recovery Accountability and 
     Transparency Board to coordinate and conduct oversight of 
     covered funds to prevent fraud, waste, and abuse.

     SEC. 1512. COMPOSITION OF BOARD.

       (a) Chairperson.--
       (1) Designation or appointment.--The President shall--
       (A) designate the Deputy Director for Management of the 
     Office of Management and Budget to serve as Chairperson of 
     the Board;
       (B) designate another Federal officer who was appointed by 
     the President to a position that required the advice and 
     consent of the Senate, to serve as Chairperson of the Board; 
     or
       (C) appoint an individual as the Chairperson of the Board, 
     by and with the advice and consent of the Senate.
       (2) Compensation.--
       (A) Designation of federal officer.--If the President 
     designates a Federal officer under paragraph (1)(A) or (B) to 
     serve as Chairperson, that Federal officer may not receive 
     additional compensation for services performed as 
     Chairperson.
       (B) Appointment of non-federal officer.--If the President 
     appoints an individual as Chairperson under paragraph (1)(C), 
     that individual shall be compensated at the rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (b) Members.--The members of the Board shall include--
       (1) the Inspectors General of the Departments of 
     Agriculture, Commerce, Education, Energy, Health and Human 
     Services, Homeland Security, Justice, Transportation, 
     Treasury, and the Treasury Inspector General for Tax 
     Administration; and
       (2) any other Inspector General as designated by the 
     President from any agency that expends or obligates covered 
     funds.

     SEC. 1513. FUNCTIONS OF THE BOARD.

       (a) Functions.--

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       (1) In general.--The Board shall coordinate and conduct 
     oversight of covered funds in order to prevent fraud, waste, 
     and abuse.
       (2) Specific functions.--The functions of the Board shall 
     include--
       (A) reviewing whether the reporting of contracts and grants 
     using covered funds meets applicable standards and specifies 
     the purpose of the contract or grant and measures of 
     performance;
       (B) reviewing whether competition requirements applicable 
     to contracts and grants using covered funds have been 
     satisfied;
       (C) auditing and investigating covered funds to determine 
     whether wasteful spending, poor contract or grant management, 
     or other abuses are occurring;
       (D) reviewing whether there are sufficient qualified 
     acquisition and grant personnel overseeing covered funds;
       (E) reviewing whether personnel whose duties involve 
     acquisitions or grants made with covered funds receive 
     adequate training; and
       (F) reviewing whether there are appropriate mechanisms for 
     interagency collaboration relating to covered funds.
       (b) Reports.--
       (1) Quarterly reports.--The Board shall submit quarterly 
     reports to the President and Congress, including the 
     Committees on Appropriations of the Senate and House of 
     Representatives, summarizing the findings of the Board and 
     the findings of inspectors general of agencies. The Board may 
     submit additional reports as appropriate.
       (2) Annual reports.--The Board shall submit annual reports 
     to the President and the Committees on Appropriations of the 
     Senate and House of Representatives, consolidating applicable 
     quarterly reports on the use of covered funds.
       (3) Public availability.--
       (A) In general.--All reports submitted under this 
     subsection shall be made publicly available and posted on a 
     website established by the Board.
       (B) Redactions.--Any portion of a report submitted under 
     this subsection may be redacted when made publicly available, 
     if that portion would disclose information that is not 
     subject to disclosure under section 552 of title 5, United 
     States Code (commonly known as the Freedom of Information 
     Act).
       (c) Recommendations.--
       (1) In general.--The Board shall make recommendations to 
     agencies on measures to prevent fraud, waste, and abuse 
     relating to covered funds.
       (2) Responsive reports.--Not later than 30 days after 
     receipt of a recommendation under paragraph (1), an agency 
     shall submit a report to the President, the congressional 
     committees of jurisdiction, including the Committees on 
     Appropriations of the Senate and House of Representatives, 
     and the Board on--
       (A) whether the agency agrees or disagrees with the 
     recommendations; and
       (B) any actions the agency will take to implement the 
     recommendations.

     SEC. 1514. POWERS OF THE BOARD.

       (a) In General.--The Board shall conduct, supervise, and 
     coordinate audits and investigations by inspectors general of 
     agencies relating to covered funds.
       (b) Audits and Investigations.--The Board may--
       (1) conduct its own independent audits and investigations 
     relating to covered funds; and
       (2) collaborate on audits and investigations relating to 
     covered funds with any inspector general of an agency.
       (c) Authorities.--
       (1) Audits and investigations.--In conducting audits and 
     investigations, the Board shall have the authorities provided 
     under section 6 of the Inspector General Act of 1978 (5 
     U.S.C. App.).
       (2) Standards and guidelines.--The Board shall carry out 
     the powers under subsections (a) and (b) in accordance with 
     section 4(b)(1) of the Inspector General Act of 1978 (5 
     U.S.C. App.).
       (d) Public Hearings.--The Board may hold public hearings 
     and Board personnel may conduct investigative depositions. 
     The head of each agency shall make all officers and employees 
     of that agency available to provide testimony to the Board 
     and Board personnel. The Board may issue subpoenas to compel 
     the testimony of persons who are not Federal officers or 
     employees. Any such subpoenas may be enforced as provided 
     under section 6 of the Inspector General Act of 1978 (5 
     U.S.C. App.).
       (e) Contracts.--The Board may enter into contracts to 
     enable the Board to discharge its duties under this subtitle, 
     including contracts and other arrangements for audits, 
     studies, analyses, and other services with public agencies 
     and with private persons, and make such payments as may be 
     necessary to carry out the duties of the Board.
       (f) Transfer of Funds.--The Board may transfer funds 
     appropriated to the Board for expenses to support 
     administrative support services and audits or investigations 
     of covered funds to any office of inspector general, the 
     Office of Management and Budget, the General Services 
     Administration, and the Panel.

     SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.

       (a) Employment and Personnel Authorities.--
       (1) In general.--
       (A) Authorities.--Subject to paragraph (2), the Board may 
     exercise the authorities of subsections (b) through (i) of 
     section 3161 of title 5, United States Code (without regard 
     to subsection (a) of that section).
       (B) Application.--For purposes of exercising the 
     authorities described under subparagraph (A), the term 
     ``Chairperson of the Board'' shall be substituted for the 
     term ``head of a temporary organization''.
       (C) Consultation.--In exercising the authorities described 
     under subparagraph (A), the Chairperson shall consult with 
     members of the Board.
       (2) Employment authorities.--In exercising the employment 
     authorities under subsection (b) of section 3161 of title 5, 
     United States Code, as provided under paragraph (1) of this 
     subsection--
       (A) paragraph (2) of subsection (b) of section 3161 of that 
     title (relating to periods of appointments) shall not apply; 
     and
       (B) no period of appointment may exceed the date on which 
     the Board terminates under section 1521.
       (b) Information and Assistance.--
       (1) In general.--Upon request of the Board for information 
     or assistance from any agency or other entity of the Federal 
     Government, the head of such entity shall, insofar as is 
     practicable and not in contravention of any existing law, 
     furnish such information or assistance to the Board, or an 
     authorized designee.
       (2) Report of refusals.--Whenever information or assistance 
     requested by the Board is, in the judgment of the Board, 
     unreasonably refused or not provided, the Board shall report 
     the circumstances to the congressional committees of 
     jurisdiction, including the Committees on Appropriations of 
     the Senate and House of Representatives, without delay.
       (c) Administrative Support.--The General Services 
     Administration shall provide the Board with administrative 
     support services, including the provision of office space and 
     facilities.

     SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL.

       (a) Independent Authority.--Nothing in this subtitle shall 
     affect the independent authority of an inspector general to 
     determine whether to conduct an audit or investigation of 
     covered funds.
       (b) Requests by Board.--If the Board requests that an 
     inspector general conduct or refrain from conducting an audit 
     or investigation and the inspector general rejects the 
     request in whole or in part, the inspector general shall, not 
     later than 30 days after rejecting the request, submit a 
     report to the Board, the head of the applicable agency, and 
     the congressional committees of jurisdiction, including the 
     Committees on Appropriations of the Senate and House of 
     Representatives. The report shall state the reasons that the 
     inspector general has rejected the request in whole or in 
     part.

     SEC. 1517. COORDINATION WITH THE COMPTROLLER GENERAL AND 
                   STATE AUDITORS.

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

     SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT AND 
                   CONTRACTOR WHISTLEBLOWERS.

       (a) Prohibition of Reprisals.--An employee of any non-
     Federal employer receiving covered funds may not be 
     discharged, demoted, or otherwise discriminated against as a 
     reprisal for disclosing to the Board, an inspector general, 
     the Comptroller General, a member of Congress, or a the head 
     of a Federal agency, or their representatives, information 
     that the employee reasonably believes is evidence of--
       (1) gross mismanagement of an agency contract or grant 
     relating to covered funds;
       (2) a gross waste of covered funds;
       (3) a substantial and specific danger to public health or 
     safety; or
       (4) a violation of law related to an agency contract 
     (including the competition for or negotiation of a contract) 
     or grant, awarded or issued relating to covered funds.
       (b) Investigation of Complaints.--
       (1) In general.--A person who believes that the person has 
     been subjected to a reprisal prohibited by subsection (a) may 
     submit a complaint to the appropriate inspector general. 
     Unless the inspector general determines that the complaint is 
     frivolous, the inspector general shall investigate the 
     complaint and, upon completion of such investigation, submit 
     a report of the findings of the investigation to the person, 
     the person's employer, the head of the appropriate agency, 
     and the Board.
       (2) Time limitations for actions.--
       (A) In general.--Except as provided under subparagraph (B), 
     the inspector general shall make a determination that a 
     complaint is frivolous or submit a report under paragraph (1) 
     within 180 days after receiving the complaint.
       (B) Extension.--If the inspector general is unable to 
     complete an investigation in time to submit a report within 
     the 180-day period specified under subparagraph (A) and the 
     person submitting the complaint agrees to an extension of 
     time, the inspector general shall submit a report under 
     paragraph (1) within such additional period of time as shall 
     be agreed upon between the inspector

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     general and the person submitting the complaint.
       (c) Remedy and Enforcement Authority.--
       (1) Agency action.--Not later than 30 days after receiving 
     an inspector general report under subsection (b), the head of 
     the agency concerned shall determine whether there is 
     sufficient basis to conclude that the non-Federal employer 
     has subjected the complainant to a reprisal prohibited by 
     subsection (a) and shall either issue an order denying relief 
     or shall take 1 or more of the following actions:
       (A) Order the employer to take affirmative action to abate 
     the reprisal.
       (B) Order the employer to reinstate the person to the 
     position that the person held before the reprisal, together 
     with the compensation (including back pay), employment 
     benefits, and other terms and conditions of employment that 
     would apply to the person in that position if the reprisal 
     had not been taken.
       (C) Order the employer to pay the complainant an amount 
     equal to the aggregate amount of all costs and expenses 
     (including attorneys' fees and expert witnesses' fees) that 
     were reasonably incurred by the complainant for, or in 
     connection with, bringing the complaint regarding the 
     reprisal, as determined by the head of the agency.
       (2) Civil action.--If the head of an agency issues an order 
     denying relief under paragraph (1) or has not issued an order 
     within 210 days after the submission of a complaint under 
     subsection (b), or in the case of an extension of time under 
     subsection (b)(2)(B), not later than 30 days after the 
     expiration of the extension of time, and there is no showing 
     that such delay is due to the bad faith of the complainant, 
     the complainant shall be deemed to have exhausted all 
     administrative remedies with respect to the complaint, and 
     the complainant may bring a de novo action at law or equity 
     against the employer to seek compensatory damages and other 
     relief available under this section in the appropriate 
     district court of the United States, which shall have 
     jurisdiction over such an action without regard to the amount 
     in controversy. Such an action shall, at the request of 
     either party to the action, be tried by the court with a 
     jury.
       (3) Evidence.--An inspector general determination and an 
     agency head order denying relief under paragraph (2) shall be 
     admissible in evidence in any de novo action at law or equity 
     brought in accordance with this subsection.
       (4) Judicial enforcement of order.--Whenever a person fails 
     to comply with an order issued under paragraph (1), the head 
     of the agency shall file an action for enforcement of such 
     order in the United States district court for a district in 
     which the reprisal was found to have occurred. In any action 
     brought under this paragraph, the court may grant appropriate 
     relief, including injunctive relief and compensatory and 
     exemplary damages.
       (5) Judicial review.--Any person adversely affected or 
     aggrieved by an order issued under paragraph (1) may obtain 
     review of the order's conformance with this subsection, and 
     any regulations issued to carry out this section, in the 
     United States court of appeals for a circuit in which the 
     reprisal is alleged in the order to have occurred. No 
     petition seeking such review may be filed more than 60 days 
     after issuance of the order by the head of the agency. Review 
     shall conform to chapter 7 of title 5, United States Code.
       (d) Rule of Construction.--Nothing in this section may be 
     construed to authorize the discharge of, demotion of, or 
     discrimination against an employee for a disclosure other 
     than a disclosure protected by subsection (a) or to modify or 
     derogate from a right or remedy otherwise available to the 
     employee.

     SEC. 1519. BOARD WEBSITE.

       (a) Establishment.--The Board shall establish and maintain 
     a user-friendly, public-facing website to foster greater 
     accountability and transparency in the use of covered funds.
       (b) Purpose.--The website established and maintained under 
     subsection (a) shall be a portal or gateway to key 
     information relating to this Act and provide connections to 
     other Government websites with related information.
       (c) Content and Function.--In establishing the website 
     established and maintained under subsection (a), the Board 
     shall ensure the following:
       (1) The website shall provide materials explaining what 
     this Act means for citizens. The materials shall be easy to 
     understand and regularly updated.
       (2) The website shall provide accountability information, 
     including a database of findings from audits, inspectors 
     general, and the Government Accountability Office.
       (3) The website shall provide data on relevant economic, 
     financial, grant, and contract information in user-friendly 
     visual presentations to enhance public awareness of the use 
     of covered funds.
       (4) The website shall provide detailed data on contracts 
     awarded by the Government that expend covered funds, 
     including information about the competitiveness of the 
     contracting process, notification of solicitations for 
     contracts to be awarded, and information about the process 
     that was used for the award of contracts.
       (5) The website shall include printable reports on covered 
     funds obligated by month to each State and congressional 
     district.
       (6) The website shall provide a means for the public to 
     give feedback on the performance of contracts that expend 
     covered funds.
       (7) The website shall be enhanced and updated as necessary 
     to carry out the purposes of this subtitle.
       (d) Waiver.--The Board may exclude posting contractual or 
     other information on the website on a case-by-case basis when 
     necessary to protect national security.

     SEC. 1520. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 1521. TERMINATION OF THE BOARD.

       The Board shall terminate on September 30, 2012.

            Subtitle B--Recovery Independent Advisory Panel

     SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY 
                   PANEL.

       (a) Establishment.--There is established the Recovery 
     Independent Advisory Panel.
       (b) Membership.--The Panel shall be composed of 5 members 
     who shall be appointed by the President.
       (c) Qualifications.--Members shall be appointed on the 
     basis of expertise in economics, public finance, contracting, 
     accounting, or any other relevant field.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Panel have been appointed, the 
     Panel shall hold its first meeting.
       (e) Meetings.--The Panel shall meet at the call of the 
     Chairperson of the Panel.
       (f) Quorum.--A majority of the members of the Panel shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings.
       (g) Chairperson and Vice Chairperson.--The Panel shall 
     select a Chairperson and Vice Chairperson from among its 
     members.

     SEC. 1532. DUTIES OF THE PANEL.

       The Panel shall make recommendations to the Board on 
     actions the Board could take to prevent fraud, waste, and 
     abuse relating to covered funds.

     SEC. 1533. POWERS OF THE PANEL.

       (a) Hearings.--The Panel may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the Panel considers advisable to 
     carry out this subtitle.
       (b) Information From Federal Agencies.--The Panel may 
     secure directly from any agency such information as the Panel 
     considers necessary to carry out this subtitle. Upon request 
     of the Chairperson of the Panel, the head of such agency 
     shall furnish such information to the Panel.
       (c) Postal Services.--The Panel may use the United States 
     mails in the same manner and under the same conditions as 
     agencies of the Federal Government.
       (d) Gifts.--The Panel may accept, use, and dispose of gifts 
     or donations of services or property.

     SEC. 1534. PANEL PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Panel who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Panel. All members of the Panel who are officers or 
     employees of the United States shall serve without 
     compensation in addition to that received for their services 
     as officers or employees of the United States.
       (b) Travel Expenses.--The members of the Panel shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Panel.
       (c) Staff.--
       (1) In general.--The Chairperson of the Panel may, without 
     regard to the civil service laws and regulations, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Panel to perform 
     its duties. The employment of an executive director shall be 
     subject to confirmation by the Panel.
       (2) Compensation.--The Chairperson of the Panel may fix the 
     compensation of the executive director and other personnel 
     without regard to chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay for the executive director and other personnel 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title.
       (3) Personnel as federal employees.--
       (A) In general.--The executive director and any personnel 
     of the Panel who are employees shall be employees under 
     section 2105 of title 5, United States Code, for purposes of 
     chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that 
     title.
       (B) Members of panel.--Subparagraph (A) shall not be 
     construed to apply to members of the Panel.

[[Page 3273]]

       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Panel without reimbursement, 
     and such detail shall be without interruption or loss of 
     civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Panel may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (f) Administrative Support.--The General Services 
     Administration shall provide the Board with administrative 
     support services, including the provision of office space and 
     facilities.

     SEC. 1535. TERMINATION OF THE PANEL.

       The Panel shall terminate on September 30, 2012.

     SEC. 1536. AUTHORIZATION OF APPROPRIATIONS.

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

        Subtitle C--Reports of the Council of Economic Advisers

     SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.

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

                  Subtitle D--Reports on Use of Funds

     SEC. 1551. REPORTS ON USE OF FUNDS.

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

                TITLE XVI--GENERAL PROVISIONS--THIS ACT

                         emergency designation

       Sec. 1601.  Each amount in this Act is designated as an 
     emergency requirement and necessary to meet emergency needs 
     pursuant to section 204(a) of S. Con. Res. 21 (110th 
     Congress) and section 301(b)(2) of S. Con. Res. 70 (110th 
     Congress), the concurrent resolutions on the budget for 
     fiscal years 2008 and 2009.

                              availability

       Sec. 1602.  No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.

                  relationship to other appropriations

       Sec. 1603.  Each amount appropriated or made available in 
     this Act is in addition to amounts otherwise appropriated for 
     the fiscal year involved. Enactment of this Act shall have no 
     effect on the availability of amounts under the Continuing 
     Appropriations Resolution, 2009 (division A of Public Law 
     110-329).

                              buy american

       Sec. 1604.  Use of American Iron, Steel, and Manufactured 
     Goods. (a) None of the funds appropriated or otherwise made 
     available by this Act may be used for a project for the 
     construction, alteration, maintenance, or repair of a public 
     building or public work unless all of the iron, steel, and 
     manufactured goods used in the project are produced in the 
     United States.
       (b) Subsection (a) shall not apply in any case in which the 
     head of the Federal department or agency involved finds 
     that--
       (1) applying subsection (a) would be inconsistent with the 
     public interest;
       (2) iron, steel, and the relevant manufactured goods are 
     not produced in the United States if sufficient and 
     reasonably available quantities and of a satisfactory 
     quality; or
       (3) inclusion of iron, steel, and manufactured goods 
     produced in the United States will increase the cost of the 
     overall project by more than 25 percent.
       (c) If the head of a Federal department or agency 
     determines that it is necessary to waive the application of 
     subsection (a) based on a finding under subsection (b), the 
     head of the department or agency shall publish in the Federal 
     Register a detailed written jurisdiction as to why the 
     provision is being waived.
       (d) This section shall be applied in a manner consistent 
     with United States obligations under international 
     agreements.

                             certification

       Sec. 1605.  With respect to funds in titles I though XVI of 
     this Act made available to State, or local government 
     agencies, the Governor, mayor, or other chief executive, as 
     appropriate, shall certify that the infrastructure investment 
     has received the full review and vetting required by law and 
     that the chief executive accepts responsibility that the 
     infrastructure investment is an appropriate use of taxpayer 
     dollars. A State or local agency may not receive 
     infrastructure investment funding from funds made available 
     in this Act unless this certification is made.

                   economic stabilization contracting

       Sec. 1606.  Reform of Contracting Procedures Under EESA. 
     Section 107(b) of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5217(b)) is amended by inserting ``and 
     individuals with disabilities and businesses owned by 
     individuals with disabilities (for purposes of this 
     subsection the term `individual with disability' has the same 
     meaning as the term `handicapped individual' as that term is 
     defined in section 3(f) of the Small Business Act (15 U.S.C. 
     632(f)),'' after ``(12 U.S.C. 1441a(r)(4)),''.
       Sec. 1607. Findings.--
       (1) The National Environmental Policy Act protects public 
     health, safety and environmental quality: by ensuring 
     transparency, accountability and public involvement in 
     federal actions and in the use of public funds;
       (2) When President Nixon signed the National Environmental 
     Policy Act into law on January 1, 1970, he said that the Act 
     provided the ``direction'' for the country to ``regain a 
     productive harmony between man and nature'';
       (3) The National Environmental Policy Act helps to provide 
     an orderly process for considering federal actions and 
     funding decisions and prevents ligation and delay that would 
     otherwise be inevitable and existed prior to the 
     establishment of the National Environmental Policy Act.
       (a) Adequate resources within this bill must be devoted to 
     ensuring that applicable environmental reviews under the 
     National Environmental Policy Act are completed on an 
     expeditious basis and that the shortest existing applicable 
     process under the National Environmental Policy Act shall be 
     utilized.
       (b) The President shall report to the Senate Environment 
     and Public Works Committee and the House Natural Resources 
     Committee every 90 days following the date of enactment until 
     September 30, 2011 on the status and progress of projects and 
     activities funded by this Act with respect to compliance with 
     National Environmental Policy Act requirements and 
     documentation.


              prohibition on no-bid contracts and earmarks

       Sec. 1608.  (a) Notwithstanding any other provision of this 
     Act, none of the funds appropriated or otherwise made 
     available by this Act may be used to make any payment in 
     connection with a contract unless the contract is awarded 
     using competitive procedures in accordance with the 
     requirements of section 303 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253), section 
     2304 of title 10, United States Code, and the Federal 
     Acquisition Regulation.
       (b) Notwithstanding any other provision of this Act, none 
     of the funds appropriated or otherwise made available by this 
     Act may be awarded by grant or cooperative agreement unless 
     the process used to award such grant

[[Page 3274]]

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

 DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER 
                               PROVISIONS

                        TITLE I--TAX PROVISIONS

     SEC. 1000. SHORT TITLE, ETC.

       (a) Short Title.--This title may be cited as the ``American 
     Recovery and Reinvestment Tax Act of 2009''.
       (b) Reference.--Except as otherwise expressly provided, 
     whenever in this title an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.
       (c) Table of Contents.--The table of contents for this 
     title is as follows:

                        TITLE I--TAX PROVISIONS

Sec. 1000. Short title, etc.

          Subtitle A--Tax Relief for Individuals and Families

                       PART I--General Tax Relief

Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified 
              higher education expense for section 529 accounts in 2009 
              and 2010.
Sec. 1006. Credit for certain home purchases.
Sec. 1007. Suspension of tax on portion of unemployment compensation.
Sec. 1008. Above-the-line deduction for interest on indebtedness with 
              respect to the purchase of certain motor vehicles.
Sec. 1009. Above-the-line deduction for State sales tax and excise tax 
              on the purchase of certain motor vehicles.

                PART II--Alternative Minimum Tax Relief

Sec. 1011. Extension of alternative minimum tax relief for 
              nonrefundable personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption 
              amount.

                     Subtitle B--Energy Incentives

                  PART I--Renewable Energy Incentives

Sec. 1101. Extension of credit for electricity produced from certain 
              renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy 
              property.

PART II--Increased Allocations of New Clean Renewable Energy Bonds and 
                  Qualified Energy Conservation Bonds

Sec. 1111. Increased limitation on issuance of new clean renewable 
              energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy 
              conservation bonds.

                PART III--Energy Conservation Incentives

Sec. 1121. Extension and modification of credit for nonbusiness energy 
              property.
Sec. 1122. Modification of credit for residential energy efficient 
              property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle 
              refueling property.

                  PART IV--Energy Research Incentives

Sec. 1131. Increased research credit for energy research.

    PART V--Modification of Credit for Carbon Dioxide Sequestration

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

             PART VI--Plug-in Electric Drive Motor Vehicles

Sec. 1151. Modification of credit for qualified plug-in electric motor 
              vehicles.

                Subtitle C--Tax Incentives for Business

                PART I--Temporary Investment Incentives

Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain 
              depreciable business assets.

             PART II--5-Year Carryback of Operating Losses

Sec. 1211. 5-year carryback of operating losses.
Sec. 1212. Exception for TARP recipients.

                   PART III--Incentives for New Jobs

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

                 PART IV--Cancellation of Indebtedness

Sec. 1231. Deferral and ratable inclusion of income arising from 
              indebtedness discharged by the repurchase of a debt 
              instrument.

                 PART V--Qualified Small Business Stock

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

           PART VI--Parity for Transportation Fringe Benefits

Sec. 1251. Increased exclusion amount for commuter transit benefits and 
              transit passes.

                        PART VII--S Corporations

Sec. 1261. Temporary reduction in recognition period for built-in gains 
              tax.

                    PART VIII--Broadband Incentives

Sec. 1271. Broadband Internet access tax credit.

PART IX--Clarification of Regulations Related to Limitations on Certain 
             Built-in Losses Following an Ownership Change

Sec. 1281. Clarification of regulations related to limitations on 
              certain built-in losses following an ownership change.

             Subtitle D--Manufacturing Recovery Provisions

Sec. 1301. Temporary expansion of availability of industrial 
              development bonds to facilities manufacturing intangible 
              property.
Sec. 1302. Credit for investment in advanced energy facilities.

                  Subtitle E--Economic Recovery Tools

Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Modifications to new markets tax credit.

               Subtitle F--Infrastructure Financing Tools

          PART I--Improved Marketability for Tax-Exempt Bonds

Sec. 1501. De minimis safe harbor exception for tax-exempt interest 
              expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt 
              interest expense allocation rules for financial 
              institutions.
Sec. 1503. Temporary modification of alternative minimum tax 
              limitations on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.

    PART II--Delay in Application of Withholding Tax on Government 
                              Contractors

Sec. 1511. Delay in application of withholding tax on government 
              contractors.

                 PART III--Tax Credit Bonds for Schools

Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.

                      PART IV--Build America Bonds

Sec. 1531. Build America bonds.

     Subtitle G--Economic Recovery Payments to Certain Individuals

Sec. 1601. Economic recovery payment to recipients of Social Security, 
              supplemental security income, railroad retirement 
              benefits, and veterans disability compensation or pension 
              benefits.

                Subtitle H--Trade Adjustment Assistance

Sec. 1701. Temporary extension of Trade Adjustment Assistance program.

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

Sec. 1801. Prohibition on collection of certain payments made under the 
              Continued Dumping and Subsidy Offset Act of 2000.

                      Subtitle J--Other Provisions

Sec. 1901. Application of certain labor standards to projects financed 
              with certain tax-favored bonds.

[[Page 3275]]

Sec. 1902. Increase in public debt limit.
Sec. 1903. Election to accelerate the low-income housing tax credit.

          Subtitle A--Tax Relief for Individuals and Families

                       PART I--GENERAL TAX RELIEF

     SEC. 1001. MAKING WORK PAY CREDIT.

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

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

       ``(a) Allowance of Credit.--In the case of an eligible 
     individual, there shall be allowed as a credit against the 
     tax imposed by this subtitle for the taxable year an amount 
     equal to the lesser of--
       ``(1) 6.2 percent of earned income of the taxpayer, or
       ``(2) $500 ($1,000 in the case of a joint return).
       ``(b) Limitation Based on Modified Adjusted Gross Income.--
       ``(1) In general.--The amount allowable as a credit under 
     subsection (a) (determined without regard to this paragraph 
     and subsection (c)) for the taxable year shall be reduced 
     (but not below zero) by 4 percent of so much of the 
     taxpayer's modified adjusted gross income as exceeds $70,000 
     ($140,000 in the case of a joint return).
       ``(2) Modified adjusted gross income.--For purposes of 
     subparagraph (A), the term `modified adjusted gross income' 
     means the adjusted gross income of the taxpayer for the 
     taxable year increased by any amount excluded from gross 
     income under section 911, 931, or 933.
       ``(c) Reduction for Certain Other Payments.--The credit 
     allowed under subsection (a) for any taxable year shall be 
     reduced by the amount of any payments received by the 
     taxpayer during such taxable year under section 1601 of the 
     American Recovery and Reinvestment Tax Act of 2009.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Eligible individual.--The term `eligible individual' 
     means any individual other than--
       ``(A) any nonresident alien individual,
       ``(B) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for a taxable 
     year beginning in the calendar year in which the individual's 
     taxable year begins, and
       ``(C) an estate or trust.
     Such term shall not include any individual unless the 
     requirements of section 32(c)(1)(E) are met with respect to 
     such individual.
       ``(2) Earned income.--The term `earned income' has the 
     meaning given such term by section 32(c)(2), except that such 
     term shall not include net earnings from self-employment 
     which are not taken into account in computing taxable income. 
     For purposes of the preceding sentence, any amount excluded 
     from gross income by reason of section 112 shall be treated 
     as earned income which is taken into account in computing 
     taxable income for the taxable year.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 2010.''.
       (b)  Treatment of Possessions.--
       (1) Payments to possessions.--
       (A) Mirror code possession.--The Secretary of the Treasury 
     shall pay to each possession of the United States with a 
     mirror code tax system amounts equal to the loss to that 
     possession by reason of the amendments made by this section 
     with respect to taxable years beginning in 2009 and 2010. 
     Such amounts shall be determined by the Secretary of the 
     Treasury based on information provided by the government of 
     the respective possession.
       (B) Other possessions.--The Secretary of the Treasury shall 
     pay to each possession of the United States which does not 
     have a mirror code tax system amounts estimated by the 
     Secretary of the Treasury as being equal to the aggregate 
     benefits that would have been provided to residents of such 
     possession by reason of the amendments made by this section 
     for taxable years beginning in 2009 and 2010 if a mirror code 
     tax system had been in effect in such possession. The 
     preceding sentence shall not apply with respect to any 
     possession of the United States unless such possession has a 
     plan, which has been approved by the Secretary of the 
     Treasury, under which such possession will promptly 
     distribute such payments to the residents of such possession.
       (2) Coordination with credit allowed against united states 
     income taxes.--No credit shall be allowed against United 
     States income taxes for any taxable year under section 36A of 
     the Internal Revenue Code of 1986 (as added by this section) 
     to any person--
       (A) to whom a credit is allowed against taxes imposed by 
     the possession by reason of the amendments made by this 
     section for such taxable year, or
       (B) who is eligible for a payment under a plan described in 
     paragraph (1)(B) with respect to such taxable year.
       (3) Definitions and special rules.--
       (A) Possession of the united states.--For purposes of this 
     subsection, the term ``possession of the United States'' 
     includes the Commonwealth of Puerto Rico and the Commonwealth 
     of the Northern Mariana Islands.
       (B) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (C) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, the payments 
     under this subsection shall be treated in the same manner as 
     a refund due from the credit allowed under section 36A of the 
     Internal Revenue Code of 1986 (as added by this section).
       (c) Refunds Disregarded in the Administration of Federal 
     Programs and Federally Assisted Programs.--Any credit or 
     refund allowed or made to any individual by reason of section 
     36A of the Internal Revenue Code of 1986 (as added by this 
     section) or by reason of subsection (b) of this section shall 
     not be taken into account as income and shall not be taken 
     into account as resources for the month of receipt and the 
     following 2 months, for purposes of determining the 
     eligibility of such individual or any other individual for 
     benefits or assistance, or the amount or extent of benefits 
     or assistance, under any Federal program or under any State 
     or local program financed in whole or in part with Federal 
     funds.
       (d) Authority Relating to Clerical Errors.--Section 
     6213(g)(2) is amended by striking ``and'' at the end of 
     subparagraph (L)(ii), by striking the period at the end of 
     subparagraph (M) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(N) an omission of the reduction required under section 
     36A(c) with respect to the credit allowed under section 36A 
     or an omission of the correct TIN required under section 
     36A(d)(1).''.
       (e) Conforming Amendments.--
       (1) Section 6211(b)(4)(A) is amended by inserting ``36A,'' 
     after ``36,''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by inserting ``36A,'' after ``36,''.
       (3) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 36 the following new item:

``Sec. 36A. Making work pay credit.''.
       (f) Effective Date.--This section, and the amendments made 
     by this section, shall apply to taxable years beginning after 
     December 31, 2008.

     SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.

       (a) In General.--Subsection (b) of section 32 is amended by 
     adding at the end the following new paragraph:
       ``(3) Special rules for 2009 and 2010.--In the case of any 
     taxable year beginning in 2009 or 2010--
       ``(A) Increased credit percentage for 3 or more qualifying 
     children.--In the case of a taxpayer with 3 or more 
     qualifying children, the credit percentage is 45 percent.
       ``(B) Reduction of marriage penalty.--
       ``(i) In general.--The dollar amount in effect under 
     paragraph (2)(B) shall be $5,000.
       ``(ii) Inflation adjustment.--In the case of any taxable 
     year beginning in 2010, the $5,000 amount in clause (i) shall 
     be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins determined by substituting `calendar year 2008' 
     for `calendar year 1992' in subparagraph (B) thereof.

       ``(iii) Rounding.--Subparagraph (A) of subsection (j)(2) 
     shall apply after taking into account any increase under 
     clause (ii).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD 
                   CREDIT.

       (a) In General.--Paragraph (4) of section 24(d) is amended 
     to read as follows:
       ``(4) Special rule for 2009 and 2010.--Notwithstanding 
     paragraph (3), in the case of any taxable year beginning in 
     2009 or 2010, the dollar amount in effect for such taxable 
     year under paragraph (1)(B)(i) shall be $8,100.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

       (a) In General.--Section 25A (relating to Hope scholarship 
     credit) is amended by redesignating subsection (i) as 
     subsection (j) and by inserting after subsection (h) the 
     following new subsection:
       ``(i) American Opportunity Tax Credit.--In the case of any 
     taxable year beginning in 2009 or 2010--
       ``(1) Increase in credit.--The Hope Scholarship Credit 
     shall be an amount equal to the sum of--
       ``(A) 100 percent of so much of the qualified tuition and 
     related expenses paid by the taxpayer during the taxable year 
     (for education furnished to the eligible student during any 
     academic period beginning in such taxable year) as does not 
     exceed $2,000, plus
       ``(B) 25 percent of such expenses so paid as exceeds $2,000 
     but does not exceed $4,000.
       ``(2) Credit allowed for first 4 years of post-secondary 
     education.--Subparagraphs

[[Page 3276]]

     (A) and (C) of subsection (b)(2) shall be applied by 
     substituting `4' for `2'.
       ``(3) Qualified tuition and related expenses to include 
     required course materials.--Subsection (f)(1)(A) shall be 
     applied by substituting `tuition, fees, and course materials' 
     for `tuition and fees'.
       ``(4) Increase in agi limits for hope scholarship credit.--
     In lieu of applying subsection (d) with respect to the Hope 
     Scholarship Credit, such credit (determined without regard to 
     this paragraph) shall be reduced (but not below zero) by the 
     amount which bears the same ratio to such credit (as so 
     determined) as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income (as 
     defined in subsection (d)(3)) for such taxable year, over
       ``(ii) $80,000 ($160,000 in the case of a joint return), 
     bears to
       ``(B) $10,000 ($20,000 in the case of a joint return).
       ``(5) Credit allowed against alternative minimum tax.--In 
     the case of a taxable year to which section 26(a)(2) does not 
     apply, so much of the credit allowed under subsection (a) as 
     is attributable to the Hope Scholarship Credit shall not 
     exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this subsection and sections 23, 25D, and 30D) 
     and section 27 for the taxable year.

     Any reference in this section or section 24, 25, 26, 25B, 
     904, or 1400C to a credit allowable under this subsection 
     shall be treated as a reference to so much of the credit 
     allowable under subsection (a) as is attributable to the Hope 
     Scholarship Credit.
       ``(6) Portion of credit made refundable.--30 percent of so 
     much of the credit allowed under subsection (a) as is 
     attributable to the Hope Scholarship Credit (determined after 
     application of paragraph (4) and without regard to this 
     paragraph and section 26(a)(2) or paragraph (5), as the case 
     may be) shall be treated as a credit allowable under subpart 
     C (and not allowed under subsection (a)). The preceding 
     sentence shall not apply to any taxpayer for any taxable year 
     if such taxpayer is a child to whom subsection (g) of section 
     1 applies for such taxable year.
       ``(7) Coordination with midwestern disaster area 
     benefits.--In the case of a taxpayer with respect to whom 
     section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act 
     of 2008 applies for any taxable year, such taxpayer may elect 
     to waive the application of this subsection to such taxpayer 
     for such taxable year.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) is amended by inserting ``25A(i),'' 
     after ``23,''.
       (2) Section 25(e)(1)(C)(ii) is amended by inserting 
     ``25A(i),'' after ``24,''.
       (3) Section 26(a)(1) is amended by inserting ``25A(i),'' 
     after ``24,''.
       (4) Section 25B(g)(2) is amended by inserting ``25A(i),'' 
     after ``23,''.
       (5) Section 904(i) is amended by inserting ``25A(i),'' 
     after ``24,''.
       (6) Section 1400C(d)(2) is amended by inserting ``25A(i),'' 
     after ``24,''.
       (7) Section 1324(b)(2) of title 31, United States Code, is 
     amended by inserting ``25A,'' before ``35''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.
       (d) Application of EGTRRA Sunset.--The amendment made by 
     subsection (b)(1) shall be subject to title IX of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 in 
     the same manner as the provision of such Act to which such 
     amendment relates.
       (e) Treasury Studies Regarding Education Incentives.--
       (1) Study regarding coordination with non-tax educational 
     incentives.--The Secretary of the Treasury, or the 
     Secretary's delegate, shall study how to coordinate the 
     credit allowed under section 25A of the Internal Revenue Code 
     of 1986 with the Federal Pell Grant program under section 401 
     of the Higher Education Act of 1965.
       (2) Study regarding imposition of community service 
     requirements.--The Secretary of the Treasury, or the 
     Secretary's delegate, shall study the feasibility of 
     requiring students to perform community service as a 
     condition of taking their tuition and related expenses into 
     account under section 25A of the Internal Revenue Code of 
     1986.
       (3) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of the Treasury, or the 
     Secretary's delegate, shall report to Congress on the results 
     of the studies conducted under this paragraph.

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

       (a) In General.--Section 529(e)(3)(A) is amended by 
     striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii), and by adding at the end 
     the following:
       ``(iii) expenses paid or incurred in 2009 or 2010 for the 
     purchase of any computer technology or equipment (as defined 
     in section 170(e)(6)(F)(i)) or Internet access and related 
     services, if such technology, equipment, or services are to 
     be used by the beneficiary and the beneficiary's family 
     during any of the years the beneficiary is enrolled at an 
     eligible educational institution.

     Clause (iii) shall not include expenses for computer software 
     designed for sports, games, or hobbies unless the software is 
     predominantly educational in nature.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2008.

     SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES.

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

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

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual who is a 
     purchaser of a principal residence during the taxable year, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter an amount equal to 10 percent of the purchase 
     price of the residence.
       ``(2) Dollar limitation.--The amount of the credit allowed 
     under paragraph (1) shall not exceed $15,000.
       ``(3) Allocation of credit amount.--At the election of the 
     taxpayer, the amount of the credit allowed under paragraph 
     (1) (after application of paragraph (2)) may be equally 
     divided among the 2 taxable years beginning with the taxable 
     year in which the purchase of the principal residence is 
     made.
       ``(b) Limitations.--
       ``(1) Date of purchase.--The credit allowed under 
     subsection (a) shall be allowed only with respect to 
     purchases made--
       ``(A) after the date of the enactment of the American 
     Recovery and Reinvestment Tax Act of 2009, and
       ``(B) on or before the date that is 1 year after such date 
     of enactment.
       ``(2) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) for the taxable year.
       ``(3) One-time only.--
       ``(A) In general.--If a credit is allowed under this 
     section in the case of any individual (and such individual's 
     spouse, if married) with respect to the purchase of any 
     principal residence, no credit shall be allowed under this 
     section in any taxable year with respect to the purchase of 
     any other principal residence by such individual or a spouse 
     of such individual.
       ``(B) Joint purchase.--In the case of a purchase of a 
     principal residence by 2 or more unmarried individuals or by 
     2 married individuals filing separately, no credit shall be 
     allowed under this section if a credit under this section has 
     been allowed to any of such individuals in any taxable year 
     with respect to the purchase of any other principal 
     residence.
       ``(c) Principal Residence.--For purposes of this section, 
     the term `principal residence' has the same meaning as when 
     used in section 121.
       ``(d) Denial of Double Benefit.--No credit shall be allowed 
     under this section for any purchase for which a credit is 
     allowed under section 36 or section 1400C.
       ``(e) Special Rules.--
       ``(1) Joint purchase.--
       ``(A) Married individuals filing separately.--In the case 
     of 2 married individuals filing separately, subsection (a) 
     shall be applied to each such individual by substituting 
     `$7,500' for `$15,000' in subsection (a)(1).
       ``(B) Unmarried individuals.--If 2 or more individuals who 
     are not married purchase a principal residence, the amount of 
     the credit allowed under subsection (a) shall be allocated 
     among such individuals in such manner as the Secretary may 
     prescribe, except that the total amount of the credits 
     allowed to all such individuals shall not exceed $15,000.
       ``(2) Purchase.--In defining the purchase of a principal 
     residence, rules similar to the rules of paragraphs (2) and 
     (3) of section 1400C(e) (as in effect on the date of the 
     enactment of this section) shall apply.
       ``(3) Reporting requirement.--Rules similar to the rules of 
     section 1400C(f) (as so in effect) shall apply.
       ``(f) Recapture of Credit in the Case of Certain 
     Dispositions.--
       ``(1) In general.--In the event that a taxpayer--
       ``(A) disposes of the principal residence with respect to 
     which a credit was allowed under subsection (a), or
       ``(B) fails to occupy such residence as the taxpayer's 
     principal residence,
     at any time within 24 months after the date on which the 
     taxpayer purchased such residence, then the tax imposed by 
     this chapter for the taxable year during which such 
     disposition occurred or in which the taxpayer failed to 
     occupy the residence as a principal residence shall be 
     increased by the amount of such credit.

[[Page 3277]]

       ``(2) Exceptions.--
       ``(A) Death of taxpayer.--Paragraph (1) shall not apply to 
     any taxable year ending after the date of the taxpayer's 
     death.
       ``(B) Involuntary conversion.--Paragraph (1) shall not 
     apply in the case of a residence which is compulsorily or 
     involuntarily converted (within the meaning of section 
     1033(a)) if the taxpayer acquires a new principal residence 
     within the 2-year period beginning on the date of the 
     disposition or cessation referred to in such paragraph. 
     Paragraph (1) shall apply to such new principal residence 
     during the remainder of the 24-month period described in such 
     paragraph as if such new principal residence were the 
     converted residence.
       ``(C) Transfers between spouses or incident to divorce.--In 
     the case of a transfer of a residence to which section 
     1041(a) applies--
       ``(i) paragraph (1) shall not apply to such transfer, and
       ``(ii) in the case of taxable years ending after such 
     transfer, paragraph (1) shall apply to the transferee in the 
     same manner as if such transferee were the transferor (and 
     shall not apply to the transferor).
       ``(D) Relocation of members of the armed forces.--Paragraph 
     (1) shall not apply in the case of a member of the Armed 
     Forces of the United States on active duty who moves pursuant 
     to a military order and incident to a permanent change of 
     station.
       ``(3) Joint returns.--In the case of a credit allowed under 
     subsection (a) with respect to a joint return, half of such 
     credit shall be treated as having been allowed to each 
     individual filing such return for purposes of this 
     subsection.
       ``(4) Return requirement.--If the tax imposed by this 
     chapter for the taxable year is increased under this 
     subsection, the taxpayer shall, notwithstanding section 6012, 
     be required to file a return with respect to the taxes 
     imposed under this subtitle.
       ``(g) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to the 
     purchase of any residence, the basis of such residence shall 
     be reduced by the amount of the credit so allowed.
       ``(h) Election to Treat Purchase in Prior Year.--In the 
     case of a purchase of a principal residence during the period 
     described in subsection (b)(1), a taxpayer may elect to treat 
     such purchase as made on December 31, 2008, for purposes of 
     this section.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 25D the 
     following new item:

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

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

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

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

       (a) In General.--Paragraph (2) of section 163(h) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subparagraph (E),
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``, and'', and
       (3) by adding at the end the following new subparagraph:
       ``(G) any qualified motor vehicle interest (within the 
     meaning of paragraph (5)).''.
       (b) Qualified Motor Vehicle Interest.--Section 163(h) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new paragraph:
       ``(5) Qualified motor vehicle interest.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified motor vehicle 
     interest' means any interest which is paid or accrued during 
     the taxable year on any indebtedness which--
       ``(i) is incurred after November 12, 2008, and before 
     January 1, 2010, in acquiring any qualified motor vehicle of 
     the taxpayer, and
       ``(ii) is secured by such qualified motor vehicle.

     Such term also includes any indebtedness secured by such 
     qualified motor vehicle resulting from the refinancing of 
     indebtedness meeting the requirements of the preceding 
     sentence (or this sentence); but only to the extent the 
     amount of the indebtedness resulting from such refinancing 
     does not exceed the amount of the refinanced indebtedness.
       ``(B) Dollar limitation.--The aggregate amount of 
     indebtedness treated as described in subparagraph (A) for any 
     period shall not exceed $49,500 ($24,750 in the case of a 
     separate return by a married individual).
       ``(C) Income limitation.--The amount otherwise treated as 
     interest under subparagraph (A) for any taxable year (after 
     the application of subparagraph (B)) shall be reduced (but 
     not below zero) by the amount which bears the same ratio to 
     the amount which is so treated as--
       ``(i) the excess (if any) of--

       ``(I) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(II) $125,000 ($250,000 in the case of a joint return), 
     bears to

       ``(ii) $10,000.

     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year increased by any amount 
     excluded from gross income under section 911, 931, or 933.
       ``(D) Qualified motor vehicle.--The term `qualified motor 
     vehicle' means a passenger automobile (within the meaning of 
     section 30B(h)(3)) or a light truck (within the meaning of 
     such section)--
       ``(i) which is acquired for use by the taxpayer and not for 
     resale after November 12, 2008, and before January 1, 2010,
       ``(ii) the original use of which commences with the 
     taxpayer, and
       ``(iii) which has a gross vehicle weight rating of not more 
     than 8,500 pounds.''.
       (c) Deduction Allowed Above-the-Line.--Section 62(a) of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (21) the following new paragraph:
       ``(22) Qualified motor vehicle interest.--The deduction 
     allowed under section 163 by reason of subsection (h)(2)(G) 
     thereof.''.
       (d) Reporting of Qualified Motor Vehicle Interest.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

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

       ``(a) Qualified Motor Vehicle Interest.--Any person--
       ``(1) who is engaged in a trade or business, and
       ``(2) who, in the course of such trade or business, 
     receives from any individual interest aggregating $600 or 
     more for any calendar year on any indebtedness secured by a 
     qualified motor vehicle (as defined in section 163(h)(5)(D)),

     shall make the return described in subsection (b) with 
     respect to each individual from whom such interest was 
     received at such time as the Secretary may by regulations 
     prescribe.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe,
       ``(2) contains--
       ``(A) the name and address of the individual from whom the 
     interest described in subsection (a)(2) was received,
       ``(B) the amount of such interest received for the calendar 
     year, and
       ``(C) such other information as the Secretary may 
     prescribe.
       ``(c) Application to Governmental Units.--For purposes of 
     subsection (a)--
       ``(1) Treated as persons.--The term `person' includes any 
     governmental unit (and any agency or instrumentality 
     thereof).
       ``(2) Special rules.--In the case of a governmental unit or 
     any agency or instrumentality thereof--
       ``(A) subsection (a) shall be applied without regard to the 
     trade or business requirement contained therein, and
       ``(B) any return required under subsection (a) shall be 
     made by the officer or employee appropriately designated for 
     the purpose of making such return.
       ``(d) Statements To Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(2) the aggregate amount of interest described in 
     subsection (a)(2) received by the person required to make 
     such return from the individual to whom the statement is 
     required to be furnished.
     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) was required to be made.
       ``(e) Returns Which Would Be Required To Be Made by 2 or 
     More Persons.--Except to the extent provided in regulations 
     prescribed by the Secretary, in the case of interest received 
     by any person on behalf of another person, only the person 
     first receiving

[[Page 3278]]

     such interest shall be required to make the return under 
     subsection (a).''.
       (2) Amendments relating to penalties.--
       (A) Section 6721(e)(2)(A) of such Code is amended by 
     striking ``or 6050L'' and inserting ``6050L, or 6050X''.
       (B) Section 6722(c)(1)(A) of such Code is amended by 
     striking ``or 6050L(c)'' and inserting ``6050L(c), or 
     6050X(d)''.
       (C) Subparagraph (B) of section 6724(d)(1) of such Code is 
     amended by redesignating clauses (xvi) through (xxii) as 
     clauses (xvii) through (xxiii), respectively, and by 
     inserting after clause (xii) the following new clause:
       ``(xvi) section 6050X (relating to returns relating to 
     qualified motor vehicle interest received in trade or 
     business from individuals),''.
       (D) Paragraph (2) of section 6724(d) of such Code is 
     amended by striking the period at the end of subparagraph 
     (DD) and inserting ``, or'' and by inserting after 
     subparagraph (DD) the following new subparagraph:
       ``(EE) section 6050X(d) (relating to returns relating to 
     qualified motor vehicle interest received in trade or 
     business from individuals).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6050W 
     the following new item:

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

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

       (a) In General.--Subsection (a) of section 164 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) Qualified motor vehicle taxes.''.
       (b) Qualified Motor Vehicle Taxes.--Subsection (b) of 
     section 164 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new paragraph:
       ``(6) Qualified motor vehicle taxes.--
       ``(A) In general.--For purposes of this section, the term 
     `qualified motor vehicle taxes' means any State or local 
     sales or excise tax imposed on the purchase of a qualified 
     motor vehicle (as defined in section 163(h)(5)(D)).
       ``(B) Dollar limitation.--The amount taken into account 
     under subparagraph (A) for any taxable year shall not exceed 
     $49,500 ($24,750 in the case of a separate return by a 
     married individual).
       ``(C) Income limitation.--The amount otherwise taken into 
     account under subparagraph (A) (after the application of 
     subparagraph (B)) for any taxable year shall be reduced (but 
     not below zero) by the amount which bears the same ratio to 
     the amount which is so treated as--
       ``(i) the excess (if any) of--

       ``(I) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(II) $125,000 ($250,000 in the case of a joint return), 
     bears to

       ``(ii) $10,000.

     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year increased by any amount 
     excluded from gross income under section 911, 931, or 933.
       ``(D) Qualified motor vehicle taxes not included in cost of 
     acquired property.--The last sentence of subsection (a) shall 
     not apply to any qualified motor vehicle taxes.
       ``(E) Coordination with general sales tax.--This paragraph 
     shall not apply in the case of a taxpayer who makes an 
     election under paragraph (5) for the taxable year.''.
       (c) Conforming Amendments.--Paragraph (5) of section 163(h) 
     of the Internal Revenue Code of 1986, as added by section 1, 
     is amended--
       (1) by adding at the end the following new subparagraph:
       ``(E) Exclusion.--If the indebtedness described in 
     subparagraph (A) includes the amounts of any State or local 
     sales or excise taxes paid or accrued by the taxpayer in 
     connection with the acquisition of a qualified motor vehicle, 
     the aggregate amount of such indebtedness taken into account 
     under such subparagraph shall be reduced, but not below zero, 
     by the amount of any such taxes for which a deduction is 
     allowed under section 164(a) by reason of paragraph (6) 
     thereof.'', and
       (2) by inserting ``, after the application of subparagraph 
     (E),'' after ``for any period'' in subparagraph (B).
       (d) Deduction Allowed Above-the-Line.--Section 62(a) of the 
     Internal Revenue Code of 1986, as amended by section 1, is 
     amended by inserting after paragraph (22) the following new 
     paragraph:
       ``(23) Qualified motor vehicle taxes.--The deduction 
     allowed under section 164 by reason of subsection (a)(6) 
     thereof.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

                PART II--ALTERNATIVE MINIMUM TAX RELIEF

     SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) (relating 
     to special rule for taxable years 2000 through 2008) is 
     amended--
       (1) by striking ``or 2008'' and inserting ``2008, or 
     2009'', and
       (2) by striking ``2008'' in the heading thereof and 
     inserting ``2009''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) (relating 
     to exemption amount) is amended--
       (1) by striking ``($69,950 in the case of taxable years 
     beginning in 2008)'' in subparagraph (A) and inserting 
     ``($70,950 in the case of taxable years beginning in 2009)'', 
     and
       (2) by striking ``($46,200 in the case of taxable years 
     beginning in 2008)'' in subparagraph (B) and inserting 
     ``($46,700 in the case of taxable years beginning in 2009)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

                     Subtitle B--Energy Incentives

                  PART I--RENEWABLE ENERGY INCENTIVES

     SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 
                   CERTAIN RENEWABLE RESOURCES.

       (a) In General.--Subsection (d) of section 45 is amended--
       (1) by striking ``2010'' in paragraph (1) and inserting 
     ``2013'',
       (2) by striking ``2011'' each place it appears in 
     paragraphs (2), (3), (4), (6), (7) and (9) and inserting 
     ``2014'', and
       (3) by striking ``2012'' in paragraph (11)(B) and inserting 
     ``2014''.
       (b) Technical Amendment.--Paragraph (5) of section 45(d) is 
     amended by striking ``and before'' and all that follows and 
     inserting `` and before October 3, 2008.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by subsection (a) 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
       (2) Technical amendment.--The amendment made by subsection 
     (b) shall take effect as if included in section 102 of the 
     Energy Improvement and Extension Act of 2008.

     SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF 
                   PRODUCTION CREDIT.

       (a) In General.--Subsection (a) of section 48 is amended by 
     adding at the end the following new paragraph:
       ``(5) Election to treat qualified facilities as energy 
     property.--
       ``(A) In general.--In the case of any qualified investment 
     credit facility--
       ``(i) such facility shall be treated as energy property for 
     purposes of this section, and
       ``(ii) the energy percentage with respect to such property 
     shall be 30 percent.
       ``(B) Denial of production credit.--No credit shall be 
     allowed under section 45 for any taxable year with respect to 
     any qualified investment credit facility.
       ``(C) Qualified investment credit facility.--For purposes 
     of this paragraph, the term `qualified investment credit 
     facility' means any of the following facilities if no credit 
     has been allowed under section 45 with respect to such 
     facility and the taxpayer makes an irrevocable election to 
     have this paragraph apply to such facility:
       ``(i) Wind facilities.--Any facility described in paragraph 
     (1) of section 45(d) if such facility is placed in service in 
     2009, 2010, 2011, or 2012.
       ``(ii) Other facilities.--Any facility described in 
     paragraph (2), (3), (4), (6), (7), (9), or (11) of section 
     45(d) if such facility is placed in service in 2009, 2010, 
     2011, 2012, or 2013.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to facilities placed in service after December 
     31, 2008.

     SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR 
                   RENEWABLE ENERGY PROPERTY.

       (a) Repeal of Limitation on Credit for Qualified Small Wind 
     Energy Property.--Paragraph (4) of section 48(c) is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraphs (C) and (D) as subparagraphs (B) and (C).
       (b) Repeal of Limitation on Property Financed by Subsidized 
     Energy Financing.--
       (1) In general.--Section 48(a)(4) is amended by adding at 
     the end the following new subparagraph:
       ``(D) Termination.--This paragraph shall not apply to 
     periods after December 31, 2008, under rules similar to the 
     rules of section 48(m) (as in effect on the day before the 
     date of the enactment of the Revenue Reconciliation Act of 
     1990).''.
       (2) Conforming amendments.--
       (A) Section 25C(e)(1) is amended by striking ``(8), and 
     (9)'' and inserting ``and (8)''.
       (B) Section 25D(e) is amended by striking paragraph (9).
       (C) Section 48A(b)(2) is amended by inserting ``(without 
     regard to subparagraph (D) thereof)'' after ``section 
     48(a)(4)''.
       (D) Section 48B(b)(2) is amended by inserting ``(without 
     regard to subparagraph (D) thereof)'' after ``section 
     48(a)(4)''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this

[[Page 3279]]

     section shall apply to periods after December 31, 2008, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).
       (2) Conforming amendments.--The amendments made by 
     subsection (b)(2) shall apply to taxable years beginning 
     after December 31, 2008.

PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND 
                  QUALIFIED ENERGY CONSERVATION BONDS

     SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN 
                   RENEWABLE ENERGY BONDS.

       Subsection (c) of section 54C is amended by adding at the 
     end the following new paragraph:
       ``(4) Additional limitation.--The national new clean 
     renewable energy bond limitation shall be increased by 
     $1,600,000,000. Such increase shall be allocated by the 
     Secretary consistent with the rules of paragraphs (2) and 
     (3).''.

     SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED 
                   ENERGY CONSERVATION BONDS.

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

                PART III--ENERGY CONSERVATION INCENTIVES

     SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   NONBUSINESS ENERGY PROPERTY.

       (a) In General.--Section 25C is amended by striking 
     subsections (a) and (b) and inserting the following new 
     subsections:
       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to 30 
     percent of the sum of--
       ``(1) the amount paid or incurred by the taxpayer during 
     such taxable year for qualified energy efficiency 
     improvements, and
       ``(2) the amount of the residential energy property 
     expenditures paid or incurred by the taxpayer during such 
     taxable year.
       ``(b) Limitation.--The aggregate amount of the credits 
     allowed under this section for taxable years beginning in 
     2009 and 2010 with respect to any taxpayer shall not exceed 
     $1,500.''.
       (b) Modifications of Standards for Energy-Efficient 
     Building Property.--
       (1) Electric heat pumps.--Subparagraph (B) of section 
     25C(d)(3) is amended to read as follows:
       ``(B) an electric heat pump which achieves the highest 
     efficiency tier established by the Consortium for Energy 
     Efficiency, as in effect on January 1, 2009.''.
       (2) Central air conditioners.--Subparagraph (C) of section 
     25C(d)(3) is amended by striking ``2006'' and inserting 
     ``2009''.
       (3) Water heaters.--Subparagraph (D) of section 25C(d)(3) 
     is amended to read as follows:
       ``(E) a natural gas, propane, or oil water heater which has 
     either an energy factor of at least 0.82 or a thermal 
     efficiency of at least 90 percent.''.
       (4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is 
     amended by inserting ``, as measured using a lower heating 
     value'' after ``75 percent''.
       (c) Modifications of Standards for Oil Furnaces and Hot 
     Water Boilers.--
       (1) In general.--Paragraph (4) of section 25C(d) is amended 
     to read as follows:
       ``(4) Qualified natural gas, propane, and oil furnaces and 
     hot water boilers.--
       ``(A) Qualified natural gas furnace.--The term `qualified 
     natural gas furnace' means any natural gas furnace which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 95.
       ``(B) Qualified natural gas hot water boiler.--The term 
     `qualified natural gas hot water boiler' means any natural 
     gas hot water boiler which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(C) Qualified propane furnace.--The term `qualified 
     propane furnace' means any propane furnace which achieves an 
     annual fuel utilization efficiency rate of not less than 95.
       ``(D) Qualified propane hot water boiler.--The term 
     `qualified propane hot water boiler' means any propane hot 
     water boiler which achieves an annual fuel utilization 
     efficiency rate of not less than 90.
       ``(E) Qualified oil furnaces.--The term `qualified oil 
     furnace' means any oil furnace which achieves an annual fuel 
     utilization efficiency rate of not less than 90.
       ``(F) Qualified oil hot water boiler.--The term `qualified 
     oil hot water boiler' means any oil hot water boiler which 
     achieves an annual fuel utilization efficiency rate of not 
     less than 90.''.
       (2) Conforming amendment.--Clause (ii) of section 
     25C(d)(2)(A) is amended to read as follows:
       ``(ii) any qualified natural gas furnace, qualified propane 
     furnace, qualified oil furnace, qualified natural gas hot 
     water boiler, qualified propane hot water boiler, or 
     qualified oil hot water boiler, or''.
       (d) Modifications of Standards for Qualified Energy 
     Efficiency Improvements.--
       (1) Qualifications for exterior windows, doors, and 
     skylights.--Subsection (c) of section 25C is amended by 
     adding at the end the following new paragraph:
       ``(4) Qualifications for exterior windows, doors, and 
     skylights.--Such term shall not include any component 
     described in subparagraph (B) or (C) of paragraph (2) unless 
     such component is equal to or below a U factor of 0.30 and 
     SHGC of 0.30.''.
       (2) Additional qualification for insulation.--Subparagraph 
     (A) of section 25C(c)(2) is amended by inserting ``and meets 
     the prescriptive criteria for such material or system 
     established by the 2009 International Energy Conservation 
     Code, as such Code (including supplements) is in effect on 
     the date of the enactment of the American Recovery and 
     Reinvestment Tax Act of 2009'' after ``such dwelling unit''.
       (e) Extension.--Section 25C(g)(2) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2010''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2008.
       (2) Efficiency standards.--The amendments made by 
     paragraphs (1), (2), and (3) of subsection (b) and 
     subsections (c) and (d) shall apply to property placed in 
     service after December 31, 2009.

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

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

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

       (a) In General.--Section 30C(e) is amended by adding at the 
     end the following new paragraph:
       ``(6) Special rule for property placed in service during 
     2009 and 2010.--In the case of property placed in service in 
     taxable years beginning after December 31, 2008, and before 
     January 1, 2011--
       ``(A) in the case of any such property which does not 
     relate to hydrogen--
       ``(i) subsection (a) shall be applied by substituting `50 
     percent' for `30 percent',
       ``(ii) subsection (b)(1) shall be applied by substituting 
     `$50,000' for `$30,000', and
       ``(iii) subsection (b)(2) shall be applied by substituting 
     `$2,000' for `$1,000', and
       ``(B) in the case of any such property which relates to 
     hydrogen, subsection (b)(1) shall be applied by substituting 
     `$200,000' for `$30,000'.''.
       (b) Ensuring Consumer Accessibility to Alternative Fuel 
     Vehicle Refueling Property in the Case of Electricity.--
     Section 179(d)(3) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) for the recharging of motor vehicles propelled by 
     electricity, but only if--
       ``(i) the property complies with the Society of Automotive 
     Engineers' connection standards,
       ``(ii) the property provides for non-restrictive access for 
     charging and for payment interoperability with other systems, 
     and
       ``(iii) the property--

       ``(I) is located on property owned by the taxpayer, or
       ``(II) is located on property owned by another person, is 
     placed in service with the permission of such other person, 
     and is fully maintained by the taxpayer.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

[[Page 3280]]



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

       (a) Temporary 5-Year Recovery Period.--
       (1) In general.--Subparagraph (B) of section 168(e)(3) is 
     amended by striking ``and'' at the end of clause (vi), by 
     striking the period at the end of clause (vii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(viii) any qualified smart electric meter which is placed 
     in service before January 1, 2011.''.
       (2) Conforming amendment.--Clause (iii) of section 
     168(e)(3)(D) is amended by inserting ``which is placed in 
     service after December 31, 2010'' after ``electric meter''.
       (b) Technical Amendments.--Paragraphs (18)(A)(ii) and 
     (19)(A)(ii) of section 168(i) are each amended by striking 
     ``16 years'' and inserting ``10 years''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after the date of the enactment of this 
     Act.
       (2) Technical amendment.--The amendments made by subsection 
     (b) shall take effect as if included in section 306 of the 
     Energy Improvement and Extension Act of 2008.

                  PART IV--ENERGY RESEARCH INCENTIVES

     SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.

       (a) In General.--Section 41 is amended by redesignating 
     subsection (h) as subsection (i) and by inserting after 
     subsection (g) the following new subsection:
       ``(h) Energy Research Credit.--In the case of any taxable 
     year beginning in 2009 or 2010--
       ``(1) In general.--The credit determined under subsection 
     (a)(1) shall be increased by 20 percent of the qualified 
     energy research expenses for the taxable year.
       ``(2) Qualified energy research expenses.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified energy research 
     expenses' means so much of the taxpayer's qualified research 
     expenses as are related to the fields of fuel cells and 
     battery technology, renewable energy and renewable fuels, 
     energy conservation technology, efficient transmission and 
     distribution of electricity, and carbon capture and 
     sequestration.
       ``(B) Coordination with qualifying advanced energy project 
     credit.--Such term shall not include expenditures taken into 
     account in determining the amount of the credit under section 
     48 or 48C.
       ``(3) Coordination with other research credits.--
       ``(A) In general.--The amount of qualified energy research 
     expenses taken into account under subsection (a)(1)(A) shall 
     not exceed the base amount.
       ``(B) Alternative simplified credit.--For purposes of 
     subsection (c)(5), the amount of qualified energy research 
     expenses taken into account for the taxable year for which 
     the credit is being determined shall not exceed--
       ``(i) in the case of subsection (c)(5)(A), 50 percent of 
     the average qualified research expenses for the 3 taxable 
     years preceding the taxable year for which the credit is 
     being determined, and
       ``(ii) in the case of subsection (c)(5)(B)(ii), zero.
       ``(C) Basic research and energy research consortium 
     payments.--Any amount taken into account under paragraph (1) 
     shall not be taken into account under paragraph (2) or (3) of 
     subsection (a).''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     41(i)(1)(B), as redesignated by subsection (a), is amended by 
     inserting ``(in the case of the increase in the credit 
     determined under subsection (h), December 31, 2010)'' after 
     ``December 31, 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

    PART V--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

     SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS TO CARBON 
                   DIOXIDE USED AS A TERTIARY INJECTANT.

       (a) In General.--Section 45Q(a)(2) is amended by striking 
     ``and'' at the end of subparagraph (A), by striking the 
     period at the end of subparagraph (B) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(C) disposed of by the taxpayer in secure geological 
     storage.''.
       (b) Conforming Amendments.--
       (1) Section 45Q(d)(2) is amended--
       (A) by striking ``subsection (a)(1)(B)'' and inserting 
     ``paragraph (1)(B) or (2)(C) of subsection (a)'',
       (B) by striking ``and unminable coal seems'' and inserting 
     ``, oil and gas reservoirs, and unminable coal seams'', and
       (C) by inserting ``the Secretary of Energy, and the 
     Secretary of the Interior,'' after ``Environmental Protection 
     Agency''.
       (2) Section 45Q(e) is amended by striking ``captured and 
     disposed of or used as a tertiary injectant'' and inserting 
     ``taken into account in accordance with subsection (a)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to carbon dioxide captured after the date of the 
     enactment of this Act.

             PART VI--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

     SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN 
                   ELECTRIC MOTOR VEHICLES.

       (a) Increase in Vehicles Eligible for Credit.--Section 
     30D(b)(2)(B) is amended by striking ``250,000'' and inserting 
     ``500,000''.
       (b) Exclusion of Neighborhood Electric Vehicles From 
     Existing Credit.--Section 30D(e)(1) is amended to read as 
     follows:
       ``(1) Motor vehicle.--The term `motor vehicle' means a 
     motor vehicle (as defined in section 30(c)(2)), which is 
     treated as a motor vehicle for purposes of title II of the 
     Clean Air Act.''.
       (c) Credit for Certain Other Vehicles.--Section 30D is 
     amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively, and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Credit for Certain Other Vehicles.--For purposes of 
     this section--
       ``(1) In general.--In the case of a specified vehicle, this 
     section shall be applied with the following modifications:
       ``(A) For purposes of subsection (a)(1), in lieu of the 
     applicable amount determined under subsection (a)(2), the 
     applicable amount shall be 10 percent of so much of the cost 
     of the specified vehicle as does not exceed $40,000.
       ``(B) Subsection (b) shall not apply and no specified 
     vehicle shall be taken into account under subsection (b)(2).
       ``(C) In the case of a specified vehicle which is a 2-or 3-
     wheeled motor vehicle, subsection (c)(1) shall be applied by 
     substituting `2.5 kilowatt hours' for `4 kilowatt hours'.
       ``(D) In the case of a specified vehicle which is a low-
     speed motor vehicle, subsection (c)(3) shall not apply.
       ``(2) Specified vehicle.--For purposes of this subsection--
       ``(A) In general.--The term `specified vehicle' means--
       ``(i) any 2- or 3-wheeled motor vehicle, or
       ``(ii) any low-speed motor vehicle,
     which is placed in service after December 31, 2009, and 
     before January 1, 2012.
       ``(B) 2- or 3-wheeled motor vehicle.--The term `2- or 3-
     wheeled motor vehicle' means any vehicle--
       ``(i) which would be described in section 30(c)(2) except 
     that it has 2 or 3 wheels,
       ``(ii) with motive power having a seat or saddle for the 
     use of the rider and designed to travel on not more than 3 
     wheels in contact with the ground,
       ``(iii) which has an electric motor that produces in excess 
     of 5-brake horsepower,
       ``(iv) which draws propulsion from 1 or more traction 
     batteries, and
       ``(v) which has been certified to the Department of 
     Transportation pursuant to section 567 of title 49, Code of 
     Federal Regulations, as conforming to all applicable Federal 
     motor vehicle safety standards in effect on the date of the 
     manufacture of the vehicle.
       ``(C) Low-speed motor vehicle.--The term `low-speed motor 
     vehicle' means a motor vehicle (as defined in section 
     30(c)(2)) which--
       ``(i) is placed in service after December 31, 2009, and
       ``(ii) meets the requirements of section 571.500 of title 
     49, Code of Federal Regulations.''.
       (d) Effective Dates.--
       (1) In general.--The amendment made by subsections (a) and 
     (c) shall take effect on the date of the enactment of this 
     Act.
       (2) Other modifications.--The amendments made by subsection 
     (b) shall apply to property placed in service after December 
     31, 2009, in taxable years beginning after such date.

     SEC. 1152. CONVERSION KITS.

       (a) In General.--Section 30B (relating to alternative motor 
     vehicle credit) is amended by redesignating subsections (i) 
     and (j) as subsections (j) and (k), respectively, and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Plug-In Conversion Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     plug-in conversion credit determined under this subsection 
     with respect to any motor vehicle which is converted to a 
     qualified plug-in electric drive motor vehicle is 10 percent 
     of so much of the cost of the converting such vehicle as does 
     not exceed $40,000.
       ``(2) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Qualified plug-in electric drive motor vehicle.--The 
     term `qualified plug-in electric drive motor vehicle' means 
     any new qualified plug-in electric drive motor vehicle (as 
     defined in section 30D(c), determined without regard to 
     paragraphs (4) and (6) thereof).
       ``(B) Plug-in traction battery module.--The term `plug-in 
     traction battery module' means an electro-chemical energy 
     storage device which--
       ``(i) which has a traction battery capacity of not less 
     than 2.5 kilowatt hours,
       ``(ii) which is equipped with an electrical plug by means 
     of which it can be energized and recharged when plugged into 
     an external source of electric power,
       ``(iii) which consists of a standardized configuration and 
     is mass produced,
       ``(iv) which has been tested and approved by the National 
     Highway Transportation

[[Page 3281]]

     Safety Administration as compliant with applicable motor 
     vehicle and motor vehicle equipment safety standards when 
     installed by a mechanic with standardized training in 
     protocols established by the battery manufacturer as part of 
     a nationwide distribution program,
       ``(v) which complies with the requirements of section 32918 
     of title 49, United States Code, and
       ``(vi) which is certified by a battery manufacturer as 
     meeting the requirements of clauses (i) through (v).
       ``(C) Credit allowed to lessor of battery module.--In the 
     case of a plug-in traction battery module which is leased to 
     the taxpayer, the credit allowed under this subsection shall 
     be allowed to the lessor of the plug-in traction battery 
     module.
       ``(D) Credit allowed in addition to other credits.--The 
     credit allowed under this subsection shall be allowed with 
     respect to a motor vehicle notwithstanding whether a credit 
     has been allowed with respect to such motor vehicle under 
     this section (other than this subsection) in any preceding 
     taxable year.
       ``(3) Termination.--This subsection shall not apply to 
     conversions made after December 31, 2012.''.
       (b) Credit Treated as Part of Alternative Motor Vehicle 
     Credit.--Section 30B(a) is amended by striking ``and'' at the 
     end of paragraph (3), by striking the period at the end of 
     paragraph (4) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(5) the plug-in conversion credit determined under 
     subsection (i).''.
       (c) No Recapture for Vehicles Converted to Qualified Plug-
     in Electric Drive Motor Vehicles.--Paragraph (8) of section 
     30B(h) is amended by adding at the end the following: ``, 
     except that no benefit shall be recaptured if such property 
     ceases to be eligible for such credit by reason of conversion 
     to a qualified plug-in electric drive motor vehicle.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2008, in taxable years beginning after such date.

                Subtitle C--Tax Incentives for Business

                PART I--TEMPORARY INVESTMENT INCENTIVES

     SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED 
                   DURING 2009.

       (a) Extension of Special Allowance.--
       (1) In general.--Paragraph (2) of section 168(k) is 
     amended--
       (A) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011'', and
       (B) by striking ``January 1, 2009'' each place it appears 
     and inserting ``January 1, 2010''.
       (2) Conforming amendments.--
       (A) The heading for subsection (k) of section 168 is 
     amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2010''.
       (B) The heading for clause (ii) of section 168(k)(2)(B) is 
     amended by striking ``pre-january 1, 2009'' and inserting 
     ``pre-january 1, 2010''.
       (C) Subparagraph (B) of section 168(l)(5) is amended by 
     striking ``January 1, 2009'' and inserting ``January 1, 
     2010''.
       (D) Subparagraph (C) of section 168(n)(2) is amended by 
     striking ``January 1, 2009'' and inserting ``January 1, 
     2010''.
       (E) Subparagraph (B) of section 1400N(d)(3) is amended by 
     striking ``January 1, 2009'' and inserting ``January 1, 
     2010''.
       (3) Technical amendment.--Subparagraph (D) of section 
     168(k)(4) is amended--
       (A) by striking ``and'' at the end of clause (i),
       (B) by redesignating clause (ii) as clause (iii), and
       (C) by inserting after clause (i) the following new clause:
       ``(ii) `April 1, 2008' shall be substituted for `January 1, 
     2008' in subparagraph (A)(iii)(I) thereof, and''.
       (b) Extension of Election To Accelerate the AMT and 
     Research Credits in Lieu of Bonus Depreciation.--Section 
     168(k)(4) (relating to election to accelerate the AMT and 
     research credits in lieu of bonus depreciation) is amended--
       (1) by striking ``2009'' and inserting ``2010''in 
     subparagraph (D)(iii) (as redesignated by subsection (a)(3)), 
     and
       (2) by adding at the end the following new subparagraph:
       ``(H) Special rules for extension property.--
       ``(i) Taxpayers previously electing acceleration.--In the 
     case of a taxpayer who made the election under subparagraph 
     (A) for its first taxable year ending after March 31, 2008--

       ``(I) the taxpayer may elect not to have this paragraph 
     apply to extension property, but
       ``(II) if the taxpayer does not make the election under 
     subclause (I), in applying this paragraph to the taxpayer a 
     separate bonus depreciation amount, maximum amount, and 
     maximum increase amount shall be computed and applied to 
     eligible qualified property which is extension property and 
     to eligible qualified property which is not extension 
     property.

       ``(ii) Taxpayers not previously electing acceleration.--In 
     the case of a taxpayer who did not make the election under 
     subparagraph (A) for its first taxable year ending after 
     March 31, 2008--

       ``(I) the taxpayer may elect to have this paragraph apply 
     to its first taxable year ending after December 31, 2008, and 
     each subsequent taxable year, and
       ``(II) if the taxpayer makes the election under subclause 
     (I), this paragraph shall only apply to eligible qualified 
     property which is extension property.

       ``(iii) Extension property.--For purposes of this 
     subparagraph, the term `extension property' means property 
     which is eligible qualified property solely by reason of the 
     extension of the application of the special allowance under 
     paragraph (1) pursuant to the amendments made by section 
     1201(a) of the American Recovery and Reinvestment Tax Act of 
     2009 (and the application of such extension to this paragraph 
     pursuant to the amendment made by section 1201(b)(1) of such 
     Act).''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after December 31, 2008, in taxable years 
     ending after such date.
       (2) Technical amendment.--The amendments made by subsection 
     (a)(3) shall apply to taxable years ending after March 31, 
     2008.

     SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF 
                   CERTAIN DEPRECIABLE BUSINESS ASSETS.

       (a) In General.--Paragraph (7) of section 179(b) is 
     amended--
       (1) by striking ``2008'' and inserting ``2008, or 2009'', 
     and
       (2) by striking ``2008'' in the heading thereof and 
     inserting ``2008, and 2009''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

             PART II--5-YEAR CARRYBACK OF OPERATING LOSSES

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

       (a) In General.--Subparagraph (H) of section 172(b)(1) is 
     amended to read as follows:
       ``(H) Carryback for 2008 and 2009 net operating losses.--
       ``(i) In general.--In the case of an applicable 2008 or 
     2009 net operating loss with respect to which the taxpayer 
     has elected the application of this subparagraph--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     any whole number elected by the taxpayer which is more than 2 
     and less than 6 for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting the whole number which is one less than the 
     whole number substituted under subclause (II) for `2', and
       ``(III) subparagraph (F) shall not apply.

       ``(ii) Applicable 2008 or 2009 net operating loss.--For 
     purposes of this subparagraph, the term `applicable 2008 or 
     2009 net operating loss' means--

       ``(I) the taxpayer's net operating loss for any taxable 
     year ending in 2008 or 2009, or
       ``(II) if the taxpayer elects to have this subclause apply 
     in lieu of subclause (I), the taxpayer's net operating loss 
     for any taxable year beginning in 2008 or 2009.

       ``(iii) Election.--Any election under this subparagraph 
     shall be made in such manner as may be prescribed by the 
     Secretary, and shall be made by the due date (including 
     extension of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Any such election, 
     once made, shall be irrevocable.
       ``(iv) Coordination with alternative tax net operating loss 
     deduction.--In the case of a taxpayer who elects to have 
     clause (ii)(II) apply, section 56(d)(1)(A)(ii) shall be 
     applied by substituting `ending during 2001 or 2002 or 
     beginning during 2008 or 2009' for `ending during 2001, 2002, 
     2008, or 2009'.''.
       (b) Alternative Tax Net Operating Loss Deduction.--
     Subclause (I) of section 56(d)(1)(A)(ii) is amended to read 
     as follows:

       ``(I) the amount of such deduction attributable to the sum 
     of carrybacks of net operating losses from taxable years 
     ending during 2001, 2002, 2008, or 2009 and carryovers of net 
     operating losses to such taxable years, or''.

       (c) Loss From Operations of Life Insurance Companies.--
     Subsection (b) of section 810 is amended by adding at the end 
     the following new paragraph:
       ``(4) Carryback for 2008 and 2009 losses.--
       ``(A) In general.--In the case of an applicable 2008 or 
     2009 loss from operations with respect to which the taxpayer 
     has elected the application of this paragraph, paragraph 
     (1)(A) shall be applied, at the election of the taxpayer, by 
     substituting `5' or `4' for `3'.
       ``(B) Applicable 2008 or 2009 loss from operations.--For 
     purposes of this paragraph, the term `applicable 2008 or 2009 
     loss from operations' means--
       ``(i) the taxpayer's loss from operations for any taxable 
     year ending in 2008 or 2009, or
       ``(ii) if the taxpayer elects to have this clause apply in 
     lieu of clause (i), the taxpayer's loss from operations for 
     any taxable year beginning in 2008 or 2009.
       ``(C) Election.--Any election under this paragraph shall be 
     made in such manner as may be prescribed by the Secretary, 
     and shall be made by the due date (including extension of 
     time) for filing the taxpayer's return for the taxable year 
     of the loss from operations. Any such election, once made, 
     shall be irrevocable.

[[Page 3282]]

       ``(D) Coordination with alternative tax net operating loss 
     deduction.--In the case of a taxpayer who elects to have 
     subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be 
     applied by substituting `ending during 2001 or 2002 or 
     beginning during 2008 or 2009' for `ending during 2001, 2002, 
     2008, or 2009'.''.
       (d) Conforming Amendment.--Section 172 is amended by 
     striking subsection (k) and by redesignating subsection (l) 
     as subsection (k).
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to net operating losses arising in taxable years ending after 
     December 31, 2007.
       (2) Alternative tax net operating loss deduction.--The 
     amendment made by subsection (b) shall apply to taxable years 
     ending after 1997.
       (3) Loss from operations of life insurance companies.--The 
     amendment made by subsection (d) shall apply to losses from 
     operations arising in taxable years ending after December 31, 
     2007.
       (4) Transitional rule.--In the case of a net operating loss 
     (or, in the case of a life insurance company, a loss from 
     operations) for a taxable year ending before the date of the 
     enactment of this Act--
       (A) any election made under section 172(b)(3) or 810(b)(3) 
     of the Internal Revenue Code of 1986 with respect to such 
     loss may (notwithstanding such section) be revoked before the 
     applicable date,
       (B) any election made under section 172(k) or 810(b)(4) of 
     such Code with respect to such loss shall (notwithstanding 
     such section) be treated as timely made if made before the 
     applicable date, and
       (C) any application under section 6411(a) of such Code with 
     respect to such loss shall be treated as timely filed if 
     filed before the applicable date.
     For purposes of this paragraph, the term ``applicable date'' 
     means the date which is 60 days after the date of the 
     enactment of this Act.

     SEC. 1212. EXCEPTION FOR TARP RECIPIENTS.

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

                   PART III--INCENTIVES FOR NEW JOBS

     SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND 
                   DISCONNECTED YOUTH.

       (a) In General.--Subsection (d) of section 51 is amended by 
     adding at the end the following new paragraph:
       ``(14) Credit allowed for unemployed veterans and 
     disconnected youth hired in 2009 or 2010.--
       ``(A) In general.--Any unemployed veteran or disconnected 
     youth who begins work for the employer during 2009 or 2010 
     shall be treated as a member of a targeted group for purposes 
     of this subpart.
       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Unemployed veteran.--The term `unemployed veteran' 
     means any veteran (as defined in paragraph (3)(B), determined 
     without regard to clause (ii) thereof) who is certified by 
     the designated local agency as--

       (I) having been discharged or released from active duty in 
     the Armed Forces during the period beginning on September 1, 
     2001, and ending on December 31, 2010, and
       ``(II) being in receipt of unemployment compensation under 
     State or Federal law for not less than 4 weeks during the 1-
     year period ending on the hiring date.

       ``(ii) Disconnected youth.--The term `disconnected youth' 
     means any individual who is certified by the designated local 
     agency--

       ``(I) as having attained age 16 but not age 25 on the 
     hiring date,
       ``(II) as not regularly attending any secondary, technical, 
     or post-secondary school during the 6-month period preceding 
     the hiring date,
       ``(III) as not regularly employed during such 6-month 
     period, and
       ``(IV) as not readily employable by reason of lacking a 
     sufficient number of basic skills.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2008.

                 PART IV--CANCELLATION OF INDEBTEDNESS

     SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING 
                   FROM INDEBTEDNESS DISCHARGED BY THE REPURCHASE 
                   OF A DEBT INSTRUMENT.

       (a) In General.--Section 108 (relating to income from 
     discharge of indebtedness) is amended by adding at the end 
     the following new subsection:
       ``(i) Deferral and Ratable Inclusion of Income Arising From 
     Indebtedness Discharged by the Repurchase of a Debt 
     Instrument.--
       ``(1) In general.--Notwithstanding section 61, income from 
     the discharge of indebtedness in connection with the 
     repurchase of a debt instrument after December 31, 2008, and 
     before January 1, 2011, shall be includible in gross income 
     ratably over the 8-taxable-year period beginning with--
       ``(A) in the case of a repurchase occurring in 2009, the 
     second taxable year following the taxable year in which the 
     repurchase occurs, and
       ``(B) in the case of a repurchase occurring in 2010, the 
     taxable year following the taxable year in which the 
     repurchase occurs.
       ``(2) Debt instrument.--For purposes of this subsection, 
     the term `debt instrument' means a bond, debenture, note, 
     certificate, or any other instrument or contractual 
     arrangement constituting indebtedness (within the meaning of 
     section 1275(a)(1)).
       ``(3) Repurchase.--For purposes of this subsection, the 
     term `repurchase' means, with respect to any debt instrument, 
     a cash purchase of the debt instrument by--
       ``(A) the debtor which issued the debt instrument, or
       ``(B) any person related to such debtor.
     For purposes of subparagraph (B), the determination of 
     whether a person is related to another person shall be made 
     in the same manner as under subsection (e)(4).
       ``(4) Authority to prescribe regulations.--The Secretary 
     may prescribe such regulations as may be necessary or 
     appropriate for purposes of applying this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges in taxable years ending after 
     December 31, 2008.

                 PART V--QUALIFIED SMALL BUSINESS STOCK

     SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL 
                   BUSINESS STOCK FOR 2009 AND 2010.

       (a) In General.--Section 1202(a) is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rules for 2009 and 2010.--In the case of 
     qualified small business stock acquired after the date of the 
     enactment of this paragraph and before January 1, 2011--
       ``(A) paragraph (1) shall be applied by substituting `75 
     percent' for `50 percent', and
       ``(B) paragraph (2) shall not apply.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

           PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

     SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT 
                   BENEFITS AND TRANSIT PASSES.

       (a) In General.--Paragraph (2) of section 132(f) is amended 
     by adding at the end the following flush sentence:
     ``In the case of any month beginning on or after the date of 
     the enactment of this sentence and before January 1, 2011, 
     subparagraph (A) shall be applied as if the dollar amount 
     therein were the same as the dollar amount under subparagraph 
     (B) (as in effect for such month).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to months beginning on or after the date of the 
     enactment of this section.

                        PART VII--S CORPORATIONS

     SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
                   BUILT-IN GAINS TAX.

       (a) In General.--Paragraph (7) of section 1374(d) (relating 
     to definitions and special rules) is amended to read as 
     follows:
       ``(7) Recognition period.--
       ``(A) In general.--The term `recognition period' means the 
     10-year period beginning with the 1st day of the 1st taxable 
     year for which the corporation was an S corporation.
       ``(B) Special rule for 2009 and 2010.--In the case of any 
     taxable year beginning in 2009 or 2010, no tax shall be 
     imposed on the net unrecognized built-in gain of an S 
     corporation if the 7th taxable year in the recognition period 
     preceded such taxable year. The preceding sentence shall be 
     applied separately with respect to any asset to which 
     paragraph (8) applies.
       ``(C) Special rule for distributions to shareholders.--For 
     purposes of applying this section to any amount includible in 
     income by reason of distributions to shareholders pursuant to 
     section 593(e)--
       ``(i) subparagraph (A) shall be applied without regard to 
     the phrase `10-year', and
       ``(ii) subparagraph (B) shall not apply.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

                    PART VIII--BROADBAND INCENTIVES

     SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT.

       (a) In General.--Subpart E of part IV of chapter 1 of the 
     Internal Revenue Code of 1986 (relating to rules for 
     computing investment credit), as amended by this Act, is 
     amended by inserting after section 48C the following new 
     section:

[[Page 3283]]



     ``SEC. 48D. BROADBAND INTERNET ACCESS CREDIT.

       ``(a) General Rule.--For purposes of section 46, the 
     broadband credit for any taxable year is the sum of--
       ``(1) the current generation broadband credit, plus
       ``(2) the next generation broadband credit.
       ``(b) Current Generation Broadband Credit; Next Generation 
     Broadband Credit.--For purposes of this section--
       ``(1) Current generation broadband credit.--The current 
     generation broadband credit for any taxable year is equal to 
     10 percent (20 percent in the case of qualified subscribers 
     which are unserved subscribers) of the qualified broadband 
     expenditures incurred with respect to qualified equipment 
     providing current generation broadband services to qualified 
     subscribers and taken into account with respect to such 
     taxable year.
       ``(2) Next generation broadband credit.--The next 
     generation broadband credit for any taxable year is equal to 
     20 percent of the qualified broadband expenditures incurred 
     with respect to qualified equipment providing next generation 
     broadband services to qualified subscribers and taken into 
     account with respect to such taxable year.
       ``(c) When Expenditures Taken Into Account.--For purposes 
     of this section--
       ``(1) In general.--Qualified broadband expenditures with 
     respect to qualified equipment shall be taken into account 
     with respect to the first taxable year in which--
       ``(A) current generation broadband services are provided 
     through such equipment to qualified subscribers, or
       ``(B) next generation broadband services are provided 
     through such equipment to qualified subscribers.
       ``(2) Limitation.--
       ``(A) In general.--Qualified broadband expenditures shall 
     be taken into account under paragraph (1) only with respect 
     to qualified equipment--
       ``(i) the original use of which commences with the 
     taxpayer, and
       ``(ii) which is placed in service, after December 31, 2008, 
     and before January 1, 2011.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (A), 
     if property--
       ``(i) is originally placed in service after December 31, 
     2008, by any person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,
     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in clause (ii).
       ``(d) Special Allocation Rules for Current Generation 
     Broadband Services.--For purposes of determining the current 
     generation broadband credit under subsection (a)(1) with 
     respect to qualified equipment through which current 
     generation broadband services are provided, if the qualified 
     equipment is capable of serving both qualified subscribers 
     and other subscribers, the qualified broadband expenditures 
     shall be multiplied by a fraction--
       ``(1) the numerator of which is the sum of the number of 
     potential qualified subscribers within the rural areas and 
     the underserved areas and the unserved areas which the 
     equipment is capable of serving with current generation 
     broadband services, and
       ``(2) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with current generation broadband 
     services.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Antenna.--The term `antenna' means any device used to 
     transmit or receive signals through the electromagnetic 
     spectrum, including satellite equipment.
       ``(2) Cable operator.--The term `cable operator' has the 
     meaning given such term by section 602(5) of the 
     Communications Act of 1934 (47 U.S.C. 522(5)).
       ``(3) Commercial mobile service carrier.--The term 
     `commercial mobile service carrier' means any person 
     authorized to provide commercial mobile radio service as 
     defined in section 20.3 of title 47, Code of Federal 
     Regulations.
       ``(4) Current generation broadband service.--The term 
     `current generation broadband service' means the transmission 
     of signals at a rate of at least 5,000,000 bits per second to 
     the subscriber and at least 1,000,000 bits per second from 
     the subscriber (at least 3,000,000 bits per second to the 
     subscriber and at least 768,000 bits per second from the 
     subscriber in the case of service through radio transmission 
     of energy).
       ``(5) Multiplexing or demultiplexing.--The term 
     `multiplexing' means the transmission of 2 or more signals 
     over a single channel, and the term `demultiplexing' means 
     the separation of 2 or more signals previously combined by 
     compatible multiplexing equipment.
       ``(6) Next generation broadband service.--The term `next 
     generation broadband service' means the transmission of 
     signals at a rate of at least 100,000,000 bits per second to 
     the subscriber (or its equivalent when the data rate is 
     measured before being compressed for transmission) and at 
     least 20,000,000 bits per second from the subscriber (or its 
     equivalent as so measured).
       ``(7) Nonresidential subscriber.--The term `nonresidential 
     subscriber' means any person who purchases broadband services 
     which are delivered to the permanent place of business of 
     such person.
       ``(8) Open video system operator.--The term `open video 
     system operator' means any person authorized to provide 
     service under section 653 of the Communications Act of 1934 
     (47 U.S.C. 573).
       ``(9) Other wireless carrier.--The term `other wireless 
     carrier' means any person (other than a telecommunications 
     carrier, commercial mobile service carrier, cable operator, 
     open video system operator, or satellite carrier) providing 
     current generation broadband services or next generation 
     broadband service to subscribers through the radio 
     transmission of energy.
       ``(10) Packet switching.--The term `packet switching' means 
     controlling or routing the path of a digitized transmission 
     signal which is assembled into packets or cells.
       ``(11) Provider.--The term `provider' means, with respect 
     to any qualified equipment any--
       ``(A) cable operator,
       ``(B) commercial mobile service carrier,
       ``(C) open video system operator,
       ``(D) satellite carrier,
       ``(E) telecommunications carrier, or
       ``(F) other wireless carrier,
     providing current generation broadband services or next 
     generation broadband services to subscribers through such 
     qualified equipment.
       ``(12) Provision of services.--A provider shall be treated 
     as providing services to 1 or more subscribers if--
       ``(A) such a subscriber has been passed by the provider's 
     equipment and can be connected to such equipment for a 
     standard connection fee,
       ``(B) the provider is physically able to deliver current 
     generation broadband services or next generation broadband 
     services, as applicable, to such a subscriber without making 
     more than an insignificant investment with respect to such 
     subscriber,
       ``(C) the provider has made reasonable efforts to make such 
     subscribers aware of the availability of such services,
       ``(D) such services have been purchased by 1 or more such 
     subscribers, and
       ``(E) such services are made available to such subscribers 
     at average prices comparable to those at which the provider 
     makes available similar services in any areas in which the 
     provider makes available such services.
       ``(13) Qualified equipment.--
       ``(A) In general.--The term `qualified equipment' means 
     property with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable and which provides 
     current generation broadband services or next generation 
     broadband services--
       ``(i) at least a majority of the time during periods of 
     maximum demand to each subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no credit is allowed under subsection 
     (a)(1).
       ``(B) Only certain investment taken into account.--Except 
     as provided in subparagraph (C) or (D), equipment shall be 
     taken into account under subparagraph (A) only to the extent 
     it--
       ``(i) extends from the last point of switching to the 
     outside of the unit, building, dwelling, or office owned or 
     leased by a subscriber in the case of a telecommunications 
     carrier or broadband-over-powerline operator,
       ``(ii) extends from the customer side of the mobile 
     telephone switching office to a transmission/receive antenna 
     (including such antenna) owned or leased by a subscriber in 
     the case of a commercial mobile service carrier,
       ``(iii) extends from the customer side of the headend to 
     the outside of the unit, building, dwelling, or office owned 
     or leased by a subscriber in the case of a cable operator or 
     open video system operator, or
       ``(iv) extends from a transmission/receive antenna 
     (including such antenna) which transmits and receives signals 
     to or from multiple subscribers, to a transmission/receive 
     antenna (including such antenna) on the outside of the unit, 
     building, dwelling, or office owned or leased by a subscriber 
     in the case of a satellite carrier or other wireless carrier, 
     unless such other wireless carrier is also a 
     telecommunications carrier.
       ``(C) Packet switching equipment.--Packet switching 
     equipment, regardless of location, shall be taken into 
     account under subparagraph (A) only if it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of packet 
     switching for current generation broadband services or next 
     generation broadband services, but only if such packet 
     switching is the last in a series of such functions performed 
     in the transmission of a signal to a subscriber or the first 
     in a series of such functions performed in the transmission 
     of a signal from a subscriber.
       ``(D) Multiplexing and demultiplexing equipment.--
     Multiplexing and demultiplexing equipment shall be taken into 
     account under subparagraph (A) only to the extent it is 
     deployed in connection with equipment described in 
     subparagraph (B) and is uniquely designed to perform the 
     function of multiplexing and demultiplexing packets

[[Page 3284]]

     or cells of data and making associated application adaptions, 
     but only if such multiplexing or demultiplexing equipment is 
     located between packet switching equipment described in 
     subparagraph (C) and the subscriber's premises.
       ``(14) Qualified broadband expenditure.--
       ``(A) In general.--The term `qualified broadband 
     expenditure' means any amount--
       ``(i) chargeable to capital account with respect to the 
     purchase and installation of qualified equipment (including 
     any upgrades thereto) for which depreciation is allowable 
     under section 168, and
       ``(ii) incurred after December 31, 2008, and before January 
     1, 2011.
       ``(B) Certain satellite expenditures excluded.--Such term 
     shall not include any expenditure with respect to the 
     launching of any satellite equipment.
       ``(C) Leased equipment.--Such term shall include so much of 
     the purchase price paid by the lessor of equipment subject to 
     a lease described in subsection (c)(2)(B) as is attributable 
     to expenditures incurred by the lessee which would otherwise 
     be described in subparagraph (A).
       ``(15) Qualified subscriber.--The term `qualified 
     subscriber' means--
       ``(A) with respect to the provision of current generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, an underserved area, or an 
     unserved area, or
       ``(ii) any residential subscriber residing in a dwelling 
     located in a rural area, an underserved area, or an unserved 
     area which is not a saturated market, and
       ``(B) with respect to the provision of next generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, an underserved area, or an 
     unserved area , or
       ``(ii) any residential subscriber.
       ``(16) Residential subscriber.--The term `residential 
     subscriber' means any individual who purchases broadband 
     services which are delivered to such individual's dwelling.
       ``(17) Rural area.--The term `rural area' means any census 
     tract which--
       ``(A) is not within 10 miles of any incorporated or census 
     designated place containing more than 25,000 people, and
       ``(B) is not within a county or county equivalent which has 
     an overall population density of more than 500 people per 
     square mile of land.
       ``(18) Rural subscriber.--The term `rural subscriber' means 
     any residential subscriber residing in a dwelling located in 
     a rural area or nonresidential subscriber maintaining a 
     permanent place of business located in a rural area.
       ``(19) Satellite carrier.--The term `satellite carrier' 
     means any person using the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission and operating in the Fixed-Satellite Service under 
     part 25 of title 47 of the Code of Federal Regulations or the 
     Direct Broadcast Satellite Service under part 100 of title 47 
     of such Code to establish and operate a channel of 
     communications for distribution of signals, and owning or 
     leasing a capacity or service on a satellite in order to 
     provide such point-to-multipoint distribution.
       ``(20) Saturated market.--The term `saturated market' means 
     any census tract in which, as of the date of the enactment of 
     this section--
       ``(A) current generation broadband services have been 
     provided by a single provider to 85 percent or more of the 
     total number of potential residential subscribers residing in 
     dwellings located within such census tract, and
       ``(B) such services can be utilized--
       ``(i) at least a majority of the time during periods of 
     maximum demand by each such subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no credit is allowed under subsection 
     (a)(1).
       ``(21) Subscriber.--The term `subscriber' means any person 
     who purchases current generation broadband services or next 
     generation broadband services.
       ``(22) Telecommunications carrier.--The term 
     `telecommunications carrier' has the meaning given such term 
     by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
     153(44)), but--
       ``(A) includes all members of an affiliated group of which 
     a telecommunications carrier is a member, and
       ``(B) does not include any commercial mobile service 
     carrier.
       ``(23) Total potential subscriber population.--The term 
     `total potential subscriber population' means, with respect 
     to any area and based on the most recent census data, the 
     total number of potential residential subscribers residing in 
     dwellings located in such area and potential nonresidential 
     subscribers maintaining permanent places of business located 
     in such area.
       ``(24) Underserved area.--The term `underserved area' means 
     any census tract which is located in--
       ``(A) an empowerment zone or enterprise community 
     designated under section 1391,
       ``(B) the District of Columbia Enterprise Zone established 
     under section 1400,
       ``(C) a renewal community designated under section 1400E, 
     or
       ``(D) a low-income community designated under section 45D.
       ``(25) Underserved subscriber.--The term `underserved 
     subscriber' means any residential subscriber residing in a 
     dwelling located in an underserved area or nonresidential 
     subscriber maintaining a permanent place of business located 
     in an underserved area.
       ``(26) Unserved area.--The term `unserved area' means any 
     census tract in which no current generation broadband 
     services are provided, as certified by the State in which 
     such tract is located not later than September 30, 2009.
       ``(27) Unserved subscriber.--The term `unserved subscriber' 
     means any residential subscriber residing in a dwelling 
     located in an unserved area or nonresidential subscriber 
     maintaining a permanent place of business located in an 
     unserved area.''.
       (b) Credit To Be Part of Investment Credit.--Section 46 
     (relating to the amount of investment credit), as amended by 
     this Act, is amended by striking ``and'' at the end of 
     paragraph (4), by striking the period at the end of paragraph 
     (5) and inserting ``, and'', and by adding at the end the 
     following:
       ``(6) the broadband Internet access credit.''
       (c) Special Rule for Mutual or Cooperative Telephone 
     Companies.--Section 501(c)(12)(B) (relating to list of exempt 
     organizations) is amended by striking ``or'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, or'', and by adding at the end the 
     following new clause:
       ``(v) from the sale of property subject to a lease 
     described in section 48D(c)(2)(B), but only to the extent 
     such income does not in any year exceed an amount equal to 
     the credit for qualified broadband expenditures which would 
     be determined under section 48D for such year if the mutual 
     or cooperative telephone company was not exempt from taxation 
     and was treated as the owner of the property subject to such 
     lease.''.
       (d) Conforming Amendments.--
       (1) Section 49(a)(1)(C), as amended by this Act, is amended 
     by striking ``and'' at the end of clause (iv), by striking 
     the period at the end of clause (v) and inserting ``, and'', 
     and by adding after clause (v) the following new clause:
       ``(vi) the portion of the basis of any qualified equipment 
     attributable to qualified broadband expenditures under 
     section 48D.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1, as amended by this Act, is amended 
     by inserting after the item relating to section 48C the 
     following:

``Sec. 48D. Broadband internet access credit''.

       (e) Designation of Census Tracts.--
       (1) In general.--The Secretary of the Treasury shall, not 
     later than 90 days after the date of the enactment of this 
     Act, designate and publish those census tracts meeting the 
     criteria described in paragraphs (17), (23), (24), and (26) 
     of section 48D(e) of the Internal Revenue Code of 1986 (as 
     added by this section). In making such designations, the 
     Secretary of the Treasury shall consult with such other 
     departments and agencies as the Secretary determines 
     appropriate.
       (2) Saturated market.--
       (A) In general.--For purposes of designating and publishing 
     those census tracts meeting the criteria described in 
     subsection (e)(20) of such section 48D--
       (i) the Secretary of the Treasury shall prescribe not later 
     than 30 days after the date of the enactment of this Act the 
     form upon which any provider which takes the position that it 
     meets such criteria with respect to any census tract shall 
     submit a list of such census tracts (and any other 
     information required by the Secretary) not later than 60 days 
     after the date of the publication of such form, and
       (ii) the Secretary of the Treasury shall publish an 
     aggregate list of such census tracts submitted and the 
     applicable providers not later than 30 days after the last 
     date such submissions are allowed under clause (i).
       (B) No subsequent lists required.--The Secretary of the 
     Treasury shall not be required to publish any list of census 
     tracts meeting such criteria subsequent to the list described 
     in subparagraph (A)(ii).
       (C) Authority to disregard false submissions.--In addition 
     to imposing any other applicable penalties, the Secretary of 
     the Treasury shall have the discretion to disregard any form 
     described in subparagraph (A)(i) on which a provider 
     knowingly submitted false information.
       (f) Other Regulatory Matters.--
       (1) Prohibition.--No Federal or State agency or 
     instrumentality shall adopt regulations or ratemaking 
     procedures that would have the effect of eliminating or 
     reducing any credit or portion thereof allowed under section 
     48D of the Internal Revenue Code of 1986 (as added by this 
     section) or otherwise subverting the purpose of this section.
       (2) Treasury regulatory authority.--It is the intent of 
     Congress in providing the broadband Internet access credit 
     under section 48D of the Internal Revenue Code of 1986

[[Page 3285]]

     (as added by this section) to provide incentives for the 
     purchase, installation, and connection of equipment and 
     facilities offering expanded broadband access to the Internet 
     for users in certain low income and rural areas of the United 
     States, as well as to residential users nationwide, in a 
     manner that maintains competitive neutrality among the 
     various classes of providers of broadband services. 
     Accordingly, the Secretary of the Treasury shall prescribe 
     such regulations as may be necessary or appropriate to carry 
     out the purposes of section 48D of such Code, including--
       (A) regulations to determine how and when a taxpayer that 
     incurs qualified broadband expenditures satisfies the 
     requirements of section 48D of such Code to provide broadband 
     services, and
       (B) regulations describing the information, records, and 
     data taxpayers are required to provide the Secretary to 
     substantiate compliance with the requirements of section 48D 
     of such Code.
       (g) Effective Date.--The amendments made by this section 
     shall apply to expenditures incurred after December 31, 2008.

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

     SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 
                   LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
                   FOLLOWING AN OWNERSHIP CHANGE.

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

             Subtitle D--Manufacturing Recovery Provisions

     SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL 
                   DEVELOPMENT BONDS TO FACILITIES MANUFACTURING 
                   INTANGIBLE PROPERTY.

       (a) In General.--Subparagraph (C) of section 144(a)(12) is 
     amended--
       (1) by striking ``For purposes of this paragraph, the 
     term'' and inserting ``For purposes of this paragraph--
       ``(i) In general.--The term'', and
       (2) by striking the last sentence and inserting the 
     following new clauses:
       ``(ii) Certain facilities included.--Such term includes 
     facilities which are directly related and ancillary to a 
     manufacturing facility (determined without regard to this 
     clause) if--

       ``(I) such facilities are located on the same site as the 
     manufacturing facility, and
       ``(II) not more than 25 percent of the net proceeds of the 
     issue are used to provide such facilities.

       ``(iii) Special rules for bonds issued in 2009 and 2010.--
     In the case of any issue made after the date of enactment of 
     this clause and before January 1, 2011, clause (ii) shall not 
     apply and the net proceeds from a bond shall be considered to 
     be used to provide a manufacturing facility if such proceeds 
     are used to provide--

       ``(I) a facility which is used in the creation or 
     production of intangible property which is described in 
     section 197(d)(1)(C)(iii), or
       ``(II) a facility which is functionally related and 
     subordinate to a manufacturing facility (determined without 
     regard to this subclause) if such facility is located on the 
     same site as the manufacturing facility.''.

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

     SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY 
                   FACILITIES.

       (a) In General.--Section 46 (relating to amount of credit) 
     is amended by striking ``and'' at the end of paragraph (3), 
     by striking the period at the end of paragraph (4), and by 
     adding at the end the following new paragraph:
       ``(5) the qualifying advanced energy project credit.''.
       (b) Amount of Credit.--Subpart E of part IV of subchapter A 
     of chapter 1 (relating to rules for computing investment 
     credit) is amended by inserting after section 48B the 
     following new section:

     ``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     qualifying advanced energy project credit for any taxable 
     year is an amount equal to 30 percent of the qualified 
     investment for such taxable year with respect to any 
     qualifying advanced energy project of the taxpayer.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the basis of 
     eligible property placed in service by the taxpayer during 
     such taxable year which is part of a qualifying advanced 
     energy project--
       ``(A)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer after October 31, 2008, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such eligible property commences with the taxpayer 
     after October 31, 2008, and
       ``(B) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable.
       ``(2) Certain qualified progress expenditures rules made 
     applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this section.
       ``(3) Limitation.--The amount which is treated for all 
     taxable years with respect to any qualifying advanced energy 
     project shall not exceed the amount designated by the 
     Secretary as eligible for the credit under this section.
       ``(c) Definitions.--
       ``(1) Qualifying advanced energy project.--
       ``(A) In general.--The term `qualifying advanced energy 
     project' means a project--
       ``(i) which re-equips, expands, or establishes a 
     manufacturing facility for the production of property which 
     is--

       ``(I) designed to be used to produce energy from the sun, 
     wind, geothermal deposits (within the meaning of section 
     613(e)(2)), or other renewable resources,
       ``(II) designed to manufacture fuel cells, microturbines, 
     or an energy storage system for use with electric or hybrid-
     electric motor vehicles,
       ``(III) designed to manufacture electric grids to support 
     the transmission of intermittent sources of renewable energy, 
     including storage of such energy,
       ``(IV) designed to capture and sequester carbon dioxide 
     emissions,
       ``(V) designed to refine or blend renewable fuels or to 
     produce energy conservation technologies (including energy-
     conserving lighting technologies and smart grid 
     technologies), or
       ``(VI) other advanced energy property designed to reduce 
     greenhouse gas emissions as may be determined by the 
     Secretary, and

       ``(ii) any portion of the qualified investment of which is 
     certified by the Secretary under subsection (d) as eligible 
     for a credit under this section.
       ``(B) Exception.--Such term shall not include any portion 
     of a project for the production of any property which is used 
     in the refining or blending of any transportation fuel (other 
     than renewable fuels).
       ``(2) Eligible property.--The term `eligible property' 
     means any property which is part of a qualifying advanced 
     energy project and is necessary for the production of 
     property described in paragraph (1)(A)(i).
       ``(d) Qualifying Advanced Energy Project Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary, in consultation 
     with the Secretary of Energy, shall establish a qualifying 
     advanced energy project program to consider and award 
     certifications for qualified investments eligible for credits 
     under this section to qualifying advanced energy project 
     sponsors.
       ``(B) Limitation.--The total amount of credits that may be 
     allocated under the program shall not exceed $2,000,000,000.
       ``(2) Certification.--
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application containing 
     such information as the Secretary may require during the 3-
     year period beginning on the date the Secretary establishes 
     the program under paragraph (1).
       ``(B) Time to meet criteria for certification.--Each 
     applicant for certification

[[Page 3286]]

     shall have 2 years from the date of acceptance by the 
     Secretary of the application during which to provide to the 
     Secretary evidence that the requirements of the certification 
     have been met.
       ``(C) Period of issuance.--An applicant which receives a 
     certification shall have 5 years from the date of issuance of 
     the certification in order to place the project in service 
     and if such project is not placed in service by that time 
     period then the certification shall no longer be valid.
       ``(3) Selection criteria.--In determining which qualifying 
     advanced energy projects to certify under this section, the 
     Secretary--
       ``(A) shall take into consideration only those projects 
     where there is a reasonable expectation of commercial 
     viability, and
       ``(B) shall take into consideration which projects--
       ``(i) will provide the greatest domestic job creation (both 
     direct and indirect) during the credit period,
       ``(ii) will provide the greatest net impact in avoiding or 
     reducing air pollutants or anthropogenic emissions of 
     greenhouse gases,
       ``(iii) have the greatest readiness for commercial 
     employment, replication, and further commercial use in the 
     United States,
       ``(iv) will provide the greatest benefit in terms of 
     newness in the commercial market,
       ``(v) have the lowest levelized cost of generated or stored 
     energy, or of measured reduction in energy consumption or 
     greenhouse gas emission (based on costs of the full supply 
     chain), and
       ``(vi) have the shortest project time from certification to 
     completion.
       ``(4) Review and redistribution.--
       ``(A) Review.--Not later than 6 years after the date of 
     enactment of this section, the Secretary shall review the 
     credits allocated under this section as of the date which is 
     6 years after the date of enactment of this section.
       ``(B) Redistribution.--The Secretary may reallocate credits 
     awarded under this section if the Secretary determines that--
       ``(i) there is an insufficient quantity of qualifying 
     applications for certification pending at the time of the 
     review, or
       ``(ii) any certification made pursuant to paragraph (2) has 
     been revoked pursuant to paragraph (2)(B) because the project 
     subject to the certification has been delayed as a result of 
     third party opposition or litigation to the proposed project.
       ``(C) Reallocation.--If the Secretary determines that 
     credits under this section are available for reallocation 
     pursuant to the requirements set forth in paragraph (2), the 
     Secretary is authorized to conduct an additional program for 
     applications for certification.
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection, publicly 
     disclose the identity of the applicant and the amount of the 
     credit with respect to such applicant.
       ``(e) Denial of Double Benefit.--A credit shall not be 
     allowed under this section for any qualified investment for 
     which a credit is allowed under section 48, 48A, or 48B.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
     the end of clause (iii), by striking the period at the end of 
     clause (iv) and inserting ``, and'', and by adding after 
     clause (iv) the following new clause:
       ``(v) the basis of any property which is part of a 
     qualifying advanced energy project under section 48C.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48B the following new item:

``48C. Qualifying advanced energy project credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

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

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

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

       ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
     the applicable percentage of the cost of any qualified plug-
     in electric drive motor vehicle manufacturing facility 
     property as an expense which is not chargeable to a capital 
     account. Any cost so treated shall be allowed as a deduction 
     for the taxable year in which the qualified manufacturing 
     facility property is placed in service.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage is--
       ``(1) 100 percent, in the case of qualified plug-in 
     electric drive motor vehicle manufacturing facility property 
     which is placed in service before January 1, 2012, and
       ``(2) 50 percent, in the case of qualified plug-in electric 
     drive motor vehicle manufacturing facility property which is 
     placed in service after December 31, 2011, and before January 
     1, 2015.
       ``(c) Election.--
       ``(1) In general.--An election under this section for any 
     taxable year shall be made on the taxpayer's return of the 
     tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(2) Election irrevocable.--Any election made under this 
     section may not be revoked except with the consent of the 
     Secretary.
       ``(d) Qualified Plug-In Electric Drive Motor Vehicle 
     Manufacturing Facility Property.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified plug-in electric 
     drive motor vehicle manufacturing facility property' means 
     any qualified property--
       ``(A) the original use of which commences with the 
     taxpayer,
       ``(B) which is placed in service by the taxpayer after the 
     date of the enactment of this section and before January 1, 
     2015, and
       ``(C) no written binding contract for the construction of 
     which was in effect on or before the date of the enactment of 
     this section.
       ``(2) Qualified property.--
       ``(A) In general.--The term `qualified property' means any 
     property which is a facility or a portion of a facility used 
     for the production of--
       ``(i) any new qualified plug-in electric drive motor 
     vehicle (as defined by section 30D(c)), or
       ``(ii) any eligible component.
       ``(B) Eligible component.--The term `eligible component' 
     means any battery, any electric motor or generator, or any 
     power control unit which is designed specifically for use 
     with a new qualified plug-in electric drive motor vehicle (as 
     so defined).
       ``(e) Special Rule for Dual Use Property.--In the case of 
     any qualified plug-in electric drive motor vehicle 
     manufacturing facility property which is used to produce both 
     qualified property and other property which is not qualified 
     property, the amount of costs taken into account under 
     subsection (a) shall be reduced by an amount equal to--
       ``(1) the total amount of such costs (determined before the 
     application of this subsection), multiplied by
       ``(2) the percentage of property expected to be produced 
     which is not qualified property.
       ``(f) Election To Receive Loan in Lieu of Deduction.--
       ``(1) In general.--If a taxpayer elects to have this 
     subsection apply for any taxable year--
       ``(A) subsection (a) shall not apply to any qualified plug-
     in electric drive motor vehicle manufacturing facility 
     property placed in service by the taxpayer,
       ``(B) such taxpayer shall receive a loan from the Secretary 
     in an amount and under such terms as provided in section 
     1303(b) of the American Recovery and Reinvestment Tax Act of 
     2009, and
       ``(C) in the taxable year in which such qualified loan is 
     repaid, each of the limitations described in paragraph (2) 
     shall be increased by the qualified plug-in electric drive 
     motor vehicle manufacturing facility amount which is--
       ``(i) determined under paragraph (3), and
       ``(ii) allocated to such limitation under paragraph (4).
       ``(2) Limitations to be increased.--The limitations 
     described in this paragraph are--
       ``(A) the limitation imposed by section 38(c), and
       ``(B) the limitation imposed by section 53(c).
       ``(3) Qualified plug-in electric drive motor vehicle 
     manufacturing facility amount.--For purposes of this 
     paragraph--
       ``(A) In general.--The qualified plug-in electric drive 
     motor vehicle manufacturing facility amount is an amount 
     equal to the applicable percentage of any qualified plug-in 
     electric drive motor vehicle manufacturing facility which is 
     placed in service during the taxable year.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage is--
       ``(i) 35 percent, in the case of qualified plug-in electric 
     drive motor vehicle manufacturing facility property which is 
     placed in service before January 1, 2012, and
       ``(ii) 17.5 percent, in the case of qualified plug-in 
     electric drive motor vehicle manufacturing facility property 
     which is placed in service after December 31, 2011, and 
     before January 1, 2015.
       ``(C) Special rule for dual use property.--In the case of 
     any qualified plug-in electric drive motor vehicle 
     manufacturing facility property which is used to produce both 
     qualified property and other property which is not qualified 
     property, the amount of costs taken into account under 
     subparagraph (A) shall be reduced by an amount equal to--
       ``(i) the total amount of such costs (determined before the 
     application of this subparagraph), multiplied by
       ``(ii) the percentage of property expected to be produced 
     which is not qualified property.

[[Page 3287]]

       ``(4) Allocation of qualified plug-in electric drive motor 
     vehicle manufacturing facility amount.--The taxpayer shall, 
     at such time and in such manner as the Secretary may 
     prescribe, specify the portion (if any) of the qualified 
     plug-in electric drive motor vehicle manufacturing facility 
     amount for the taxable year which is to be allocated to each 
     of the limitations described in paragraph (2) for such 
     taxable year.
       ``(5) Election.--
       ``(A) In general.--An election under this subsection for 
     any taxable year shall be made on the taxpayer's return of 
     the tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(B) Election irrevocable.--Any election made under this 
     subsection may not be revoked except with the consent of the 
     Secretary.''.
       (b) Loan Program.--
       (1) In general.--The Secretary of the Treasury (or the 
     Secretary's delegate) shall provide a loan to any person who 
     is allowed a deduction under section 179F of the Internal 
     Revenue Code and who makes an election under section 179F(f) 
     of such Code in an amount equal to the qualified plug-in 
     electric drive motor vehicle manufacturing facility amount 
     (as defined in such section 179F(f)).
       (2) Term.--Such loan shall be in the form of a senior note 
     issued by the taxpayer to the Secretary of the Treasury, 
     secured by the qualified plug-in electric drive motor vehicle 
     manufacturing facility property (as defined in section 179F 
     of the Internal Revenue Code of 1986) of the taxpayer, and 
     having a term of 20 years and interest payable at the 
     applicable Federal rate (as determined under section 1274(d) 
     of the Internal Revenue Code of 1986).
       (3) Appropriations.--There is hereby appropriated to the 
     Secretary of the Treasury such sums as may be necessary to 
     carry out this subsection.
       (c) Clerical Amendment.--The table of sections for part VI 
     of subchapter B of chapter 1 is amended by adding at the end 
     the following new item:

``Sec. 179F. Election to expense manufacturing facilities producing 
              plug-in electric drive motor vehicle and components.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                  Subtitle E--Economic Recovery Tools

     SEC. 1401. RECOVERY ZONE BONDS.

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

                    ``PART III--RECOVERY ZONE BONDS

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

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

       ``(a) Allocations.--
       ``(1) In general.--The Secretary shall allocate the 
     national recovery zone economic development bond limitation 
     and the national recovery zone facility bond limitation among 
     the States--
       ``(A) by allocating 1 percent of each such limitation to 
     each State, and
       ``(B) by allocating the remainder of each such limitation 
     among the States in the proportion that each State's 2008 
     State employment decline bears to the aggregate of the 2008 
     State employment declines for all of the States.
       ``(2) 2008 state employment decline.--For purposes of this 
     subsection, the term `2008 State employment decline' means, 
     with respect to any State, the excess (if any) of--
       ``(A) the number of individuals employed in such State 
     determined for December 2007, over
       ``(B) the number of individuals employed in such State 
     determined for December 2008.
       ``(3) Allocations by states.--
       ``(A) In general.--Each State with respect to which an 
     allocation is made under paragraph (1) shall reallocate such 
     allocation among the counties and large municipalities in 
     such State in the proportion the each such county's or 
     municipality's 2008 employment decline bears to the aggregate 
     of the 2008 employment declines for all the counties and 
     municipalities in such State.
       ``(B) Large municipalities.--For purposes of subparagraph 
     (A), the term `large municipality' means a municipality with 
     a population of more than 100,000.
       ``(C) Determination of local employment declines.--For 
     purposes of this paragraph, the employment decline of any 
     municipality or county shall be determined in the same manner 
     as determining the State employment decline under paragraph 
     (2), except that in the case of a municipality any portion of 
     which is in a county, such portion shall be treated as part 
     of such municipality and not part of such county.
       ``(4) National limitations.--
       ``(A) Recovery zone economic development bonds.--There is a 
     national recovery zone economic development bond limitation 
     of $5,000,000,000.
       ``(B) Recovery zone facility bonds.--There is a national 
     recovery zone facility bond limitation of $10,000,000,000.
       ``(b) Recovery Zone.--For purposes of this part, the term 
     `recovery zone' means--
       ``(1) any area designated by the issuer as having 
     significant poverty, unemployment, rate of home foreclosures, 
     or general distress, and
       ``(2) any area for which a designation as an empowerment 
     zone or renewal community is in effect.

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

       ``(a) In General.--In the case of a recovery zone economic 
     development bond--
       ``(1) such bond shall be treated as a qualified bond for 
     purposes of section 6431, and
       ``(2) subsection (b) of such section shall be applied by 
     substituting `40 percent' for `35 percent'.
       ``(b) Recovery Zone Economic Development Bond.--
       ``(1) In general.--For purposes of this section, the term 
     `recovery zone economic development bond' means any build 
     America bond (as defined in section 54AA(d)) issued before 
     January 1, 2011, as part of issue if--
       ``(A) 100 percent of the available project proceeds (as 
     defined in section 54A) of such issue are to be used for one 
     or more qualified economic development purposes, and
       ``(B) the issuer designates such bond for purposes of this 
     section.
       ``(2) Limitation on amount of bonds designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated by any issuer under paragraph (1) shall not exceed 
     the amount of the recovery zone economic development bond 
     limitation allocated to such issuer under section 1400U-1.
       ``(c) Qualified Economic Development Purpose.--For purposes 
     of this section, the term `qualified economic development 
     purpose' means expenditures for purposes of promoting 
     development or other economic activity in a recovery zone, 
     including--
       ``(1) capital expenditures paid or incurred with respect to 
     property located in such zone,
       ``(2) expenditures for public infrastructure and 
     construction of public facilities, and
       ``(3) expenditures for job training and educational 
     programs.

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

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

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

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

[[Page 3288]]



     SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

       (a) In General.--Section 7871 is amended by adding at the 
     end the following new subsection:
       ``(f) Tribal Economic Development Bonds.--
       ``(1) Allocation of limitation.--
       ``(A) In general.--The Secretary shall allocate the 
     national tribal economic development bond limitation among 
     the Indian tribal governments in such manner as the 
     Secretary, in consultation with the Secretary of the 
     Interior, determines appropriate.
       ``(B) National limitation.--There is a national tribal 
     economic development bond limitation of $2,000,000,000.
       ``(2) Bonds treated as exempt from tax.--In the case of a 
     tribal economic development bond--
       ``(A) notwithstanding subsection (c), such bond shall be 
     treated for purposes of this title in the same manner as if 
     such bond were issued by a State,
       ``(B) the Indian tribal government issuing such bond and 
     any instrumentality of such Indian tribal government shall be 
     treated as a State for purposes of section 141, and
       ``(C) section 146 shall not apply.
       ``(3) Tribal economic development bond.--
       ``(A) In general.--For purposes of this section, the term 
     `tribal economic development bond' means any bond issued by 
     an Indian tribal government--
       ``(i) the interest on which would be exempt from tax under 
     section 103 if issued by a State or local government, and
       ``(ii) which is designated by the Indian tribal government 
     as a tribal economic development bond for purposes of this 
     subsection.
       ``(B) Exceptions.--The term tribal economic development 
     bond shall not include any bond issued as part of an issue if 
     any portion of the proceeds of such issue are used to 
     finance--
       ``(i) any portion of a building in which class II or class 
     III gaming (as defined in section 4 of the Indian Gaming 
     Regulatory Act) is conducted or housed or any other property 
     actually used in the conduct of such gaming, or
       ``(ii) any facility located outside the Indian reservation 
     (as defined in section 168(j)(6)).
       ``(C) Limitation on amount of bonds designated.--The 
     maximum aggregate face amount of bonds which may be 
     designated by any Indian tribal government under subparagraph 
     (A) shall not exceed the amount of national tribal economic 
     development bond limitation allocated to such government 
     under paragraph (1).''.
       (b) Study.--The Secretary of the Treasury, or the 
     Secretary's delegate, shall conduct a study of the effects of 
     the amendment made by subsection (a). Not later than 1 year 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury, or the Secretary's delegate, shall report to 
     Congress on the results of the study conducted under this 
     paragraph, including the Secretary's recommendations 
     regarding such amendment.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT.

       (a) Increase in National Limitation.--
       (1) In general.--Section 45D(f)(1) is amended--
       (A) by striking ``and'' at the end of subparagraph (C),
       (B) by striking ``, 2007, 2008, and 2009.'' in subparagraph 
     (D), and inserting ``and 2007,'', and
       (C) by adding at the end the following new subparagraphs:
       ``(E) $5,000,000,000 for 2008, and
       ``(F) $5,000,000,000 for 2009.''.
       (2) Special rule for allocation of increased 2008 
     limitation.--The amount of the increase in the new markets 
     tax credit limitation for calendar year 2008 by reason of the 
     amendments made by subsection (a) shall be allocated in 
     accordance with section 45D(f)(2) of the Internal Revenue 
     Code of 1986 to qualified community development entities (as 
     defined in section 45D(c) of such Code) which--
       (A) submitted an allocation application with respect to 
     calendar year 2008, and
       (B)(i) did not receive an allocation for such calendar 
     year, or
       (ii) received an allocation for such calendar year in an 
     amount less than the amount requested in the allocation 
     application.
       (b) Alternative Minimum Tax Relief.--
       (1) In general.--Section 38(c)(4)(B) is amended by 
     redesignating clauses (v) through (viii) as clauses (vi) 
     through (ix), respectively, and by inserting after clause 
     (iv) the following new clause:
       ``(v) the credit determined under section 45D to the extent 
     that such credit is attributable to a qualified equity 
     investment which is designated as such under section 
     45D(b)(1)(C) pursuant to an allocation of the new markets tax 
     credit limitation for calendar year 2009,''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to credits determined under section 45D of the 
     Internal Revenue Code of 1986 in taxable years ending after 
     the date of the enactment of this Act, and to carrybacks of 
     such credits.

               Subtitle F--Infrastructure Financing Tools

          PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

     SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT 
                   INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.

       (a) In General.--Subsection (b) of section 265 is amended 
     by adding at the end the following new paragraph:
       ``(7) De minimis exception for bonds issued during 2009 or 
     2010.--
       ``(A) In general.--In applying paragraph (2)(A), there 
     shall not be taken into account tax-exempt obligations issued 
     during 2009 or 2010.
       ``(B) Limitation.--The amount of tax-exempt obligations not 
     taken into account by reason of subparagraph (A) shall not 
     exceed 2 percent of the amount determined under paragraph 
     (2)(B).
       ``(C) Refundings.--For purposes of this paragraph, a 
     refunding bond (whether a current or advance refunding) shall 
     be treated as issued on the date of the issuance of the 
     refunded bond (or in the case of a series of refundings, the 
     original bond).''.
       (b) Treatment as Financial Institution Preference Item.--
     Clause (iv) of section 291(e)(1)(B) is amended by adding at 
     the end the following: ``That portion of any obligation not 
     taken into account under paragraph (2)(A) of section 265(b) 
     by reason of paragraph (7) of such section shall be treated 
     for purposes of this section as having been acquired on 
     August 7, 1986.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.

     SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-
                   EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR 
                   FINANCIAL INSTITUTIONS.

       (a) In General.--Paragraph (3) of section 265(b) (relating 
     to exception for certain tax-exempt obligations) is amended 
     by adding at the end the following new subparagraph:
       ``(G) Special rules for obligations issued during 2009 and 
     2010.--
       ``(i) Increase in limitation.--In the case of obligations 
     issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and 
     (D)(iii)(II) shall each be applied by substituting 
     `$30,000,000' for `$10,000,000'.
       ``(ii) Qualified 501(c)(3) bonds treated as issued by 
     exempt organization.--In the case of a qualified 501(c)(3) 
     bond (as defined in section 145) issued during 2009 or 2010, 
     this paragraph shall be applied by treating the 501(c)(3) 
     organization for whose benefit such bond was issued as the 
     issuer.
       ``(iii) Special rule for qualified financings.--In the case 
     of a qualified financing issue issued during 2009 or 2010--

       ``(I) subparagraph (F) shall not apply, and
       ``(II) any obligation issued as a part of such issue shall 
     be treated as a qualified tax-exempt obligation if the 
     requirements of this paragraph are met with respect to each 
     qualified portion of the issue (determined by treating each 
     qualified portion as a separate issue which is issued by the 
     qualified borrower with respect to which such portion 
     relates).

       ``(iv) Qualified financing issue.--For purposes of this 
     subparagraph, the term `qualified financing issue' means any 
     composite, pooled, or other conduit financing issue the 
     proceeds of which are used directly or indirectly to make or 
     finance loans to 1 or more ultimate borrowers each of whom is 
     a qualified borrower.
       ``(v) Qualified portion.--For purposes of this 
     subparagraph, the term `qualified portion' means that portion 
     of the proceeds which are used with respect to each qualified 
     borrower under the issue.
       ``(vi) Qualified borrower.--For purposes of this 
     subparagraph, the term `qualified borrower' means a borrower 
     which is a State or political subdivision thereof or an 
     organization described in section 501(c)(3) and exempt from 
     taxation under section 501(a).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after December 31, 2008.

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

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

[[Page 3289]]

     January 1, 2011. For purposes of the preceding sentence, a 
     refunding bond (whether a current or advance refunding) shall 
     be treated as issued on the date of the issuance of the 
     refunded bond (or in the case of a series of refundings, the 
     original bond).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.

     SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY 
                   BONDS.

       (a) In General.--Paragraph (1) of section 142(i) is amended 
     by striking ``operate at speeds in excess of'' and inserting 
     ``be capable of attaining a maximum speed in excess of''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

    PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
                              CONTRACTORS

     SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON 
                   GOVERNMENT CONTRACTORS.

       Subsection (b) of section 511 of the Tax Increase 
     Prevention and Reconciliation Act of 2005 is amended by 
     striking ``December 31, 2010'' and inserting ``December 31, 
     2011''.

                 PART III--TAX CREDIT BONDS FOR SCHOOLS

     SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.

       (a) In General.--Subpart I of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

       ``(a) Qualified School Construction Bond.--For purposes of 
     this subchapter, the term `qualified school construction 
     bond' means any bond issued as part of an issue if--
       ``(1) 100 percent of the available project proceeds of such 
     issue are to be used for the construction, rehabilitation, or 
     repair of a public school facility or for the acquisition of 
     land on which such a facility is to be constructed with part 
     of the proceeds of such issue,
       ``(2) the bond is issued by a State or local government 
     within the jurisdiction of which such school is located, and
       ``(3) the issuer designates such bond for purposes of this 
     section.
       ``(b) Limitation on Amount of Bonds Designated.--The 
     maximum aggregate face amount of bonds issued during any 
     calendar year which may be designated under subsection (a) by 
     any issuer shall not exceed the limitation amount allocated 
     under subsection (d) for such calendar year to such issuer.
       ``(c) National Limitation on Amount of Bonds Designated.--
     There is a national qualified school construction bond 
     limitation for each calendar year. Such limitation is--
       ``(1) $5,000,000,000 for 2009,
       ``(2) $5,000,000,000 for 2010, and
       ``(3) except as provided in subsection (e), zero after 
     2010.
       ``(d) Limitation Allocated Among States.--
       ``(1) In general.--The limitation applicable under 
     subsection (c) for any calendar year shall be allocated by 
     the Secretary among the States in proportion to the 
     respective numbers of children in each State who have 
     attained age 5 but not age 18 for the most recent fiscal year 
     ending before such calendar year. The limitation amount 
     allocated to a State under the preceding sentence shall be 
     allocated by the State to issuers within such State.
       ``(2) Minimum allocations to states.--
       ``(A) In general.--The Secretary shall adjust the 
     allocations under this subsection for any calendar year for 
     each State to the extent necessary to ensure that the amount 
     allocated to such State under this subsection for such year 
     is not less than an amount equal to such State's adjusted 
     minimum percentage of the amount to be allocated under 
     paragraph (1) for the calendar year.
       ``(B) Minimum percentage.--A State's minimum percentage for 
     any calendar year is equal to the product of--
       ``(i) the quotient of--

       ``(I) the amount the State is eligible to receive under 
     section 1124(d) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6333(d)) for the most recent fiscal year 
     ending before such calendar year, divided by
       ``(II) the amount all States are eligible to receive under 
     section 1124 of such Act (20 U.S.C. 6333) for such fiscal 
     year, multiplied by

       ``(ii) 100.
       ``(3) Allocations to certain possessions.--The amount to be 
     allocated under paragraph (1) to any possession of the United 
     States other than Puerto Rico shall be the amount which would 
     have been allocated if all allocations under paragraph (1) 
     were made on the basis of respective populations of 
     individuals below the poverty line (as defined by the Office 
     of Management and Budget). In making other allocations, the 
     amount to be allocated under paragraph (1) shall be reduced 
     by the aggregate amount allocated under this paragraph to 
     possessions of the United States.
       ``(4) Allocations for indian schools.--In addition to the 
     amounts otherwise allocated under this subsection, 
     $200,000,000 for calendar year 2009, and $200,000,000 for 
     calendar year 2010, shall be allocated by the Secretary of 
     the Interior for purposes of the construction, 
     rehabilitation, and repair of schools funded by the Bureau of 
     Indian Affairs. In the case of amounts allocated under the 
     preceding sentence, Indian tribal governments (as defined in 
     section 7701(a)(40)) shall be treated as qualified issuers 
     for purposes of this subchapter.
       ``(e) Carryover of Unused Limitation.--If for any calendar 
     year--
       ``(1) the amount allocated under subsection (d) to any 
     State, exceeds
       ``(2) the amount of bonds issued during such year which are 
     designated under subsection (a) pursuant to such allocation,

     the limitation amount under such subsection for such State 
     for the following calendar year shall be increased by the 
     amount of such excess. A similar rule shall apply to the 
     amounts allocated under subsection (d)(4).''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d) is amended by striking 
     ``or'' at the end of subparagraph (C), by inserting ``or'' at 
     the end of subparagraph (D), and by inserting after 
     subparagraph (D) the following new subparagraph:
       ``(E) a qualified school construction bond,''.
       (2) Subparagraph (C) of section 54A(d)(2) is amended by 
     striking ``and'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, and'', and 
     by adding at the end the following new clause:
       ``(v) in the case of a qualified school construction bond, 
     a purpose specified in section 54F(a)(1).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 54F. Qualified school construction bonds.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

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

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

                      PART IV--BUILD AMERICA BONDS

     SEC. 1531. BUILD AMERICA BONDS.

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

                    ``Subpart J--Build America Bonds

``Sec. 54AA. Build America bonds.

     ``SEC. 54AA. BUILD AMERICA BONDS.

       ``(a) In General.--If a taxpayer holds a build America bond 
     on one or more interest payment dates of the bond during any 
     taxable year, there shall be allowed as a credit against the 
     tax imposed by this chapter for the taxable year an amount 
     equal to the sum of the credits determined under subsection 
     (b) with respect to such dates.
       ``(b) Amount of Credit.--The amount of the credit 
     determined under this subsection with respect to any interest 
     payment date for a build America bond is 35 percent of the 
     amount of interest payable by the issuer with respect to such 
     date (40 percent in the case of an issuer described in 
     section 148(f)(4)(D) (determined without regard to clauses 
     (v), (vi), and (vii) thereof and by substituting 
     `$30,000,000' for `$5,000,000' each place it appears 
     therein).
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than subpart C and this subpart).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year 
     (determined before the application of paragraph (1) for such 
     succeeding taxable year).
       ``(d) Build America Bond.--
       ``(1) In general.--For purposes of this section, the term 
     `build America bond' means any obligation (other than a 
     private activity bond) if--
       ``(A) the interest on such obligation would (but for this 
     section) be excludable from gross income under section 103,
       ``(B) such obligation is issued before January 1, 2011, and
       ``(C) the issuer makes an irrevocable election to have this 
     section apply.
       ``(2) Applicable rules.--For purposes of applying paragraph 
     (1)--
       ``(A) for purposes of section 149(b), a build America bond 
     shall not be treated as federally guaranteed by reason of the 
     credit allowed under subsection (a) or section 6431,
       ``(B) for purposes of section 148, the yield on a build 
     America bond shall be determined

[[Page 3290]]

     without regard to the credit allowed under subsection (a), 
     and
       ``(C) a bond shall not be treated as a build America bond 
     if the issue price has more than a de minimis amount 
     (determined under rules similar to the rules of section 
     1273(a)(3)) of premium over the stated principal amount of 
     the bond.
       ``(e) Interest Payment Date.--For purposes of this section, 
     the term `interest payment date' means any date on which the 
     holder of record of the build America bond is entitled to a 
     payment of interest under such bond.
       ``(f) Special Rules.--
       ``(1) Interest on build america bonds includible in gross 
     income for federal income tax purposes.--For purposes of this 
     title, interest on any build America bond shall be includible 
     in gross income.
       ``(2) Application of certain rules.--Rules similar to the 
     rules of subsections (f), (g), (h), and (i) of section 54A 
     shall apply for purposes of the credit allowed under 
     subsection (a).
       ``(g) Special Rule for Qualified Bonds Issued Before 
     2011.--In the case of a qualified bond issued before January 
     1, 2011--
       ``(1) Issuer allowed refundable credit.--In lieu of any 
     credit allowed under this section with respect to such bond, 
     the issuer of such bond shall be allowed a credit as provided 
     in section 6431.
       ``(2) Qualified bond.--For purposes of this subsection, the 
     term `qualified bond' means any build America bond issued as 
     part of an issue if--
       ``(A) 100 percent of the available project proceeds (as 
     defined in section 54A) of such issue are to be used for 
     capital expenditures, and
       ``(B) the issuer makes an irrevocable election to have this 
     subsection apply.
       ``(h) Regulations.--The Secretary may prescribe such 
     regulations and other guidance as may be necessary or 
     appropriate to carry out this section and section 6431.''.
       (b) Credit for Qualified Bonds Issued Before 2011.--
     Subchapter B of chapter 65 is amended by adding at the end 
     the following new section:

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

       ``(a) In General.--In the case of a qualified bond issued 
     before January 1, 2011, the issuer of such bond shall be 
     allowed a credit with respect to each interest payment under 
     such bond which shall be payable by the Secretary as provided 
     in subsection (b).
       ``(b) Payment of Credit.--The Secretary shall pay 
     (contemporaneously with each interest payment date under such 
     bond) to the issuer of such bond (or to any person who makes 
     such interest payments on behalf of the issuer) 35 percent of 
     the interest payable under such bond on such date (40 percent 
     in the case of an issuer described in section 148(f)(4)(D) 
     (determined without regard to clauses (v), (vi), and (vii) 
     thereof and by substituting `$30,000,000' for `$5,000,000' 
     each place it appears therein).
       ``(c) Application of Arbitrage Rules.--For purposes of 
     section 148, the yield on a qualified bond shall be reduced 
     by the credit allowed under this section.
       ``(d) Interest Payment Date.--For purposes of this 
     subsection, the term `interest payment date' means each date 
     on which interest is payable by the issuer under the terms of 
     the bond.
       ``(e) Qualified Bond.--For purposes of this subsection, the 
     term `qualified bond' has the meaning given such term in 
     section 54AA(g).''.
       (c) Conforming Amendments.--
       (1) Section 1324(b)(2) of title 31, United States Code, is 
     amended by striking ``or 6428'' and inserting ``6428, or 
     6431,''.
       (2) Section 54A(c)(1)(B) is amended by striking ``subpart 
     C'' and inserting ``subparts C and J''.
       (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are 
     each amended by striking ``and I'' and inserting ``, I, and 
     J''.
       (4) Section 6401(b)(1) is amended by striking ``and I'' and 
     inserting ``I, and J''.
       (5) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subpart J. Build America bonds.''.
       (6) The table of section for subchapter B of chapter 65 is 
     amended by adding at the end the following new item:

``Sec. 6431. Credit for qualified bonds allowed to issuer.''.
       (d) Transitional Coordination With State Law.--Except as 
     otherwise provided by a State after the date of the enactment 
     of this Act, the interest on any build America bond (as 
     defined in section 54AA of the Internal Revenue Code of 1986, 
     as added by this section) and the amount of any credit 
     determined under such section with respect to such bond shall 
     be treated for purposes of the income tax laws of such State 
     as being exempt from Federal income tax.
       (e) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     Subtitle G--Economic Recovery Payments to Certain Individuals

     SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL 
                   SECURITY, SUPPLEMENTAL SECURITY INCOME, 
                   RAILROAD RETIREMENT BENEFITS, AND VETERANS 
                   DISABILITY COMPENSATION OR PENSION BENEFITS.

       (a) Authority to Make Payments.--
       (1) Eligibility.--
       (A) In general.--Subject to paragraph (5)(B), the Secretary 
     of the Treasury shall make a $300 payment to each individual 
     who, for any month during the 3-month period ending with the 
     month which ends prior to the month that includes the date of 
     the enactment of this Act, is entitled to a benefit payment 
     described in clause (i), (ii), or (iii) of subparagraph (B) 
     or is eligible for a SSI cash benefit described in 
     subparagraph (C).
       (B) Benefit payment described.--For purposes of 
     subparagraph (A):
       (i) Title ii benefit.--A benefit payment described in this 
     clause is a monthly insurance benefit payable (without regard 
     to sections 202(j)(1) and 223(b) of the Social Security Act 
     (42 U.S.C. 402(j)(1), 423(b)) under--

       (I) section 202(a) of such Act (42 U.S.C. 402(a));
       (II) section 202(b) of such Act (42 U.S.C. 402(b));
       (III) section 202(c) of such Act (42 U.S.C. 402(c));
       (IV) section 202(d)(1)(B)(ii) of such Act (42 U.S.C. 
     402(d)(1)(B)(ii));
       (V) section 202(e) of such Act (42 U.S.C. 402(e));
       (VI) section 202(f) of such Act (42 U.S.C. 402(f));
       (VII) section 202(g) of such Act (42 U.S.C. 402(g));
       (VIII) section 202(h) of such Act (42 U.S.C. 402(h));
       (IX) section 223(a) of such Act (42 U.S.C. 423(a));
       (X) section 227 of such Act (42 U.S.C. 427); or
       (XI) section 228 of such Act (42 U.S.C. 428).

       (ii) Railroad retirement benefit.--A benefit payment 
     described in this clause is a monthly annuity or pension 
     payment payable (without regard to section 5(a)(ii) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii)) 
     under--

       (I) section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1));
       (II) section 2(c) of such Act (45 U.S.C. 231a(c));
       (III) section 2(d)(1)(i) of such Act (45 U.S.C. 
     231a(d)(1)(i));
       (IV) section 2(d)(1)(ii) of such Act (45 U.S.C. 
     231a(d)(1)(ii));
       (V) section 2(d)(1)(iii)(C) of such Act to an adult 
     disabled child (45 U.S.C. 231a(d)(1)(iii)(C));
       (VI) section 2(d)(1)(iv) of such Act (45 U.S.C. 
     231a(d)(1)(iv));
       (VII) section 2(d)(1)(v) of such Act (45 U.S.C. 
     231a(d)(1)(v)); or
       (VIII) section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) 
     with respect to any of the benefit payments described in 
     clause (i) of this subparagraph.

       (iii) Veterans benefit.--A benefit payment described in 
     this clause is a compensation or pension payment payable 
     under--

       (I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 
     38, United States Code;
       (II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 
     38, United States Code;
       (III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 
     1562 of title 38, United States Code; or
       (IV) section 1805, 1815, or 1821 of title 38, United States 
     Code,

     to a veteran, surviving spouse, child, or parent as described 
     in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, 
     title 38, United States Code, who received that benefit 
     during any month within the 3 month period ending with the 
     month which ends prior to the month that includes the date of 
     the enactment of this Act.
       (C) SSI cash benefit described.--A SSI cash benefit 
     described in this subparagraph is a cash benefit payable 
     under section 1611 (other than under subsection (e)(1)(B) of 
     such section) or 1619(a) of the Social Security Act (42 
     U.S.C. 1382, 1382h).
       (2) Requirement.--A payment shall be made under paragraph 
     (1) only to individuals who reside in 1 of the 50 States, the 
     District of Columbia, Puerto Rico, Guam, the United States 
     Virgin Islands, American Samoa, or the Northern Mariana 
     Islands. For purposes of the preceding sentence, the 
     determination of the individual's residence shall be based on 
     the current address of record under a program specified in 
     paragraph (1).
       (3) No double payments.--An individual shall be paid only 1 
     payment under this section, regardless of whether the 
     individual is entitled to, or eligible for, more than 1 
     benefit or cash payment described in paragraph (1).
       (4) Limitation.--A payment under this section shall not be 
     made--
       (A) in the case of an individual entitled to a benefit 
     specified in paragraph (1)(B)(i) or paragraph 
     (1)(B)(ii)(VIII) if, for the most recent month of such 
     individual's entitlement in the 3-month period described in 
     paragraph (1), such individual's benefit under such paragraph 
     was not payable by reason of subsection (x) or (y) of section 
     202 the Social Security Act (42 U.S.C. 402) or section 1129A 
     of such Act (42 U.S.C. 1320a-8a);
       (B) in the case of an individual entitled to a benefit 
     specified in paragraph (1)(B)(iii) if, for the most recent 
     month of such individual's entitlement in the 3 month period 
     described in paragraph (1), such individual's

[[Page 3291]]

     benefit under such paragraph was not payable, or was reduced, 
     by reason of section 1505, 5313, or 5313B of title 38, United 
     States Code;
       (C) in the case of an individual entitled to a benefit 
     specified in paragraph (1)(C) if, for such most recent month, 
     such individual's benefit under such paragraph was not 
     payable by reason of subsection (e)(1)(A) or (e)(4) of 
     section 1611 (42 U.S.C. 1382) or section 1129A of such Act 
     (42 U.S.C. 1320a-8a); or
       (D) in the case of any individual whose date of death 
     occurs before the date on which the individual is certified 
     under subsection (b) to receive a payment under this section.
       (5) Timing and manner of payments.--
       (A) In general.--The Secretary of the Treasury shall 
     commence making payments under this section at the earliest 
     practicable date but in no event later than 120 days after 
     the date of enactment of this Act. The Secretary of the 
     Treasury may make any payment electronically to an individual 
     in such manner as if such payment was a benefit payment or 
     cash benefit to such individual under the applicable program 
     described in subparagraph (B) or (C) of paragraph (1).
       (B) Deadline.--No payments shall be made under this section 
     after December 31, 2010, regardless of any determinations of 
     entitlement to, or eligibility for, such payments made after 
     such date.
       (b) Identification of Recipients.--The Commissioner of 
     Social Security, the Railroad Retirement Board, and the 
     Secretary of Veterans Affairs shall certify the individuals 
     entitled to receive payments under this section and provide 
     the Secretary of the Treasury with the information needed to 
     disburse such payments. A certification of an individual 
     shall be unaffected by any subsequent determination or 
     redetermination of the individual's entitlement to, or 
     eligibility for, a benefit specified in subparagraph (B) or 
     (C) of subsection (a)(1).
       (c) Treatment of Payments.--
       (1) Payment to be disregarded for purposes of all federal 
     and federally assisted programs.--A payment under subsection 
     (a) shall not be regarded as income and shall not be regarded 
     as a resource for the month of receipt and the following 9 
     months, for purposes of determining the eligibility of the 
     recipient (or the recipient's spouse or family) for benefits 
     or assistance, or the amount or extent of benefits or 
     assistance, under any Federal program or under any State or 
     local program financed in whole or in part with Federal 
     funds.
       (2) Payment not considered income for purposes of 
     taxation.--A payment under subsection (a) shall not be 
     considered as gross income for purposes of the Internal 
     Revenue Code of 1986.
       (3) Payments protected from assignment.--The provisions of 
     sections 207 and 1631(d)(1) of the Social Security Act (42 
     U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 
     of title 38, United States Code, shall apply to any payment 
     made under subsection (a) as if such payment was a benefit 
     payment or cash benefit to such individual under the 
     applicable program described in subparagraph (B) or (C) of 
     subsection (a)(1).
       (4) Payments subject to offset.--Notwithstanding paragraph 
     (3), for purposes of section 3716 of title 31, United States 
     Code, any payment made under this section shall not be 
     considered a benefit payment or cash benefit made under the 
     applicable program described in subparagraph (B) or (C) of 
     subsection (a)(1) and all amounts paid shall be subject to 
     offset to collect delinquent debts.
       (d) Payment to Representative Payees and Fiduciaries.--
       (1) In general.--In any case in which an individual who is 
     entitled to a payment under subsection (a) and whose benefit 
     payment or cash benefit described in paragraph (1) of that 
     subsection is paid to a representative payee or fiduciary, 
     the payment under subsection (a) shall be made to the 
     individual's representative payee or fiduciary and the entire 
     payment shall be used only for the benefit of the individual 
     who is entitled to the payment.
       (2) Applicability.--
       (A) Payment on the basis of a title ii or ssi benefit.--
     Section 1129(a)(3) of the Social Security Act (42 U.S.C. 
     1320a-8(a)(3)) shall apply to any payment made on the basis 
     of an entitlement to a benefit specified in paragraph 
     (1)(B)(i) or (1)(C) of subsection (a) in the same manner as 
     such section applies to a payment under title II or XVI of 
     such Act.
       (B) Payment on the basis of a railroad retirement 
     benefit.--Section 13 of the Railroad Retirement Act (45 
     U.S.C. 231l) shall apply to any payment made on the basis of 
     an entitlement to a benefit specified in paragraph (1)(B)(ii) 
     of subsection (a) in the same manner as such section applies 
     to a payment under such Act.
       (C) Payment on the basis of a veterans benefit.--Sections 
     5502, 6106, and 6108 of title 38, United States Code, shall 
     apply to any payment made on the basis of an entitlement to a 
     benefit specified in paragraph (1)(B)(iii) of subsection (a) 
     in the same manner as those sections apply to a payment under 
     that title.
       (e) Appropriation.--Out of any sums in the Treasury of the 
     United States not otherwise appropriated, the following sums 
     are appropriated for the period of fiscal years 2009 and 2010 
     to carry out this section:
       (1) For the Secretary of the Treasury--
       (A) such sums as may be necessary to make payments under 
     this section; and
       (B) $57,000,000 for administrative costs incurred in 
     carrying out this section and section 36A of the Internal 
     Revenue Code of 1986 (as added by this Act).
       (2) For the Commissioner of Social Security, $90,000,000 
     for the Social Security Administration's Limitation on 
     Administrative Expenses for costs incurred in carrying out 
     this section.
       (3) For the Railroad Retirement Board, $1,000,000 for 
     administrative costs incurred in carrying out this section.
       (4) For the Secretary of Veterans Affairs, $100,000 for the 
     Information Systems Technology account and $7,100,000 for the 
     General Operating Expenses account for administrative costs 
     incurred in carrying out this section.

                Subtitle H--Trade Adjustment Assistance

     SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUSTMENT ASSISTANCE 
                   PROGRAM.

       (a) Assistance for Workers.--
       (1) In general.--Section 245(a) of the Trade Act of 1974 
     (19 U.S.C. 2317(a)) is amended by striking ``December 31, 
     2007'' and inserting ``December 31, 2010''.
       (2) Alternative trade adjustment assistance.--Section 
     246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is 
     amended by striking ``5 years'' and inserting ``7 years''.
       (b) Assistance for Firms.--Section 256(b) of the Trade Act 
     of 1974 (19 U.S.C. 2346(b)) is amended by striking ``2007, 
     and $4,000,000 for the 3-month period beginning on October 1, 
     2007,'' and inserting ``December 31, 2010''.
       (c) Assistance for Farmers.--Section 298(a) of the Trade 
     Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking 
     ``through 2007'' and all that follows through the end period 
     and inserting ``through December 31, 2010 to carry out the 
     purposes of this chapter.''.
       (d) Extension of Termination Dates.--Section 285 of the 
     Trade Act of 1974 (19 U.S.C. 2271 note) is amended by 
     striking ``December 31, 2007'' each place it appears and 
     inserting ``December 31, 2010''.
       (e) Sense of the Senate Regarding Adjustment Assistance for 
     Communities.--It is the sense of the Senate that title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.) should be 
     amended to assist any community impacted by trade with 
     economic adjustment through--
       (1) the coordination of efforts by State and local 
     governments and economic organizations;
       (2) the coordination of Federal, State, and local 
     resources;
       (3) the creation of community-based development strategies; 
     and
       (4) the development and provision of training programs.
       (f) Effective Date.--The amendments made by this section 
     shall be effective as of January 1, 2008.

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

     SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE 
                   UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET 
                   ACT OF 2000.

       (a) In General.--Notwithstanding any other provision of 
     law, neither the Secretary of Homeland Security nor any other 
     person may--
       (1) require repayment of, or attempt in any other way to 
     recoup, any payments described in subsection (b); or
       (2) offset any past, current, or future distributions of 
     antidumping or countervailing duties assessed with respect to 
     imports from countries that are not parties to the North 
     American Free Trade Agreement in an attempt to recoup any 
     payments described in subsection (b).
       (b) Payments Described.--Payments described in this 
     subsection are payments of antidumping or countervailing 
     duties made pursuant to the Continued Dumping and Subsidy 
     Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 
     U.S.C. 1675c; repealed by subtitle F of title VII of the 
     Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 
     154))) that were--
       (1) assessed and paid on imports of goods from countries 
     that are parties to the North American Free Trade Agreement; 
     and
       (2) distributed on or after January 1, 2001, and before 
     January 1, 2006.
       (c) Payment of Funds Collected or Withheld.--Not later than 
     the date that is 60 days after the date of the enactment of 
     this Act, the Secretary of Homeland Security shall--
       (1) refund any repayments, or any other recoupment, of 
     payments described in subsection (b); and
       (2) fully distribute any antidumping or countervailing 
     duties that the U.S. Customs and Border Protection is 
     withholding as an offset as described in subsection (a)(2).
       (d) Limitation.--Nothing in this section shall be construed 
     to prevent the Secretary of Homeland Security, or any other 
     person, from requiring repayment of, or attempting to 
     otherwise recoup, any payments described in subsection (b) as 
     a result of--
       (1) a finding of false statements or other misconduct by a 
     recipient of such a payment; or

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       (2) the reliquidation of an entry with respect to which 
     such a payment was made.

                      Subtitle J--Other Provisions

     SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS 
                   FINANCED WITH CERTAIN TAX-FAVORED BONDS.

       Subchapter IV of chapter 31 of the title 40, United States 
     Code, shall apply to projects financed with the proceeds of--
       (1) any new clean renewable energy bond (as defined in 
     section 54C of the Internal Revenue Code of 1986) issued 
     after the date of the enactment of this Act,
       (2) any qualified energy conservation bond (as defined in 
     section 54D of the Internal Revenue Code of 1986) issued 
     after the date of the enactment of this Act,
       (3) any qualified zone academy bond (as defined in section 
     54E of the Internal Revenue Code of 1986) issued after the 
     date of the enactment of this Act,
       (4) any qualified school construction bond (as defined in 
     section 54F of the Internal Revenue Code of 1986), and
       (5) any recovery zone economic development bond (as defined 
     in section 1400U-2 of the Internal Revenue Code of 1986).

     SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT.

       Subsection (b) of section 3101 of title 31, United States 
     Code, is amended by striking out the dollar limitation 
     contained in such subsection and inserting 
     ``$12,140,000,000,000''.

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

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

  TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

     SEC. 2000. SHORT TITLE; TABLE OF CONTENTS.

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

  TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

Sec. 2000. Short title; table of contents.

                   Subtitle A--Unemployment Insurance

Sec. 2001. Extension of emergency unemployment compensation program.
Sec. 2002. Increase in unemployment compensation benefits.
Sec. 2003. Unemployment compensation modernization.
Sec. 2004. Temporary assistance for States with advances.

           Subtitle B--Assistance for Vulnerable Individuals

Sec. 2101. Emergency fund for TANF program.
Sec. 2102. Extension of TANF supplemental grants.
Sec. 2103. Clarification of authority of states to use tanf funds 
              carried over from prior years to provide tanf benefits 
              and services.
Sec. 2104. Temporary reinstatement of authority to provide Federal 
              matching payments for State spending of child support 
              incentive payments.

                   Subtitle A--Unemployment Insurance

     SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                   PROGRAM.

       (a) In General.--Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note), as amended by section 4 of the Unemployment 
     Compensation Extension Act of 2008 (Public Law 110-449; 122 
     Stat. 5015), is amended--
       (1) by striking ``March 31, 2009'' each place it appears 
     and inserting ``December 31, 2009'';
       (2) in the heading for subsection (b)(2), by striking 
     ``March 31, 2009'' and inserting ``December 31, 2009''; and
       (3) in subsection (b)(3), by striking ``August 27, 2009'' 
     and inserting ``May 31, 2010''.
       (b) Financing Provisions.--Section 4004 of such Act is 
     amended by adding at the end the following:
       ``(e) Transfer of Funds.--Notwithstanding any other 
     provision of law, the Secretary of the Treasury shall 
     transfer from the general fund of the Treasury (from funds 
     not otherwise appropriated)--
       ``(1) to the extended unemployment compensation account (as 
     established by section 905 of the Social Security Act) such 
     sums as the Secretary of Labor estimates to be necessary to 
     make payments to States under this title by reason of the 
     amendments made by section 2001(a) of the Assistance for 
     Unemployed Workers and Struggling Families Act; and
       ``(2) to the employment security administration account (as 
     established by section 901 of the Social Security Act) such 
     sums as the Secretary of Labor estimates to be necessary for 
     purposes of assisting States in meeting administrative costs 
     by reason of the amendments referred to in paragraph (1).
     There are appropriated from the general fund of the Treasury, 
     without fiscal year limitation, the sums referred to in the 
     preceding sentence and such sums shall not be required to be 
     repaid.''.

     SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

       (a) Federal-State Agreements.--Any State which desires to 
     do so may enter into and participate in an agreement under 
     this section with the Secretary of Labor (hereinafter in this 
     section referred to as the ``Secretary''). Any State which is 
     a party to an agreement under this section may, upon 
     providing 30 days' written notice to the Secretary, terminate 
     such agreement.
       (b) Provisions of Agreement.--
       (1) Additional compensation.--Any agreement under this 
     section shall provide that the State agency of the State will 
     make payments of regular compensation to individuals in 
     amounts and to the extent that they would be determined if 
     the State law of the State were applied, with respect to any 
     week for which the individual is (disregarding this section) 
     otherwise entitled under the State law to receive regular 
     compensation, as if such State law had been modified in a 
     manner such that the amount of regular compensation 
     (including dependents' allowances) payable for any week shall 
     be equal to the amount determined under the State law (before 
     the application of this paragraph) plus an additional $25.
       (2) Allowable methods of payment.--Any additional 
     compensation provided for in accordance with paragraph (1) 
     shall be payable either--
       (A) as an amount which is paid at the same time and in the 
     same manner as any regular compensation otherwise payable for 
     the week involved; or
       (B) at the option of the State, by payments which are made 
     separately from, but on the same weekly basis as, any regular 
     compensation otherwise payable.
       (c) Nonreduction Rule.--An agreement under this section 
     shall not apply (or shall cease to apply) with respect to a 
     State upon a determination by the Secretary that the method 
     governing the computation of regular compensation under the 
     State law of that State has been modified in a manner such 
     that--
       (1) the average weekly benefit amount of regular 
     compensation which will be payable during the period of the 
     agreement (determined disregarding any additional amounts 
     attributable to the modification described in subsection 
     (b)(1)) will be less than
       (2) the average weekly benefit amount of regular 
     compensation which would otherwise have been payable during 
     such period under the State law, as in effect on December 31, 
     2008.
       (d) Payments to States.--
       (1) In general.--
       (A) Full reimbursement.--There shall be paid to each State 
     which has entered into an agreement under this section an 
     amount equal to 100 percent of--
       (i) the total amount of additional compensation (as 
     described in subsection (b)(1)) paid to individuals by the 
     State pursuant to such agreement; and
       (ii) any additional administrative expenses incurred by the 
     State by reason of such agreement (as determined by the 
     Secretary).
       (B) Terms of payments.--Sums payable to any State by reason 
     of such State's having an agreement under this section shall 
     be payable, either in advance or by way of reimbursement (as 
     determined by the Secretary), in such amounts as the 
     Secretary estimates the State will be entitled to receive 
     under this section for each calendar month, reduced or 
     increased, as the case may be, by any amount by which the 
     Secretary finds that his estimates for any prior calendar 
     month were greater or less than the amounts

[[Page 3293]]

      which should have been paid to the State. Such estimates may 
     be made on the basis of such statistical, sampling, or other 
     method as may be agreed upon by the Secretary and the State 
     agency of the State involved.
       (2) Certifications.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums payable to such State under this section.
       (3) Appropriation.--There are appropriated from the general 
     fund of the Treasury, without fiscal year limitation, such 
     sums as may be necessary for purposes of this subsection.
       (e) Applicability.--
       (1) In general.--An agreement entered into under this 
     section shall apply to weeks of unemployment--
       (A) beginning after the date on which such agreement is 
     entered into; and
       (B) ending before January 1, 2010.
       (2) Transition rule for individuals remaining entitled to 
     regular compensation as of january 1, 2010.--In the case of 
     any individual who, as of the date specified in paragraph 
     (1)(B), has not yet exhausted all rights to regular 
     compensation under the State law of a State with respect to a 
     benefit year that began before such date, additional 
     compensation (as described in subsection (b)(1)) shall 
     continue to be payable to such individual for any week 
     beginning on or after such date for which the individual is 
     otherwise eligible for regular compensation with respect to 
     such benefit year.
       (3) Termination.--Notwithstanding any other provision of 
     this subsection, no additional compensation (as described in 
     subsection (b)(1)) shall be payable for any week beginning 
     after June 30, 2010.
       (f) Fraud and Overpayments.--The provisions of section 4005 
     of the Supplemental Appropriations Act, 2008 (Public Law 110-
     252; 122 Stat. 2356) shall apply with respect to additional 
     compensation (as described in subsection (b)(1)) to the same 
     extent and in the same manner as in the case of emergency 
     unemployment compensation.
       (g) Application to Other Unemployment Benefits.--
       (1) In general.--Each agreement under this section shall 
     include provisions to provide that the purposes of the 
     preceding provisions of this section shall be applied with 
     respect to unemployment benefits described in subsection 
     (i)(3) to the same extent and in the same manner as if those 
     benefits were regular compensation.
       (2) Eligibility and termination rules.--Additional 
     compensation (as described in subsection (b)(1))--
       (A) shall not be payable, pursuant to this subsection, with 
     respect to any unemployment benefits described in subsection 
     (i)(3) for any week beginning on or after the date specified 
     in subsection (e)(1)(B), except in the case of an individual 
     who was eligible to receive additional compensation (as so 
     described) in connection with any regular compensation or any 
     unemployment benefits described in subsection (i)(3) for any 
     period of unemployment ending before such date; and
       (B) shall in no event be payable for any week beginning 
     after the date specified in subsection (e)(3).
       (h) Disregard of Additional Compensation for Purposes of 
     Medicaid and SCHIP.--A State that enters into an agreement 
     under this section shall disregard the monthly equivalent of 
     $25 per week for any individual who receives additional 
     compensation under subsection (b)(1) in considering the 
     amount of income of the individual for any purposes under the 
     Medicaid program under title XIX of the Social Security Act 
     and the State Children's Health Insurance Program under title 
     XXI of such Act.
       (i) Definitions.--For purposes of this section--
       (1) the terms ``compensation'', ``regular compensation'', 
     ``benefit year'', ``State'', ``State agency'', ``State law'', 
     and ``week'' have the respective meanings given such terms 
     under section 205 of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note);
       (2) the term ``emergency unemployment compensation'' means 
     emergency unemployment compensation under title IV of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 
     122 Stat. 2353); and
       (3) any reference to unemployment benefits described in 
     this paragraph shall be considered to refer to--
       (A) extended compensation (as defined by section 205 of the 
     Federal-State Extended Unemployment Compensation Act of 
     1970); and
       (B) unemployment compensation (as defined by section 85(b) 
     of the Internal Revenue Code of 1986) provided under any 
     program administered by a State under an agreement with the 
     Secretary.

     SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZATION.

       (a) In General.--Section 903 of the Social Security Act (42 
     U.S.C. 1103) is amended by adding at the end the following:

                 ``Special Transfers for Modernization

       ``(f)(1)(A) In addition to any other amounts, the Secretary 
     of Labor shall provide for the making of unemployment 
     compensation modernization incentive payments (hereinafter 
     `incentive payments') to the accounts of the States in the 
     Unemployment Trust Fund, by transfer from amounts reserved 
     for that purpose in the Federal unemployment account, in 
     accordance with succeeding provisions of this subsection.
       ``(B) The maximum incentive payment allowable under this 
     subsection with respect to any State shall, as determined by 
     the Secretary of Labor, be equal to the amount obtained by 
     multiplying $7,000,000,000 by the same ratio as would apply 
     under subsection (a)(2)(B) for purposes of determining such 
     State's share of any excess amount (as described in 
     subsection (a)(1)) that would have been subject to transfer 
     to State accounts, as of October 1, 2008, under the 
     provisions of subsection (a).
       ``(C) Of the maximum incentive payment determined under 
     subparagraph (B) with respect to a State--
       ``(i) one-third shall be transferred to the account of such 
     State upon a certification under paragraph (4)(B) that the 
     State law of such State meets the requirements of paragraph 
     (2); and
       ``(ii) the remainder shall be transferred to the account of 
     such State upon a certification under paragraph (4)(B) that 
     the State law of such State meets the requirements of 
     paragraph (3).
       ``(2) The State law of a State meets the requirements of 
     this paragraph if such State law--
       ``(A) uses a base period that includes the most recently 
     completed calendar quarter before the start of the benefit 
     year for purposes of determining eligibility for unemployment 
     compensation; or
       ``(B) provides that, in the case of an individual who would 
     not otherwise be eligible for unemployment compensation under 
     the State law because of the use of a base period that does 
     not include the most recently completed calendar quarter 
     before the start of the benefit year, eligibility shall be 
     determined using a base period that includes such calendar 
     quarter.
       ``(3) The State law of a State meets the requirements of 
     this paragraph if such State law includes provisions to carry 
     out at least 2 of the following subparagraphs:
       ``(A) An individual shall not be denied regular 
     unemployment compensation under any State law provisions 
     relating to availability for work, active search for work, or 
     refusal to accept work, solely because such individual is 
     seeking only part-time (and not full-time) work, except that 
     the State law provisions carrying out this subparagraph may 
     exclude an individual if a majority of the weeks of work in 
     such individual's base period do not include part-time work.
       ``(B) An individual shall not be disqualified from regular 
     unemployment compensation for separating from employment if 
     that separation is for any compelling family reason. For 
     purposes of this subparagraph, the term `compelling family 
     reason' means the following:
       ``(i) Domestic violence, verified by such reasonable and 
     confidential documentation as the State law may require, 
     which causes the individual reasonably to believe that such 
     individual's continued employment would jeopardize the safety 
     of the individual or of any member of the individual's 
     immediate family (as defined by the Secretary of Labor).
       ``(ii) The illness or disability of a member of the 
     individual's immediate family (as defined by the Secretary of 
     Labor).
       ``(iii) The need for the individual to accompany such 
     individual's spouse--
       ``(I) to a place from which it is impractical for such 
     individual to commute; and
       ``(II) due to a change in location of the spouse's 
     employment.
       ``(C) Weekly unemployment compensation is payable under 
     this subparagraph to any individual who is unemployed (as 
     determined under the State unemployment compensation law), 
     has exhausted all rights to regular unemployment compensation 
     under the State law, and is enrolled and making satisfactory 
     progress in a State-approved training program or in a job 
     training program authorized under the Workforce Investment 
     Act of 1998. Such programs shall prepare individuals who have 
     been separated from a declining occupation, or who have been 
     involuntarily and indefinitely separated from employment as a 
     result of a permanent reduction of operations at the 
     individual's place of employment, for entry into a high-
     demand occupation. The amount of unemployment compensation 
     payable under this subparagraph to an individual for a week 
     of unemployment shall be equal to the individual's average 
     weekly benefit amount (including dependents' allowances) for 
     the most recent benefit year, and the total amount of 
     unemployment compensation payable under this subparagraph to 
     any individual shall be equal to at least 26 times the 
     individual's average weekly benefit amount (including 
     dependents' allowances) for the most recent benefit year.
       ``(D) Dependents' allowances are provided, in the case of 
     any individual who is entitled to receive regular 
     unemployment compensation and who has any dependents (as 
     defined by State law), in an amount equal to at least $15 per 
     dependent per week, subject to any aggregate limitation on 
     such allowances which the State law may establish (but which 
     aggregate limitation on the total allowance for dependents 
     paid to an individual may not be less than $50 for each week 
     of unemployment or 50 percent of the individual's

[[Page 3294]]

     weekly benefit amount for the benefit year, whichever is 
     less).
       ``(4)(A) Any State seeking an incentive payment under this 
     subsection shall submit an application therefor at such time, 
     in such manner, and complete with such information as the 
     Secretary of Labor may within 60 days after the date of the 
     enactment of this subsection prescribe (whether by regulation 
     or otherwise), including information relating to compliance 
     with the requirements of paragraph (2) or (3), as well as how 
     the State intends to use the incentive payment to improve or 
     strengthen the State's unemployment compensation program. The 
     Secretary of Labor shall, within 30 days after receiving a 
     complete application, notify the State agency of the State of 
     the Secretary's findings with respect to the requirements of 
     paragraph (2) or (3) (or both).
       ``(B)(i) If the Secretary of Labor finds that the State law 
     provisions (disregarding any State law provisions which are 
     not then currently in effect as permanent law or which are 
     subject to discontinuation) meet the requirements of 
     paragraph (2) or (3), as the case may be, the Secretary of 
     Labor shall thereupon make a certification to that effect to 
     the Secretary of the Treasury, together with a certification 
     as to the amount of the incentive payment to be transferred 
     to the State account pursuant to that finding. The Secretary 
     of the Treasury shall make the appropriate transfer within 7 
     days after receiving such certification.
       ``(ii) For purposes of clause (i), State law provisions 
     which are to take effect within 12 months after the date of 
     their certification under this subparagraph shall be 
     considered to be in effect as of the date of such 
     certification.
       ``(C)(i) No certification of compliance with the 
     requirements of paragraph (2) or (3) may be made with respect 
     to any State whose State law is not otherwise eligible for 
     certification under section 303 or approvable under section 
     3304 of the Federal Unemployment Tax Act.
       ``(ii) No certification of compliance with the requirements 
     of paragraph (3) may be made with respect to any State whose 
     State law is not in compliance with the requirements of 
     paragraph (2).
       ``(iii) No application under subparagraph (A) may be 
     considered if submitted before the date of the enactment of 
     this subsection or after the latest date necessary (as 
     specified by the Secretary of Labor) to ensure that all 
     incentive payments under this subsection are made before 
     October 1, 2010. In the case of a State in which the first 
     day of the first regularly scheduled session of the State 
     legislature beginning after the date of enactment of this 
     subsection begins after December 31, 2010, the preceding 
     sentence shall be applied by substituting `October 1, 2011' 
     for `October 1, 2010'.
       ``(5)(A) Except as provided in subparagraph (B), any amount 
     transferred to the account of a State under this subsection 
     may be used by such State only in the payment of cash 
     benefits to individuals with respect to their unemployment 
     (including for dependents' allowances and for unemployment 
     compensation under paragraph (3)(C)), exclusive of expenses 
     of administration.
       ``(B) A State may, subject to the same conditions as set 
     forth in subsection (c)(2) (excluding subparagraph (B) 
     thereof, and deeming the reference to `subsections (a) and 
     (b)' in subparagraph (D) thereof to include this subsection), 
     use any amount transferred to the account of such State under 
     this subsection for the administration of its unemployment 
     compensation law and public employment offices.
       ``(6) Out of any money in the Federal unemployment account 
     not otherwise appropriated, the Secretary of the Treasury 
     shall reserve $7,000,000,000 for incentive payments under 
     this subsection. Any amount so reserved shall not be taken 
     into account for purposes of any determination under section 
     902, 910, or 1203 of the amount in the Federal unemployment 
     account as of any given time. Any amount so reserved for 
     which the Secretary of the Treasury has not received a 
     certification under paragraph (4)(B) by the deadline 
     described in paragraph (4)(C)(iii) shall, upon the close of 
     fiscal year 2011, become unrestricted as to use as part of 
     the Federal unemployment account.
       ``(7) For purposes of this subsection, the terms `benefit 
     year', `base period', and `week' have the respective meanings 
     given such terms under section 205 of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note).

       ``Special Transfer in Fiscal Year 2009 for Administration

       ``(g)(1) In addition to any other amounts, the Secretary of 
     the Treasury shall transfer from the employment security 
     administration account to the account of each State in the 
     Unemployment Trust Fund, within 30 days after the date of the 
     enactment of this subsection, the amount determined with 
     respect to such State under paragraph (2).
       ``(2) The amount to be transferred under this subsection to 
     a State account shall (as determined by the Secretary of 
     Labor and certified by such Secretary to the Secretary of the 
     Treasury) be equal to the amount obtained by multiplying 
     $500,000,000 by the same ratio as determined under subsection 
     (f)(1)(B) with respect to such State.
       ``(3) Any amount transferred to the account of a State as a 
     result of the enactment of this subsection may be used by the 
     State agency of such State only in the payment of expenses 
     incurred by it for--
       ``(A) the administration of the provisions of its State law 
     carrying out the purposes of subsection (f)(2) or any 
     subparagraph of subsection (f)(3);
       ``(B) improved outreach to individuals who might be 
     eligible for regular unemployment compensation by virtue of 
     any provisions of the State law which are described in 
     subparagraph (A);
       ``(C) the improvement of unemployment benefit and 
     unemployment tax operations, including responding to 
     increased demand for unemployment compensation; and
       ``(D) staff-assisted reemployment services for unemployment 
     compensation claimants.''.
       (b) Regulations.--The Secretary of Labor may prescribe any 
     regulations, operating instructions, or other guidance 
     necessary to carry out the amendment made by subsection (a).

     SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.

       Section 1202(b) of the Social Security Act (42 U.S.C. 
     1322(b)) is amended by adding at the end the following new 
     paragraph:
       ``(10)(A) With respect to the period beginning on the date 
     of enactment of this paragraph and ending on December 31, 
     2010--
       ``(i) any interest payment otherwise due from a State under 
     this subsection during such period shall be deemed to have 
     been made by the State; and
       ``(ii) no interest shall accrue on any advance or advances 
     made under section 1201 to a State during such period.
       ``(B) The provisions of subparagraph (A) shall have no 
     effect on the requirement for interest payments under this 
     subsection after the period described in such subparagraph or 
     on the accrual of interest under this subsection after such 
     period.''.

           Subtitle B--Assistance for Vulnerable Individuals

     SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

       (a) Temporary Fund.--
       (1) In general.--Section 403 of the Social Security Act (42 
     U.S.C. 603) is amended by adding at the end the following:
       ``(c) Emergency Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     of the United States a fund which shall be known as the 
     `Emergency Contingency Fund for State Temporary Assistance 
     for Needy Families Programs' (in this subsection referred to 
     as the `Emergency Fund').
       ``(2) Deposits into fund.--
       ``(A) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated for fiscal year 2009, $3,000,000,000 for payment 
     to the Emergency Fund.
       ``(B) Availability and use of funds.--The amounts 
     appropriated to the Emergency Fund under subparagraph (A) 
     shall remain available through fiscal year 2010 and shall be 
     used to make grants to States in each of fiscal years 2009 
     and 2010 in accordance with the requirements of paragraph 
     (3).
       ``(C) Limitation.--In no case may the Secretary make a 
     grant from the Emergency Fund for a fiscal year after fiscal 
     year 2010.
       ``(3) Grants.--
       ``(A) Grant related to caseload increases.--
       ``(i) In general.--For each calendar quarter in fiscal year 
     2009 or 2010, the Secretary shall make a grant from the 
     Emergency Fund to each State that--

       ``(I) requests a grant under this subparagraph for the 
     quarter; and
       ``(II) meets the requirement of clause (ii) for the 
     quarter.

       ``(ii) Caseload increase requirement.--A State meets the 
     requirement of this clause for a quarter if the average 
     monthly assistance caseload of the State for the quarter 
     exceeds the average monthly assistance caseload of the State 
     for the corresponding quarter in the emergency fund base year 
     of the State.
       ``(iii) Amount of grant.--Subject to paragraph (5), the 
     amount of the grant to be made to a State under this 
     subparagraph for a quarter shall be 80 percent of the amount 
     (if any) by which the total expenditures of the State for 
     basic assistance (as defined by the Secretary) in the 
     quarter, whether under the State program funded under this 
     part or as qualified State expenditures, exceeds the total 
     expenditures of the State for such assistance for the 
     corresponding quarter in the emergency fund base year of the 
     State.
       ``(B) Grant related to increased expenditures for non-
     recurrent short term benefits.--
       ``(i) In general.--For each calendar quarter in fiscal year 
     2009 or 2010, the Secretary shall make a grant from the 
     Emergency Fund to each State that--

       ``(I) requests a grant under this subparagraph for the 
     quarter; and
       ``(II) meets the requirement of clause (ii) for the 
     quarter.

       ``(ii) Non-recurrent short term expenditure requirement.--A 
     State meets the requirement of this clause for a quarter if 
     the total expenditures of the State for non-recurrent short 
     term benefits in the quarter, whether under the State program 
     funded

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     under this part or as qualified State expenditures, exceeds 
     the total such expenditures of the State for non-recurrent 
     short term benefits in the corresponding quarter in the 
     emergency fund base year of the State.
       ``(iii) Amount of grant.--Subject to paragraph (5), the 
     amount of the grant to be made to a State under this 
     subparagraph for a quarter shall be an amount equal to 80 
     percent of the excess described in clause (ii).
       ``(C) Grant related to increased expenditures for 
     subsidized employment.--
       ``(i) In general.--For each calendar quarter in fiscal year 
     2009 or 2010, the Secretary shall make a grant from the 
     Emergency Fund to each State that--

       ``(I) requests a grant under this subparagraph for the 
     quarter; and
       ``(II) meets the requirement of clause (ii) for the 
     quarter.

       ``(ii) Subsidized employment expenditure requirement.--A 
     State meets the requirement of this clause for a quarter if 
     the total expenditures of the State for subsidized employment 
     in the quarter, whether under the State program funded under 
     this part or as qualified State expenditures, exceeds the 
     total of such expenditures of the State in the corresponding 
     quarter in the emergency fund base year of the State.
       ``(iii) Amount of grant.--Subject to paragraph (5), the 
     amount of the grant to be made to a State under this 
     subparagraph for a quarter shall be an amount equal to 80 
     percent of the excess described in clause (ii).
       ``(4) Authority to make necessary adjustments to data and 
     collect needed data.--In determining the size of the caseload 
     of a State and the expenditures of a State for basic 
     assistance, non-recurrent short-term benefits, and subsidized 
     employment, during any period for which the State requests 
     funds under this subsection, and during the emergency fund 
     base year of the State, the Secretary may make appropriate 
     adjustments to the data to ensure that the data reflect 
     expenditures under the State program funded under this part 
     and qualified State expenditures. The Secretary may develop a 
     mechanism for collecting expenditure data, including 
     procedures which allow States to make reasonable estimates, 
     and may set deadlines for making revisions to the data.
       ``(5) Limitation.--The total amount payable to a single 
     State under subsection (b) and this subsection for a fiscal 
     year shall not exceed 25 percent of the State family 
     assistance grant.
       ``(6) Limitations on use of funds.--A State to which an 
     amount is paid under this subsection may use the amount only 
     as authorized by section 404.
       ``(7) Timing of implementation.--The Secretary shall 
     implement this subsection as quickly as reasonably possible, 
     pursuant to appropriate guidance to States.
       ``(8) Definitions.--In this subsection:
       ``(A) Average monthly assistance caseload defined.--The 
     term `average monthly assistance caseload' means, with 
     respect to a State and a quarter, the number of families 
     receiving assistance during the quarter under the State 
     program funded under this part or as qualified State 
     expenditures, subject to adjustment under paragraph (4).
       ``(B) Emergency fund base year.--
       ``(i) In general.--The term `emergency fund base year' 
     means, with respect to a State and a category described in 
     clause (ii), whichever of fiscal year 2007 or 2008 is the 
     fiscal year in which the amount described by the category 
     with respect to the State is the lesser.
       ``(ii) Categories described.--The categories described in 
     this clause are the following:

       ``(I) The average monthly assistance caseload of the State.
       ``(II) The total expenditures of the State for non-
     recurrent short term benefits, whether under the State 
     program funded under this part or as qualified State 
     expenditures.
       ``(III) The total expenditures of the State for subsidized 
     employment, whether under the State program funded under this 
     part or as qualified State expenditures.

       ``(C) Qualified state expenditures.--The term `qualified 
     State expenditures' has the meaning given the term in section 
     409(a)(7).''.
       (2) Repeal.--Effective October 1, 2010, subsection (c) of 
     section 403 of the Social Security Act (42 U.S.C. 603) (as 
     added by paragraph (1)) is repealed.
       (b) Temporary Modification of Caseload Reduction Credit.--
     Section 407(b)(3)(A)(i) of such Act (42 U.S.C. 
     607(b)(3)(A)(i)) is amended by inserting ``(or if the 
     immediately preceding fiscal year is fiscal year 2008, 2009, 
     or 2010, then, at State option, during the emergency fund 
     base year of the State with respect to the average monthly 
     assistance caseload of the State (within the meaning of 
     section 403(c)(8)(B), except that, if a State elects such 
     option for fiscal year 2008, the emergency fund base year of 
     the State with respect to such caseload shall be fiscal year 
     2007))'' before ``under the State''.
       (c) Disregard From Limitation on Total Payments to 
     Territories.--Section 1108(a)(2) of the Social Security Act 
     (42 U.S.C. 1308(a)(2)) is amended by inserting ``403(c)(3),'' 
     after ``403(a)(5),''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

       (a) Extension Through Fiscal Year 2010.--Section 7101(a) of 
     the Deficit Reduction Act of 2005 (Public Law 109-171; 120 
     Stat. 135), as amended by section 301(a) of the Medicare 
     Improvements for Patients and Providers Act of 2008 (Public 
     Law 110-275), is amended by striking ``fiscal year 2009'' and 
     inserting ``fiscal year 2010''.
       (b) Conforming Amendment.--Section 403(a)(3)(H)(ii) of the 
     Social Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended 
     to read as follows:
       ``(ii) subparagraph (G) shall be applied as if `fiscal year 
     2010' were substituted for `fiscal year 2001'; and''.

     SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF 
                   FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE 
                   TANF BENEFITS AND SERVICES.

       Section 404(e) of the Social Security Act (42 U.S.C. 
     604(e)) is amended to read as follows:
       ``(e) Authority to Carry Over Certain Amounts for Benefits 
     or Services or for Future Contingencies.--A State or tribe 
     may use a grant made to the State or tribe under this part 
     for any fiscal year to provide, without fiscal year 
     limitation, any benefit or service that may be provided under 
     the State or tribal program funded under this part.''.

     SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY TO PROVIDE 
                   FEDERAL MATCHING PAYMENTS FOR STATE SPENDING OF 
                   CHILD SUPPORT INCENTIVE PAYMENTS.

       During the period that begins on October 1, 2008, and ends 
     on December 31, 2010, section 455(a)(1) of the Social 
     Security Act (42 U.S.C. 655(a)(1)) shall be applied without 
     regard to the amendment made by section 7309(a) of the 
     Deficit Reduction Act of 2005 (Public Law 109-171, 120 Stat. 
     147).

                 TITLE III--HEALTH INSURANCE ASSISTANCE

     SEC. 3000. TABLE OF CONTENTS OF TITLE.

       The table of contents for this title is as follows:

                 TITLE III--HEALTH INSURANCE ASSISTANCE

Sec. 3000. Table of contents of title.

   Subtitle A--Premium Subsidies for COBRA Continuation Coverage for 
                           Unemployed Workers

Sec. 3001. Premium assistance for COBRA benefits.

           Subtitle B--Transitional Medical Assistance (TMA)

Sec. 3101. Extension of transitional medical assistance (TMA).

     Subtitle C--Extension of the Qualified Individual (QI) Program

Sec. 3201. Extension of the qualifying individual (QI) program.

                      Subtitle D--Other Provisions

Sec. 3301. Premiums and cost sharing protections under Medicaid, 
              eligibility determinations under Medicaid and CHIP, and 
              protection of certain Indian property from Medicaid 
              estate recovery.
Sec. 3302. Rules applicable under Medicaid and CHIP to managed care 
              entities with respect to Indian enrollees and Indian 
              health care providers and Indian managed care entities.
Sec. 3303. Consultation on Medicaid, CHIP, and other health care 
              programs funded under the Social Security Act involving 
              Indian Health Programs and Urban Indian Organizations.
Sec. 3304. Application of prompt pay requirements to nursing 
              facilities.
Sec. 3305. Period of application; sunset.

   Subtitle A--Premium Subsidies for COBRA Continuation Coverage for 
                           Unemployed Workers

     SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.

       (a) Table of Contents of Subtitle.--The table of contents 
     of this subtitle is as follows:

Sec. 3001. Premium assistance for COBRA benefits.
       (b) Premium Assistance for COBRA Continuation Coverage for 
     Unemployed Workers and Their Families.--
       (1) Provision of premium assistance.--
       (A) Reduction of premiums payable.--In the case of any 
     premium for a month of coverage beginning after the date of 
     the enactment of the Act for COBRA continuation coverage with 
     respect to any assistance eligible individual, such 
     individual shall be treated for purposes of any COBRA 
     continuation provision as having paid the amount of such 
     premium if such individual pays 50 percent of the amount of 
     such premium (as determined without regard to this 
     subsection).
       (B) Plan enrollment option.--
       (i) In general.--Notwithstanding the COBRA continuation 
     provisions, an assistance eligible individual may, not later 
     than 90 days after the date of notice of the plan enrollment 
     option described in this subparagraph, elect to enroll in 
     coverage under a plan offered by the employer involved, or 
     the employee organization involved (including,

[[Page 3296]]

     for this purpose, a joint board of trustees of a 
     multiemployer trust affiliated with one or more multiemployer 
     plans), that is different than coverage under the plan in 
     which such individual was enrolled at the time the qualifying 
     event occurred, and such coverage shall be treated as COBRA 
     continuation coverage for purposes of the applicable COBRA 
     continuation coverage provision.
       (ii) Requirements.--An assistance eligible individual may 
     elect to enroll in different coverage as described in clause 
     (i) only if--

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

       (aa) coverage that provides only dental, vision, 
     counseling, or referral services (or a combination of such 
     services);
       (bb) a health flexible spending account or health 
     reimbursement arrangement; or
       (cc) coverage that provides coverage for services or 
     treatments furnished in an on-site medical facility 
     maintained by the employer and that consists primarily of 
     first-aid services, prevention and wellness care, or similar 
     care (or a combination of such care).
       (C) Premium reimbursement.--For provisions providing the 
     balance of such premium, see section 6432 of the Internal 
     Revenue Code of 1986, as added by paragraph (12).
       (2) Limitation of period of premium assistance.--
       (A) In general.--Paragraph (1)(A) shall not apply with 
     respect to any assistance eligible individual for months of 
     coverage beginning on or after the earlier of--
       (i) the first date that such individual is eligible for 
     coverage under any other group health plan (other than 
     coverage consisting of only dental, vision, counseling, or 
     referral services (or a combination thereof), coverage under 
     a health reimbursement arrangement or a health flexible 
     spending arrangement, or coverage of treatment that is 
     furnished in an on-site medical facility maintained by the 
     employer and that consists primarily of first-aid services, 
     prevention and wellness care, or similar care (or a 
     combination thereof)) or is eligible for benefits under title 
     XVIII of the Social Security Act; or
       (ii) the earliest of--

       (I) the date which is 12 months after the first day of 
     first month that paragraph (1)(A) applies with respect to 
     such individual,
       (II) the date following the expiration of the maximum 
     period of continuation coverage required under the applicable 
     COBRA continuation coverage provision, or
       (III) the date following the expiration of the period of 
     continuation coverage allowed under paragraph (4)(B)(ii).

       (B) Timing of eligibility for additional coverage.--For 
     purposes of subparagraph (A)(i), an individual shall not be 
     treated as eligible for coverage under a group health plan 
     before the first date on which such individual could be 
     covered under such plan.
       (C) Notification requirement.--An assistance eligible 
     individual shall notify in writing the group health plan with 
     respect to which paragraph (1)(A) applies if such paragraph 
     ceases to apply by reason of subparagraph (A)(i). Such notice 
     shall be provided to the group health plan in such time and 
     manner as may be specified by the Secretary of Labor.
       (3) Assistance eligible individual.--For purposes of this 
     section, the term ``assistance eligible individual'' means 
     any qualified beneficiary if--
       (A) at any time during the period that begins with 
     September 1, 2008, and ends with December 31, 2009, such 
     qualified beneficiary is eligible for COBRA continuation 
     coverage,
       (B) such qualified beneficiary elects such coverage, and
       (C) the qualifying event with respect to the COBRA 
     continuation coverage consists of the involuntary termination 
     of the covered employee's employment and occurred during such 
     period.
       (4) Extension of election period and effect on coverage.--
       (A) In general.--Notwithstanding section 605(a) of the 
     Employee Retirement Income Security Act of 1974, section 
     4980B(f)(5)(A) of the Internal Revenue Code of 1986, section 
     2205(a) of the Public Health Service Act, and section 
     8905a(c)(2) of title 5, United States Code, in the case of an 
     individual who is a qualified beneficiary described in 
     paragraph (3)(A) as of the date of the enactment of this Act 
     and has not made the election referred to in paragraph (3)(B) 
     as of such date, such individual may elect the COBRA 
     continuation coverage under the COBRA continuation coverage 
     provisions containing such sections during the 60-day period 
     commencing with the date on which the notification required 
     under paragraph (7)(C) is provided to such individual.
       (B) Commencement of coverage; no reach-back.--Any COBRA 
     continuation coverage elected by a qualified beneficiary 
     during an extended election period under subparagraph (A)--
       (i) shall commence on the date of the enactment of this 
     Act, and
       (ii) shall not extend beyond the period of COBRA 
     continuation coverage that would have been required under the 
     applicable COBRA continuation coverage provision if the 
     coverage had been elected as required under such provision.
       (C) Preexisting conditions.--With respect to a qualified 
     beneficiary who elects COBRA continuation coverage pursuant 
     to subparagraph (A), the period--
       (i) beginning on the date of the qualifying event, and
       (ii) ending with the day before the date of the enactment 
     of this Act,
     shall be disregarded for purposes of determining the 63-day 
     periods referred to in section 701)(2) of the Employee 
     Retirement Income Security Act of 1974, section 9801(c)(2) of 
     the Internal Revenue Code of 1986, and section 2701(c)(2) of 
     the Public Health Service Act.
       (5) Expedited review of denials of premium assistance.--In 
     any case in which an individual requests treatment as an 
     assistance eligible individual and is denied such treatment 
     by the group health plan by reason of such individual's 
     ineligibility for COBRA continuation coverage, the Secretary 
     of Labor (or the Secretary of Health and Human services in 
     connection with COBRA continuation coverage which is provided 
     other than pursuant to part 6 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974), in 
     consultation with the Secretary of the Treasury, shall 
     provide for expedited review of such denial. An individual 
     shall be entitled to such review upon application to such 
     Secretary in such form and manner as shall be provided by 
     such Secretary. Such Secretary shall make a determination 
     regarding such individual's eligibility within 10 business 
     days after receipt of such individual's application for 
     review under this paragraph.
       (6) Disregard of subsidies for purposes of federal and 
     state programs.--Notwithstanding any other provision of law, 
     any premium reduction with respect to an assistance eligible 
     individual under this subsection shall not be considered 
     income or resources in determining eligibility for, or the 
     amount of assistance or benefits provided under, any other 
     public benefit provided under Federal law or the law of any 
     State or political subdivision thereof.
       (7) Notices to individuals.--
       (A) General notice.--
       (i) In general.--In the case of notices provided under 
     section 606(4) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the 
     Internal Revenue Code of 1986, section 2206(4) of the Public 
     Health Service Act (42 U.S.C. 300bb-6(4)), or section 
     8905a(f)(2)(A) of title 5, United States Code, with respect 
     to individuals who, during the period described in paragraph 
     (3)(A), become entitled to elect COBRA continuation coverage, 
     such notices shall include an additional notification to the 
     recipient of--

       (I) the availability of premium reduction with respect to 
     such coverage under this subsection; and
       (II) the option to enroll in different coverage if an 
     employer that permits assistance eligible individuals to 
     elect enrollment in different coverage (as described in 
     paragraph (1)(B)).

       (ii) Alternative notice.--In the case of COBRA continuation 
     coverage to which the notice provision under such sections 
     does not apply, the Secretary of Labor, in consultation with 
     the Secretary of the Treasury and the Secretary of Health and 
     Human Services, shall, in coordination with administrators of 
     the group health plans (or other entities) that provide or 
     administer the COBRA continuation coverage involved, provide 
     rules requiring the provision of such notice.
       (iii) Form.--The requirement of the additional notification 
     under this subparagraph may be met by amendment of existing 
     notice forms or by inclusion of a separate document with the 
     notice otherwise required.
       (B) Specific requirements.--Each additional notification 
     under subparagraph (A) shall include--
       (i) the forms necessary for establishing eligibility for 
     premium reduction under this subsection,
       (ii) the name, address, and telephone number necessary to 
     contact the plan administrator and any other person 
     maintaining relevant information in connection with such 
     premium reduction,
       (iii) a description of the extended election period 
     provided for in paragraph (4)(A),
       (iv) a description of the obligation of the qualified 
     beneficiary under paragraph (2)(C) to notify the plan 
     providing continuation coverage of eligibility for subsequent 
     coverage under another group health plan or eligibility for 
     benefits under title XVIII of the Social Security Act and the 
     penalty provided for failure to so notify the plan,
       (v) a description, displayed in a prominent manner, of the 
     qualified beneficiary's right to a reduced premium and any 
     conditions on entitlement to the reduced premium; and

[[Page 3297]]

       (vi) a description of the option of the qualified 
     beneficiary to enroll in different coverage if the employer 
     permits such beneficiary to elect to enroll in such different 
     coverage under paragraph (1)(B).
       (C) Notice relating to retroactive coverage.--In the case 
     of an individual described in paragraph (3)(A) who has 
     elected COBRA continuation coverage as of the date of 
     enactment of this Act or an individual described in paragraph 
     (4)(A), the administrator of the group health plan (or other 
     person) involved shall provide (within 60 days after the date 
     of enactment of this Act) for the additional notification 
     required to be provided under subparagraph (A).
       (D) Model notices.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary of the Labor, in 
     consultation with the Secretary of the Treasury and the 
     Secretary of Health and Human Services, shall prescribe 
     models for the additional notification required under this 
     paragraph.
       (8) Safeguards.--The Secretary of the Treasury shall 
     provide such rules, procedures, regulations, and other 
     guidance as may be necessary and appropriate to prevent fraud 
     and abuse under this subsection.
       (9) Outreach.--The Secretary of Labor, in consultation with 
     the Secretary of the Treasury and the Secretary of Health and 
     Human Services, shall provide outreach consisting of public 
     education and enrollment assistance relating to premium 
     reduction provided under this subsection. Such outreach shall 
     target employers, group health plan administrators, public 
     assistance programs, States, insurers, and other entities as 
     determined appropriate by such Secretaries. Such outreach 
     shall include an initial focus on those individuals electing 
     continuation coverage who are referred to in paragraph 
     (7)(C). Information on such premium reduction, including 
     enrollment, shall also be made available on website of the 
     Departments of Labor, Treasury, and Health and Human 
     Services.
       (10) Definitions.--For purposes of this subsection--
       (A) Administrator.--The term ``administrator'' has the 
     meaning given such term in section 3(16) of the Employee 
     Retirement Income Security Act of 1974
       (B) COBRA continuation coverage.--The term ``COBRA 
     continuation coverage'' means continuation coverage provided 
     pursuant to part 6 of subtitle B of title I of the Employee 
     Retirement Income Security Act of 1974 (other than under 
     section 609), title XXII of the Public Health Service Act, 
     section 4980B of the Internal Revenue Code of 1986 (other 
     than subsection (f)(1) of such section insofar as it relates 
     to pediatric vaccines), or section 8905a of title 5, United 
     States Code, or under a State program that provides 
     continuation coverage comparable to such continuation 
     coverage. Such term does not include coverage under a health 
     flexible spending arrangement.
       (C) COBRA continuation provision.--The term ``COBRA 
     continuation provision'' means the provisions of law 
     described in subparagraph (B).
       (D) Covered employee.--The term ``covered employee'' has 
     the meaning given such term in section 607(2) of the Employee 
     Retirement Income Security Act of 1974.
       (E) Qualified beneficiary.--The term ``qualified 
     beneficiary'' has the meaning given such term in section 
     607(3) of the Employee Retirement Income Security Act of 
     1974.
       (F) Group health plan.--The term ``group health plan'' has 
     the meaning given such term in section 607(1) of the Employee 
     Retirement Income Security Act of 1974.
       (G) State.--The term ``State'' includes the District of 
     Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands.
       (11) Reports.--
       (A) Interim report.--The Secretary of the Treasury shall 
     submit an interim report to the Committee on Education and 
     Labor, the Committee on Ways and Means, and the Committee on 
     Energy and Commerce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions and the 
     Committee on Finance of the Senate regarding the premium 
     reduction provided under this subsection that includes--
       (i) the number of individuals provided such assistance as 
     of the date of the report; and
       (ii) the total amount of expenditures incurred (with 
     administrative expenditures noted separately) in connection 
     with such assistance as of the date of the report.
       (B) Final report.--As soon as practicable after the last 
     period of COBRA continuation coverage for which premium 
     reduction is provided under this section, the Secretary of 
     the Treasury shall submit a final report to each Committee 
     referred to in subparagraph (A) that includes--
       (i) the number of individuals provided premium reduction 
     under this section;
       (ii) the average dollar amount (monthly and annually) of 
     premium reductions provided to such individuals; and
       (iii) the total amount of expenditures incurred (with 
     administrative expenditures noted separately) in connection 
     with premium reduction under this section.
       (12) COBRA premium assistance.--
       (A) In general.--Subchapter B of chapter 65 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new section:

     ``SEC. 6432. COBRA PREMIUM ASSISTANCE.

       ``(a) In General.--The person to whom premiums are payable 
     under COBRA continuation coverage shall be reimbursed for the 
     amount of premiums not paid by plan beneficiaries by reason 
     of section 3001(b) of the American Recovery and Reinvestment 
     Act of 2009. Such amount shall be treated as a credit against 
     the requirement of such person to make deposits of payroll 
     taxes and the liability of such person for payroll taxes. To 
     the extent that such amount exceeds the amount of such taxes, 
     the Secretary shall pay to such person the amount of such 
     excess. No payment may be made under this subsection to a 
     person with respect to any assistance eligible individual 
     until after such person has received the reduced premium from 
     such individual required under section 3001(a)(1)(A) of such 
     Act.
       ``(b) Payroll Taxes.--For purposes of this section, the 
     term `payroll taxes' means--
       ``(1) amounts required to be deducted and withheld for the 
     payroll period under section 3401 (relating to wage 
     withholding),
       ``(2) amounts required to be deducted for the payroll 
     period under section 3102 (relating to FICA employee taxes), 
     and
       ``(3) amounts of the taxes imposed for the payroll period 
     under section 3111 (relating to FICA employer taxes).
       ``(c) Treatment of Credit.--Except as otherwise provided by 
     the Secretary, the credit described in subsection (a) shall 
     be applied as though the employer had paid to the Secretary, 
     on the day that the qualified beneficiary's premium payment 
     is received, an amount equal to such credit.
       ``(d) Treatment of Payment.--For purposes of section 
     1324(b)(2) of title 31, United States Code, any payment under 
     this subsection shall be treated in the same manner as a 
     refund of the credit under section 35.
       ``(e) Reporting.--
       ``(1) In general.--Each person entitled to reimbursement 
     under subsection (a) for any period shall submit such reports 
     as the Secretary may require, including--
       ``(A) an attestation of involuntary termination of 
     employment for each covered employee on the basis of whose 
     termination entitlement to reimbursement is claimed under 
     subsection (a), and
       ``(B) a report of the amount of payroll taxes offset under 
     subsection (a) for the reporting period and the estimated 
     offsets of such taxes for the subsequent reporting period in 
     connection with reimbursements under subsection (a).
       ``(2) Timing of reports relating to amount of payroll 
     taxes.--Reports required under paragraph (1)(B) shall be 
     submitted at the same time as deposits of taxes imposed by 
     chapters 21, 22, and 24 or at such time as is specified by 
     the Secretary.
       ``(f) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out this section, including the 
     requirement to report information or the establishment of 
     other methods for verifying the correct amounts of payments 
     and credits under this section, and the application of this 
     section to group health plans which are multiemployer 
     plans.''.
       (B) Social security trust funds held harmless.--In 
     determining any amount transferred or appropriated to any 
     fund under the Social Security Act, section 6432 of the 
     Internal Revenue Code of 1986 shall not be taken into 
     account.
       (C) Clerical amendment.--The table of sections for 
     subchapter B of chapter 65 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Sec. 6432. COBRA premium assistance.''.
       (D) Effective date.--The amendments made by this paragraph 
     shall apply to premiums to which subsection (a)(1)(A) 
     applies.
       (E) Special rule.--
       (i) In general.--In the case of an assistance eligible 
     individual who pays the full premium amount required for 
     COBRA continuation coverage for any month during the 60-day 
     period beginning on the first day of the first month after 
     the date of enactment of this Act, the person to whom such 
     payment is made shall--

       (I) make a reimbursement payment to such individual for the 
     amount of such premium paid in excess of the amount required 
     to be paid under subsection (b)(1)(A); or
       (II) provide credit to the individual for such amount in a 
     manner that reduces one or more subsequent premium payments 
     that the individual is required to pay under such subsection 
     for the coverage involved.

       (ii) Reimbursing employer.--A person to which clause (i) 
     applies shall be reimbursed as provided for in section 6432 
     of the Internal Revenue Code of 1986 for any payment made, or 
     credit provided, to the employee under such clause.
       (iii) Payment or credits.--Unless it is reasonable to 
     believe that the credit for the excess payment in clause 
     (i)(II) will be used by the assistance eligible individual 
     within 180 days of the date on which the person receives from 
     the individual the payment of the full premium amount, a 
     person to which clause (i) applies shall make the payment 
     required under such clause to the individual within 60 days 
     of such payment of the full premium amount. If, as of any day 
     within the 180-day

[[Page 3298]]

     period, it is no longer reasonable to believe that the credit 
     will be used during that period, payment equal to the 
     remainder of the credit outstanding shall be made to the 
     individual within 60 days of such day.
       (13) Penalty for failure to notify health plan of cessation 
     of eligibility for premium assistance.--
       (A) In general.--Part I of subchapter B of chapter 68 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF 
                   CESSATION OF ELIGIBILITY FOR COBRA PREMIUM 
                   ASSISTANCE.

       ``(a) In General.--Any person required to notify a group 
     health plan under section 3001(a)(2)(C) of the American 
     Recovery and Reinvestment Act of 2009 who fails to make such 
     a notification at such time and in such manner as the 
     Secretary of Labor may require shall pay a penalty of 110 
     percent of the premium reduction provided under such section 
     after termination of eligibility under such subsection.
       ``(b) Reasonable Cause Exception.--No penalty shall be 
     imposed under subsection (a) with respect to any failure if 
     it is shown that such failure is due to reasonable cause and 
     not to willful neglect.''.
       (B) Clerical amendment.--The table of sections of part I of 
     subchapter B of chapter 68 of such Code is amended by adding 
     at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of 
              eligibility for COBRA premium assistance.''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to failures occurring after the date of the 
     enactment of this Act.
       (14) Coordination with hctc.--
       (A) In general.--Subsection (g) of section 35 of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraph (9) as paragraph (10) and inserting after paragraph 
     (8) the following new paragraph:
       ``(9) COBRA premium assistance.--In the case of an 
     assistance eligible individual who receives premium reduction 
     for COBRA continuation coverage under section 3001(a) of the 
     American Recovery and Reinvestment Act of 2009 for any month 
     during the taxable year, such individual shall not be treated 
     as an eligible individual, a certified individual, or a 
     qualifying family member for purposes of this section or 
     section 7527 with respect to such month.''.
       (B) Effective date.--The amendment made by subparagraph (A) 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
       (15) Exclusion of cobra premium assistance from gross 
     income.--
       (A) In general.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 139B the following new section:

     ``SEC. 139C. COBRA PREMIUM ASSISTANCE.

       ``In the case of an assistance eligible individual (as 
     defined in section 3001 of the American Recovery and 
     Reinvestment Act of 2009), gross income does not include any 
     premium reduction provided under subsection (a) of such 
     section.''.
       (B) Clerical amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     inserting after the item relating to section 139B the 
     following new item:

``Sec. 139C. COBRA premium assistance.''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

           Subtitle B--Transitional Medical Assistance (TMA)

     SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE 
                   (TMA).

       (a) 18-Month Extension.--
       (1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the 
     Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) 
     are each amended by striking ``September 30, 2003'' and 
     inserting ``December 31, 2010''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on July 1, 2009.
       (b) State Option of Initial 12-Month Eligibility.--Section 
     1925 of the Social Security Act (42 U.S.C. 1396r-6) is 
     amended--
       (1) in subsection (a)(1), by inserting ``but subject to 
     paragraph (5)'' after ``Notwithstanding any other provision 
     of this title'';
       (2) by adding at the end of subsection (a) the following:
       ``(5) Option of 12-month initial eligibility period.--A 
     State may elect to treat any reference in this subsection to 
     a 6-month period (or 6 months) as a reference to a 12-month 
     period (or 12 months). In the case of such an election, 
     subsection (b) shall not apply.''; and
       (3) in subsection (b)(1), by inserting ``but subject to 
     subsection (a)(5)'' after ``Notwithstanding any other 
     provision of this title''.
       (c) Removal of Requirement for Previous Receipt of Medical 
     Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-
     6(a)(1)), as amended by subsection (b)(1), is further 
     amended--
       (1) by inserting ``subparagraph (B) and'' before 
     ``paragraph (5)'';
       (2) by redesignating the matter after ``Requirement.--'' as 
     a subparagraph (A) with the heading ``In general.--'' and 
     with the same indentation as subparagraph (B) (as added by 
     paragraph (3)); and
       (3) by adding at the end the following:
       ``(B) State option to waive requirement for 3 months before 
     receipt of medical assistance.--A State may, at its option, 
     elect also to apply subparagraph (A) in the case of a family 
     that was receiving such aid for fewer than three months or 
     that had applied for and was eligible for such aid for fewer 
     than 3 months during the 6 immediately preceding months 
     described in such subparagraph.''.
       (d) CMS Report on Enrollment and Participation Rates Under 
     TMA.--Section 1925 of such Act (42 U.S.C. 1396r-6), as 
     amended by this section, is further amended by adding at the 
     end the following new subsection:
       ``(g) Collection and Reporting of Participation 
     Information.--
       ``(1) Collection of information from states.--Each State 
     shall collect and submit to the Secretary (and make publicly 
     available), in a format specified by the Secretary, 
     information on average monthly enrollment and average monthly 
     participation rates for adults and children under this 
     section and of the number and percentage of children who 
     become ineligible for medical assistance under this section 
     whose medical assistance is continued under another 
     eligibility category or who are enrolled under the State's 
     child health plan under title XXI. Such information shall be 
     submitted at the same time and frequency in which other 
     enrollment information under this title is submitted to the 
     Secretary.
       ``(2) Annual reports to congress.--Using the information 
     submitted under paragraph (1), the Secretary shall submit to 
     Congress annual reports concerning enrollment and 
     participation rates described in such paragraph.''.
       (e) Effective Date.--The amendments made by subsections (b) 
     through (d) shall take effect on July 1, 2009.

     Subtitle C--Extension of the Qualified Individual (QI) Program

     SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 
                   PROGRAM.

       (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by 
     striking ``December 2009'' and inserting ``December 2010''.
       (b) Extending Total Amount Available for Allocation.--
     Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is 
     amended--
       (1) in paragraph (2)--
       (A) by striking ``and'' at the end of subparagraph (K);
       (B) in subparagraph (L), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(M) for the period that begins on January 1, 2010, and 
     ends on September 30, 2010, the total allocation amount is 
     $412,500,000; and
       ``(N) for the period that begins on October 1, 2010, and 
     ends on December 31, 2010, the total allocation amount is 
     $150,000,000.''; and
       (2) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``or (L)'' and inserting ``(L), or (N)''.

                      Subtitle D--Other Provisions

     SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS UNDER 
                   MEDICAID, ELIGIBILITY DETERMINATIONS UNDER 
                   MEDICAID AND CHIP, AND PROTECTION OF CERTAIN 
                   INDIAN PROPERTY FROM MEDICAID ESTATE RECOVERY.

       (a) Premiums and Cost Sharing Protection Under Medicaid.--
       (1) In general.--Section 1916 of the Social Security Act 
     (42 U.S.C. 1396o) is amended--
       (A) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``and (i)'' and inserting ``, (i), and 
     (j)''; and
       (B) by adding at the end the following new subsection:
       ``(j) No Premiums or Cost Sharing for Indians Furnished 
     Items or Services Directly by Indian Health Programs or 
     Through Referral Under Contract Health Services.--
       ``(1) No cost sharing for items or services furnished to 
     indians through indian health programs.--
       ``(A) In general.--No enrollment fee, premium, or similar 
     charge, and no deduction, copayment, cost sharing, or similar 
     charge shall be imposed against an Indian who is furnished an 
     item or service directly by the Indian Health Service, an 
     Indian Tribe, Tribal Organization, or Urban Indian 
     Organization or through referral under contract health 
     services for which payment may be made under this title.
       ``(B) No reduction in amount of payment to indian health 
     providers.--Payment due under this title to the Indian Health 
     Service, an Indian Tribe, Tribal Organization, or Urban 
     Indian Organization, or a health care provider through 
     referral under contract health services for the furnishing of 
     an item or service to an Indian who is eligible for 
     assistance under such title, may not be reduced by the amount 
     of any enrollment fee, premium, or similar charge, or any 
     deduction, copayment, cost sharing, or similar charge that 
     would be due from the Indian but for the operation of 
     subparagraph (A).

[[Page 3299]]

       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed as restricting the application of any 
     other limitations on the imposition of premiums or cost 
     sharing that may apply to an individual receiving medical 
     assistance under this title who is an Indian.''.
       (2) Conforming amendment.--Section 1916A(b)(3) of such Act 
     (42 U.S.C. 1396o-1(b)(3)) is amended--
       (A) in subparagraph (A), by adding at the end the following 
     new clause:
       ``(vi) An Indian who is furnished an item or service 
     directly by the Indian Health Service, an Indian Tribe, 
     Tribal Organization or Urban Indian Organization or through 
     referral under contract health services.''; and
       (B) in subparagraph (B), by adding at the end the following 
     new clause:
       ``(ix) Items and services furnished to an Indian directly 
     by the Indian Health Service, an Indian Tribe, Tribal 
     Organization or Urban Indian Organization or through referral 
     under contract health services.''.
       (b) Treatment of Certain Property From Resources for 
     Medicaid and CHIP Eligibility.--
       (1) Medicaid.--Section 1902 of the Social Security Act (42 
     U.S.C. 1396a) is amended by adding at the end the following 
     new subsection:
       ``(dd) Notwithstanding any other requirement of this title 
     or any other provision of Federal or State law, a State shall 
     disregard the following property from resources for purposes 
     of determining the eligibility of an individual who is an 
     Indian for medical assistance under this title:
       ``(1) Property, including real property and improvements, 
     that is held in trust, subject to Federal restrictions, or 
     otherwise under the supervision of the Secretary of the 
     Interior, located on a reservation, including any federally 
     recognized Indian Tribe's reservation, pueblo, or colony, 
     including former reservations in Oklahoma, Alaska Native 
     regions established by the Alaska Native Claims Settlement 
     Act, and Indian allotments on or near a reservation as 
     designated and approved by the Bureau of Indian Affairs of 
     the Department of the Interior.
       ``(2) For any federally recognized Tribe not described in 
     paragraph (1), property located within the most recent 
     boundaries of a prior Federal reservation.
       ``(3) Ownership interests in rents, leases, royalties, or 
     usage rights related to natural resources (including 
     extraction of natural resources or harvesting of timber, 
     other plants and plant products, animals, fish, and 
     shellfish) resulting from the exercise of federally protected 
     rights.
       ``(4) Ownership interests in or usage rights to items not 
     covered by paragraphs (1) through (3) that have unique 
     religious, spiritual, traditional, or cultural significance 
     or rights that support subsistence or a traditional lifestyle 
     according to applicable tribal law or custom.''.
       (2) Application to chip.--Section 2107(e)(1) of such Act 
     (42 U.S.C. 1397gg(e)(1)) is amended--
       (A) by redesignating subparagraphs (B) through (E), as 
     subparagraphs (C) through (F), respectively; and
       (B) by inserting after subparagraph (A), the following new 
     subparagraph:
       ``(B) Section 1902(dd) (relating to disregard of certain 
     property for purposes of making eligibility 
     determinations).''.
       (c) Continuation of Current Law Protections of Certain 
     Indian Property From Medicaid Estate Recovery.--Section 
     1917(b)(3) of the Social Security Act (42 U.S.C. 1396p(b)(3)) 
     is amended--
       (1) by inserting ``(A)'' after ``(3)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The standards specified by the Secretary under 
     subparagraph (A) shall require that the procedures 
     established by the State agency under subparagraph (A) exempt 
     income, resources, and property that are exempt from the 
     application of this subsection as of April 1, 2003, under 
     manual instructions issued to carry out this subsection (as 
     in effect on such date) because of the Federal responsibility 
     for Indian Tribes and Alaska Native Villages. Nothing in this 
     subparagraph shall be construed as preventing the Secretary 
     from providing additional estate recovery exemptions under 
     this title for Indians.''.

     SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP TO 
                   MANAGED CARE ENTITIES WITH RESPECT TO INDIAN 
                   ENROLLEES AND INDIAN HEALTH CARE PROVIDERS AND 
                   INDIAN MANAGED CARE ENTITIES.

       (a) In General.--Section 1932 of the Social Security Act 
     (42 U.S.C. 1396u-2) is amended by adding at the end the 
     following new subsection:
       ``(h) Special Rules With Respect to Indian Enrollees, 
     Indian Health Care Providers, and Indian Managed Care 
     Entities.--
       ``(1) Enrollee option to select an indian health care 
     provider as primary care provider.--In the case of a non-
     Indian Medicaid managed care entity that--
       ``(A) has an Indian enrolled with the entity; and
       ``(B) has an Indian health care provider that is 
     participating as a primary care provider within the network 
     of the entity,
     insofar as the Indian is otherwise eligible to receive 
     services from such Indian health care provider and the Indian 
     health care provider has the capacity to provide primary care 
     services to such Indian, the contract with the entity under 
     section 1903(m) or under section 1905(t)(3) shall require, as 
     a condition of receiving payment under such contract, that 
     the Indian shall be allowed to choose such Indian health care 
     provider as the Indian's primary care provider under the 
     entity.
       ``(2) Assurance of payment to indian health care providers 
     for provision of covered services.--Each contract with a 
     managed care entity under section 1903(m) or under section 
     1905(t)(3) shall require any such entity, as a condition of 
     receiving payment under such contract, to satisfy the 
     following requirements:
       ``(A) Demonstration of access to indian health care 
     providers and application of alternative payment 
     arrangements.--Subject to subparagraph (C), to--
       ``(i) demonstrate that the number of Indian health care 
     providers that are participating providers with respect to 
     such entity are sufficient to ensure timely access to covered 
     Medicaid managed care services for those Indian enrollees who 
     are eligible to receive services from such providers; and
       ``(ii) agree to pay Indian health care providers, whether 
     such providers are participating or nonparticipating 
     providers with respect to the entity, for covered Medicaid 
     managed care services provided to those Indian enrollees who 
     are eligible to receive services from such providers at a 
     rate equal to the rate negotiated between such entity and the 
     provider involved or, if such a rate has not been negotiated, 
     at a rate that is not less than the level and amount of 
     payment which the entity would make for the services if the 
     services were furnished by a participating provider which is 
     not an Indian health care provider.
       ``(B) Prompt payment.--To agree to make prompt payment 
     (consistent with rule for prompt payment of providers under 
     section 1932(f)) to Indian health care providers that are 
     participating providers with respect to such entity or, in 
     the case of an entity to which subparagraph (A)(ii) or (C) 
     applies, that the entity is required to pay in accordance 
     with that subparagraph.
       ``(C) Application of special payment requirements for 
     federally-qualified health centers and for services provided 
     by certain indian health care providers.--
       ``(i) Federally-qualified health centers.--

       ``(I) Managed care entity payment requirement.--To agree to 
     pay any Indian health care provider that is a federally-
     qualified health center under this title but not a 
     participating provider with respect to the entity, for the 
     provision of covered Medicaid managed care services by such 
     provider to an Indian enrollee of the entity at a rate equal 
     to the amount of payment that the entity would pay a 
     federally-qualified health center that is a participating 
     provider with respect to the entity but is not an Indian 
     health care provider for such services.
       ``(II) Continued application of state requirement to make 
     supplemental payment.--Nothing in subclause (I) or 
     subparagraph (A) or (B) shall be construed as waiving the 
     application of section 1902(bb)(5) regarding the State plan 
     requirement to make any supplemental payment due under such 
     section to a federally-qualified health center for services 
     furnished by such center to an enrollee of a managed care 
     entity (regardless of whether the federally-qualified health 
     center is or is not a participating provider with the 
     entity).

       ``(ii) Payment rate for services provided by certain indian 
     health care providers.--If the amount paid by a managed care 
     entity to an Indian health care provider that is not a 
     federally-qualified health center for services provided by 
     the provider to an Indian enrollee with the managed care 
     entity is less than the rate that applies to the provision of 
     such services by the provider under the State plan, the plan 
     shall provide for payment to the Indian health care provider, 
     whether the provider is a participating or nonparticipating 
     provider with respect to the entity, of the difference 
     between such applicable rate and the amount paid by the 
     managed care entity to the provider for such services.
       ``(D) Construction.--Nothing in this paragraph shall be 
     construed as waiving the application of section 
     1902(a)(30)(A) (relating to application of standards to 
     assure that payments are consistent with efficiency, economy, 
     and quality of care).
       ``(3) Special rule for enrollment for indian managed care 
     entities.--Regarding the application of a Medicaid managed 
     care program to Indian Medicaid managed care entities, an 
     Indian Medicaid managed care entity may restrict enrollment 
     under such program to Indians and to members of specific 
     Tribes in the same manner as Indian Health Programs may 
     restrict the delivery of services to such Indians and tribal 
     members.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) Indian health care provider.--The term `Indian health 
     care provider' means an Indian Health Program or an Urban 
     Indian Organization.
       ``(B) Indian medicaid managed care entity.--The term 
     `Indian Medicaid managed care entity' means a managed care 
     entity

[[Page 3300]]

     that is controlled (within the meaning of the last sentence 
     of section 1903(m)(1)(C)) by the Indian Health Service, a 
     Tribe, Tribal Organization, or Urban Indian Organization, or 
     a consortium, which may be composed of 1 or more Tribes, 
     Tribal Organizations, or Urban Indian Organizations, and 
     which also may include the Service.
       ``(C) Non-indian medicaid managed care entity.--The term 
     `non-Indian Medicaid managed care entity' means a managed 
     care entity that is not an Indian Medicaid managed care 
     entity.
       ``(D) Covered medicaid managed care services.--The term 
     `covered Medicaid managed care services' means, with respect 
     to an individual enrolled with a managed care entity, items 
     and services for which benefits are available with respect to 
     the individual under the contract between the entity and the 
     State involved.
       ``(E) Medicaid managed care program.--The term `Medicaid 
     managed care program' means a program under sections 1903(m), 
     1905(t), and 1932 and includes a managed care program 
     operating under a waiver under section 1915(b) or 1115 or 
     otherwise.''.
       (b) Application to CHIP.--Subject to section _013(d), 
     section 2107(e)(1) of such Act (42 U.S.C. 1397gg(1)) is 
     amended by adding at the end the following new subparagraph:
       ``(E) Subsections (a)(2)(C) and (h) of section 1932.''.

     SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH 
                   CARE PROGRAMS FUNDED UNDER THE SOCIAL SECURITY 
                   ACT INVOLVING INDIAN HEALTH PROGRAMS AND URBAN 
                   INDIAN ORGANIZATIONS.

       (a) Consultation With Tribal Technical Advisory Group 
     (TTAG).--The Secretary of Health and Human Services shall 
     maintain within the Centers for Medicaid & Medicare Services 
     (CMS) a Tribal Technical Advisory Group (TTAG), which was 
     first established in accordance with requirements of the 
     charter dated September 30, 2003, and the Secretary of Health 
     and Human Services shall include in such Group a 
     representative of a national urban Indian health organization 
     and a representative of the Indian Health Service. The 
     inclusion of a representative of a national urban Indian 
     health organization in such Group shall not affect the 
     nonapplication of the Federal Advisory Committee Act (5 
     U.S.C. App.) to such Group.
       (b) Solicitation of Advice Under Medicaid and CHIP.--
       (1) Medicaid state plan amendment.--Subject to subsection 
     (d), section 1902(a) of the Social Security Act (42 U.S.C. 
     1396a(a)) is amended--
       (A) in paragraph (70), by striking ``and'' at the end;
       (B) in paragraph (71), by striking the period at the end 
     and inserting ``; and''; and
       (C) by inserting after paragraph (71), the following new 
     paragraph:
       ``(72) in the case of any State in which 1 or more Indian 
     Health Programs or Urban Indian Organizations furnishes 
     health care services, provide for a process under which the 
     State seeks advice on a regular, ongoing basis from designees 
     of such Indian Health Programs and Urban Indian Organizations 
     on matters relating to the application of this title that are 
     likely to have a direct effect on such Indian Health Programs 
     and Urban Indian Organizations and that--
       ``(A) shall include solicitation of advice prior to 
     submission of any plan amendments, waiver requests, and 
     proposals for demonstration projects likely to have a direct 
     effect on Indians, Indian Health Programs, or Urban Indian 
     Organizations; and
       ``(B) may include appointment of an advisory committee and 
     of a designee of such Indian Health Programs and Urban Indian 
     Organizations to the medical care advisory committee advising 
     the State on its State plan under this title.''.
       (2) Application to chip.--Subject to subsection (d), 
     section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)), as 
     amended by section 3302(b)(2), is amended--
       (A) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (C) through (F), respectively; and
       (B) by inserting after subparagraph (A), the following new 
     subparagraph:
       ``(B) Section 1902(a)(72) (relating to requiring certain 
     States to seek advice from designees of Indian Health 
     Programs and Urban Indian Organizations).''.
       (c) Rule of Construction.--Nothing in the amendments made 
     by this section shall be construed as superseding existing 
     advisory committees, working groups, guidance, or other 
     advisory procedures established by the Secretary of Health 
     and Human Services or by any State with respect to the 
     provision of health care to Indians.
       (d) Contingency Rule.--If the Children's Health Insurance 
     Program Reauthorization Act of 2009 (in this subsection 
     referred to as ``CHIPRA'') has been enacted as of the date of 
     enactment of this Act, the following shall apply:
       (1) Subparagraph (I) of section 2107(e) of the Social 
     Security Act (as redesignated by CHIPRA) is redesignated as 
     subparagraph (K) and the subparagraph (E) added to section 
     2107(e) of the Social Security Act by section 3302(b) is 
     redesignated as subparagraph (J).
       (2) Subparagraphs (D) through (H) of section 2107(e) of the 
     Social Security Act (as added and redesignated by CHIPRA) are 
     redesignated as subparagraphs (E) through (I), respectively 
     and the subparagraph (B) of section 2107(e) of the Social 
     Security Act added by subsection (b)(2) of this section is 
     redesignated as subparagraph (D) and amended by striking 
     ``1902(a)(72)'' and inserting ``1902(a)(73)''.
       (3) Section 1902(a) of the Social Security Act (as amended 
     by CHIPRA) is amended by striking ``and'' at the end of 
     paragraph (71), by striking the period at the end of the 
     paragraph (72) added by CHIPRA and inserting ``; and'' and by 
     redesignated the paragraph (72) added to such section by 
     subsection (b)(1) of this section as paragraph (73).

     SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS TO NURSING 
                   FACILITIES.

       Section 1902(a)(37)(A) of the Social Security Act (42 
     U.S.C. 1396a(a)(37)(A)) is amended by inserting ``, or by 
     nursing facilities,'' after ``health facilities''

     SEC. 3305. PERIOD OF APPLICATION; SUNSET.

       This subtitle and the amendments made by this subtitle 
     shall be in effect only during the period that begins on 
     April 1, 2009, and ends on December 31, 2010. On and after 
     January 1, 2011, the Social Security Act shall be applied as 
     if this subtitle and the amendments made by this subtitle had 
     not been enacted.

                TITLE IV--HEALTH INFORMATION TECHNOLOGY

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

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

                TITLE IV--HEALTH INFORMATION TECHNOLOGY

Sec. 4001. Short title; table of contents of title.

                      Subtitle A--Medicare Program

Sec. 4201. Incentives for eligible professionals.
Sec. 4202. Incentives for hospitals.
Sec. 4203. Premium hold harmless and implementation funding.
Sec. 4204. Non-application of phased-out indirect medical education 
              (IME) adjustment factor for fiscal year 2009.
Sec. 4205. Study on application of EHR payment incentives for providers 
              not receiving other incentive payments.
Sec. 4206. Study on availability of open source health information 
              technology systems.

                      Subtitle B--Medicaid Funding

Sec. 4211. Medicaid provider EHR adoption and operation payments; 
              implementation funding.

                      Subtitle A--Medicare Program

     SEC. 4201. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

       (a) Incentive Payments.--Section 1848 of the Social 
     Security Act (42 U.S.C. 1395w-4) is amended by adding at the 
     end the following new subsection:
       ``(o) Incentives for Adoption and Meaningful Use of 
     Certified EHR Technology.--
       ``(1) Incentive payments.--
       ``(A) In general.--
       ``(i) In general.--Subject to clause (ii) and the 
     succeeding subparagraphs of this paragraph, with respect to 
     covered professional services furnished by an eligible 
     professional during a payment year (as defined in 
     subparagraph (E)), if the eligible professional is a 
     meaningful EHR user (as determined under paragraph (2)) for 
     the reporting period with respect to such year, in addition 
     to the amount otherwise paid under this part, there also 
     shall be paid to the eligible professional (or to an employer 
     or facility in the cases described in clause (A) of section 
     1842(b)(6)), from the Federal Supplementary Medical Insurance 
     Trust Fund established under section 1841 an amount equal to 
     75 percent of the Secretary's estimate (based on claims 
     submitted not later than 2 months after the end of the 
     payment year) of the allowed charges under this part for all 
     such covered professional services furnished by the eligible 
     professional during such year.
       ``(ii) No incentive payments with respect to years after 
     2015.--No incentive payments may be made under this 
     subsection with respect to a year after 2015.
       ``(B) Limitations on amounts of incentive payments.--
       ``(i) In general.--In no case shall the amount of the 
     incentive payment provided under this paragraph for an 
     eligible professional for a payment year exceed the 
     applicable amount specified under this subparagraph with 
     respect to such eligible professional and such year.
       ``(ii) Amount.--Subject to clauses (iii) through (v), the 
     applicable amount specified in this subparagraph for an 
     eligible professional is as follows:

       ``(I) For the first payment year for such professional, 
     $15,000 (or, if the first payment year for such eligible 
     professional is 2011 or 2012, $18,000).
       ``(II) For the second payment year for such professional, 
     $12,000.
       ``(III) For the third payment year for such professional, 
     $8,000.

[[Page 3301]]

       ``(IV) For the fourth payment year for such professional, 
     $4,000.
       ``(V) For the fifth payment year for such professional, 
     $2,000.
       ``(VI) For any succeeding payment year for such 
     professional, $0.

       ``(iii) Phase down for eligible professionals first 
     adopting ehr in 2014.--If the first payment year for an 
     eligible professional is 2014, then the amount specified in 
     this subparagraph for a payment year for such professional is 
     the same as the amount specified in clause (ii) for such 
     payment year for an eligible professional whose first payment 
     year is 2013.
       ``(iv) Increase for certain rural eligible professionals.--
     In the case of an eligible professional who predominantly 
     furnishes services under this part in a rural area that is 
     designated by the Secretary (under section 332(a)(1)(A) of 
     the Public Health Service Act) as a health professional 
     shortage area, the amount that would otherwise apply for a 
     payment year for such professional under subclauses (I) 
     through (V) of clause (ii) shall be increased by 25 percent. 
     In implementing the preceding sentence, the Secretary may, as 
     determined appropriate, apply provisions of subsections (m) 
     and (u) of section 1833 in a similar manner as such 
     provisions apply under such subsection.
       ``(v) No incentive payment if first adopting after 2014.--
     If the first payment year for an eligible professional is 
     after 2014 then the applicable amount specified in this 
     subparagraph for such professional for such year and any 
     subsequent year shall be $0.
       ``(C) Non-application to hospital-based eligible 
     professionals.--
       ``(i) In general.--No incentive payment may be made under 
     this paragraph in the case of a hospital-based eligible 
     professional.
       ``(ii) Hospital-based eligible professional.--For purposes 
     of clause (i), the term `hospital-based eligible 
     professional' means, with respect to covered professional 
     services furnished by an eligible professional during the 
     reporting period for a payment year, an eligible 
     professional, such as a pathologist, anesthesiologist, or 
     emergency physician, who furnishes substantially all of such 
     services in a hospital setting (whether inpatient or 
     outpatient) and through the use of the facilities and 
     equipment, including qualified electronic health records, of 
     the hospital.
       ``(D) Payment.--
       ``(i) Form of payment.--The payment under this paragraph 
     may be in the form of a single consolidated payment or in the 
     form of such periodic installments as the Secretary may 
     specify.
       ``(ii) Coordination of application of limitation for 
     professionals in different practices.--In the case of an 
     eligible professional furnishing covered professional 
     services in more than one practice (as specified by the 
     Secretary), the Secretary shall establish rules to coordinate 
     the incentive payments, including the application of the 
     limitation on amounts of such incentive payments under this 
     paragraph, among such practices.
       ``(iii) Coordination with medicaid.--The Secretary shall 
     seek, to the maximum extent practicable, to avoid duplicative 
     requirements from Federal and State Governments to 
     demonstrate meaningful use of certified EHR technology under 
     this title and title XIX. In doing so, the Secretary may deem 
     satisfaction of State requirements for such meaningful use 
     for a payment year under title XIX to be sufficient to 
     qualify as meaningful use under this subsection and 
     subsection (a)(7) and vice versa. The Secretary may also 
     adjust the reporting periods under such title and such 
     subsections in order to carry out this clause.
       ``(E) Payment year defined.--
       ``(i) In general.--For purposes of this subsection, the 
     term `payment year' means a year beginning with 2011.
       ``(ii) First, second, etc. payment year.--The term `first 
     payment year' means, with respect to covered professional 
     services furnished by an eligible professional, the first 
     year for which an incentive payment is made for such services 
     under this subsection. The terms `second payment year', 
     `third payment year', `fourth payment year', and `fifth 
     payment year' mean, with respect to covered professional 
     services furnished by such eligible professional, each 
     successive year immediately following the first payment year 
     for such professional.
       ``(2) Meaningful ehr user.--
       ``(A) In general.--For purposes of paragraph (1), an 
     eligible professional shall be treated as a meaningful EHR 
     user for a reporting period for a payment year (or, for 
     purposes of subsection (a)(7), for a reporting period under 
     such subsection for a year) if each of the following 
     requirements is met:
       ``(i) Meaningful use of certified ehr technology.--The 
     eligible professional demonstrates to the satisfaction of the 
     Secretary, in accordance with subparagraph (C)(i), that 
     during such period the professional is using certified EHR 
     technology in a meaningful manner, which shall include the 
     use of electronic prescribing as determined to be appropriate 
     by the Secretary.
       ``(ii) Information exchange.--The eligible professional 
     demonstrates to the satisfaction of the Secretary, in 
     accordance with subparagraph (C)(i), that during such period 
     such certified EHR technology is connected in a manner that 
     provides, in accordance with law and standards applicable to 
     the exchange of information, for the electronic exchange of 
     health information to improve the quality of health care, 
     such as promoting care coordination.
       ``(iii) Reporting on measures using ehr.--Subject to 
     subparagraph (B)(ii) and using such certified EHR technology, 
     the eligible professional submits information for such 
     period, in a form and manner specified by the Secretary, on 
     such clinical quality measures and such other measures as 
     selected by the Secretary under subparagraph (B)(i).
     The Secretary may provide for the use of alternative means 
     for meeting the requirements of clauses (i), (ii), and (iii) 
     in the case of an eligible professional furnishing covered 
     professional services in a group practice (as defined by the 
     Secretary). The Secretary shall seek to improve the use of 
     electronic health records and health care quality over time 
     by requiring more stringent measures of meaningful use 
     selected under this paragraph.
       ``(B) Reporting on measures.--
       ``(i) Selection.--The Secretary shall select measures for 
     purposes of subparagraph (A)(iii) but only consistent with 
     the following:

       ``(I) The Secretary shall provide preference to clinical 
     quality measures that have been endorsed by the entity with a 
     contract with the Secretary under section 1890(a).
       ``(II) Prior to any measure being selected under this 
     subparagraph, the Secretary shall publish in the Federal 
     Register such measure and provide for a period of public 
     comment on such measure.

       ``(ii) Limitation.--The Secretary may not require the 
     electronic reporting of information on clinical quality 
     measures under subparagraph (A)(iii) unless the Secretary has 
     the capacity to accept the information electronically, which 
     may be on a pilot basis.
       ``(iii) Coordination of reporting of information.--In 
     selecting such measures, and in establishing the form and 
     manner for reporting measures under subparagraph (A)(iii), 
     the Secretary shall seek to avoid redundant or duplicative 
     reporting otherwise required, including reporting under 
     subsection (k)(2)(C).
       ``(C) Demonstration of meaningful use of certified ehr 
     technology and information exchange.--
       ``(i) In general.--A professional may satisfy the 
     demonstration requirement of clauses (i) and (ii) of 
     subparagraph (A) through means specified by the Secretary, 
     which may include--

       ``(I) an attestation;
       ``(II) the submission of claims with appropriate coding 
     (such as a code indicating that a patient encounter was 
     documented using certified EHR technology);
       ``(III) a survey response;
       ``(IV) reporting under subparagraph (A)(iii); and
       ``(V) other means specified by the Secretary.

       ``(ii) Use of part d data.--Notwithstanding sections 1860D-
     15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data 
     regarding drug claims submitted for purposes of section 
     1860D-15 that are necessary for purposes of subparagraph (A).
       ``(3) Application.--
       ``(A) Physician reporting system rules.--Paragraphs (5), 
     (6), and (8) of subsection (k) shall apply for purposes of 
     this subsection in the same manner as they apply for purposes 
     of such subsection.
       ``(B) Coordination with other payments.--The provisions of 
     this subsection shall not be taken into account in applying 
     the provisions of subsection (m) of this section and of 
     section 1833(m) and any payment under such provisions shall 
     not be taken into account in computing allowable charges 
     under this subsection.
       ``(C) Limitations on review.--There shall be no 
     administrative or judicial review under section 1869, section 
     1878, or otherwise of the determination of any incentive 
     payment under this subsection and the payment adjustment 
     under subsection (a)(7), including the determination of a 
     meaningful EHR user under paragraph (2), a limitation under 
     paragraph (1)(B), and the exception under subsection 
     (a)(7)(B).
       ``(D) Posting on website.--The Secretary shall post on the 
     Internet website of the Centers for Medicare & Medicaid 
     Services, in an easily understandable format, a list of the 
     names, business addresses, and business phone numbers of the 
     eligible professionals who are meaningful EHR users and, as 
     determined appropriate by the Secretary, of group practices 
     receiving incentive payments under paragraph (1).
       ``(4) Certified ehr technology defined.--For purposes of 
     this section, the term `certified EHR technology' means a 
     qualified electronic health record (as defined in 3000(13) of 
     the Public Health Service Act) that is certified pursuant to 
     section 3001(c)(5) of such Act as meeting standards adopted 
     under section 3004 of such Act that are applicable to the 
     type of record involved (as determined by the Secretary, such 
     as an ambulatory electronic health record for office-based 
     physicians or an inpatient hospital electronic health record 
     for hospitals).
       ``(5) Definitions.--For purposes of this subsection:

[[Page 3302]]

       ``(A) Covered professional services.--The term `covered 
     professional services' has the meaning given such term in 
     subsection (k)(3).
       ``(B) Eligible professional.--The term `eligible 
     professional' means a physician, as defined in section 
     1861(r).
       ``(C) Reporting period.--The term `reporting period' means 
     any period (or periods), with respect to a payment year, as 
     specified by the Secretary.''.
       (b) Incentive Payment Adjustment.--Section 1848(a) of the 
     Social Security Act (42 U.S.C. 1395w-4(a)) is amended by 
     adding at the end the following new paragraph:
       ``(7) Incentives for meaningful use of certified ehr 
     technology.--
       ``(A) Adjustment.--
       ``(i) In general.--Subject to subparagraphs (B) and (D), 
     with respect to covered professional services furnished by an 
     eligible professional during 2015 or any subsequent payment 
     year, if the eligible professional is not a meaningful EHR 
     user (as determined under subsection (o)(2)) for a reporting 
     period for the year, the fee schedule amount for such 
     services furnished by such professional during the year 
     (including the fee schedule amount for purposes of 
     determining a payment based on such amount) shall be equal to 
     the applicable percent of the fee schedule amount that would 
     otherwise apply to such services under this subsection 
     (determined after application of paragraph (3) but without 
     regard to this paragraph).
       ``(ii) Applicable percent.--Subject to clause (iii), for 
     purposes of clause (i), the term `applicable percent' means--

       ``(I) for 2015, 99 percent (or, in the case of an eligible 
     professional who was subject to the application of the 
     payment adjustment under section 1848(a)(5) for 2014, 98 
     percent);
       ``(II) for 2016, 98 percent; and
       ``(III) for 2017 and each subsequent year, 97 percent.

       ``(iii) Authority to decrease applicable percentage for 
     2018 and subsequent years.--For 2018 and each subsequent 
     year, if the Secretary finds that the proportion of eligible 
     professionals who are meaningful EHR users (as determined 
     under subsection (o)(2)) is less than 75 percent, the 
     applicable percent shall be decreased by 1 percentage point 
     from the applicable percent in the preceding year, but in no 
     case shall the applicable percent be less than 95 percent.
       ``(B) Significant hardship exception.--The Secretary may, 
     on a case-by-case basis, exempt an eligible professional from 
     the application of the payment adjustment under subparagraph 
     (A) if the Secretary determines, subject to annual renewal, 
     that compliance with the requirement for being a meaningful 
     EHR user would result in a significant hardship, such as in 
     the case of an eligible professional who practices in a rural 
     area without sufficient Internet access. In no case may an 
     eligible professional be granted an exemption under this 
     subparagraph for more than 5 years.
       ``(C) Application of physician reporting system rules.--
     Paragraphs (5), (6), and (8) of subsection (k) shall apply 
     for purposes of this paragraph in the same manner as they 
     apply for purposes of such subsection.
       ``(D) Non-application to hospital-based eligible 
     professionals.--No payment adjustment may be made under 
     subparagraph (A) in the case of hospital-based eligible 
     professionals (as defined in subsection (o)(1)(C)(ii)).
       ``(E) Definitions.--For purposes of this paragraph:
       ``(i) Covered professional services.--The term `covered 
     professional services' has the meaning given such term in 
     subsection (k)(3).
       ``(ii) Eligible professional.--The term `eligible 
     professional' means a physician, as defined in section 
     1861(r).
       ``(iii) Reporting period.--The term `reporting period' 
     means, with respect to a year, a period specified by the 
     Secretary.''.
       (c) Application to Certain MA-Affiliated Eligible 
     Professionals.--Section 1853 of the Social Security Act (42 
     U.S.C. 1395w- 23) is amended by adding at the end the 
     following new subsection:
       ``(l) Application of Eligible Professional Incentives for 
     Certain MA Organizations for Adoption and Meaningful Use of 
     Certified EHR Technology.--
       ``(1) In general.--Subject to paragraphs (3) and (4), in 
     the case of a qualifying MA organization, the provisions of 
     sections 1848(o) and 1848(a)(7) shall apply with respect to 
     eligible professionals described in paragraph (2) of the 
     organization who the organization attests under paragraph (6) 
     to be meaningful EHR users in a similar manner as they apply 
     to eligible professionals under such sections. Incentive 
     payments under paragraph (3) shall be made to and payment 
     adjustments under paragraph (4) shall apply to such 
     qualifying organizations.
       ``(2) Eligible professional described.--With respect to a 
     qualifying MA organization, an eligible professional 
     described in this paragraph is an eligible professional (as 
     defined for purposes of section 1848(o)) who--
       ``(A)(i) is employed by the organization; or
       ``(ii)(I) is employed by, or is a partner of, an entity 
     that through contract with the organization furnishes at 
     least 80 percent of the entity's patient care services to 
     enrollees of such organization; and
       ``(II) furnishes at least 75 percent of the professional 
     services of the eligible professional to enrollees of the 
     organization; and
       ``(B) furnishes, on average, at least 20 hours per week of 
     patient care services.
       ``(3) Eligible professional incentive payments.--
       ``(A) In general.--In applying section 1848(o) under 
     paragraph (1), instead of the additional payment amount under 
     section 1848(o)(1)(A) and subject to subparagraph (B), the 
     Secretary may substitute an amount determined by the 
     Secretary to the extent feasible and practical to be similar 
     to the estimated amount in the aggregate that would be 
     payable if payment for services furnished by such 
     professionals was payable under part B instead of this part.
       ``(B) Avoiding duplication of payments.--
       ``(i) In general.--If an eligible professional described in 
     paragraph (2) is eligible for the maximum incentive payment 
     under section 1848(o)(1)(A) for the same payment period, the 
     payment incentive shall be made only under such section and 
     not under this subsection.
       ``(ii) Methods.--In the case of an eligible professional 
     described in paragraph (2) who is eligible for an incentive 
     payment under section 1848(o)(1)(A) but is not described in 
     clause (i) for the same payment period, the Secretary shall 
     develop a process--

       ``(I) to ensure that duplicate payments are not made with 
     respect to an eligible professional both under this 
     subsection and under section 1848(o)(1)(A); and
       ``(II) to collect data from Medicare Advantage 
     organizations to ensure against such duplicate payments.

       ``(C) Fixed schedule for application of limitation on 
     incentive payments for all eligible professionals.--In 
     applying section 1848(o)(1)(B)(ii) under subparagraph (A), in 
     accordance with rules specified by the Secretary, a 
     qualifying MA organization shall specify a year (not earlier 
     than 2011) that shall be treated as the first payment year 
     for all eligible professionals with respect to such 
     organization.
       ``(D) Cap for economies of scale.--In no case may an 
     incentive payment be made under this subsection, including 
     under subparagraph (A), to a qualifying MA organization with 
     respect to more than 5,000 eligible professionals of the 
     organization.
       ``(4) Payment adjustment.--
       ``(A) In general.--In applying section 1848(a)(7) under 
     paragraph (1), instead of the payment adjustment being an 
     applicable percent of the fee schedule amount for a year 
     under such section, subject to subparagraph (D), the payment 
     adjustment under paragraph (1) shall be equal to the percent 
     specified in subparagraph (B) for such year of the payment 
     amount otherwise provided under this section for such year.
       ``(B) Specified percent.--The percent specified under this 
     subparagraph for a year is 100 percent minus a number of 
     percentage points equal to the product of--
       ``(i) a percentage equal to 100 percent reduced by the 
     applicable percent (under section 1848(a)(7)(A)(ii)) for the 
     year; and
       ``(ii) a percentage equal to the Secretary's estimate of 
     the proportion for the year, of the expenditures under parts 
     A and B that are not attributable to this part, that are 
     attributable to expenditures for physicians' services.
       ``(C) Application of payment adjustment.--In the case that 
     a qualifying MA organization attests that not all eligible 
     professionals of the organization are meaningful EHR users 
     with respect to a year, the Secretary shall apply the payment 
     adjustment under this paragraph based on the proportion of 
     all eligible professionals of the organization that are not 
     meaningful EHR users for such year. If the number of eligible 
     professionals of the organization that are not meaningful EHR 
     users for such year exceeds 5,000, such number shall be 
     reduced to 5,000 for purposes of determining the proportion 
     under the preceding sentence.
       ``(5) Qualifying ma organization defined.--In this 
     subsection and subsection (m), the term `qualifying MA 
     organization' means a Medicare Advantage organization that is 
     organized as a health maintenance organization (as defined in 
     section 2791(b)(3) of the Public Health Service Act).
       ``(6) Meaningful ehr user attestation.--For purposes of 
     this subsection and subsection (m), a qualifying MA 
     organization shall submit an attestation, in a form and 
     manner specified by the Secretary which may include the 
     submission of such attestation as part of submission of the 
     initial bid under section 1854(a)(1)(A)(iv), identifying--
       ``(A) whether each eligible professional described in 
     paragraph (2), with respect to such organization is a 
     meaningful EHR user (as defined in section 1848(o)(2)) for a 
     year specified by the Secretary; and
       ``(B) whether each eligible hospital described in 
     subsection (m)(1), with respect to such organization, is a 
     meaningful EHR user (as defined in section 1886(n)(3)) for an 
     applicable period specified by the Secretary.
       ``(7) Posting on website.--The Secretary shall post on the 
     Internet website of the Centers for Medicare & Medicaid 
     Services, in an easily understandable format, a list of the 
     names, business addresses, and business phone numbers of--

[[Page 3303]]

       ``(A) each qualifying MA organization receiving an 
     incentive payment under this subsection for eligible 
     professionals of the organization; and
       ``(B) the eligible professionals of such organization for 
     which such incentive payment is based.''.
       (d) Conforming Amendments.--Section 1853 of the Social 
     Security Act (42 U.S.C. 1395w-23) is amended--
       (1) in subsection (a)(1)(A), by striking ``and (i)'' and 
     inserting ``(i), and (l)'';
       (2) in subsection (c)--
       (A) in paragraph (1)(D)(i), by striking ``section 1886(h)'' 
     and inserting ``sections 1848(o) and 1886(h)''; and
       (B) in paragraph (6)(A), by inserting after ``under part 
     B,'' the following: ``excluding expenditures attributable to 
     subsections (a)(7) and (o) of section 1848,''; and
       (3) in subsection (f), by inserting ``and for payments 
     under subsection (l)'' after ``with the organization''.
       (e) Conforming Amendments to e-Prescribing.--
       (1) Section 1848(a)(5)(A) of the Social Security Act (42 
     U.S.C. 1395w-4(a)(5)(A)) is amended--
       (A) in clause (i), by striking ``or any subsequent year'' 
     and inserting ``, 2013, or 2014''; and
       (B) in clause (ii), by striking ``and each subsequent 
     year''.
       (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-
     4(m)(2)) is amended--
       (A) in subparagraph (A), by striking ``For 2009'' and 
     inserting ``Subject to subparagraph (D), for 2009''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) Limitation with respect to ehr incentive payments.--
     The provisions of this paragraph shall not apply to an 
     eligible professional (or, in the case of a group practice 
     under paragraph (3)(C), to the group practice) if, for the 
     reporting period the eligible professional (or group 
     practice) receives an incentive payment under subsection 
     (o)(1)(A) with respect to a certified EHR technology (as 
     defined in subsection (o)(4)) that has the capability of 
     electronic prescribing.''.
       (f) Providing Assistance to Eligible Professionals and 
     Certain Hospitals.--
       (1) In general.--The Secretary of Health and Human Services 
     shall provide assistance to eligible professionals (as 
     defined in section 1848(o)(5), as added by subsection (a)), 
     Medicaid providers (as defined in section 1903(t)(2) of such 
     Act, as added by section 4211(a)), and eligible hospitals (as 
     defined in section 1886(n)(6)(A) of such Act, as added by 
     section 4202(a)) located in rural or other medically 
     underserved areas to successfully choose, implement, and use 
     certified EHR technology (as defined in section 1848(o)(4) of 
     the Social Security Act, as added by section 4201(a)).
       (2) Use of entities with expertise.--To the extent 
     practicable, the Secretary shall provide such assistance 
     through entities that have expertise in the choice, 
     implementation, and use of such certified EHR technology.

     SEC. 4202. INCENTIVES FOR HOSPITALS.

       (a) Incentive Payment.--Section 1886 of the Social Security 
     Act (42 U.S.C. 1395ww) is amended by adding at the end the 
     following new subsection:
       ``(n) Incentives for Adoption and Meaningful Use of 
     Certified EHR Technology.--
       ``(1) In general.--Subject to the succeeding provisions of 
     this subsection, with respect to inpatient hospital services 
     furnished by an eligible hospital during a payment year (as 
     defined in paragraph (2)(G)), if the eligible hospital is a 
     meaningful EHR user (as determined under paragraph (3)) for 
     the reporting period with respect to such year, in addition 
     to the amount otherwise paid under this section, there also 
     shall be paid to the eligible hospital, from the Federal 
     Hospital Insurance Trust Fund established under section 1817, 
     an amount equal to the applicable amount specified in 
     paragraph (2)(A) for the hospital for such payment year.
       ``(2) Payment amount.--
       ``(A) In general.--Subject to the succeeding subparagraphs 
     of this paragraph, the applicable amount specified in this 
     subparagraph for an eligible hospital for a payment year is 
     equal to the product of the following:
       ``(i) Initial amount.--The sum of--

       ``(I) the base amount specified in subparagraph (B); plus
       ``(II) the discharge related amount specified in 
     subparagraph (C) for a 12-month period selected by the 
     Secretary with respect to such payment year.

       ``(ii) Medicare share.--The Medicare share as specified in 
     subparagraph (D) for the hospital for a period selected by 
     the Secretary with respect to such payment year.
       ``(iii) Transition factor.--The transition factor specified 
     in subparagraph (E) for the hospital for the payment year.
       ``(B) Base amount.--The base amount specified in this 
     subparagraph is $2,000,000.
       ``(C) Discharge related amount.--The discharge related 
     amount specified in this subparagraph for a 12-month period 
     selected by the Secretary shall be determined as the sum of 
     the amount, based upon total discharges (regardless of any 
     source of payment) for the period, for each discharge up to 
     the 23,000th discharge as follows:
       ``(i) For the 1,150th through the 9,200nd discharge, $200.
       ``(ii) For the 9,201st through the 13,800th discharge, 50 
     percent of the amount specified in clause (i).
       ``(iii) For the 13,801st through the 23,000th discharge, 30 
     percent of the amount specified in clause (i).
       ``(D) Medicare share.--The Medicare share specified under 
     this subparagraph for a hospital for a period selected by the 
     Secretary for a payment year is equal to the fraction--
       ``(i) the numerator of which is the sum (for such period 
     and with respect to the hospital) of--

       ``(I) the number of inpatient-bed-days (as established by 
     the Secretary) which are attributable to individuals with 
     respect to whom payment may be made under part A; and
       ``(II) the number of inpatient-bed-days (as so established) 
     which are attributable to individuals who are enrolled with a 
     Medicare Advantage organization under part C; and

       ``(ii) the denominator of which is the product of--

       ``(I) the total number of inpatient-bed-days with respect 
     to the hospital during such period; and
       ``(II) the total amount of the hospital's charges during 
     such period, not including any charges that are attributable 
     to charity care (as such term is used for purposes of 
     hospital cost reporting under this title), divided by the 
     total amount of the hospital's charges during such period.

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

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

       ``(ii) Phase down for eligible hospitals first adopting ehr 
     after 2013.--If the first payment year for an eligible 
     hospital is after 2013, then the transition factor specified 
     in this subparagraph for a payment year for such hospital is 
     the same as the amount specified in clause (i) for such 
     payment year for an eligible hospital for which the first 
     payment year is 2013. If the first payment year for an 
     eligible hospital is after 2015 then the transition factor 
     specified in this subparagraph for such hospital and for such 
     year and any subsequent year shall be 0.
       ``(F) Form of payment.--The payment under this subsection 
     for a payment year may be in the form of a single 
     consolidated payment or in the form of such periodic 
     installments as the Secretary may specify.
       ``(G) Payment year defined.--
       ``(i) In general.--For purposes of this subsection, the 
     term `payment year' means a fiscal year beginning with fiscal 
     year 2011.
       ``(ii) First, second, etc. payment year.--The term `first 
     payment year' means, with respect to inpatient hospital 
     services furnished by an eligible hospital, the first fiscal 
     year for which an incentive payment is made for such services 
     under this subsection. The terms `second payment year', 
     `third payment year', and `fourth payment year' mean, with 
     respect to an eligible hospital, each successive year 
     immediately following the first payment year for that 
     hospital.
       ``(H) Limitation for critical access hospitals.--In no case 
     shall the total amount of payments made under this subsection 
     to a critical access hospital for all payment years exceed 
     $1,500,000.
       ``(3) Meaningful ehr user.--
       ``(A) In general.--For purposes of paragraph (1), an 
     eligible hospital shall be treated as a meaningful EHR user 
     for a reporting period for a payment year (or, for purposes 
     of subsection (b)(3)(B)(ix), for a reporting period under 
     such subsection for a fiscal year) if each of the following 
     requirements are met:
       ``(i) Meaningful use of certified ehr technology.--The 
     eligible hospital demonstrates to the satisfaction of the 
     Secretary, in accordance with subparagraph (C)(i), that 
     during such period the hospital is using certified EHR 
     technology in a meaningful manner.
       ``(ii) Information exchange.--The eligible hospital 
     demonstrates to the satisfaction of the Secretary, in 
     accordance with subparagraph (C)(i), that during such period 
     such

[[Page 3304]]

     certified EHR technology is connected in a manner that 
     provides, in accordance with law and standards applicable to 
     the exchange of information, for the electronic exchange of 
     health information to improve the quality of health care, 
     such as promoting care coordination.
       ``(iii) Reporting on measures using ehr.--Subject to 
     subparagraph (B)(ii) and using such certified EHR technology, 
     the eligible hospital submits information for such period, in 
     a form and manner specified by the Secretary, on such 
     clinical quality measures and such other measures as selected 
     by the Secretary under subparagraph (B)(i).

     The Secretary shall seek to improve the use of electronic 
     health records and health care quality over time by requiring 
     more stringent measures of meaningful use selected under this 
     paragraph.
       ``(B) Reporting on measures.--
       ``(i) Selection.--The Secretary shall select measures for 
     purposes of subparagraph (A)(iii) but only consistent with 
     the following:

       ``(I) The Secretary shall provide preference to clinical 
     quality measures that have been selected for purposes of 
     applying subsection (b)(3)(B)(viii) or that have been 
     endorsed by the entity with a contract with the Secretary 
     under section 1890(a).
       ``(II) Prior to any measure (other than a clinical quality 
     measure that has been selected for purposes of applying 
     subsection (b)(3)(B)(viii)) being selected under this 
     subparagraph, the Secretary shall publish in the Federal 
     Register such measure and provide for a period of public 
     comment on such measure.

       ``(ii) Limitations.--The Secretary may not require the 
     electronic reporting of information on clinical quality 
     measures under subparagraph (A)(iii) unless the Secretary has 
     the capacity to accept the information electronically, which 
     may be on a pilot basis.
       ``(iii) Coordination of reporting of information.--In 
     selecting such measures, and in establishing the form and 
     manner for reporting measures under subparagraph (A)(iii), 
     the Secretary shall seek to avoid redundant or duplicative 
     reporting with reporting otherwise required, including 
     reporting under subsection (b)(3)(B)(viii).
       ``(C) Demonstration of meaningful use of certified ehr 
     technology and information exchange.--
       ``(i) In general.--A hospital may satisfy the demonstration 
     requirement of clauses (i) and (ii) of subparagraph (A) 
     through means specified by the Secretary, which may include--

       ``(I) an attestation;
       ``(II) the submission of claims with appropriate coding 
     (such as a code indicating that inpatient care was documented 
     using certified EHR technology);
       ``(III) a survey response;
       ``(IV) reporting under subparagraph (A)(iii); and
       ``(V) other means specified by the Secretary.

       ``(ii) Use of part d data.--Notwithstanding sections 1860D-
     15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data 
     regarding drug claims submitted for purposes of section 
     1860D-15 that are necessary for purposes of subparagraph (A).
       ``(4) Application.--
       ``(A) Limitations on review.--There shall be no 
     administrative or judicial review under section 1869, section 
     1878, or otherwise of the determination of any incentive 
     payment under this subsection and the payment adjustment 
     under subsection (b)(3)(B)(ix), including the determination 
     of a meaningful EHR user under paragraph (3), determination 
     of measures applicable to services furnished by eligible 
     hospitals under this subsection, and the exception under 
     subsection (b)(3)(B)(ix)(II).
       ``(B) Posting on website.--The Secretary shall post on the 
     Internet website of the Centers for Medicare & Medicaid 
     Services, in an easily understandable format, a list of the 
     names of the eligible hospitals that are meaningful EHR users 
     under this subsection or subsection (b)(3)(B)(ix) and other 
     relevant data as determined appropriate by the Secretary. The 
     Secretary shall ensure that a hospital has the opportunity to 
     review the other relevant data that are to be made public 
     with respect to the hospital prior to such data being made 
     public.
       ``(5) Certified ehr technology defined.--The term 
     `certified EHR technology' has the meaning given such term in 
     section 1848(o)(4).
       ``(6) Definitions.--For purposes of this subsection:
       ``(A) Eligible hospital.--The term `eligible hospital' 
     means--
       ``(i) a subsection (d) hospital; and
       ``(ii) a critical access hospital (as defined in section 
     1861(mm)(1)).
       ``(B) Reporting period.--The term `reporting period' means 
     any period (or periods), with respect to a payment year, as 
     specified by the Secretary.''.
       (b) Incentive Market Basket Adjustment.--
       (1) In general.--Section 1886(b)(3)(B) of the Social 
     Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
       (A) in clause (viii)(I), by inserting ``(or, beginning with 
     fiscal year 2016, by one-quarter)'' after ``2.0 percentage 
     points''; and
       (B) by adding at the end the following new clause:
       ``(ix)(I) For purposes of clause (i) for fiscal year 2015 
     and each subsequent fiscal year, in the case of an eligible 
     hospital (as defined in subsection (n)(6)(A)) that is not a 
     meaningful EHR user (as defined in subsection (n)(3)) for the 
     reporting period for such fiscal year, three-quarters of the 
     applicable percentage increase otherwise applicable under 
     clause (i) for such fiscal year shall be reduced by 33\1/3\ 
     percent for fiscal year 2015, 66\2/3\ percent for fiscal year 
     2016, and 100 percent for fiscal year 2017 and each 
     subsequent fiscal year. Such reduction shall apply only with 
     respect to the fiscal year involved and the Secretary shall 
     not take into account such reduction in computing the 
     applicable percentage increase under clause (i) for a 
     subsequent fiscal year.
       ``(II) The Secretary may, on a case-by-case basis, exempt a 
     subsection (d) hospital from the application of subclause (I) 
     with respect to a fiscal year if the Secretary determines, 
     subject to annual renewal, that requiring such hospital to be 
     a meaningful EHR user during such fiscal year would result in 
     a significant hardship, such as in the case of a hospital in 
     a rural area without sufficient Internet access. In no case 
     may a hospital be granted an exemption under this subclause 
     for more than 5 years.
       ``(III) For fiscal year 2015 and each subsequent fiscal 
     year, a State in which hospitals are paid for services under 
     section 1814(b)(3) shall adjust the payments to each 
     subsection (d) hospital in the State that is not a meaningful 
     EHR user (as defined in subsection (n)(3)) in a manner that 
     is designed to result in an aggregate reduction in payments 
     to hospitals in the State that is equivalent to the aggregate 
     reduction that would have occurred if payments had been 
     reduced to each subsection (d) hospital in the State in a 
     manner comparable to the reduction under the previous 
     provisions of this clause. The State shall report to the 
     Secretary the methodology it will use to make the payment 
     adjustment under the previous sentence.
       ``(IV) For purposes of this clause, the term `reporting 
     period' means, with respect to a fiscal year, any period (or 
     periods), with respect to the fiscal year, as specified by 
     the Secretary.''.
       (2) Critical access hospitals.--Section 1814(l) of the 
     Social Security Act (42 U.S.C. 1395f(l)) is amended--
       (A) in subparagraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (B) by adding at the end the following new paragraph:
       ``(3)(A) Subject to subparagraph (B), for fiscal year 2015 
     and each subsequent fiscal year, in the case of a critical 
     access hospital that is not a meaningful EHR user (as defined 
     in section 1886(n)(3)) for the reporting period for such 
     fiscal year, paragraph (1) shall be applied by substituting 
     the applicable percent under subparagraph (C) for the percent 
     described in such paragraph (1).
       ``(B) The Secretary may, on a case-by-case basis, exempt a 
     critical access hospital from the application of subparagraph 
     (A) with respect to a fiscal year if the Secretary 
     determines, subject to annual renewal, that requiring such 
     hospital to be a meaningful EHR user during such fiscal year 
     would result in a significant hardship, such as in the case 
     of a hospital in a rural area without sufficient Internet 
     access. In no case may a hospital be granted an exemption 
     under this subparagraph for more than 5 years.
       ``(C) The percent described in this subparagraph is--
       ``(i) for fiscal year 2015, 100.66 percent;
       ``(ii) for fiscal year 2016, 100.33 percent; and
       ``(iii) for fiscal year 2017 and each subsequent fiscal 
     year, 100 percent.''.
       (c) Application to Certain MA-Affiliated Eligible 
     Hospitals.--Section 1853 of the Social Security Act (42 
     U.S.C. 1395w-23), as amended by section 4201(c), is further 
     amended by adding at the end the following new subsection:
       ``(m) Application of Eligible Hospital Incentives for 
     Certain MA Organizations for Adoption and Meaningful Use of 
     Certified EHR Technology.--
       ``(1) Application.--Subject to paragraphs (3) and (4), in 
     the case of a qualifying MA organization, the provisions of 
     sections 1814(l)(3), 1886(n), and 1886(b)(3)(B)(ix) shall 
     apply with respect to eligible hospitals described in 
     paragraph (2) of the organization which the organization 
     attests under subsection (l)(6) to be meaningful EHR users in 
     a similar manner as they apply to eligible hospitals under 
     such sections. Incentive payments under paragraph (3) shall 
     be made to and payment adjustments under paragraph (4) shall 
     apply to such qualifying organizations.
       ``(2) Eligible hospital described.--With respect to a 
     qualifying MA organization, an eligible hospital described in 
     this paragraph is an eligible hospital (as defined in section 
     1886(n)(6)(A)) that is under common corporate governance with 
     such organization and serves individuals enrolled under an MA 
     plan offered by such organization.
       ``(3) Eligible hospital incentive payments.--
       ``(A) In general.--In applying section 1886(n)(2) under 
     paragraph (1), instead of the additional payment amount under 
     section

[[Page 3305]]

     1886(n)(2), there shall be substituted an amount determined 
     by the Secretary to be similar to the estimated amount in the 
     aggregate that would be payable if payment for services 
     furnished by such hospitals was payable under part A instead 
     of this part. In implementing the previous sentence, the 
     Secretary--
       ``(i) shall, insofar as data to determine the discharge 
     related amount under section 1886(n)(2)(C) for an eligible 
     hospital are not available to the Secretary, use such 
     alternative data and methodology to estimate such discharge 
     related amount as the Secretary determines appropriate; and
       ``(ii) shall, insofar as data to determine the medicare 
     share described in section 1886(n)(2)(D) for an eligible 
     hospital are not available to the Secretary, use such 
     alternative data and methodology to estimate such share, 
     which data and methodology may include use of the inpatient 
     bed days (or discharges) with respect to an eligible hospital 
     during the appropriate period which are attributable to both 
     individuals for whom payment may be made under part A or 
     individuals enrolled in an MA plan under a Medicare Advantage 
     organization under this part as a proportion of the total 
     number of patient-bed-days (or discharges) with respect to 
     such hospital during such period.
       ``(B) Avoiding duplication of payments.--
       ``(i) In general.--In the case of a hospital that for a 
     payment year is an eligible hospital described in paragraph 
     (2) and for which at least one-third of their discharges (or 
     bed-days) of Medicare patients for the year are covered under 
     part A, payment for the payment year shall be made only under 
     section 1886(n) and not under this subsection.
       ``(ii) Methods.--In the case of a hospital that is an 
     eligible hospital described in paragraph (2) and also is 
     eligible for an incentive payment under section 1886(n) but 
     is not described in clause (i) for the same payment period, 
     the Secretary shall develop a process--

       ``(I) to ensure that duplicate payments are not made with 
     respect to an eligible hospital both under this subsection 
     and under section 1886(n); and
       ``(II) to collect data from Medicare Advantage 
     organizations to ensure against such duplicate payments.

       ``(4) Payment adjustment.--
       ``(A) Subject to paragraph (3), in the case of a qualifying 
     MA organization (as defined in section 1853(l)(5)), if, 
     according to the attestation of the organization submitted 
     under subsection (l)(6) for an applicable period, one or more 
     eligible hospitals (as defined in section 1886(n)(6)(A)) that 
     are under common corporate governance with such organization 
     and that serve individuals enrolled under a plan offered by 
     such organization are not meaningful EHR users (as defined in 
     section 1886(n)(3)) with respect to a period, the payment 
     amount payable under this section for such organization for 
     such period shall be the percent specified in subparagraph 
     (B) for such period of the payment amount otherwise provided 
     under this section for such period.
       ``(B) Specified percent.--The percent specified under this 
     subparagraph for a year is 100 percent minus a number of 
     percentage points equal to the product of--
       ``(i) the number of the percentage point reduction effected 
     under section 1886(b)(3)(B)(ix)(I) for the period; and
       ``(ii) the Medicare hospital expenditure proportion 
     specified in subparagraph (C) for the year.
       ``(C) Medicare hospital expenditure proportion.--The 
     Medicare hospital expenditure proportion under this 
     subparagraph for a year is the Secretary's estimate of the 
     proportion, of the expenditures under parts A and B that are 
     not attributable to this part, that are attributable to 
     expenditures for inpatient hospital services.
       ``(D) Application of payment adjustment.--In the case that 
     a qualifying MA organization attests that not all eligible 
     hospitals are meaningful EHR users with respect to an 
     applicable period, the Secretary shall apply the payment 
     adjustment under this paragraph based on a methodology 
     specified by the Secretary, taking into account the 
     proportion of such eligible hospitals, or discharges from 
     such hospitals, that are not meaningful EHR users for such 
     period.
       ``(5) Posting on website.--The Secretary shall post on the 
     Internet website of the Centers for Medicare & Medicaid 
     Services, in an easily understandable format--
       ``(A) a list of the names, business addresses, and business 
     phone numbers of each qualifying MA organization receiving an 
     incentive payment under this subsection for eligible 
     hospitals described in paragraph (2); and
       ``(B) a list of the names of the eligible hospitals for 
     which such incentive payment is based.''.
       (d) Conforming Amendments.--
       (1) Section 1814(b) of the Social Security Act (42 U.S.C. 
     1395f(b)) is amended--
       (A) in paragraph (3), in the matter preceding subparagraph 
     (A), by inserting ``, subject to section 
     1886(d)(3)(B)(ix)(III),'' after ``then''; and
       (B) by adding at the end the following: ``For purposes of 
     applying paragraph (3), there shall be taken into account 
     incentive payments, and payment adjustments under subsection 
     (b)(3)(B)(ix) or (n) of section 1886.''.
       (2) Section 1851(i)(1) of the Social Security Act (42 
     U.S.C. 1395w-21(i)(1)) is amended by striking ``and 
     1886(h)(3)(D)'' and inserting ``1886(h)(3)(D), and 1853(m)''.
       (3) Section 1853 of the Social Security Act (42 U.S.C. 
     1395w-23), as amended by section 4311(d)(1), is amended--
       (A) in subsection (c)--
       (i) in paragraph (1)(D)(i), by striking ``1848(o)'' and 
     inserting ``, 1848(o), and 1886(n)''; and
       (ii) in paragraph (6)(A), by inserting ``and subsections 
     (b)(3)(B)(ix) and (n) of section 1886'' after ``section 
     1848''; and
       (B) in subsection (f), by inserting ``and subsection (m)'' 
     after ``under subsection (l)''.

     SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTATION FUNDING.

       (a) Premium Hold Harmless.--
       (1) In general.--Section 1839(a)(1) of the Social Security 
     Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end 
     the following: ``In applying this paragraph there shall not 
     be taken into account additional payments under section 
     1848(o) and section 1853(l)(3) and the Government 
     contribution under section 1844(a)(3).''.
       (2) Payment.--Section 1844(a) of such Act (42 U.S.C. 
     1395w(a)) is amended--
       (A) in paragraph (2), by striking the period at the end and 
     inserting ``; plus''; and
       (B) by adding at the end the following new paragraph:
       ``(3) a Government contribution equal to the amount of 
     payment incentives payable under sections 1848(o) and 
     1853(l)(3).''.
       (b) Implementation Funding.--In addition to funds otherwise 
     available, out of any funds in the Treasury not otherwise 
     appropriated, there are appropriated to the Secretary of 
     Health and Human Services for the Center for Medicare & 
     Medicaid Services Program Management Account, $100,000,000 
     for each of fiscal years 2009 through 2015 and $45,000,000 
     for each succeeding fiscal year through fiscal year 2018, 
     which shall be available for purposes of carrying out the 
     provisions of (and amendments made by) this part. Amounts 
     appropriated under this subsection for a fiscal year shall be 
     available until expended.

     SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT MEDICAL 
                   EDUCATION (IME) ADJUSTMENT FACTOR FOR FISCAL 
                   YEAR 2009.

       (a) In General.--Section 412.322 of title 42, Code of 
     Federal Regulations, shall be applied without regard to 
     paragraph (c) of such section, and the Secretary of Health 
     and Human Services shall recompute payments for discharges 
     occurring on or after October 1, 2008, as if such paragraph 
     had never been in effect.
       (b) No Effect on Subsequent Years.--Nothing in subsection 
     (a) shall be construed as having any effect on the 
     application of paragraph (d) of section 412.322 of title 42, 
     Code of Federal Regulations.

     SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR 
                   PROVIDERS NOT RECEIVING OTHER INCENTIVE 
                   PAYMENTS.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     shall conduct a study to determine the extent to which and 
     manner in which payment incentives (such as under title XVIII 
     or XIX of the Social Security Act) and other funding for 
     purposes of implementing and using certified EHR technology 
     (as defined in section 1848(o)(4) of the Social Security Act, 
     as added by section 4311(a)) should be made available to 
     health care providers who are receiving minimal or no payment 
     incentives or other funding under this Act, under title XVIII 
     or XIX of such Act, or otherwise, for such purposes.
       (2) Details of study.--Such study shall include an 
     examination of--
       (A) the adoption rates of certified EHR technology (as so 
     defined) by such health care providers;
       (B) the clinical utility of such technology by such health 
     care providers;
       (C) whether the services furnished by such health care 
     providers are appropriate for or would benefit from the use 
     of such technology;
       (D) the extent to which such health care providers work in 
     settings that might otherwise receive an incentive payment or 
     other funding under this Act, title XVIII or XIX of the 
     Social Security Act, or otherwise;
       (E) the potential costs and the potential benefits of 
     making payment incentives and other funding available to such 
     health care providers; and
       (F) any other issues the Secretary deems to be appropriate.
       (b) Report.--Not later than June 30, 2010, the Secretary 
     shall submit to Congress a report on the findings and 
     conclusions of the study conducted under subsection (a).

     SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE HEALTH 
                   INFORMATION TECHNOLOGY SYSTEMS.

       (a) In General.--
       (1) Study.--The Secretary of Health and Human Services 
     shall, in consultation with the Under Secretary for Health of 
     the Veterans Health Administration, the Director of the 
     Indian Health Service, the Secretary of Defense, the Director 
     of the Agency for Healthcare Research and Quality, the 
     Administrator of the Health Resources and Services 
     Administration, and the Chairman of the Federal 
     Communications Commission, conduct a study on--

[[Page 3306]]

       (A) the current availability of open source health 
     information technology systems to Federal safety net 
     providers (including small, rural providers);
       (B) the total cost of ownership of such systems in 
     comparison to the cost of proprietary commercial products 
     available;
       (C) the ability of such systems to respond to the needs of, 
     and be applied to, various populations (including children 
     and disabled individuals); and
       (D) the capacity of such systems to facilitate 
     interoperability.
       (2) Considerations.--In conducting the study under 
     paragraph (1), the Secretary of Health and Human Services 
     shall take into account the circumstances of smaller health 
     care providers, health care providers located in rural or 
     other medically underserved areas, and safety net providers 
     that deliver a significant level of health care to uninsured 
     individuals, Medicaid beneficiaries, SCHIP beneficiaries, and 
     other vulnerable individuals.
       (b) Report.--Not later than October 1, 2010, the Secretary 
     of Health and Human Services shall submit to Congress a 
     report on the findings and the conclusions of the study 
     conducted under subsection (a), together with recommendations 
     for such legislation and administrative action as the 
     Secretary determines appropriate.

                      Subtitle B--Medicaid Funding

     SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPERATION 
                   PAYMENTS; IMPLEMENTATION FUNDING.

       (a) In General.--Section 1903 of the Social Security Act 
     (42 U.S.C. 1396b) is amended--
       (1) in subsection (a)(3)--
       (A) by striking ``and'' at the end of subparagraph (D);
       (B) by striking ``plus'' at the end of subparagraph (E) and 
     inserting ``and''; and
       (C) by adding at the end the following new subparagraph:
       ``(F)(i) 100 percent of so much of the sums expended during 
     such quarter as are attributable to payments for certified 
     EHR technology (and support services including maintenance 
     and training that is for, or is necessary for the adoption 
     and operation of, such technology) by Medicaid providers 
     described in subsection (t)(1); and
       ``(ii) 90 percent of so much of the sums expended during 
     such quarter as are attributable to payments for reasonable 
     administrative expenses related to the administration of 
     payments described in clause (i) if the State meets the 
     condition described in subsection (t)(9); plus''; and
       (2) by inserting after subsection (s) the following new 
     subsection:
       ``(t)(1)(A) For purposes of subsection (a)(3)(F), the 
     payments for certified EHR technology (and support services 
     including maintenance that is for, or is necessary for the 
     operation of, such technology) by Medicaid providers 
     described in this paragraph are payments made by the State in 
     accordance with this subsection of the applicable percent of 
     the net allowable costs of Medicaid providers (as defined in 
     paragraph (2)) for such technology (and support services).
       ``(B) For purposes of subparagraph (A), the term 
     `applicable percent' means--
       ``(i) in the case of a Medicaid provider described in 
     paragraph (2)(A), 85 percent;
       ``(ii) in the case of a Medicaid provider described in 
     clause (i) or (ii) of paragraph (2)(B), 100 percent; and
       ``(iii) in the case of a Medicaid provider described in 
     clause (iii) of paragraph (2)(B), a percent specified by the 
     Secretary, but not less than 85 percent.
       ``(2) In this subsection and subsection (a)(3)(F), the term 
     `Medicaid provider' means--
       ``(A) an eligible professional (as defined in paragraph 
     (3)(B)) who is not hospital-based and has at least 30 percent 
     of the professional's patient volume (as estimated in 
     accordance with standards established by the Secretary) 
     attributable to individuals who are receiving medical 
     assistance under this title; and
       ``(B)(i) a children's hospital, (ii) an acute-care hospital 
     that is not described in clause (i) and that has at least 10 
     percent of the hospital's patient volume (as estimated in 
     accordance with standards established by the Secretary) 
     attributable to individuals who are receiving medical 
     assistance under this title, or (iii) a Federally-qualified 
     health center or rural health clinic that has at least 30 
     percent of the center's or clinic's patient volume (as 
     estimated in accordance with standards established by the 
     Secretary) attributable to individuals who are receiving 
     medical assistance under this title.

     An eligible professional shall not qualify as a Medicaid 
     provider under this subsection unless the professional has 
     waived, in a manner specified by the Secretary, any right to 
     payment under section 1848(o) with respect to the adoption or 
     support of certified EHR technology by the eligible 
     professional. In applying clauses (ii) and (iii) of 
     subparagraph (B), the standards established by the Secretary 
     for patient volume shall include individuals enrolled in a 
     Medicaid managed care plan (under section 1903(m) or section 
     1932).
       ``(3) In this subsection and subsection (a)(3)(F):
       ``(A) The term `certified EHR technology' means a qualified 
     electronic health record (as defined in 3000(13) of the 
     Public Health Service Act) that is certified pursuant to 
     section 3001(c)(5) of such Act as meeting standards adopted 
     under section 3004 of such Act that are applicable to the 
     type of record involved (as determined by the Secretary, such 
     as an ambulatory electronic health record for office-based 
     physicians or an inpatient hospital electronic health record 
     for hospitals).
       ``(B) The term `eligible professional' means a physician as 
     defined in paragraphs (1) and (2) of section 1861(r), and 
     includes a nurse mid-wife and a nurse practitioner.
       ``(C) The term `hospital-based' means, with respect to an 
     eligible professional, a professional (such as a pathologist, 
     anesthesiologist, or emergency physician) who furnishes 
     substantially all of the individual's professional services 
     in a hospital setting (whether inpatient or outpatient) and 
     through the use of the facilities and equipment, including 
     qualified electronic health records, of the hospital.
       ``(4)(A) The term `allowable costs' means, with respect to 
     certified EHR technology of a Medicaid provider, costs of 
     such technology (and support services including maintenance 
     and training that is for, or is necessary for the adoption 
     and operation of, such technology) as determined by the 
     Secretary to be reasonable.
       ``(B) The term `net allowable costs' means allowable costs 
     reduced by any payment that is made to the Medicaid provider 
     involved from any other source that is directly attributable 
     to payment for certified EHR technology or services described 
     in subparagraph (A).
       ``(C) In no case shall--
       ``(i) the aggregate allowable costs under this subsection 
     (covering one or more years) with respect to a Medicaid 
     provider described in paragraph (2)(A) for purchase and 
     initial implementation of certified EHR technology (and 
     services described in subparagraph (A)) exceed $25,000 or 
     include costs over a period of longer than 5 years;
       ``(ii) for costs not described in clause (i) relating to 
     the operation, maintenance, or use of certified EHR 
     technology, the annual allowable costs under this subsection 
     with respect to such a Medicaid provider for costs not 
     described in clause (i) for any year exceed $10,000;
       ``(iii) payment described in paragraph (1) for costs 
     described in clause (ii) be made with respect to such a 
     Medicaid provider over a period of more than 5 years;
       ``(iv) the aggregate allowable costs under this subsection 
     with respect to such a Medicaid provider for all costs exceed 
     $75,000; or
       ``(v) the allowable costs, whether for purchase and initial 
     implementation, maintenance, or otherwise, for a Medicaid 
     provider described in paragraph (2)(B)(iii) exceed such 
     aggregate or annual limitation as the Secretary shall 
     establish, based on an amount determined by the Secretary as 
     being adequate to adopt and maintain certified EHR 
     technology, consistent with paragraph (6).
       ``(5) Payments described in paragraph (1) are not in 
     accordance with this subsection unless the following 
     requirements are met:
       ``(A) The State provides assurances satisfactory to the 
     Secretary that amounts received under subsection (a)(3)(F) 
     with respect to costs of a Medicaid provider are paid 
     directly to such provider without any deduction or rebate.
       ``(B) Such Medicaid provider is responsible for payment of 
     the costs described in such paragraph that are not provided 
     under this title.
       ``(C) With respect to payments to such Medicaid provider 
     for costs other than costs related to the initial adoption of 
     certified EHR technology, the Medicaid provider demonstrates 
     meaningful use of certified EHR technology through a means 
     that is approved by the State and acceptable to the 
     Secretary, and that may be based upon the methodologies 
     applied under section 1848(o) or 1886(n). In establishing 
     such means, which may include the reporting of clinical 
     quality measures to the State, the State shall ensure that 
     populations with unique needs, such as children, are 
     appropriately addressed.
       ``(D) To the extent specified by the Secretary, the 
     certified EHR technology is compatible with State or Federal 
     administrative management systems.
       ``(6)(A) In no case shall the payments described in 
     paragraph (1), with respect to a hospital, exceed in the 
     aggregate the product of--
       ``(i) the overall hospital EHR amount for the hospital 
     computed under subparagraph (B); and
       ``(ii) the Medicaid share for such hospital computed under 
     subparagraph (C).
       ``(B) For purposes of this paragraph, the overall hospital 
     EHR amount, with respect to a hospital, is the sum of the 
     applicable amounts specified in section 1886(n)(2)(A) for 
     such hospital for the first 4 payment years (as estimated by 
     the Secretary) determined as if the Medicare share specified 
     in clause (ii) of such section were 1. The Secretary shall 
     publish in the Federal Register the overall hospital EHR 
     amount for each hospital eligible for payments under this 
     subsection. In computing amounts under clause (ii) for 
     payment years after the first payment year, the Secretary 
     shall assume that in subsequent payment years discharges 
     increase at the average annual rate of growth

[[Page 3307]]

     of the most recent three years for which discharge data are 
     available.
       ``(C) The Medicaid share computed under this subparagraph, 
     for a hospital for a period specified by the Secretary, shall 
     be calculated in the same manner as the Medicare share under 
     section 1886(n)(2)(D) for such a hospital and period, except 
     that there shall be substituted for the numerator under 
     clause (i) of such section the amount that is equal to the 
     number of inpatient-bed-days (as established by the 
     Secretary) which are attributable to individuals who are 
     receiving medical assistance under this title and who are not 
     described in section 1886(n)(2)(D)(i). In computing 
     inpatient-bed-days under the previous sentence, the Secretary 
     shall take into account inpatient-bed-days attributable to 
     inpatient-bed-days that are paid for individuals enrolled in 
     a Medicaid managed care plan (under section 1903(m) or 
     section 1932).
       ``(7) With respect to health care providers other than 
     hospitals, the Secretary shall establish and implement a 
     detailed process to ensure coordination of the different 
     programs for payment of such health care providers for 
     adoption or use of health information technology (including 
     certified EHR technology), as well as payments for such 
     health care providers provided under this title or title 
     XVIII, to assure no duplication of funding. The Secretary 
     shall promulgate regulations to carry out the preceding 
     sentence.
       ``(8) In carrying out paragraph (5)(C), the State and 
     Secretary shall seek, to the maximum extent practicable, to 
     avoid duplicative requirements from Federal and State 
     Governments to demonstrate meaningful use of certified EHR 
     technology under this title and title XVIII. In doing so, the 
     Secretary may deem satisfaction of requirements for such 
     meaningful use for a payment year under title XVIII to be 
     sufficient to qualify as meaningful use under this 
     subsection. The Secretary may also specify the reporting 
     periods under this subsection in order to carry out this 
     paragraph.
       ``(9) In order to be provided Federal financial 
     participation under subsection (a)(3)(F)(ii), a State must 
     demonstrate to the satisfaction of the Secretary, that the 
     State--
       ``(A) is using the funds provided for the purposes of 
     administering payments under this subsection, including 
     tracking of meaningful use by Medicaid providers;
       ``(B) is conducting adequate oversight of the program under 
     this subsection, including routine tracking of meaningful use 
     attestations and reporting mechanisms; and
       ``(C) is pursuing initiatives to encourage the adoption of 
     certified EHR technology to promote health care quality and 
     the exchange of health care information under this title, 
     subject to applicable laws and regulations governing such 
     exchange.
       ``(10) The Secretary shall periodically submit reports to 
     the Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Finance of the Senate on 
     status, progress, and oversight of payments under paragraph 
     (1).''.
       (b) Implementation Funding.--In addition to funds otherwise 
     available, out of any funds in the Treasury not otherwise 
     appropriated, there are appropriated to the Secretary of 
     Health and Human Services for the Center for Medicare & 
     Medicaid Services Program Management Account, $40,000,000 for 
     each of fiscal years 2009 through 2015 and $20,000,000 for 
     each succeeding fiscal year through fiscal year 2018, which 
     shall be available for purposes of carrying out the 
     provisions of (and the amendments made by) this part. Amounts 
     appropriated under this subsection for a fiscal year shall be 
     available until expended.
       (c) HHS Report on Implementation of Detailed Process to 
     Assure No Duplication of Funding.--Not later than July 1, 
     2012, the Secretary of Health and Human Services shall submit 
     to Congress a report on the establishment and implementation 
     of the detailed process under section 1903(t)(7) of the 
     Social Security Act, as added by subsection (a), together 
     with recommendations for such legislation and administrative 
     action as the Secretary determines appropriate.

                      TITLE V--STATE FISCAL RELIEF

     SEC. 5000. PURPOSES; TABLE OF CONTENTS.

       (a) Purposes.--The purposes of this title are as follows:
       (1) To provide fiscal relief to States in a period of 
     economic downturn.
       (2) To protect and maintain State Medicaid programs during 
     a period of economic downturn, including by helping to avert 
     cuts to provider payment rates and benefits or services, and 
     to prevent constrictions of income eligibility requirements 
     for such programs, but not to promote increases in such 
     requirements.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

                      TITLE V--STATE FISCAL RELIEF

Sec. 5000. Purposes; table of contents.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Extension and update of special rule for increase of 
              Medicaid DSH allotments for low DSH States.
Sec. 5003. Payment of Medicare liability to States as a result of the 
              Special Disability Workload Project.
Sec. 5004. Funding for the Department of Health and Human Services 
              Office of the Inspector General.
Sec. 5005. GAO study and report regarding State needs during periods of 
              national economic downturn.

     SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

       (a) Permitting Maintenance of Fmap.--Subject to subsections 
     (e), (f), and (g), if the FMAP determined without regard to 
     this section for a State for--
       (1) fiscal year 2009 is less than the FMAP as so determined 
     for fiscal year 2008, the FMAP for the State for fiscal year 
     2008 shall be substituted for the State's FMAP for fiscal 
     year 2009, before the application of this section;
       (2) fiscal year 2010 is less than the FMAP as so determined 
     for fiscal year 2008 or fiscal year 2009 (after the 
     application of paragraph (1)), the greater of such FMAP for 
     the State for fiscal year 2008 or fiscal year 2009 shall be 
     substituted for the State's FMAP for fiscal year 2010, before 
     the application of this section; and
       (3) fiscal year 2011 is less than the FMAP as so determined 
     for fiscal year 2008, fiscal year 2009 (after the application 
     of paragraph (1)), or fiscal year 2010 (after the application 
     of paragraph (2)), the greatest of such FMAP for the State 
     for fiscal year 2008, fiscal year 2009, or fiscal year 2010 
     shall be substituted for the State's FMAP for fiscal year 
     2011, before the application of this section, but only for 
     the first calendar quarter in fiscal year 2011.
       (b) General 7.6 Percentage Point Increase.--Subject to 
     subsections (e), (f), and (g), for each State for calendar 
     quarters during the recession adjustment period (as defined 
     in subsection (h)(2)) , the FMAP (after the application of 
     subsection (a)) shall be increased (without regard to any 
     limitation otherwise specified in section 1905(b) of the 
     Social Security Act) by 7.6 percentage points.
       (c) Additional Relief Based on Increase in Unemployment.--
       (1) In general.--Subject to subsections (e), (f), and (g), 
     if a State is a qualifying State under paragraph (2) for a 
     calendar quarter occurring during the recession adjustment 
     period, the FMAP for the State shall be further increased by 
     the number of percentage points equal to the product of the 
     State percentage applicable for the State under section 
     1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) after 
     the application of subsections (a) and (b) and the applicable 
     percent determined in paragraph (3) for the calendar quarter 
     (or, if greater, for a previous such calendar quarter, 
     subject to paragraph (4)) .
       (2) Qualifying criteria.--
       (A) In general.--For purposes of paragraph (1), a State 
     qualifies for additional relief under this subsection for a 
     calendar quarter occurring during the recession adjustment 
     period if the State is 1 of the 50 States or the District of 
     Columbia and the State satisfies any of the following 
     criteria for the quarter:
       (i) An increase of at least 1.5 percentage points, but less 
     than 2.5 percentage points, in the average monthly 
     unemployment rate, seasonally adjusted, for the State or 
     District, as determined by comparing months in the most 
     recent previous 3-consecutive month period for which data are 
     available for the State or District to the lowest average 
     monthly unemployment rate, seasonally adjusted, for the State 
     or District for any 3-consecutive-month period preceding that 
     period and beginning on or after January 1, 2006 (based on 
     the most recently available monthly publications of the 
     Bureau of Labor Statistics of the Department of Labor).
       (ii) An increase of at least 2.5 percentage points, but 
     less than 3.5 percentage points, in the average monthly 
     unemployment rate, seasonally adjusted, for the State or 
     District (as so determined).
       (iii) An increase of at least 3.5 percentage points for the 
     State or District, in the average monthly unemployment rate, 
     seasonally adjusted, for the State or District (as so 
     determined).
       (B) Maintenance of status.--If a State qualifies for 
     additional relief under this subsection for a calendar 
     quarter, it shall be deemed to have qualified for such relief 
     for each subsequent calendar quarter ending before July 1, 
     2010.
       (3) Applicable percent.--For purposes of paragraph (1), the 
     applicable percent is--
       (A) 2.5 percent, if the State satisfies the criteria 
     described in paragraph (2)(A)(i) for the calendar quarter;
       (B) 4.5 percent if the State satisfies the criteria 
     described in paragraph (2)(A)(ii) for the calendar quarter; 
     and
       (C) 6.5 percent if the State satisfies the criteria 
     described in paragraph (2)(A)(iii) for the calendar quarter.
       (4) Maintenance of higher percentage reduction for period 
     after lower percentage deduction would otherwise take 
     effect.--
       (A) Hold harmless period.--If the percentage reduction 
     applied to a State under paragraph (3) for any calendar 
     quarter in the recession adjustment period beginning on or 
     after January 1, 2009, and ending before July 1, 2010, 
     (determined without regard to this

[[Page 3308]]

     paragraph) is less than the percentage reduction applied for 
     the preceding quarter (as so determined), the higher 
     percentage reduction shall continue in effect for each 
     subsequent calendar quarter ending before July 1, 2010.
       (B) Notice of decrease in percentage reduction.--The 
     Secretary shall notify a State at least 3 months prior to 
     applying any lower percentage reduction to the State under 
     paragraph (3).
       (d) Increase in Cap on Medicaid Payments to Territories.--
     Subject to subsections (f) and (g), with respect to entire 
     fiscal years occurring during the recession adjustment period 
     and with respect to fiscal years only a portion of which 
     occurs during such period (and in proportion to the portion 
     of the fiscal year that occurs during such period), the 
     amounts otherwise determined for Puerto Rico, the Virgin 
     Islands, Guam, the Northern Mariana Islands, and American 
     Samoa under subsections (f) and (g) of section 1108 of the 
     Social Security Act (42 6 U.S.C. 1308) shall each be 
     increased by 15.2 percent.
       (e) Scope of Application.--The increases in the FMAP for a 
     State under this section shall apply for purposes of title 
     XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4);
       (2) payments under title IV of such Act (42 U.S.C. 601 et 
     seq.) (except that the increases under subsections (a) and 
     (b) shall apply to payments under part E of title IV of such 
     Act (42 U.S.C. 670 et seq.));
       (3) payments under title XXI of such Act (42 U.S.C. 1397aa 
     et seq.);
       (4) any payments under title XIX of such Act that are based 
     on the enhanced FMAP described in section 2105(b) of such Act 
     (42 U.S.C. 1397ee(b)); or
       (5) any payments under title XIX of such Act that are 
     attributable to expenditures for medical assistance provided 
     to individuals made eligible under a State plan under title 
     XIX of the Social Security Act (including under any waiver 
     under such title or under section 1115 of such Act (42 U.S.C. 
     1315)) because of income standards (expressed as a percentage 
     of the poverty line) for eligibility for medical assistance 
     that are higher than the income standards (as so expressed) 
     for such eligibility as in effect on July 1, 2008.
       (f) State Ineligibility.--
       (1) Maintenance of eligibility requirements.--
       (A) In general.--Subject to subparagraphs (B) and (C), a 
     State is not eligible for an increase in its FMAP under 
     subsection (a), (b), or (c), or an increase in a cap amount 
     under subsection (d), if eligibility standards, 
     methodologies, or procedures under its State plan under title 
     XIX of the Social Security Act (including any waiver under 
     such title or under section 1115 of such Act (42 U.S.C. 
     1315)) are more restrictive than the eligibility standards, 
     methodologies, or procedures, respectively, under such plan 
     (or waiver) as in effect on July 1, 2008.
       (B) State reinstatement of eligibility permitted.--Subject 
     to subparagraph (C), a State that has restricted eligibility 
     standards, methodologies, or procedures under its State plan 
     under title XIX of the Social Security Act (including any 
     waiver under such title or under section 1115 of such Act (42 
     U.S.C. 1315)) after July 1, 2008, is no longer ineligible 
     under subparagraph (A) beginning with the first calendar 
     quarter in which the State has reinstated eligibility 
     standards, methodologies, or procedures that are no more 
     restrictive than the eligibility standards, methodologies, or 
     procedures, respectively, under such plan (or waiver) as in 
     effect on July 1, 2008.
       (C) Special rules.--A State shall not be ineligible under 
     subparagraph (A)--
       (i) for the calendar quarters before July 1, 2009, on the 
     basis of a restriction that was applied after July 1, 2008, 
     and before the date of the enactment of this Act, if the 
     State prior to July 1, 2009, has reinstated eligibility 
     standards, methodologies, or procedures that are no more 
     restrictive than the eligibility standards, methodologies, or 
     procedures, respectively, under such plan (or waiver) as in 
     effect on July 1, 2008; or
       (ii) on the basis of a restriction that was directed to be 
     made under State law as of July 1, 2008, and would have been 
     in effect as of such date, but for a delay in the request 
     for, and approval of, a waiver under section 1115 of such Act 
     with respect to such restriction.
       (2) Compliance with prompt pay requirements.--No State 
     shall be eligible for an increased FMAP rate as provided 
     under this section for any claim submitted by a provider 
     subject to the terms of section 1902(a)(37)(A) of the Social 
     Security Act (42 U.S.C. 1396a(a)(37)(A)) during any period in 
     which that State has failed to pay claims in accordance with 
     section 1902(a)(37)(A) of such Act. Each State shall report 
     to the Secretary, no later than 30 days following the 1st day 
     of the month, its compliance with the requirements of section 
     1902(a)(37)(A) of the Social Security Act as they pertain to 
     claims made for covered services during the preceding month.
       (3) No waiver authority.--The Secretary may not waive the 
     application of this subsection or subsection (g) under 
     section 1115 of the Social Security Act or otherwise.
       (g) Requirements.--
       (1) In general.--A State may not deposit or credit the 
     additional Federal funds paid to the State as a result of 
     this section to any reserve or rainy day fund maintained by 
     the State.
       (2) State reports.--Each State that is paid additional 
     Federal funds as a result of this section shall, not later 
     than September 30, 2011, submit a report to the Secretary, in 
     such form and such manner as the Secretary shall determine, 
     regarding how the additional Federal funds were expended.
       (3) Additional requirement for certain states.--In the case 
     of a State that requires political subdivisions within the 
     State to contribute toward the non-Federal share of 
     expenditures under the State Medicaid plan required under 
     section 1902(a)(2) of the Social Security Act (42 U.S.C. 
     1396a(a)(2)), the State is not eligible for an increase in 
     its FMAP under subsection (b) or (c), or an increase in a cap 
     amount under subsection (d), if it requires that such 
     political subdivisions pay for quarters during the recession 
     adjustment period a greater percentage of the non-Federal 
     share of such expenditures, or a greater percentage of the 
     non-Federal share of payments under section 1923, than the 
     respective percentage that would have been required by the 
     State under such plan on September 30, 2008, prior to 
     application of this section.
       (h) Definitions.--In this section, except as otherwise 
     provided:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)), as determined 
     without regard to this section except as otherwise specified.
       (2) Poverty line.--The term ``poverty line'' has the 
     meaning given such term in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)), including any 
     revision required by such section.
       (3) Recession adjustment period.--The term ``recession 
     adjustment period'' means the period beginning on October 1, 
     2008, and ending on December 31, 2010.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (5) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (i) Sunset.--This section shall not apply to items and 
     services furnished after the end of the recession adjustment 
     period.

     SEC. 5002. EXTENSION AND UPDATE OF SPECIAL RULE FOR INCREASE 
                   OF MEDICAID DSH ALLOTMENTS FOR LOW DSH STATES.

       Section 1923(f)(5) of the Social Security Act (42 U.S.C. 
     1396r-4(f)(5)) is amended--
       (1) in subparagraph (B)--
       (A) in the subparagraph heading, by striking ``year 2004 
     and subsequent fiscal years'' and inserting ``years 2004 
     through 2008'';
       (B) in clause (i), by inserting ``and'' after the 
     semicolon;
       (C) in clause (ii), by striking ``; and'' and inserting a 
     period; and
       (D) by striking clause (iii); and
       (2) by adding at the end the following subparagraph:
       ``(C) For fiscal year 2009 and subsequent fiscal years.--In 
     the case of a State in which the total expenditures under the 
     State plan (including Federal and State shares) for 
     disproportionate share hospital adjustments under this 
     section for fiscal year 2006, as reported to the 
     Administrator of the Centers for Medicare & Medicaid Services 
     as of August 31, 2009, is greater than 0 but less than 3 
     percent of the State's total amount of expenditures under the 
     State plan for medical assistance during the fiscal year, the 
     DSH allotment for the State with respect to--
       ``(i) fiscal year 2009, shall be the DSH allotment for the 
     State for fiscal year 2008 increased by 16 percent;
       ``(ii) fiscal year 2010, shall be the DSH allotment for the 
     State for fiscal year 2009 increased by 16 percent;
       ``(iii) fiscal year 2011 for the period ending on December 
     31, 2010, shall be \1/4\ of the DSH allotment for the State 
     for fiscal year 2010 increased by 16 percent;
       ``(iv) fiscal year 2011 for the period beginning on January 
     1, 2011, and ending on September 30, 2011, shall be \3/4\ of 
     the DSH allotment that would have been determined under this 
     subsection for the State for fiscal year 2011 if this 
     subparagraph had not been enacted;
       ``(v) fiscal year 2012, shall be the DSH allotment that 
     would have been determined under this subsection for the 
     State for fiscal year 2012 if this subparagraph had not been 
     enacted; and
       ``(vi) fiscal year 2013 and any subsequent fiscal year, 
     shall be the DSH allotment for the State for the previous 
     fiscal year subject to an increase for inflation as provided 
     in paragraph (3)(A).''.

     SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES AS A 
                   RESULT OF THE SPECIAL DISABILITY WORKLOAD 
                   PROJECT.

       (a) In General.--The Secretary, in consultation with the 
     Commissioner, shall work with each State to reach an 
     agreement, not later than 3 months after the date of 
     enactment of this Act, on the amount of a payment for the 
     State related to the Medicare

[[Page 3309]]

     program liability as a result of the Special Disability 
     Workload project, subject to the requirements of subsection 
     (c).
       (b) Payments.--
       (1) Deadline for making payments.--Not later than 30 days 
     after reaching an agreement with a State under subsection 
     (a), the Secretary shall pay the State, from the amounts 
     appropriated under paragraph (2), the payment agreed to for 
     the State.
       (2) Appropriation.--Out of any money in the Treasury not 
     otherwise appropriated, there is appropriated $3,000,000,000 
     for fiscal year 2009 for making payments to States under 
     paragraph (1).
       (3) Limitations.--In no case may--
       (A) the aggregate amount of payments made by the Secretary 
     to States under paragraph (1) exceed $3,000,000,000; or
       (B) any payments be provided by the Secretary under this 
     section after the first day of the first month that begins 4 
     months after the date of enactment of this Act.
       (c) Requirements.--The requirements of this subsection are 
     the following:
       (1) Federal data used to determine amount of payments.--The 
     amount of the payment under subsection (a) for each State is 
     determined on the basis of the most recent Federal data 
     available, including the use of proxies and reasonable 
     estimates as necessary, for determining expeditiously the 
     amount of the payment that shall be made to each State that 
     enters into an agreement under this section. The payment 
     methodology shall consider the following factors:
       (A) The number of SDW cases found to have been eligible for 
     benefits under the Medicare program and the month of the 
     initial Medicare program eligibility for such cases.
       (B) The applicable non-Federal share of expenditures made 
     by a State under the Medicaid program during the time period 
     for SDW cases.
       (C) Such other factors as the Secretary and the 
     Commissioner, in consultation with the States, determine 
     appropriate.
       (2) Conditions for payments.--A State shall not receive a 
     payment under this section unless the State--
       (A) waives the right to file a civil action (or to be a 
     party to any action) in any Federal or State court in which 
     the relief sought includes a payment from the United States 
     to the State related to the Medicare liability under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as 
     a result of the Special Disability Workload project; and
       (B) releases the United States from any further claims for 
     reimbursement of State expenditures as a result of the 
     Special Disability Workload project.
       (3) No individual state claims data required.--No State 
     shall be required to submit individual claims evidencing 
     payment under the Medicaid program as a condition for 
     receiving a payment under this section.
       (4) Ineligible states.--No State that is a party to a civil 
     action in any Federal or State court in which the relief 
     sought includes a payment from the United States to the State 
     related to the Medicare liability under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) as a result of 
     the Special Disability Workload project shall be eligible to 
     receive a payment under this section while such an action is 
     pending or if such an action is resolved in favor of the 
     State.
       (d) Definitions.--In this section:
       (1) Commissioner.--The term ``Commissioner'' means the 
     Commissioner of Social Security.
       (2) Medicaid program.--The term ``Medicaid program'' means 
     the program of medical assistance established under title XIX 
     of the Social Security Act (42 U.S.C. 1396a et seq.) and 
     includes medical assistance provided under any waiver of that 
     program approved under section 1115 or 1915 of such Act (42 
     U.S.C. 1315, 1396n) or otherwise.
       (3) Medicare program.--The term ``Medicare program'' means 
     the program established under title XVIII of the Social 
     Security Act (42 U.S.C. 1395 et seq.).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (5) SDW case.--The term ``SDW case'' means a case in the 
     Special Disability Workload project involving an individual 
     determined by the Commissioner to have been eligible for 
     benefits under title II of the Social Security Act (42 U.S.C. 
     401 et seq.) for a period during which such benefits were not 
     provided to the individual and who was, during all or part of 
     such period, enrolled in a State Medicaid program.
       (6) Special disability workload project.--The term 
     ``Special Disability Workload project'' means the project 
     described in the 2008 Annual Report of the Board of Trustees 
     of the Federal Old-Age and Survivors Insurance and Federal 
     Disability Insurance Trust Funds, H.R. Doc. No. 110-104, 
     110th Cong. (2008).
       (7) State.--The term ``State'' means each of the 50 States 
     and the District of Columbia.

     SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH AND HUMAN 
                   SERVICES OFFICE OF THE INSPECTOR GENERAL.

       For purposes of ensuring the proper expenditure of Federal 
     funds under title XIX of the Social Security Act (42 U.S.C. 
     1396 et seq.), there is appropriated to the Office of the 
     Inspector General of the Department of Health and Human 
     Services, out of any money in the Treasury not otherwise 
     appropriated and without further appropriation, $31,250,000 
     for the recession adjustment period (as defined in section 
     5001(h)(3)). Amounts appropriated under this section shall 
     remain available for expenditure until September 30, 2012, 
     and shall be in addition to any other amounts appropriated or 
     made available to such Office for such purposes.

     SEC. 5005. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING 
                   PERIODS OF NATIONAL ECONOMIC DOWNTURN.

       (a) In General.--The Comptroller General of the United 
     States shall study the period of national economic downturn 
     in effect on the date of enactment of this Act, as well as 
     previous periods of national economic downturn since 1974, 
     for the purpose of developing recommendations for addressing 
     the needs of States during such periods. As part of such 
     analysis, the Comptroller General shall study the past and 
     projected effects of temporary increases in the Federal 
     medical assistance percentage under the Medicaid program with 
     respect to such periods.
       (b) Report.--Not later than April 1, 2011, the Comptroller 
     General of the United States shall submit a report to the 
     appropriate committees of Congress on the results of the 
     study conducted under paragraph (1). Such report shall 
     include the following:
       (1) Such recommendations as the Comptroller General 
     determines appropriate for modifying the national economic 
     downturn assistance formula for temporary adjustment of the 
     Federal medical assistance percentage under Medicaid (also 
     referred to as a ``countercyclical FMAP'') described in GAO 
     report number GAO-07-97 to improve the effectiveness of the 
     application of such percentage in addressing the needs of 
     States during periods of national economic downturn, 
     including recommendations for--
       (A) improvements to the factors that would begin and end 
     the application of such percentage;
       (B) how the determination of the amount of such percentage 
     could be adjusted to address State and regional economic 
     variations during such periods; and
       (C) how the determination of the amount of such percentage 
     could be adjusted to be more responsive to actual Medicaid 
     costs incurred by States during such periods.
       (2) An analysis of the impact on States during such periods 
     of--
       (A) declines in private health benefits coverage;
       (B) declines in State revenues; and
       (C) caseload maintenance and growth under Medicaid, the 
     State Children's Health Insurance Program, or any other 
     publicly-funded programs to provide health benefits coverage 
     for State residents.
       (3) Identification of, and recommendations for addressing, 
     the effects on States of any other specific economic 
     indicators that the Comptroller General determines 
     appropriate.

                    TITLE VI--EXECUTIVE COMPENSATION

                         Subtitle A--Oversight

               TITLE VI--EXECUTIVE COMPENSATION OVERSIGHT

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

     SEC. 6001. DEFINITIONS.

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

     SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

       (a) In General.--During the period in which any obligation 
     arising from financial assistance provided under the TARP 
     remains outstanding, each TARP recipient shall be subject 
     to--
       (1) the standards established by the Secretary under this 
     title; and
       (2) the provisions of section 162(m)(5) of the Internal 
     Revenue Code of 1986, as applicable.
       (b) Standards Required.--The Secretary shall require each 
     TARP recipient to meet

[[Page 3310]]

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

     SEC. 6003. BOARD COMPENSATION COMMITTEE.

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

     SEC. 6004. LIMITATION ON LUXURY EXPENDITURES.

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

     SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COMPENSATION.

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

     SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES.

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

              Subtitle B--Limits on Executive Compensation

     SEC. 6011. SHORT TITLE.

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

     SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION.

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

     SEC. 6013. RULEMAKING AUTHORITY.

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

     SEC. 6014. COMPENSATION.

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

                     Subtitle C--Excessive Bonuses

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

       (a) In General.--If, before the date of enactment of this 
     Act, the preferred stock of a financial institution was 
     purchased by the Government using funds provided under the 
     Troubled Asset Relief Program established pursuant to the 
     Emergency Economic Stabilization Act of 2008, then, 
     notwithstanding any otherwise applicable restriction on the 
     redeemability of such preferred stock, such financial 
     institution shall redeem an amount of such preferred stock 
     equal to the aggregate amount of all excessive bonuses paid 
     or payable to all covered individuals.
       (b) Timing.--Each financial institution described in 
     subsection (a) shall comply with the requirements of 
     subsection (a)--
       (1) not later than 120 days after the date of enactment of 
     this Act, with respect to excessive bonuses (or portions 
     thereof) paid before the date of enactment of this Act; and
       (2) not later than the day before an excessive bonus (or 
     portion thereof) is paid, with respect to any excessive bonus 
     (or portion thereof) paid on or after the date of enactment 
     of this Act.
       (c) Definitions.--As used in this section, the following 
     definitions shall apply:
       (1) Excessive bonus.--
       (A) In general.--The term ``excessive bonus'' means the 
     portion of the applicable bonus payments made to a covered 
     individual in excess of $100,000.
       (B) Applicable bonus payments.--
       (i) In general.--The term ``applicable bonus payment'' 
     means any bonus payment to a covered individual--

       (I) which is paid or payable by reason of services 
     performed by such individual in a taxable year of the 
     financial institution (or any member of a controlled group 
     described in subparagraph (D)) ending in 2008, and
       (II) the amount of which was first communicated to such 
     individual during the period beginning on January 1, 2008, 
     and ending January 31, 2009, or was based on a resolution of 
     the board of directors of such institution that was adopted 
     before the end of such taxable year.

       (ii) Certain payments and conditions disregarded.--In 
     determining whether a bonus payment is described in clause 
     (i)(I)--

       (I) a bonus payment that relates to services performed in 
     any taxable year before the taxable year described in such 
     clause and that is wholly or partially contingent on the 
     performance of services in the taxable year so described 
     shall be disregarded, and
       (II) any condition on a bonus payment for services 
     performed in the taxable year so described that the employee 
     perform services in taxable years after the taxable year so 
     described shall be disregarded.

       (C) Bonus payment.--The term ``bonus payment'' means any 
     payment which--
       (i) is a discretionary payment to a covered individual by a 
     financial institution (or any member of a controlled group 
     described in subparagraph (D)) for services rendered,
       (ii) is in addition to any amount payable to such 
     individual for services performed by such individual at a 
     regular hourly, daily,

[[Page 3311]]

     weekly, monthly, or similar periodic rate, and
       (iii) is paid or payable in cash or other property other 
     than--

       (I) stock in such institution or member, or
       (II) an interest in a troubled asset (within the meaning of 
     the Emergency Economic Stabilization Act of 2008) held 
     directly or indirectly by such institution or member.

     Such term does not include payments to an employee as 
     commissions, welfare and fringe benefits, or expense 
     reimbursements.
       (D) Covered individual.--The term ``covered individual'' 
     means, with respect to any financial institution, any 
     director or officer or other employee of such financial 
     institution or of any member of a controlled group of 
     corporations (within the meaning of section 52(a) of the 
     Internal Revenue Code of 1986) that includes such financial 
     institution.
       (2) Financial institution.--The term ``financial 
     institution'' has the same meaning as in section 3 of the 
     Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
     5252).
       (d) Excise Tax on TARP Companies That Fail To Redeem 
     Certain Securities From United States.--
       (1) In general.--Chapter 46 of the Internal Revenue Code of 
     1986 (relating to excise tax on golden parachute payments) is 
     amended by adding at the end the following new section:

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

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

          ``Chapter 46-Taxes on Certain Excessive Remuneration

``Sec. 4999. Golden parachute payments.
``Sec. 4999A. Failure to redeem certain securities from United 
              States.''.

       (B) The item relating to chapter 46 in the table of 
     chapters for subtitle D of such Code is amended to read as 
     follows:

``Chapter 46. Taxes on excessive remuneration.''.

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

                   TITLE VII--FORECLOSURE PREVENTION

                   TITLE VII--FORECLOSURE PREVENTION

Sec. 7001. Mandatory loan modifications.

     SEC. 7001. MANDATORY LOAN MODIFICATIONS.

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

                   TITLE VIII--FORECLOSURE MITIGATION

                   TITLE VIII--FORECLOSURE MITIGATION

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

     SEC. 8001. SHORT TITLE.

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

     SEC. 8002. DEFINITIONS.

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

     SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHORIZED.

       (a) Authority.--The Secretary is authorized to make 
     payments to eligible servicers, subject to the terms and 
     conditions established under this title.
       (b) Fees Paid to Eligible Servicers.--
       (1) In general.--An eligible servicer may collect 
     reasonable incentive fee payments, as established by the 
     Secretary, not to exceed $2,000 per loan.
       (2) Consultation.--The fees permitted under this section 
     shall be subject to standards established by the Secretary, 
     in consultation with the Secretary of Housing and Urban 
     Development and the Chairman of the Board of Directors of the 
     Federal Deposit Insurance Corporation, which standards 
     shall--
       (A) include an evaluation of whether an eligible mortgage 
     is affordable for the remainder of its term; and
       (B) identify a reasonable fee to be paid to the servicer in 
     the event that an eligible mortgage is prepaid.
       (3) Form of payment.--Fees permitted under this section may 
     be paid in a lump sum or on a monthly basis. If paid on a 
     monthly basis, the fee may only be remitted as long as the 
     loan performs.
       (c) Safe Harbor.--Notwithstanding any other provision of 
     law, and notwithstanding any investment contract between a 
     servicer and a securitization vehicle, a servicer--
       (1) owes any duty to maximize the net present value of the 
     pooled mortgages in the securitization vehicle to all 
     investors and parties having a direct or indirect interest in 
     such vehicle, and not to any individual party or group of 
     parties; and
       (2) shall be deemed to act in the best interests of all 
     such investors and parties if the servicer agrees to or 
     implements a modification, workout, or other loss mitigation 
     plan

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     for a residential mortgage or a class of residential 
     mortgages that constitutes a part or all of the pooled 
     mortgages in such securitization vehicle, if--
       (A) default on the payment of such mortgage has occurred or 
     is reasonably foreseeable;
       (B) the property securing such mortgage is occupied by the 
     mortgagor of such mortgage or the homeowner; and
       (C) the servicer reasonably and in good faith believes that 
     the anticipated recovery on the principal outstanding 
     obligation of the mortgage under the modification or workout 
     plan exceeds, on a net present value basis, the anticipated 
     recovery on the principal outstanding obligation of the 
     mortgage through foreclosure;
       (3) shall not be obligated to repurchase loans from, or 
     otherwise make payments to, the securitization vehicle on 
     account of a modification, workout, or other loss mitigation 
     plan that satisfies the conditions of paragraph (2); and
       (4) if it acts in a manner consistent with the duties set 
     forth in paragraphs (1) and (2), shall not be liable for 
     entering into a modification or workout plan to any person--
       (A) based on ownership by that person of a residential 
     mortgage loan or any interest in a pool of residential 
     mortgage loans, or in securities that distribute payments out 
     of the principal, interest, and other payments in loans in 
     the pool;
       (B) who is obligated pursuant to a derivative instrument to 
     make payments determined in reference to any loan or any 
     interest referred to in subparagraph (A); or
       (C) that insures any loan or any interest referred to in 
     subparagraph (A) under any provision of law or regulation of 
     the United States or any State or political subdivision 
     thereof.
       (d) Reporting Requirements.--
       (1) In general.--Each servicer shall report regularly, not 
     less frequently than monthly, to the Secretary on the extent 
     and scope of the loss mitigation activities of the mortgage 
     owner.
       (2) Content.--Each report required by this subsection shall 
     include--
       (A) the number and percent of residential mortgage loans 
     receiving loss mitigation that have become performing loans;
       (B) the number and percent of residential mortgage loans 
     receiving loss mitigation that have proceeded to foreclosure;
       (C) the total number of foreclosures initiated during the 
     reporting period;
       (D) data on loss mitigation activities, including the 
     performance of mitigated loans, disagreggated for each form 
     of loss mitigation, which forms may include--
       (i) a waiver of any late payment charge, penalty interest, 
     or any other fees or charges, or any combination thereof;
       (ii) the establishment of a repayment plan under which the 
     homeowner resumes regularly scheduled payments and pays 
     additional amounts at scheduled intervals to cure the 
     delinquency;
       (iii) forbearance under the loan that provides for a 
     temporary reduction in or cessation of monthly payments, 
     followed by a reamortization of the amounts due under the 
     loan, including arrearage, and a new schedule of repayment 
     amounts;
       (iv) waiver, modification, or variation of any material 
     term of the loan, including short-term, long-term, or life-
     of-loan modifications that change the interest rate, forgive 
     or forbear with respect to the payment of principal or 
     interest, or extend the final maturity date of the loan;
       (v) short refinancing of the loan consisting of acceptance 
     of payment from or on behalf of the homeowner of an amount 
     less than the amount alleged to be due and owing under the 
     loan, including principal, interest, and fees, in full 
     satisfaction of the obligation under such loan and as part of 
     a refinance transaction in which the property is intended to 
     remain the principal residence of the homeowner;
       (vi) acquisition of the property by the owner or servicer 
     by deed in lieu of foreclosure;
       (vii) short sale of the principal residence that is subject 
     to the lien securing the loan;
       (viii) assumption of the obligation of the homeowner under 
     the loan by a third party;
       (ix) cancellation or postponement of a foreclosure sale to 
     allow the homeowner additional time to sell the property; or
       (x) any other loss mitigation activity not covered; and
       (E) such other information as the Secretary determines to 
     be relevant.
       (3) Public availability of reports.--After removing 
     information that would compromise the privacy interests of 
     mortgagors, the Secretary shall make public the reports 
     required by this subsection and summary data.

     SEC. 8004. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 8005. SUNSET OF AUTHORITY.

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

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