    [111th Congress Public Law 5]
    [From the U.S. Government Publishing Office]

    [[Page 123 STAT. 115]]

    Public Law 111-5
    111th Congress

                                     An Act

     Making supplemental appropriations for job preservation and creation,
    infrastructure investment, energy efficiency and science, assistance to
    the unemployed, and State and local fiscal stabilization, for the fiscal
    year ending September 30, 2009, and for other purposes. <<NOTE: Feb. 17,
                               2009 -  [H.R. 1]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: American
    Recovery and Reinvestment Act of 2009.>>

    SECTION 1. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

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

    SEC. 2. TABLE OF CONTENTS.

        The table of contents for this Act is as follows:

                      DIVISION A--APPROPRIATIONS PROVISIONS

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

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

    TITLE I--TAX PROVISIONS
    TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
    TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
    TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
               MISCELLANEOUS MEDICARE PROVISIONS
    TITLE V--STATE FISCAL RELIEF
    TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
    TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

    SEC. 3. <<NOTE: 26 USC 1 note.>> PURPOSES AND PRINCIPLES.

        (a) Statement of Purposes.--The purposes of this Act include the
    following:

    [[Page 123 STAT. 116]]

                (1) To preserve and create jobs and promote economic
            recovery.
                (2) To assist those most impacted by the recession.
                (3) To provide investments needed to increase economic
            efficiency by spurring technological advances in science and
            health.
                (4) To invest in transportation, environmental protection,
            and other infrastructure that will provide long-term economic
            benefits.
                (5) To stabilize State and local government budgets, in
            order to minimize and avoid reductions in essential services and
            counterproductive state and local tax increases.

        (b) General Principles Concerning Use of Funds.--The President and
    the heads of Federal departments and agencies shall manage and expend
    the funds made available in this Act so as to achieve the purposes
    specified in subsection (a), including commencing expenditures and
    activities as quickly as possible consistent with prudent management.

    SEC. 4. <<NOTE: 1 USC 1 note.>> REFERENCES.

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

    SEC. 5. EMERGENCY DESIGNATIONS.

        (a) In General.--Each amount in this Act is designated as an
    emergency requirement and necessary to meet emergency needs pursuant to
    section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2)
    of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the
    budget for fiscal years 2008 and 2009.
        (b) Pay-as-You-Go.--All applicable provisions in this Act are
    designated as an emergency for purposes of pay-as-you-go principles.

                      DIVISION A--APPROPRIATIONS PROVISIONS

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

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

                            DEPARTMENT OF AGRICULTURE

            Agriculture Buildings and Facilities and Rental Payments

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

                           office of inspector general

        For an additional amount for ``Office of Inspector General'',
    $22,500,000, to remain available until September 30, 2013, for

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    oversight and audit of programs, grants, and activities funded by this
    Act and administered by the Department of Agriculture.

                          Agricultural Research Service

                            buildings and facilities

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

                               Farm Service Agency

                              salaries and expenses

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

                     Natural Resources Conservation Service

                    watershed and flood prevention operations

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

                        watershed rehabilitation program

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

                              Rural Housing Service

                  rural housing insurance fund program account

        For an additional amount for gross obligations for the principal
    amount of direct and guaranteed loans as authorized by title V of the
    Housing Act of 1949, to be available from funds in the rural housing
    insurance fund, as follows: $1,000,000,000 for section 502 direct loans;
    and $10,472,000,000 for section 502 unsubsidized guaranteed loans.
        For an additional amount for the cost of direct and guaranteed
    loans, including the cost of modifying loans, as defined in section 502
    of the Congressional Budget Act of 1974, as follows: $67,000,000

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    for section 502 direct loans; and $133,000,000 for section 502
    unsubsidized guaranteed loans.

                   rural community facilities program account

        For an additional amount for the cost of direct loans and grants for
    rural community facilities programs as authorized by section 306 and
    described in section 381E(d)(1) of the Consolidated Farm and Rural
    Development Act, $130,000,000.

                       Rural Business--cooperative Service

                         rural business program account

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

                             Rural Utilities Service

                 rural water and waste disposal program account

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

             distance learning, telemedicine, and broadband program

         For an additional amount for the cost of broadband loans and loan
    guarantees, as authorized by the Rural Electrification Act of 1936 (7
    U.S.C. 901 et seq.) and for grants (including for technical assistance),
    $2,500,000,000: Provided, That the cost of direct and guaranteed loans
    shall be as defined in section 502 of the Congressional Budget Act of
    1974: Provided further, <<NOTE: Grants. Loans.>> That, notwithstanding
    title VI of the Rural Electrification Act of 1936, this amount is
    available for grants, loans and loan guarantees for broadband
    infrastructure in any area of the United States: Provided further, That
    at least 75 percent of the area to be served by a project receiving
    funds from such grants, loans or loan guarantees shall be in a rural
    area without sufficient access to high speed broadband service to
    facilitate rural economic development, as determined by the Secretary of
    Agriculture: Provided further, That priority for awarding such funds
    shall be given to project applications for broadband systems that will
    deliver end users a choice of more than one service provider: Provided
    further, That priority for awarding funds made available under this
    paragraph shall be given to projects that provide service to the highest
    proportion of rural residents that do not have access to broadband
    service: Provided further, That priority shall be given for project
    applications from borrowers or former borrowers under title II of the
    Rural Electrification Act of 1936 and for project applications that
    include such borrowers or former borrowers: Provided further, That
    priority for awarding such funds shall be given to project applications
    that demonstrate that, if the application is approved, all project
    elements will be fully funded: Provided further, That priority for
    awarding

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    such funds shall be given to project applications for activities that
    can be completed if the requested funds are provided: Provided further,
    That priority for awarding such funds shall be given to activities that
    can commence promptly following approval: Provided further, That no area
    of a project funded with amounts made available under this paragraph may
    receive funding to provide broadband service under the Broadband
    Technology Opportunities Program: Provided
    further, <<NOTE: Reports. Deadlines.>> That the Secretary shall submit a
    report on planned spending and actual obligations describing the use of
    these funds not later than 90 days after the date of enactment of this
    Act, and quarterly thereafter until all funds are obligated, to the
    Committees on Appropriations of the House of Representatives and the
    Senate.

               FOOD AND NUTRITION SERVICE CHILD NUTRITION PROGRAMS

        For an additional amount for the Richard B. Russell National School
    Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the Child
    Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), except sections 17 and
    21, $100,000,000, to carry out a grant program for National School Lunch
    Program equipment assistance: Provided, That such funds shall be
    provided to States administering a school lunch program in a manner
    proportional with each States' administrative expense
    allocation: <<NOTE: Grants.>> Provided further, That the States shall
    provide competitive grants to school food authorities based upon the
    need for equipment assistance in participating schools with priority
    given to school in which not less than 50 percent of the students are
    eligible for free or reduced price meals under the Richard B. Russell
    National School Lunch Act.

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

        For an additional amount for the special supplemental nutrition
    program as authorized by section 17 of the Child Nutrition Act of 1966
    (42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall be placed in
    reserve to be allocated as the Secretary deems necessary,
    notwithstanding section 17(i) of such Act, to support participation
    should cost or participation exceed budget estimates, and of which
    $100,000,000 shall be for the purposes specified in section
    17(h)(10)(B)(ii): Provided, That up to one percent of the funding
    provided for the purposes specified in section 17(h)(10)(B)(ii) may be
    reserved by the Secretary for Federal administrative activities in
    support of those purposes.

                          commodity assistance program

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

    [[Page 123 STAT. 120]]

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 101. Temporary Increase in Benefits Under the Supplemental
    Nutrition Assistance Program. (a) <<NOTE: Puerto Rico. American
    Samoa.>> Maximum Benefit Increase.--
                (1) In general.--Beginning <<NOTE: Effective date.>> the
            first month that begins not less than 25 days after the date of
            enactment of this Act, the value of benefits determined under
            section 8(a) of the Food and Nutrition Act of 2008 and
            consolidated block grants for Puerto Rico and American Samoa
            determined under section 19(a) of such Act shall be calculated
            using 113.6 percent of the June 2008 value of the thrifty food
            plan as specified under section 3(o) of such Act.
                (2) Termination.--
                        (A) The authority provided by this subsection shall
                    terminate after September 30, 2009.
                        (B) Notwithstanding subparagraph (A), the Secretary
                    of Agriculture may not reduce the value of the maximum
                    allotments, minimum allotments or consolidated block
                    grants for Puerto Rico and American Samoa below the
                    level in effect for fiscal year 2009 as a result of
                    paragraph (1).

        (b) Requirements for the Secretary.--In carrying out this section,
    the Secretary shall--
                (1) consider the benefit increases described in subsection
            (a) to be a ``mass change'';
                (2) require a simple process for States to notify households
            of the increase in benefits;
                (3) consider section 16(c)(3)(A) of the Food and Nutrition
            Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in
            the implementation of this section, without regard to the 120-
            day limit described in that section;
                (4) disregard the additional amount of benefits that a
            household receives as a result of this section in determining
            the amount of overissuances under section 13 of the Food and
            Nutrition Act of 2008 (7 U.S.C. 2022); and
                (5) set the tolerance level for excluding small errors for
            the purposes of section 16(c) of the Food and Nutrition Act of
            2008 (7 U.S.C. 2025(c)) at $50 through September 30, 2009.

        (c) Administrative Expenses.--
                (1) In general.--For the costs of State administrative
            expenses associated with carrying out this section and
            administering the supplemental nutrition assistance program
            established under the Food and Nutrition Act of 2008 (7 U.S.C.
            2011 et seq.), the Secretary shall make available $145,000,000
            in fiscal year 2009 and $150,000,000 in fiscal year 2010, of
            which $4,500,000 is for necessary expenses of the Food and
            Nutrition Service for management and oversight of the program
            and for monitoring the integrity and evaluating the effects of
            the payments made under this section.
                (2) Timing for fiscal year 2009.--
            Not <<NOTE: Deadline.>> 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 <<NOTE: Grants.>> as
            provided for management and oversight, funds described in
            paragraph (1) shall

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            be made available as grants to State agencies for each fiscal
            year as follows:
                        (A) 75 percent of the amounts available for each
                    fiscal year shall be allocated to States based on the
                    share of each State of households that participate in
                    the supplemental nutrition assistance program as
                    reported to the Department of Agriculture for the most
                    recent 12-month period for which data are available,
                    adjusted by the Secretary (as of the date of enactment)
                    for participation in disaster programs under section
                    5(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
                    2014(h)); and
                        (B) 25 percent of the amounts available for each
                    fiscal year shall be allocated to States based on the
                    increase in the number of households that participate in
                    the supplemental nutrition assistance program as
                    reported to the Department of Agriculture over the most
                    recent 12-month period for which data are available,
                    adjusted by the Secretary (as of the date of enactment)
                    for participation in disaster programs under section
                    5(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
                    2014(h)).

        (d) Food Distribution Program on Indian Reservations.--For the costs
    relating to facility improvements and equipment upgrades associated with
    the Food Distribution Program on Indian Reservations, as established
    under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2013(b)), the Secretary shall make available $5,000,000: Provided, That
    administrative cost-sharing requirements are not applicable to funds
    provided in accordance with this provision.
        (e) <<NOTE: Effective dates.>> Treatment of Jobless Workers.--
                (1) Remainder of fiscal year 2009 through fiscal year
            2010.--Beginning with the first month that begins not less than
            25 days after the date of enactment of this Act and for each
            subsequent month through September 30, 2010, eligibility for
            supplemental nutrition assistance program benefits shall not be
            limited under section 6(o)(2) of the Food and Nutrition Act of
            2008 unless an individual does not comply with the requirements
            of a program offered by the State agency that meets the
            standards of subparagraphs (B) or (C) of that paragraph.
                (2) Fiscal year 2011 and thereafter.--Beginning on October
            1, 2010, for the purposes of section 6(o) of the Food and
            Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency shall
            disregard any period during which an individual received
            benefits under the supplemental nutrition assistance program
            prior to October 1, 2010.

        (f)  Funding.--There are appropriated to the Secretary out of funds
    of the Treasury not otherwise appropriated such sums as are necessary to
    carry out this section.
        Sec. 102. Agricultural Disaster Assistance Transition. (a) Federal
    Crop Insurance Act. Section 531(g) of the Federal Crop Insurance Act (7
    U.S.C. 1531(g)) is amended by adding at the end the following:
                ``(7) 2008 transition assistance.--
                        ``(A) In general.--Eligible producers on a farm
                    described in subparagraph (A) of paragraph (4) that
                    failed to timely pay the appropriate fee described in
                    that subparagraph shall be eligible for assistance under
                    this section

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                    in accordance with subparagraph (B) if the eligible
                    producers on the farm--
                              ``(i) <<NOTE: Deadline.>> pay the appropriate
                          fee described in paragraph (4)(A) not later than
                          90 days after the date of enactment of this
                          paragraph; and
                              ``(ii)(I) in the case of each insurable
                          commodity of the eligible producers on the farm,
                          excluding grazing land, agree to obtain a policy
                          or plan of insurance under subtitle A (excluding a
                          crop insurance pilot program under that subtitle)
                          for the next insurance year for which crop
                          insurance is available to the eligible producers
                          on the farm at a level of coverage equal to 70
                          percent or more of the recorded or appraised
                          average yield indemnified at 100 percent of the
                          expected market price, or an equivalent coverage;
                          and
                              ``(II) in the case of each noninsurable
                          commodity of the eligible producers on the farm,
                          agree to file the required paperwork, and pay the
                          administrative fee by the applicable State filing
                          deadline, for the noninsured crop assistance
                          program for the next year for which a policy is
                          available.
                        ``(B) Amount of assistance.--Eligible producers on a
                    farm that meet the requirements of subparagraph (A)
                    shall be eligible to receive assistance under this
                    section as if the eligible producers on the farm--
                              ``(i) in the case of each insurable commodity
                          of the eligible producers on the farm, had
                          obtained a policy or plan of insurance for the
                          2008 crop year at a level of coverage not to
                          exceed 70 percent or more of the recorded or
                          appraised average yield indemnified at 100 percent
                          of the expected market price, or an equivalent
                          coverage; and
                              ``(ii) in the case of each noninsurable
                          commodity of the eligible producers on the farm,
                          had filed the required paperwork, and paid the
                          administrative fee by the applicable State filing
                          deadline, for the noninsured crop assistance
                          program for the 2008 crop year, except that in
                          determining the level of coverage, the Secretary
                          shall use 70 percent of the applicable yield.
                        ``(C) Equitable relief.--Except as provided in
                    subparagraph (D), eligible producers on a farm that met
                    the requirements of paragraph (1) before the deadline
                    described in paragraph (4)(A) and are eligible to
                    receive, a disaster assistance payment under this
                    section for a production loss during the 2008 crop year
                    shall be eligible to receive an amount equal to the
                    greater of--
                              ``(i) the amount that would have been
                          calculated under subparagraph (B) if the eligible
                          producers on the farm had paid the appropriate fee
                          under that subparagraph; or
                              ``(ii) the amount that would have been
                          calculated under subparagraph (A) of subsection
                          (b)(3) if--
                                        ``(I) in clause (i) of that
                                    subparagraph, `120 percent' is
                                    substituted for `115 percent'; and
                                        ``(II) in clause (ii) of that
                                    subparagraph, `125' is substituted for
                                    `120 percent'.

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                        ``(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) <<NOTE: Deadline.>> pay the appropriate
                          fee described in paragraph (4)(A) not later than
                          90 days after the date of enactment of this
                          paragraph; and
                              ``(ii)(I) in the case of each insurable
                          commodity of the eligible producers on the farm,
                          excluding grazing land, agree to obtain a policy
                          or plan of insurance under the Federal Crop
                          Insurance Act (7 U.S.C. 1501 et seq.) (excluding a
                          crop insurance pilot program under that Act) for
                          the next insurance year for which crop insurance
                          is available to the eligible producers on the farm
                          at a level of coverage equal to 70 percent or more
                          of the recorded or appraised average yield

    [[Page 123 STAT. 124]]

                          indemnified at 100 percent of the expected market
                          price, or an equivalent coverage; and
                              ``(II) in the case of each noninsurable
                          commodity of the eligible producers on the farm,
                          agree to file the required paperwork, and pay the
                          administrative fee by the applicable State filing
                          deadline, for the noninsured crop assistance
                          program for the next year for which a policy is
                          available.
                        ``(B) Amount of assistance.--Eligible producers on a
                    farm that meet the requirements of subparagraph (A)
                    shall be eligible to receive assistance under this
                    section as if the eligible producers on the farm--
                              ``(i) in the case of each insurable commodity
                          of the eligible producers on the farm, had
                          obtained a policy or plan of insurance for the
                          2008 crop year at a level of coverage not to
                          exceed 70 percent or more of the recorded or
                          appraised average yield indemnified at 100 percent
                          of the expected market price, or an equivalent
                          coverage; and
                              ``(ii) in the case of each noninsurable
                          commodity of the eligible producers on the farm,
                          had filed the required paperwork, and paid the
                          administrative fee by the applicable State filing
                          deadline, for the noninsured crop assistance
                          program for the 2008 crop year, except that in
                          determining the level of coverage, the Secretary
                          shall use 70 percent of the applicable yield.
                        ``(C) Equitable relief.--Except as provided in
                    subparagraph (D), eligible producers on a farm that met
                    the requirements of paragraph (1) before the deadline
                    described in paragraph (4)(A) and are eligible to
                    receive, a disaster assistance payment under this
                    section for a production loss during the 2008 crop year
                    shall be eligible to receive an amount equal to the
                    greater of--
                              ``(i) the amount that would have been
                          calculated under subparagraph (B) if the eligible
                          producers on the farm had paid the appropriate fee
                          under that subparagraph; or
                              ``(ii) the amount that would have been
                          calculated under subparagraph (A) of subsection
                          (b)(3) if--
                                        ``(I) in clause (i) of that
                                    subparagraph, `120 percent' is
                                    substituted for `115 percent'; and
                                        ``(II) in clause (ii) of that
                                    subparagraph, `125' is substituted for
                                    `120 percent'.
                        ``(D) Limitation.--For amounts made available under
                    this paragraph, the Secretary may make such adjustments
                    as are necessary to ensure that no producer receives a
                    payment under this paragraph for an amount in excess of
                    the assistance received by a similarly situated producer
                    that had purchased the same or higher level of crop
                    insurance prior to the date of enactment of this
                    paragraph.
                        ``(E) Authority of the secretary.--The Secretary may
                    provide such additional assistance as the Secretary
                    considers appropriate to provide equitable treatment for
                    eligible producers on a farm that suffered production
                    losses in the 2008 crop year that result in multiyear
                    production losses, as determined by the Secretary.

    [[Page 123 STAT. 125]]

                        ``(F) Lack of access.--Notwithstanding any other
                    provision of this section, the Secretary may provide
                    assistance under this section to eligible producers on a
                    farm that--
                              ``(i) suffered a production loss due to a
                          natural cause during the 2008 crop year; and
                              ``(ii) as determined by the Secretary--
                                        ``(I)(aa) except as provided in item
                                    (bb), lack access to a policy or plan of
                                    insurance under subtitle A; or
                                        ``(bb) do not qualify for a written
                                    agreement because 1 or more farming
                                    practices, which the Secretary has
                                    determined are good farming practices,
                                    of the eligible producers on the farm
                                    differ significantly from the farming
                                    practices used by producers of the same
                                    crop in other regions of the United
                                    States; and
                                        ``(II) are not eligible for the
                                    noninsured crop disaster assistance
                                    program established by section 196 of
                                    the Federal Agriculture Improvement and
                                    Reform Act of 1996 (7 U.S.C. 7333).''.

        (c) Farm Operating Loans.--
                (1) In general.--For the principal amount of direct farm
            operating loans under section 311 of the Consolidated Farm and
            Rural Development Act (7 U.S.C. 1941), $173,367,000.
                (2) Direct farm operating loans.--For the cost of direct
            farm operating loans, including the cost of modifying loans, as
            defined in section 502 of the Congressional Budget Act of 1974
            (2 U.S.C. 661a), $20,440,000.

        (d) 2008 Aquaculture Assistance.--
                (1) Definitions.--In this subsection:
                        (A) Eligible aquaculture producer.--The term
                    ``eligible aquaculture producer'' means an aquaculture
                    producer that during the 2008 calendar year, as
                    determined by the Secretary--
                              (i) produced an aquaculture species for which
                          feed costs represented a substantial percentage of
                          the input costs of the aquaculture operation; and
                              (ii) experienced a substantial price increase
                          of feed costs above the previous 5-year average.
                        (B) Secretary.--The term ``Secretary'' means the
                    Secretary of Agriculture.
                (2) Grant program.--
                        (A) In general.--Of the funds of the Commodity
                    Credit Corporation, the Secretary shall use not more
                    than $50,000,000, to remain available until September
                    30, 2010, to carry out a program of grants to States to
                    assist eligible aquaculture producers for losses
                    associated with high feed input costs during the 2008
                    calendar year.
                        (B) Notification.--Not <<NOTE: Deadline.>> 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.--

    [[Page 123 STAT. 126]]

                              (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 <<NOTE: Deadline.>> 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 <<NOTE: Deadlines.>> 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) <<NOTE: Reports.>> not later than 30
                          days after the date on which the State provides
                          assistance to eligible aquaculture producers,
                          submit to the Secretary a report that describes--
                                        (I) the manner in which the State
                                    provided assistance;
                                        (II) the amounts of assistance
                                    provided per species of aquaculture; and
                                        (III) the process by which the State
                                    determined the levels of assistance to
                                    eligible aquaculture producers.
                (3) Reduction in payments.--An eligible aquaculture producer
            that receives assistance under this subsection shall not be
            eligible to receive any other assistance under the supplemental
            agricultural disaster assistance program established under
            section 531 of the Federal Crop Insurance Act (7 U.S.C. 1531)
            and section 901 of the Trade Act of 1974 (19 U.S.C. 2497) for
            any losses in 2008 relating to the same species of aquaculture.
                (4) Report to congress.--Not later than 180 days after the
            date of enactment of this Act, the Secretary shall submit to the
            appropriate committees of Congress a report that--
                        (A) describes in detail the manner in which this
                    subsection has been carried out; and
                        (B) includes the information reported to the
                    Secretary under paragraph (2)(D)(iii).

        Sec. 103. For fiscal years 2009 and 2010, in the case of each
    program established or amended by the Food, Conservation, and Energy Act
    of 2008 (Public Law 110-246), other than by title I of such Act, that is
    authorized or required to be carried out using funds of the Commodity
    Credit Corporation--
                (1) such funds shall be available for the purpose of
            covering salaries and related administrative expenses, including
            technical assistance, associated with the implementation of the
            program, without regard to the limitation on the total amount of
            allotments and fund transfers contained in section 11 of the
            Commodity Credit Corporation Charter Act (15 U.S.C. 714i); and
                (2) the use of such funds for such purpose shall not be
            considered to be a fund transfer or allotment for purposes

    [[Page 123 STAT. 127]]

            of applying the limitation on the total amount of allotments and
            fund transfers contained in such section.

        Sec. 104. In addition to other available funds, of the funds made
    available to the Rural Development mission area in this title, not more
    than 3 percent of the funds can be used for administrative costs to
    carry out loan, loan guarantee and grant activities funded in this
    title, which shall be transferred to and merged with the appropriation
    for ``Rural Development, Salaries and Expenses'': Provided, That of this
    amount $1,750,000 shall be committed to agency projects associated with
    maintaining the compliance, safety, and soundness of the portfolio of
    loans guaranteed through the section 502 guaranteed loan program.
        Sec. 105. Of the amounts appropriated in this title to the ``Rural
    Housing Service, Rural Community Facilities Program Account'', the
    ``Rural Business-Cooperative Service, Rural Business Program Account'',
    and the "Rural Utilities Service, Rural Water and Waste Disposal Program
    Account'', at least 10 percent shall be allocated for assistance in
    persistent poverty <<NOTE: Definition.>> counties: Provided, That for
    the purposes of this section, the term ``persistent poverty counties''
    means any county that has had 20 percent or more of its population
    living in poverty over the past 30 years, as measured by the 1980, 1990,
    and 2000 decennial censuses.

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

                             DEPARTMENT OF COMMERCE

                       Economic Development Administration

                    economic development assistance programs

        For an additional amount for ``Economic Development Assistance
    Programs'', $150,000,000: Provided, That $50,000,000 shall be for
    economic adjustment assistance as authorized by section 209 of the
    Public Works and Economic Development Act of 1965, as amended (42 U.S.C.
    3149): Provided further, That in allocating the funds provided in the
    previous proviso, the Secretary of Commerce shall give priority
    consideration to areas of the Nation that have experienced sudden and
    severe economic dislocation and job loss due to corporate restructuring:
    Provided further, That not to exceed 2 percent of the funds provided
    under this heading may be transferred to and merged with the
    appropriation for ``Salaries and Expenses'' for purposes of program
    administration and oversight: Provided further, That up to $50,000,000
    of the funds provided under this heading may be transferred to federally
    authorized regional economic development commissions.

                              Bureau of the Census

                         periodic censuses and programs

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

    [[Page 123 STAT. 128]]

           National Telecommunications and Information Administration

                   broadband technology opportunities program

        For an amount for ``Broadband Technology Opportunities Program'',
    $4,700,000,000: <<NOTE: Grants.>> Provided, That of the funds provided
    under this heading, not less than $4,350,000,000 shall be expended
    pursuant to division B of this Act, of which: not less than $200,000,000
    shall be available for competitive grants for expanding public computer
    center capacity, including at community colleges and public libraries;
    not less than $250,000,000 shall be available for competitive grants for
    innovative programs to encourage sustainable adoption of broadband
    service; and $10,000,000 shall be transferred to ``Department of
    Commerce, Office of Inspector General'' for the purposes of audits and
    oversight of funds provided under this heading and such funds shall
    remain available until expended: Provided further, That of the funds
    provided under this heading, up to $350,000,000 may be expended pursuant
    to Public Law 110-385 (47 U.S.C. 1301 note) and for the purposes of
    developing and maintaining a broadband inventory map pursuant to
    division B of this Act: <<NOTE: Notification. Deadline.>> Provided
    further, That of the funds provided under this heading, amounts deemed
    necessary and appropriate by the Secretary of Commerce, in consultation
    with the Federal Communications Commission (FCC), may be transferred to
    the FCC for the purposes of developing a national broadband plan or for
    carrying out any other FCC responsibilities pursuant to division B of
    this Act, and only if the Committees on Appropriations of the House and
    the Senate are notified not less than 15 days in advance of the transfer
    of such funds: <<NOTE: Applicability.>> Provided further, That not more
    than 3 percent of funds provided under this heading may be used for
    administrative costs, and this limitation shall apply to funds which may
    be transferred to the FCC.

                     digital-to-analog converter box program

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

    [[Page 123 STAT. 129]]

                 National Institute of Standards and Technology

                 scientific and technical research and services

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

                       construction of research facilities

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

                 National Oceanic and Atmospheric Administration

                      operations, research, and facilities

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

                    procurement, acquisition and construction

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

                           Office of Inspector General

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

                              DEPARTMENT OF JUSTICE

                             General Administration

                           Office of Inspector General

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

                   State and Local Law Enforcement Activities

                        Office on Violence Against Women

      violence against women prevention and <<NOTE: Grants.>> prosecution
    programs

        For an additional amount for ``Violence Against Women Prevention and
    Prosecution Programs'', $225,000,000 for grants to combat violence
    against women, as authorized by part T of the Omnibus Crime Control and
    Safe Streets Act of 1968 (42 U.S.C. 3796gg et seq.): Provided, That,
    $50,000,000 shall be for transitional housing assistance grants for
    victims of domestic violence, stalking or sexual assault as authorized
    by section 40299 of the Violent Crime Control and Law Enforcement Act of
    1994 (Public Law 103-322).

    [[Page 123 STAT. 130]]

                           Office of Justice Programs

                   state and local law enforcement assistance

        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $2,000,000,000, for the Edward Byrne Memorial Justice
    Assistance Grant program as authorized by subpart 1 of part E of title I
    of the Omnibus Crime Control and Safe Streets Acts of 1968 (``1968
    Act''), (except that section 1001(c), and the special rules for Puerto
    Rico under section 505(g), of the 1968 Act, shall not apply for purposes
    of this Act).
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $225,000,000, for competitive grants to improve the
    functioning of the criminal justice system, to assist victims of crime
    (other than compensation), and youth mentoring grants.
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $40,000,000, for competitive grants to provide assistance
    and equipment to local law enforcement along the Southern border and in
    High-Intensity Drug Trafficking Areas to combat criminal narcotics
    activity stemming from the Southern border, of which $10,000,000 shall
    be transferred to ``Bureau of Alcohol, Tobacco, Firearms and Explosives,
    Salaries and Expenses'' for the ATF Project Gunrunner.
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $225,000,000, for assistance to Indian tribes,
    notwithstanding Public Law 108-199, division B, title I, section
    112(a)(1) (118 Stat. 62), which shall be available for grants under
    section 20109 of subtitle A of title II of the Violent Crime Control and
    Law Enforcement Act of 1994 (Public Law 103-322).
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $100,000,000, to be distributed by the Office for Victims
    of Crime in accordance with section 1402(d)(4) of the Victims of Crime
    Act of 1984 (Public Law 98-473).
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $125,000,000, for assistance to law enforcement in rural
    States and rural areas, to prevent and combat crime, especially drug-
    related crime.
        For an additional amount for ``State and Local Law Enforcement
    Assistance'', $50,000,000, for Internet Crimes Against Children (ICAC)
    initiatives.

                      Community Oriented Policing Services

        For an additional amount for ``Community Oriented Policing
    Services'', for grants under section 1701 of title I of the 1968 Omnibus
    Crime Control and Safe Streets Act (42 U.S.C. 3796dd) for hiring and
    rehiring of additional career law enforcement officers under part Q of
    such title, notwithstanding subsection (i) of such section,
    $1,000,000,000.

                              Salaries and Expenses

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

    [[Page 123 STAT. 131]]

                                     SCIENCE

                  National Aeronautics and Space Administration

                                     science

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

                                   aeronautics

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

                                   exploration

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

                              cross agency support

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

                           office of inspector general

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

                           National Science Foundation

                         research and related activities

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

                          education and human resources

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

              major research equipment and facilities construction

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

                           office of inspector general

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

                          GENERAL PROVISION--THIS TITLE

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

    [[Page 123 STAT. 132]]

                        TITLE III--DEPARTMENT OF DEFENSE

                            OPERATION AND MAINTENANCE

                         Operation and Maintenance, Army

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

                         Operation and Maintenance, Navy

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

                     Operation and Maintenance, Marine Corps

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

                      Operation and Maintenance, Air Force

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

                     Operation and Maintenance, Army Reserve

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

                     Operation and Maintenance, Navy Reserve

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

    [[Page 123 STAT. 133]]

                 Operation and Maintenance, Marine Corps Reserve

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

                  Operation and Maintenance, Air Force Reserve

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

                 Operation and Maintenance, Army National Guard

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

                  Operation and Maintenance, Air National Guard

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

                   RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                Research, Development, Test and Evaluation, Army

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

                Research, Development, Test and Evaluation, Navy

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

              Research, Development, Test and Evaluation, Air Force

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

    [[Page 123 STAT. 134]]

            Research, Development, Test and Evaluation, Defense-Wide

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

                      OTHER DEPARTMENT OF DEFENSE PROGRAMS

                             Defense Health Program

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

                         Office of the Inspector General

        For an additional amount for ``Office of the Inspector General'',
    $15,000,000 for operation and maintenance, to remain available for
    obligation until September 30, 2011.

                     TITLE IV--ENERGY AND WATER DEVELOPMENT

                          DEPARTMENT OF DEFENSE--CIVIL

                             Department of the Army

                            Corps of Engineers--Civil

                                 investigations

        For an additional amount for ``Investigations'', $25,000,000:
    Provided, That funds provided under this heading in this title shall
    only be used for programs, projects or activities that heretofore or
    hereafter receive funds provided in Acts making appropriations available
    for Energy and Water Development: Provided further, That funds provided
    under this heading in this title shall be used for programs, projects or
    activities or elements of programs, projects or activities that can be
    completed within the funds made available in that account and that will
    not require new budget authority to complete: Provided further, That for
    projects that are being completed with funds appropriated in this Act
    that would otherwise be expired for obligation, expired funds
    appropriated in this Act may be used to pay the cost of associated
    supervision, inspection, overhead, engineering and design on those
    projects and on subsequent claims, if
    any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
    of the Army shall submit a quarterly report to the Committees on
    Appropriations of the House of Representatives and the Senate detailing
    the allocation, obligation and expenditures of these funds, beginning
    not later than 45 days after enactment of this Act: Provided further,
    That the Secretary shall have unlimited reprogramming authority for
    these funds provided under this heading.

                                  construction

        For an additional amount for ``Construction'', $2,000,000,000:
    Provided, That not less than $200,000,000 of the funds provided

    [[Page 123 STAT. 135]]

    shall be for water-related environmental infrastructure assistance:
    Provided further, That section 102 of Public Law 109-103 (33 U.S.C.
    2221) shall not apply to funds provided in this title: Provided further,
    That notwithstanding any other provision of law, funds provided in this
    paragraph shall not be cost shared with the Inland Waterways Trust Fund
    as authorized in Public Law 99-662: Provided further, That funds
    provided under this heading in this title shall only be used for
    programs, projects or activities that heretofore or hereafter receive
    funds provided in Acts making appropriations available for Energy and
    Water Development: Provided further, That funds provided under this
    heading in this title shall be used for programs, projects or activities
    or elements of programs, projects or activities that can be completed
    within the funds made available in that account and that will not
    require new budget authority to complete: Provided further, That the
    limitation concerning total project costs in section 902 of the Water
    Resources Development Act of 1986, as amended (33 U.S.C. 2280), shall
    not apply during fiscal year 2009 to any project that received funds
    provided in this title: Provided further, That funds appropriated under
    this heading may be used by the Secretary of the Army, acting through
    the Chief of Engineers, to undertake work authorized to be carried out
    in accordance with section 14 of the Flood Control Act of 1946 (33
    U.S.C. 701r); section 205 of the Flood Control Act of 1948 (33 U.S.C.
    701s); section 206 of the Water Resources Development Act of 1996 (33
    U.S.C. 2330); or section 1135 of the Water Resources Development Act of
    1986 (33 U.S.C. 2309a), notwithstanding the program cost limitations set
    forth in those sections: Provided further, That for projects that are
    being completed with funds appropriated in this Act that would otherwise
    be expired for obligation, expired funds appropriated in this Act may be
    used to pay the cost of associated supervision, inspection, overhead,
    engineering and design on those projects and on subsequent claims, if
    any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
    of the Army shall submit a quarterly report to the Committees on
    Appropriations of the House of Representatives and the Senate detailing
    the allocation, obligation and expenditures of these funds, beginning
    not later than 45 days after enactment of this Act: Provided further,
    That the Secretary shall have unlimited reprogramming authority for
    these funds provided under this heading.

                        mississippi river and tributaries

        For an additional amount for ``Mississippi River and Tributaries'',
    $375,000,000: Provided, That funds provided under this heading in this
    title shall only be used for programs, projects or activities that
    heretofore or hereafter receive funds provided in Acts making
    appropriations available for Energy and Water Development: Provided
    further, That funds provided under this heading in this title shall be
    used for programs, projects or activities or elements of programs,
    projects or activities that can be completed within the funds made
    available in that account and that will not require new budget authority
    to complete: Provided further, That the limitation concerning total
    project costs in section 902 of the Water Resources Development Act of
    1986, as amended (33 U.S.C. 2280), shall not apply during fiscal year
    2009 to any project that received funds provided in this title: Provided
    further, That for projects that are being completed with funds
    appropriated

    [[Page 123 STAT. 136]]

    in this Act that would otherwise be expired for obligation, expired
    funds appropriated in this Act may be used to pay the cost of associated
    supervision, inspection, overhead, engineering and design on those
    projects and on subsequent claims, if
    any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
    of the Army shall submit a quarterly report to the Committees on
    Appropriations of the House of Representatives and the Senate detailing
    the allocation, obligation and expenditures of these funds, beginning
    not later than 45 days after enactment of this Act: Provided further,
    That the Secretary shall have unlimited reprogramming authority for
    these funds provided under this heading.

                            operation and maintenance

        For an additional amount for ``Operation and Maintenance'',
    $2,075,000,000: Provided, That funds provided under this heading in this
    title shall only be used for programs, projects or activities that
    heretofore or hereafter receive funds provided in Acts making
    appropriations available for Energy and Water Development: Provided
    further, That funds provided under this heading in this title shall be
    used for programs, projects or activities or elements of programs,
    projects or activities that can be completed within the funds made
    available in that account and that will not require new budget authority
    to complete: Provided further, That section 9006 of Public Law 110-114
    shall not apply to funds provided in this title: Provided further, That
    for projects that are being completed with funds appropriated in this
    Act that would otherwise be expired for obligation, expired funds
    appropriated in this Act may be used to pay the cost of associated
    supervision, inspection, overhead, engineering and design on those
    projects and on subsequent claims, if
    any: <<NOTE: Deadlines. Reports.>> Provided further, That the Secretary
    of the Army shall submit a quarterly report to the Committees on
    Appropriations of the House of Representatives and the Senate detailing
    the allocation, obligation and expenditures of these funds, beginning
    not later than 45 days after enactment of this Act: Provided further,
    That the Secretary shall have unlimited reprogramming authority for
    these funds provided under this heading.

                               regulatory program

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

                 formerly utilized sites remedial action program

        For an additional amount for ``Formerly Utilized Sites Remedial
    Action Program'', $100,000,000: Provided, That funds provided under this
    heading in this title shall be used for programs, projects or activities
    or elements of programs, projects or activities that can be completed
    within the funds made available in that account and that will not
    require new budget authority to complete: Provided further, That for
    projects that are being completed with funds appropriated in this Act
    that would otherwise be expired for obligation, expired funds
    appropriated in this Act may be used to pay the cost of associated
    supervision, inspection, overhead, engineering and design on those
    projects and on subsequent claims, if <<NOTE: Deadlines. Reports.>> any:
    Provided further, That the Secretary of the Army shall submit a
    quarterly report to the Committees on Appropriations

    [[Page 123 STAT. 137]]

    of the House of Representatives and the Senate detailing the allocation,
    obligation and expenditures of these funds, beginning not later than 45
    days after enactment of this Act: Provided further, That the Secretary
    shall have unlimited reprogramming authority for these funds provided
    under this heading.

                           DEPARTMENT OF THE INTERIOR

                              Bureau of Reclamation

                           water and related resources

        For an additional amount for ``Water and Related Resources'',
    $1,000,000,000: Provided, That of the amount appropriated under this
    heading, not less than $126,000,000 shall be used for water reclamation
    and reuse projects authorized under title XVI of Public Law 102-575:
    Provided further, That funds provided in this Act shall be used for
    elements of projects, programs or activities that can be completed
    within these funding amounts and not create budgetary obligations in
    future fiscal years: Provided further, That $50,000,000 of the funds
    provided under this heading may be transferred to the Department of the
    Interior for programs, projects and activities authorized by the Central
    Utah Project Completion Act (titles II-V of Public Law 102-575):
    Provided further, That $50,000,000 of the funds provided under this
    heading may be used for programs, projects, and activities authorized by
    the California Bay-Delta Restoration Act (Public Law 108-361): Provided
    further, That not less than $60,000,000 of the funds provided under this
    heading shall be used for rural water projects and shall be expended
    primarily on water intake and treatment facilities of such projects:
    Provided further, That not less than $10,000,000 of the funds provided
    under this heading shall be used for a bureau-wide inspection of canals
    program in urbanized areas: Provided further, That the costs of
    extraordinary maintenance and replacement activities carried out with
    funds provided in this Act shall be repaid pursuant to existing
    authority, except the length of repayment period shall be as determined
    by the Commissioner, but in no case shall the repayment period exceed 50
    years and the repayment shall include interest, at a rate determined by
    the Secretary of the Treasury as of the beginning of the fiscal year in
    which the work is commenced, on the basis of average market yields on
    outstanding marketable obligations of the United States with the
    remaining periods of maturity comparable to the applicable reimbursement
    period of the project adjusted to the nearest one-eighth of 1 percent on
    the unamortized balance of any portion of the loan: Provided further,
    That for projects that are being completed with funds appropriated in
    this Act that would otherwise be expired for obligation, expired funds
    appropriated in this Act may be used to pay the cost of associated
    supervision, inspection, overhead, engineering and design on those
    projects and on subsequent claims, if <<NOTE: Deadlines. Reports.>> any:
    Provided further, That the Secretary of the Interior shall submit a
    quarterly report to the Committees on Appropriations of the House of
    Representatives and the Senate detailing the allocation, obligation and
    expenditures of these funds, beginning not later than 45 days after
    enactment of this Act: Provided further, That the Secretary shall have
    unlimited reprogramming authority for these funds provided under this
    heading.

    [[Page 123 STAT. 138]]

                              DEPARTMENT OF ENERGY

                                 ENERGY PROGRAMS

                     Energy Efficiency and Renewable Energy

        For an additional amount for ``Energy Efficiency and Renewable
    Energy'', $16,800,000,000: Provided, That $3,200,000,000 shall be
    available for Energy Efficiency and Conservation Block Grants for
    implementation of programs authorized under subtitle E of title V of the
    Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.),
    of which $2,800,000,000 is available through the formula in subtitle E:
    Provided further, That the Secretary may use the most recent and
    accurate population data available to satisfy the requirements of
    section 543(b) of the Energy Independence and Security Act of 2007:
    Provided further, That the remaining $400,000,000 shall be awarded on a
    competitive basis: Provided further, That $5,000,000,000 shall be for
    the Weatherization Assistance Program under part A of title IV of the
    Energy Conservation and Production Act (42 U.S.C. 6861 et seq.):
    Provided further, That $3,100,000,000 shall be for the State Energy
    Program authorized under part D of title III of the Energy Policy and
    Conservation Act (42 U.S.C. 6321): <<NOTE: Grants.>> Provided further,
    That $2,000,000,000 shall be available for grants for the manufacturing
    of advanced batteries and components and the Secretary shall provide
    facility funding awards under this section to manufacturers of advanced
    battery systems and vehicle batteries that are produced in the United
    States, including advanced lithium ion batteries, hybrid electrical
    systems, component manufacturers, and software designers: Provided
    further, That notwithstanding section 3304 of title 5, United States
    Code, and without regard to the provisions of sections 3309 through 3318
    of such title 5, the Secretary of Energy, upon a determination that
    there is a severe shortage of candidates or a critical hiring need for
    particular positions, may from within the funds provided, recruit and
    directly appoint highly qualified individuals into the competitive
    service: Provided further, That such authority shall not apply to
    positions in the Excepted Service or the Senior Executive Service:
    Provided further, That any action authorized herein shall be consistent
    with the merit principles of section 2301 of such title 5, and the
    Department shall comply with the public notice requirements of section
    3327 of such title 5.

                   Electricity Delivery and Energy Reliability

        For an additional amount for ``Electricity Delivery and Energy
    Reliability,'' $4,500,000,000: Provided, That funds shall be available
    for expenses necessary for electricity delivery and energy reliability
    activities to modernize the electric grid, to include demand responsive
    equipment, enhance security and reliability of the energy
    infrastructure, energy storage research, development, demonstration and
    deployment, and facilitate recovery from disruptions to the energy
    supply, and for implementation of programs authorized under title XIII
    of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et
    seq.): Provided further, That $100,000,000 shall be available for worker
    training activities: Provided further, That notwithstanding section 3304
    of title 5, United States Code, and without regard to the provisions of
    sections 3309 through 3318

    [[Page 123 STAT. 139]]

    of such title 5, the Secretary of Energy, upon a determination that
    there is a severe shortage of candidates or a critical hiring need for
    particular positions, may from within the funds provided, recruit and
    directly appoint highly qualified individuals into the competitive
    service: Provided further, That such authority shall not apply to
    positions in the Excepted Service or the Senior Executive Service:
    Provided further, That any action authorized herein shall be consistent
    with the merit principles of section 2301 of such title 5, and the
    Department shall comply with the public notice requirements of section
    3327 of such title 5: Provided further, That for the purpose of
    facilitating the development of regional transmission plans, the Office
    of Electricity Delivery and Energy Reliability within the Department of
    Energy is provided $80,000,000 within the available funds to conduct a
    resource assessment and an analysis of future demand and transmission
    requirements after consultation with the Federal Energy Regulatory
    Commission: Provided further, That the Office of Electricity Delivery
    and Energy Reliability in coordination with the Federal Energy
    Regulatory Commission will provide technical assistance to the North
    American Electric Reliability Corporation, the regional reliability
    entities, the States, and other transmission owners and operators for
    the formation of interconnection-based transmission plans for the
    Eastern and Western Interconnections and ERCOT: Provided further, That
    such assistance may include modeling, support to regions and States for
    the development of coordinated State electricity policies, programs,
    laws, and regulations: Provided further, That $10,000,000 is provided to
    implement section 1305 of Public Law 110-140: Provided further, That the
    Secretary of Energy may use or transfer amounts provided under this
    heading to carry out new authority for transmission improvements, if
    such authority is enacted in any subsequent Act, consistent with
    existing fiscal management practices and procedures.

                     Fossil Energy Research and Development

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

                        Non-Defense Environmental Cleanup

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

           Uranium Enrichment Decontamination and Decommissioning Fund

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

                                     Science

        For an additional amount for ``Science'', $1,600,000,000.

    [[Page 123 STAT. 140]]

                    Advanced Research Projects Agency--Energy

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

             Title 17--Innovative Technology Loan Guarantee Program

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

                         Office of the Inspector General

        For necessary expenses of the Office of the Inspector General in
    carrying out the provisions of the Inspector General Act of 1978, as
    amended, $15,000,000, to remain available until September 30, 2012.

                   ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                          Defense Environmental Cleanup

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

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

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

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 401.  Bonneville Power Administration Borrowing Authority. For
    the purposes of providing funds to assist in financing the construction,
    acquisition, and replacement of the transmission system of the
    Bonneville Power Administration and to implement the authority of the
    Administrator of the Bonneville Power Administration under the Pacific
    Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et
    seq.), an additional $3,250,000,000 in borrowing authority is made
    available under the Federal Columbia River Transmission System Act (16
    U.S.C. 838 et seq.), to remain outstanding at any time.

    [[Page 123 STAT. 141]]

        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. <<NOTE: 42 USC 16421a.>> 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 <<NOTE: Effective
            date.>> 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. <<NOTE: Deadline.>> 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.--

    [[Page 123 STAT. 142]]

                ``(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

    [[Page 123 STAT. 143]]

            process to develop practices and policies that implement the
            authority granted by this section.
                ``(2) Requests for interest.--In <<NOTE: Notice. Federal
            Register, publication.>> the course of selecting potential
            projects to be funded under this section, the Administrator
            shall seek Requests For Interest from entities interested in
            identifying potential projects through one or more notices
            published in the Federal Register.''

        Sec. 403. Set-aside for Management and Oversight. Up to 0.5 percent
    of each amount appropriated in this title may be used for the expenses
    of management and oversight of the programs, grants, and activities
    funded by such appropriation, and may be transferred by the head of the
    Federal department or agency involved to any other appropriate account
    within the department or agency for that
    purpose: <<NOTE: Reports. Deadline.>> Provided, That the Secretary will
    provide a report to the Committees on Appropriations of the House of
    Representatives and the Senate 30 days prior to the transfer: Provided
    further, That funds set aside under this section shall remain available
    for obligation until September 30, 2012.

        Sec. 404. Technical Corrections to the Energy Independence and
    Security Act of 2007. (a) Section 543(a) of the Energy Independence and
    Security Act of 2007 (42 U.S.C. 17153(a)) is amended--
                (1) by redesignating paragraphs (2) through (4) as
            paragraphs (3) through (5), respectively; and
                (2) by striking paragraph (1) and inserting the following:
                ``(1) 34 percent to eligible units of local government--
            alternative 1, in accordance with subsection (b);
                ``(2) 34 percent to eligible units of local government--
            alternative 2, in accordance with subsection (b);''.

        (b) Section 543(b) of the Energy Independence and Security Act of
    2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)''
    and inserting ``subsection (a)(1) or (2)''.
        (c) Section 548(a)(1) of the Energy Independence and Security Act of
    2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided'' and
    all that follows through ``541(3)(B)''.
        Sec. 405. Amendments to Title XIII of the Energy Independence and
    Security Act of 2007. Title XIII of the Energy Independence and Security
    Act of 2007 (42 U.S.C. 17381 and following) is amended as follows:
                (1) By amending subparagraph (A) of <<NOTE: 42 USC
            17384.>> section 1304(b)(3) to read as follows:
                        ``(A) In general.--In carrying out the initiative,
                    the Secretary shall provide financial support to smart
                    grid demonstration projects in urban, suburban, tribal,
                    and rural areas, including areas where electric system
                    assets are controlled by nonprofit entities and areas
                    where electric system assets are controlled by investor-
                    owned utilities.''.
                (2) By amending subparagraph (C) of section 1304(b)(3) to
            read as follows:
                        ``(C) Federal share of cost of technology
                    investments.--The Secretary shall provide to an electric
                    utility described in subparagraph (B) or to other
                    parties financial assistance for use in paying an amount
                    equal to not more than 50 percent of the cost of
                    qualifying advanced grid technology investments made by
                    the electric utility or other party to carry out a
                    demonstration project.''.

    [[Page 123 STAT. 144]]

                (3) By inserting after section 1304(b)(3)(D) the following
            new subparagraphs:
                        ``(E) Availability of data.--
                    The <<NOTE: Clearinghouse.>> Secretary shall establish
                    and maintain a smart grid information clearinghouse in a
                    timely manner which will make data from smart grid
                    demonstration projects and other sources available to
                    the public. As a condition of receiving financial
                    assistance under this subsection, a utility or other
                    participant in a smart grid demonstration project shall
                    provide such information as the Secretary may require to
                    become available through the smart grid information
                    clearinghouse in the form and within the timeframes as
                    directed by the Secretary. The Secretary shall assure
                    that business proprietary information and individual
                    customer information is not included in the information
                    made available through the clearinghouse.
                        ``(F) Open protocols and standards.--The Secretary
                    shall require as a condition of receiving funding under
                    this subsection that demonstration projects utilize open
                    protocols and standards (including Internet-based
                    protocols and standards) if available and
                    appropriate.''.
                (4) By amending paragraph (2) of <<NOTE: 42 USC
            17384.>> 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 <<NOTE: 42 USC
            17386.>> section 1306 by striking ``reimbursement of one-fifth
            (20 percent)'' and inserting ``grants of up to one-half (50
            percent)''.
                (6) By striking the last sentence of subsection (b)(9) of
            section 1306.
                (7) By striking ``are eligible for'' in subsection (c)(1) of
            section 1306 and inserting ``utilize''.
                (8) By amending subsection (e) of section 1306 to read as
            follows:

        ``(e) Procedures and <<NOTE: Deadline. Notice.>> Rules.--(1) The
    Secretary shall, within 60 days after the enactment of the American
    Recovery and Reinvestment Act of 2009, by means of a notice of intent
    and subsequent solicitation of grant proposals--
                ``(A) establish procedures by which applicants can obtain
            grants of not more than one-half of their documented costs;
                ``(B) require as a condition of receiving funding under this
            subsection that demonstration projects utilize open protocols
            and standards (including Internet-based protocols and standards)
            if available and appropriate;
                ``(C) establish procedures to ensure that there is no
            duplication or multiple payment for the same investment or
            costs, that the grant goes to the party making the actual
            expenditures for the qualifying Smart Grid investments, and that
            the grants made have a significant effect in encouraging and
            facilitating the development of a smart grid;
                ``(D) establish procedures to ensure there will be public
            records of grants made, recipients, and qualifying Smart Grid
            investments which have received grants; and
                ``(E) establish procedures to provide advance payment of
            moneys up to the full amount of the grant award.

        ``(2) The Secretary shall have discretion and exercise reasonable
    judgment to deny grants for investments that do not qualify.''.

    [[Page 123 STAT. 145]]

        Sec. 406. Renewable Energy and Electric Power Transmission Loan
    Guarantee Program. (a) Amendment.--Title XVII of the Energy Policy Act
    of 2005 (42 U.S.C. 16511 et seq.) is amended by adding the following at
    the end:

    ``SEC. 1705. <<NOTE: 42 USC 16516.>> TEMPORARY PROGRAM FOR RAPID
                DEPLOYMENT OF RENEWABLE ENERGY AND ELECTRIC POWER
                TRANSMISSION PROJECTS.

        ``(a) In General.--Notwithstanding section 1703, the Secretary may
    make guarantees under this section only for the following categories of
    projects that commence construction not later than September 30, 2011:
                ``(1) Renewable energy systems, including incremental
            hydropower, that generate electricity or thermal energy, and
            facilities that manufacture related components.
                ``(2) Electric power transmission systems, including
            upgrading and reconductoring projects.
                ``(3) Leading edge biofuel projects that will use
            technologies performing at the pilot or demonstration scale that
            the Secretary determines are likely to become commercial
            technologies and will produce transportation fuels that
            substantially reduce life-cycle greenhouse gas emissions
            compared to other transportation fuels.

        ``(b) Factors Relating to Electric Power Transmission Systems.--In
    determining to make guarantees to projects described in subsection
    (a)(2), the Secretary may consider the following factors:
                ``(1) The viability of the project without guarantees.
                ``(2) The availability of other Federal and State
            incentives.
                ``(3) The importance of the project in meeting reliability
            needs.
                ``(4) The effect of the project in meeting a State or
            region's environment (including climate change) and energy
            goals.

        ``(c) Wage Rate Requirements.--The Secretary shall require that each
    recipient of support under this section provide reasonable assurance
    that all laborers and mechanics employed in the performance of the
    project for which the assistance is provided, including those employed
    by contractors or subcontractors, will be paid wages at rates not less
    than those prevailing on similar work in the locality as determined by
    the Secretary of Labor in accordance with subchapter IV of chapter 31 of
    part A of subtitle II of title 40, United States Code (commonly referred
    to as the `Davis-Bacon Act').
        ``(d) Limitation.--Funding under this section for projects described
    in subsection (a)(3) shall not exceed $500,000,000.
        ``(e) Sunset.--The authority to enter into guarantees under this
    section shall expire on September 30, 2011.''.
        (b) Table of Contents Amendment.--The table of contents for the
    Energy Policy Act of 2005 is amended by inserting after the item
    relating to section 1704 the following new item:

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

        Sec. 407. Weatherization Assistance Program Amendments. (a) Income
    Level.--Section 412(7) of the Energy Conservation and Production Act (42
    U.S.C. 6862(7)) is amended by striking ``150 percent'' both places it
    appears and inserting ``200 percent''.

    [[Page 123 STAT. 146]]

        (b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) of the
    Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended
    by striking ``$2,500'' and inserting ``$6,500''.
        (c) Effective Use of Funds.--In providing funds made available by
    this Act for the Weatherization Assistance Program, the Secretary may
    encourage States to give priority to using such funds for the most cost-
    effective efficiency activities, which may include insulation of attics,
    if, in the Secretary's view, such use of funds would increase the
    effectiveness of the program.
        (d) Training and Technical Assistance.--Section 416 of the Energy
    Conservation and Production Act (42 U.S.C. 6866) is amended by striking
    ``10 percent'' and inserting ``up to 20 percent''.
        (e) Assistance for Previously Weatherized Dwelling Units.--Section
    415(c)(2) of the Energy Conservation and Production Act (42 U.S.C.
    6865(c)(2)) is amended by striking ``September 30, 1979'' and inserting
    ``September 30, 1994''.
        Sec. 408. Technical Corrections to Public Utility Regulatory
    Policies Act of 1978. (a) Section 111(d) of the Public Utility
    Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
    redesignating paragraph (16) relating to consideration of smart grid
    investments (added by section 1307(a) of Public Law 110-140) as
    paragraph (18) and by redesignating paragraph (17) relating to smart
    grid information (added by section 1308(a) of Public Law 110-140) as
    paragraph (19).
        (b) Subsections (b) and (d) of section 112 of the Public Utility
    Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by
    striking ``(17) through (18)'' in each place it appears and inserting
    ``(16) through (19)''.
        Sec. 409. Renewable Electricity Transmission Study. In completing
    the 2009 National Electric Transmission Congestion Study, the Secretary
    of Energy shall include--
                (1) an analysis of the significant potential sources of
            renewable energy that are constrained in accessing appropriate
            market areas by lack of adequate transmission capacity;
                (2) an analysis of the reasons for failure to develop the
            adequate transmission capacity;
                (3) recommendations for achieving adequate transmission
            capacity;
                (4) an analysis of the extent to which legal challenges
            filed at the State and Federal level are delaying the
            construction of transmission necessary to access renewable
            energy; and
                (5) an explanation of assumptions and projections made in
            the Study, including--
                        (A) assumptions and projections relating to energy
                    efficiency improvements in each load center;
                        (B) assumptions and projections regarding the
                    location and type of projected new generation capacity;
                    and
                        (C) assumptions and projections regarding projected
                    deployment of distributed generation infrastructure.

        Sec. 410. Additional State Energy Grants. (a) In General.--Amounts
    appropriated under the heading ``Department of Energy--Energy Programs--
    Energy Efficiency and Renewable Energy'' in this title shall be
    available to the Secretary of Energy for making additional grants under
    part D of title III of the Energy Policy and Conservation Act (42 U.S.C.
    6321 et seq.). <<NOTE: Notification.>> The Secretary shall make grants
    under this section in excess of the base allocation established for a
    State under regulations issued pursuant to the

    [[Page 123 STAT. 147]]

    authorization provided in section 365(f) of such Act only if the
    governor of the recipient State notifies the Secretary of Energy in
    writing that the governor has obtained necessary assurances that each of
    the following will occur:
                (1) The applicable State regulatory authority will seek to
            implement, in appropriate proceedings for each electric and gas
            utility, with respect to which the State regulatory authority
            has ratemaking authority, a general policy that ensures that
            utility financial incentives are aligned with helping their
            customers use energy more efficiently and that provide timely
            cost recovery and a timely earnings opportunity for utilities
            associated with cost-effective measurable and verifiable
            efficiency savings, in a way that sustains or enhances utility
            customers' incentives to use energy more efficiently.
                (2) The State, or the applicable units of local government
            that have authority to adopt building codes, will implement the
            following:
                        (A) A building energy code (or codes) for
                    residential buildings that meets or exceeds the most
                    recently published International Energy Conservation
                    Code, or achieves equivalent or greater energy savings.
                        (B) A building energy code (or codes) for commercial
                    buildings throughout the State that meets or exceeds the
                    ANSI/ASHRAE/IESNA Standard 90.1-2007, or achieves
                    equivalent or greater energy savings.
                        (C) <<NOTE: Deadline.>> A plan for the jurisdiction
                    achieving compliance with the building energy code or
                    codes described in subparagraphs (A) and (B) within 8
                    years of the date of enactment of this Act in at least
                    90 percent of new and renovated residential and
                    commercial building space. Such plan shall include
                    active training and enforcement programs and measurement
                    of the rate of compliance each year.
                (3) The State will to the extent practicable prioritize the
            grants toward funding energy efficiency and renewable energy
            programs, including--
                        (A) the expansion of existing energy efficiency
                    programs approved by the State or the appropriate
                    regulatory authority, including energy efficiency
                    retrofits of buildings and industrial facilities, that
                    are funded--
                              (i) by the State; or
                              (ii) through rates under the oversight of the
                          applicable regulatory authority, to the extent
                          applicable;
                        (B) the expansion of existing programs, approved by
                    the State or the appropriate regulatory authority, to
                    support renewable energy projects and deployment
                    activities, including programs operated by entities
                    which have the authority and capability to manage and
                    distribute grants, loans, performance incentives, and
                    other forms of financial assistance; and
                        (C) cooperation and joint activities between States
                    to advance more efficient and effective use of this
                    funding to support the priorities described in this
                    paragraph.

        (b) State Match.--The State cost share requirement under the item
    relating to ``Department of Energy; Energy Conservation'' in title II of
    the Department of the Interior and Related Agencies

    [[Page 123 STAT. 148]]

    Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not
    apply to assistance provided under this section.
        (c) Equipment and Materials for Energy Efficiency Measures and
    Renewable Energy Measures.--No limitation on the percentage of funding
    that may be used for the purchase and installation of equipment and
    materials for energy efficiency measures and renewable energy measures
    under grants provided under part D of title III of the Energy Policy and
    Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance
    provided under this section.

               TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                           DEPARTMENT OF THE TREASURY

                Treasury Inspector General for Tax Administration

                              SALARIES AND EXPENSES

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

        Community Development Financial Institutions Fund Program Account

        For an additional amount for ``Community Development Financial
    Institutions Fund Program Account'', $100,000,000, to remain available
    until September 30, 2010, for qualified applicants under the fiscal year
    2009 funding round of the Community Development Financial Institutions
    Program, of which up to $8,000,000 may be for financial assistance,
    technical assistance, training and outreach programs designed to benefit
    Native American, Native Hawaiian, and Alaskan Native communities and
    provided primarily through qualified community development lender
    organizations with experience and expertise in community development
    banking and lending in Indian country, Native American organizations,
    tribes and tribal organizations and other suitable providers and up to
    $2,000,000 may be used for administrative <<NOTE: Waiver.>> expenses:
    Provided, That for the purpose of the fiscal year 2009 funding round,
    the following statutory provisions are hereby waived: 12 U.S.C. 4707(e)
    and 12 U.S.C. 4707(d): Provided further, That no awardee, together with
    its subsidiaries and affiliates, may be awarded more than 5 percent of
    the aggregate funds available during fiscal year 2009 from the Community
    Development Financial Institutions Program:
    Provided <<NOTE: Deadline. Expenditure plan.>> 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.

    [[Page 123 STAT. 149]]

                            Internal Revenue Service

                   HEALTH INSURANCE TAX CREDIT ADMINISTRATION

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

                         GENERAL SERVICES ADMINISTRATION

                            Real Property Activities

                             federal buildings fund

                     limitations on availability of revenue

                          (including transfer of funds)

        For an additional amount to be deposited in the Federal Buildings
    Fund, $5,550,000,000, to carry out the purposes of the Fund, of which
    not less than $750,000,000 shall be available for Federal buildings and
    United States courthouses, not less than $300,000,000 shall be available
    for border stations and land ports of entry, and not less than
    $4,500,000,000 shall be available for measures necessary to convert GSA
    facilities to High-Performance Green Buildings, as defined in section
    401 of Public Law 110-140: Provided, That not to exceed $108,000,000 of
    the amounts provided under this heading may be expended for rental of
    space, related to leasing of temporary space in connection with projects
    funded under this heading: Provided further, That not to exceed
    $127,000,000 of the amounts provided under this heading may be expended
    for building operations, for the administrative costs of completing
    projects funded under this heading: Provided further, That not to exceed
    $3,000,000 of the funds provided shall be for on-the-job pre-
    apprenticeship and apprenticeship training programs registered with the
    Department of Labor, for the construction, repair, and alteration of
    Federal buildings: <<NOTE: Deadlines.>> Provided further, That not less
    than $5,000,000,000 of the funds provided under this heading shall be
    obligated by September 30, 2010, and the remainder of the funds provided
    under this heading shall be obligated not later than September 30, 2011:
    Provided further, That the Administrator of General Services is
    authorized to initiate design, construction, repair, alteration, and
    other projects through existing authorities of the
    Administrator: <<NOTE: Plans. Deadlines. Notification.>> Provided
    further, That the General Services Administration shall submit a
    detailed plan, by project, regarding the use of funds made available in
    this Act to the Committees on Appropriations of the House of
    Representatives and the Senate within 45 days of enactment of this Act,
    and shall provide notification to the Committees within 15 days prior to
    any changes regarding the use of these
    funds: <<NOTE: Reports. Deadlines.>> Provided further, That, hereafter,
    the Administrator shall report to the Committees on the obligation of
    these funds on a quarterly basis beginning on June 30, 2009: Provided
    further, That of the amounts provided, $4,000,000 shall be transferred
    to and merged with ``Government-Wide Policy'', for the Office of Federal
    High-Performance Green Buildings as authorized in the Energy
    Independence and Security Act of 2007 (Public Law 110-
    140): <<NOTE: Deadline. Notification.>> Provided further, That amounts
    provided under this heading that are savings or cannot be used for the
    activity for which originally obligated may

    [[Page 123 STAT. 150]]

    be deobligated and, notwithstanding any other provision of law,
    reobligated for the purposes identified in the plan required under this
    heading not less than 15 days after notification has been provided to
    the Committees on Appropriations of the House of Representatives and the
    Senate.

            Energy-Efficient Federal Motor Vehicle Fleet Procurement

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

                           Office of Inspector General

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

               RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

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

                          SMALL BUSINESS ADMINISTRATION

                              Salaries and Expenses

        For an additional amount, to remain available until September 30,
    2010, $69,000,000, of which $24,000,000 is for marketing, management,
    and technical assistance under section 7(m) of the Small Business Act
    (15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the
    microloan program, and of which $20,000,000 is for improving,
    streamlining, and automating information technology systems related to
    lender processes and lender oversight: <<NOTE: Deadline. Expenditure
    plan.>> 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.

    [[Page 123 STAT. 151]]

                           Office of Inspector General

        For an additional amount for the Office of Inspector General in
    carrying out the provisions of the Inspector General Act of 1978,
    $10,000,000, to remain available until September 30, 2013, for oversight
    and audit of programs, grants, and projects funded under this title.

                      Surety Bond Guarantees Revolving Fund

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

                         Business Loans Program Account

        For an additional amount for the cost of direct loans, $6,000,000,
    to remain available until September 30, 2010, and for an additional
    amount for the cost of guaranteed loans, $630,000,000, to remain
    available until September 30, 2010: Provided, That of the amount for the
    cost of guaranteed loans, $375,000,000 shall be for reimbursements, loan
    subsidies and loan modifications for loans to small business concerns
    authorized in section 501 of this title; and $255,000,000 shall be for
    loan subsidies and loan modifications for loans to small business
    concerns authorized in section 506 of this title: Provided further, That
    such costs, including the cost of modifying such loans, shall be as
    defined in section 502 of the Congressional Budget Act of 1974.

            Administrative Provisions--Small Business Administration

        Sec. 501. Fee Reductions. (a) Administrative Provisions Small
    Business Administration.--Until September 30, 2010, and to the extent
    that the cost of such elimination or reduction of fees is offset by
    appropriations, with respect to each loan guaranteed under section 7(a)
    of the Small Business Act (15 U.S.C. 636(a)) and section 502 of this
    title, for which the application is approved on or after the date of
    enactment of this Act, the Administrator shall--
                (1) in lieu of the fee otherwise applicable under section
            7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)),
            collect no fee or reduce fees to the maximum extent possible;
            and
                (2) in lieu of the fee otherwise applicable under section
            7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)),
            collect no fee or reduce fees to the maximum extent possible.

        (b) Temporary Fee Elimination for the 504 Loan Program.--
                (1) In general.--Until September 30, 2010, and to the extent
            the cost of such elimination in fees is offset by
            appropriations, with respect to each project or loan guaranteed
            by the Administrator pursuant to title V of the Small Business
            Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an
            application is approved or pending approval on or after the date
            of enactment of this Act--
                        (A) the Administrator shall, in lieu of the fee
                    otherwise applicable under section 503(d)(2) of the
                    Small Business

    [[Page 123 STAT. 152]]

                    Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no
                    fee;
                        (B) a development company shall, in lieu of the
                    processing fee under section 120.971(a)(1) of title 13,
                    Code of Federal Regulations (relating to fees paid by
                    borrowers), or any successor thereto, collect no fee.
                (2) Reimbursement for waived fees.--
                        (A) In general.--To the extent that the cost of such
                    payments is offset by appropriations, the Administrator
                    shall reimburse each development company that does not
                    collect a processing fee pursuant to paragraph (1)(B).
                        (B) Amount.--The payment to a development company
                    under subparagraph (A) shall be in an amount equal to
                    1.5 percent of the net debenture proceeds for which the
                    development company does not collect a processing fee
                    pursuant to paragraph (1)(B).

        (c) Application of Fee Eliminations.--
                (1) To the extent that amounts are made available to the
            Administrator for the purpose of fee eliminations or reductions
            under subsection (a), the Administrator shall--
                        (A) first use any amounts provided to eliminate or
                    reduce fees paid by small business borrowers under
                    clauses (i) through (iii) of paragraph (18)(A), to the
                    maximum extent possible; and
                        (B) then use any amounts provided to eliminate or
                    reduce fees under paragraph (23)(A) paid by small
                    business lenders with assets less than $1,000,000,000 as
                    of the date of enactment; and
                        (C) then use any remaining amounts appropriated
                    under this title to reduce fees paid by small business
                    lenders other than those with assets less than
                    $1,000,000,000.
                (2) The Administrator shall eliminate fees under subsections
            (a) and (b) until the amount provided for such purposes, as
            applicable, under the heading ``Business Loans Program Account''
            under the heading ``Small Business Administration'' under this
            Act are expended.

        Sec. 502. Economic Stimulus Lending Program for Small Businesses.
    (a) Purpose.--The purpose of this section is to permit the Small
    Business Administration to guarantee up to 90 percent of qualifying
    small business loans made by eligible lenders.
        (b) Definitions.--For purposes of this section:
                (1) The term ``Administrator'' means the Administrator of
            the Small Business Administration.
                (2) The term ``qualifying small business loan'' means any
            loan to a small business concern pursuant to section 7(a) of the
            Small Business Act (15 U.S.C. 636) or title V of the Small
            Business Investment Act of 1958 (15 U.S.C. 695 and following)
            except for such loans made under section 7(a)(31).
                (3) The term ``small business concern'' has the same meaning
            as provided by section 3 of the Small Business Act (15 U.S.C.
            632).

        (c) Qualified Borrowers.--
                (1) Aliens unlawfully present in the united states.--A loan
            guarantee may not be made under this section for a loan made to
            a concern if an individual who is an alien unlawfully present in
            the United States--

    [[Page 123 STAT. 153]]

                        (A) has an ownership interest in that concern; or
                        (B) has an ownership interest in another concern
                    that itself has an ownership interest in that concern.
                (2) Firms in violation of immigration laws.--No loan
            guarantee may be made under this section for a loan to any
            entity found, based on a determination by the Secretary of
            Homeland Security or the Attorney General to have engaged in a
            pattern or practice of hiring, recruiting or referring for a
            fee, for employment in the United States an alien knowing the
            person is an unauthorized alien.

        (d) Criminal Background Checks.--Prior to the approval of any loan
    guarantee under this section, the Administrator may verify the
    applicant's criminal background, or lack thereof, through the best
    available means, including, if possible, use of the National Crime
    Information Center computer system at the Federal Bureau of
    Investigation.
        (e) Application of Other Law.--Nothing in this section shall be
    construed to exempt any activity of the Administrator under this section
    from the Federal Credit Reform Act of 1990 (title V of the Congressional
    Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
        (f) Sunset.--Loan guarantees may not be issued under this section
    after the date 12 months after the date of enactment of this Act.
        (g) Small Business Act Provisions.--
    The <<NOTE: Applicability.>> provisions of the Small Business Act
    applicable to loan guarantees under section 7 of that Act and
    regulations promulgated thereunder as of the date of enactment of this
    Act shall apply to loan guarantees under this section except as
    otherwise provided in this section.

        (h) Authorization.--There are authorized to be appropriated such
    sums as may be necessary to carry out this section.
        Sec. 503. Establishment of SBA Secondary Market Guarantee Authority.
    (a) Purpose.--The purpose of this section is to provide the
    Administrator with the authority to establish the SBA Secondary Market
    Guarantee Authority within the SBA to provide a Federal guarantee for
    pools of first lien 504 loans that are to be sold to third-party
    investors.
        (b) Definitions.--For purposes of this section:
                (1) The term ``Administrator'' means the Administrator of
            the Small Business Administration.
                (2) The term ``first lien position 504 loan'' means the
            first mortgage position, non-federally guaranteed loans made by
            private sector lenders made under title V of the Small Business
            Investment Act.

        (c) Establishment of Authority.--
                (1) Organization.--
                        (A) The Administrator shall establish a Secondary
                    Market Guarantee Authority within the Small Business
                    Administration.
                        (B) The Administrator shall appoint a Director of
                    the Authority who shall report to the Administrator.
                        (C) The Administrator is authorized to hire such
                    personnel as are necessary to operate the Authority and
                    may contract such operations of the Authority as
                    necessary to qualified third party companies or
                    individuals.

    [[Page 123 STAT. 154]]

                        (D) The Administrator is authorized to contract with
                    private sector fiduciary and custom dial agents as
                    necessary to operate the Authority.
                (2) Guarantee process.--
                        (A) <<NOTE: Regulations.>> The Administrator shall
                    establish, by rule, a process in which private sector
                    entities may apply to the Administration for a Federal
                    guarantee on pools of first lien position 504 loans that
                    are to be sold to third-party investors.
                        (B) The Administrator is authorized to contract with
                    private sector fiduciary and custom dial agents as
                    necessary to operate the Authority.
                (3) Responsibilities.--
                        (A) <<NOTE: Regulations.>> The Administrator shall
                    establish, by rule, a process in which private sector
                    entities may apply to the SBA for a Federal guarantee on
                    pools of first lien position 504 loans that are to be
                    sold to third-party investors.
                        (B) The rule under this section shall provide for a
                    process for the Administrator to consider and make
                    decisions regarding whether to extend a Federal
                    guarantee referred to in clause (i). Such rule shall
                    also provide that:
                              (i) The seller of the pools purchasing a
                          guarantee under this section retains not less than
                          5 percent of the dollar amount of the pools to be
                          sold to third-party investors.
                              (ii) The Administrator shall charge fees,
                          upfront or annual, at a specified percentage of
                          the loan amount that is at such a rate that the
                          cost of the program under the Federal Credit
                          Reform Act of 1990 (title V of the Congressional
                          Budget and Impoundment Control Act of 1974; 2
                          U.S.C. 661) shall be equal to zero.
                              (iii) The Administrator may guarantee not more
                          than $3,000,000,000 of pools under this authority.
                        (C) The Administrator shall establish documents,
                    legal covenants, and other required documentation to
                    protect the interests of the United States.
                        (D) The Administrator shall establish a process to
                    receive and disburse funds to entities under the
                    authority established in this section.

        (d) Limitations.--
                (1) The Administrator shall ensure that entities purchasing
            a guarantee under this section are using such guarantee for the
            purpose of selling 504 first lien position pools to third-party
            investors.
                (2) If the Administrator finds that any such guarantee was
            used for a purpose other than that specified in paragraph (1),
            the Administrator shall--
                        (A) prohibit the purchaser of the guarantee or its
                    affiliates (within the meaning of the regulations under
                    13 CFR 121.103) from using the authority of this section
                    in the future; and
                        (B) take any other actions the Administrator, in
                    consultation with the Attorney General of the United
                    States deems appropriate.

        (e) Oversight.--The <<NOTE: Reports. Deadlines.>> Administrator
    shall submit a report to Congress not later than the third business day
    of each month setting forth each of the following:

    [[Page 123 STAT. 155]]

                (1) The aggregate amount of guarantees extended under this
            section during the preceding month.
                (2) The aggregate amount of guarantees outstanding.
                (3) Defaults and payments on defaults made under this
            section.
                (4) The identity of each purchaser of a guarantee found by
            the Administrator to have misused guarantees under this section.
                (5) Any other information the Administrator deems necessary
            to fully inform Congress of undue risk to the United States
            associated with the issuance of guarantees under this section.

        (f) Duration of Program.--The authority of this section shall
    terminate on the date 2 years after the date of enactment of this
    section.
        (g) Funding.--Such sums as necessary are authorized to be
    appropriated to carry out the provisions of this section.
        (h) Budget Treatment.--Nothing in this section shall be construed to
    exempt any activity of the Administrator under this section from the
    Federal Credit Reform Act of 1990 (title V of the Congressional Budget
    and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
        (i) Emergency Rulemaking Authority.--
    The <<NOTE: Deadlines.>> Administrator shall issue regulations under
    this section within 15 days after the date of enactment of this section.
    The notice requirements of section 553(b) of title 5, United States Code
    shall not apply to the promulgation of such regulations.

        Sec. 504. Stimulus for Community Development Lending. (a) Low
    Interest Refinancing Under the Local Development Business Loan
    Program.--Section 502 of the Small Business Investment Act of 1958 (15
    U.S.C. 696) is amended by adding at the end the following:
                ``(7) Permissible debt refinancing.--
                        ``(A) In general.--Any financing approved under this
                    title may include a limited amount of debt refinancing.
                        ``(B) Expansions.--If the project involves expansion
                    of a small business concern, any amount of existing
                    indebtedness that does not exceed 50 percent of the
                    project cost of the expansion may be refinanced and
                    added to the expansion cost, if--
                              ``(i) the proceeds of the indebtedness were
                          used to acquire land, including a building
                          situated thereon, to construct a building thereon,
                          or to purchase equipment;
                              ``(ii) the existing indebtedness is
                          collateralized by fixed assets;
                              ``(iii) the existing indebtedness was incurred
                          for the benefit of the small business concern;
                              ``(iv) the financing under this title will be
                          used only for refinancing existing indebtedness or
                          costs relating to the project financed under this
                          title;
                              ``(v) the financing under this title will
                          provide a substantial benefit to the borrower when
                          prepayment penalties, financing fees, and other
                          financing costs are accounted for;

    [[Page 123 STAT. 156]]

                              ``(vi) the borrower has been current on all
                          payments due on the existing debt for not less
                          than 1 year preceding the date of refinancing; and
                              ``(vii) the financing under section 504 will
                          provide better terms or rate of interest than the
                          existing indebtedness at the time of
                          refinancing.''.

        (b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of
    the Small Business Investment Act (15 U.S.C. 695) are each amended by
    striking ``$50,000'' and inserting ``$65,000''.
        Sec. 505. Increasing Small Business Investment. (a) Simplified
    Maximum Leverage Limits.--Section 303(b) of the Small Business
    Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
                (1) By striking so much of paragraph (2) as precedes
            subparagraphs (C) and (D) and inserting the following:
                ``(2) Maximum leverage.--
                        ``(A) In general.--The maximum amount of outstanding
                    leverage made available to any one company licensed
                    under section 301(c) of this Act may not exceed the
                    lesser of--
                              ``(i) 300 percent of such company's private
                          capital; or
                              ``(ii) $150,000,000.
                        ``(B) Multiple licenses under common control.--The
                    maximum amount of outstanding leverage made available to
                    two or more companies licensed under section 301(c) of
                    this Act that are commonly controlled (as determined by
                    the Administrator) and not under capital impairment may
                    not exceed $225,000,000.'';
                (2) By amending paragraph (2)(C) by inserting ``(i)'' before
            ``In calculating'' and adding the following at the end thereof:
                              ``(ii) The maximum amount of outstanding
                          leverage made available to--
                                        ``(I) any 1 company described in
                                    clause (iii) may not exceed the lesser
                                    of 300 percent of private capital of the
                                    company, or $175,000,000; and
                                        ``(II) 2 or more companies described
                                    in clause (iii) that are under common
                                    control (as determined by the
                                    Administrator) may not exceed
                                    $250,000,000.
                              ``(iii) A company described in this clause is
                          a company licensed under section 301(c) in the
                          first fiscal year after the date of enactment of
                          this clause or any fiscal year thereafter that
                          certifies in writing that not less than 50 percent
                          of the dollar amount of investments of that
                          company shall be made in companies that are
                          located in a low-income geographic area (as that
                          term is defined in section 351).''.
                (3) By striking paragraph (4).

        (b) Simplified Aggregate Investment Limitations.--Section 306(a) of
    the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended
    to read as follows:
        ``(a) Percentage Limitation on Private Capital.--If any small
    business investment company has obtained financing from the
    Administrator and such financing remains outstanding, the aggregate
    amount of securities acquired and for which commitments may be issued by
    such company under the provisions of this title

    [[Page 123 STAT. 157]]

    for any single enterprise shall not, without the approval of the
    Administrator, exceed 10 percent of the sum of--
                ``(1) the private capital of such company; and
                ``(2) the total amount of leverage projected by the company
            in the company's business plan that was approved by the
            Administrator at the time of the grant of the company's
            license.''.

        (c) Investments in Smaller Enterprises.--Section 303(d) of the Small
    Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to read as
    follows:
        ``(d) <<NOTE: Certification.>> Investments in Smaller Enterprises.--
    The Administrator shall require each licensee, as a condition of
    approval of an application for leverage, to certify in writing that not
    less than 25 percent of the aggregate dollar amount of financings of
    that licensee shall be provided to smaller enterprises.''.

        Sec. 506. Business Stabilization Program. (a) In General.--Subject
    to the availability of appropriations, the Administrator of the Small
    Business Administration shall carry out a program to provide loans on a
    deferred basis to viable (as such term is determined pursuant to
    regulation by the Administrator of the Small Business Administration)
    small business concerns that have a qualifying small business loan and
    are experiencing immediate financial hardship.
        (b) Eligible Borrower.--A small business concern as defined under
    section 3 of the Small Business Act (15 U.S.C. 632).
        (c) Qualifying Small Business Loan.--A loan made to a small business
    concern that meets the eligibility standards in section 7(a) of the
    Small Business Act (15 U.S.C. 636(a)) but shall not include loans
    guarantees (or loan guarantee commitments made) by the Administrator
    prior to the date of enactment of this Act.
        (d) Loan Size.--Loans guaranteed under this section may not exceed
    $35,000.
        (e) Purpose.--Loans guaranteed under this program shall be used to
    make periodic payment of principal and interest, either in full or in
    part, on an existing qualifying small business loan for a period of time
    not to exceed 6 months.
        (f) Loan Terms.--Loans made under this section shall:
                (1) carry a 100 percent guaranty; and
                (2) have interest fully subsidized for the period of
            repayment.

        (g) Repayment.--Repayment for loans made under this section shall--
                (1) be amortized over a period of time not to exceed 5
            years; and
                (2) <<NOTE: Effective date.>> not begin until 12 months
            after the final disbursement of funds is made.

        (h) Collateral.--The Administrator of the Small Business
    Administration may accept any available collateral, including
    subordinated liens, to secure loans made under this section.
        (i) Fees.--The Administrator of the Small Business Administration is
    prohibited from charging any processing fees, origination fees,
    application fees, points, brokerage fees, bonus points, prepayment
    penalties, and other fees that could be charged to a loan applicant for
    loans under this section.
        (j) Sunset.--The Administrator of the Small Business Administration
    shall not issue loan guarantees under this section after September 30,
    2010.

    [[Page 123 STAT. 158]]

        (k) Emergency Rulemaking Authority.--
    The <<NOTE: Deadline.>> Administrator of the Small Business
    Administration shall issue regulations under this section within 15 days
    after the date of enactment of this section. The notice requirements of
    section 553(b) of title 5, United States Code shall not apply to the
    promulgation of such regulations.

    SEC. 507. GAO REPORT.

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

    SEC. 508. SURETY BONDS.

        (a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business
    Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--
                (1) by inserting ``(A)'' after ``(1)'';
                (2) by striking ``$2,000,000'' and inserting ``$5,000,000'';
            and
                (3) by adding at the end the following:

        ``(B) The Administrator may guarantee a surety under subparagraph
    (A) for a total work order or contract amount that does not exceed
    $10,000,000, if a contracting officer of a Federal agency certifies that
    such a guarantee is necessary.''.
        (b) Denial of Liability--
                Section 411 of the Small Business Investment Act of 1958 (15
            U.S.C. 694b) is amended--
                (1) by striking subsection (e) and inserting the following:

        ``(e) Reimbursement of Surety; Conditions.--
    Pursuant to any such guarantee or agreement, the Administration shall
    reimburse the surety, as provided in subsection (c) of this section,
    except that the Administration shall be relieved of liability (in whole
    or in part within the discretion of the Administration) if--
                (1) the surety obtained such guarantee or agreement, or
            applied for such reinbursement, by fraud or material
            misrepresentation,
                (2) the total contract amount at the time of execution of
            the bond or bonds exceeds $5,000,000,
                (3) the surety has breached a material term or condition of
            such guarantee agreement, or
                (4) the surety has substantially violated the regulations
            promulgated by the Administration pursuant to subsection (d).''

        (2) by adding at the end the following:
        ``(k) For bonds made or executed with the prior approval of the
    Administration, the Administration shall not deny liability to a surety
    based upon material information that was provided as part of the
    guaranty application.''.
        (c) Size Standards.--Section 410 of the Small Business Investment
    Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the
    following:
                ``(9) Notwithstanding any other provision of law or any
            rule, regulation, or order of the Administration, for purposes

    [[Page 123 STAT. 159]]

            of sections 410, 411, and 412 the term `small business concern'
            means a business concern that meets the size standard for the
            primary industry in which such business concern, and the
            affiliates of such business concern, is engaged, as determined
            by the Administrator in accordance with the North American
            Industry Classification System.''.

        (d) Study--The Administrator of the Small Business Administration
    shall conduct a study of the current funding structure of the surety
    bond program carried out under part B (15 U.S.C. 694a et seq.) of title
    IV of the Small Business Investment Act of 1958. The study shall
    include--
                (1) an assessment of whether the program's current funding
            framework and program fees are inhibiting the program's growth;
                (2) an assessment of whether surety companies and small
            business concerns could benefit from an alternative funding
            structure; and

        (e) Report--Not later than 180 days after the date of enactment of
    this Act, the Administrator shall submit to Congress a report on the
    results of the study required under subsection (d).
        (f) <<NOTE: 15 USC 694a note.>> Sunset.--The amendments made by this
    section shall remain in effect until September 30, 2010.

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

        (a) Purpose.--The purpose of this section is to provide the Small
    Business Administration with the authority to establish a Secondary
    Market Lending Authority within the SBA to make loans to the
    systemically important SBA secondary market broker-dealers who operate
    the SBA secondary market.
        (b) Definitions.--For purposes of this section:
                (1) The term ``Administrator'' means the Administrator of
            the SBA.
                (2) The term ``SBA'' means the Small Business
            Administration.
                (3) The terms ``Secondary Market Lending Authority'' and
            ``Authority'' mean the office establishedunder subsection (c).
                (4) The term ``SBA secondary market'' meansthe market for
            the purchase and sale of loans originated, underwritten, and
            closed under the Small Business Act.
                (5) The term ``Systemically Important Secondary Market
            Broker-Dealers'' mean those entities designated under subsection
            (c)(1) as vital to the continued operation of the SBA secondary
            market by reason of their purchase and sale of the government
            guaranteed portion of loans, or pools of loans,originated,
            underwritten, and closed under the Small Business Act.

        (c) Responsibilities, Authorities, Organization, and Limitations.--
                (1) Designation of systemically important SBA secondary
            market broker-dealers.--The Administrator shall establish a
            process to designate, in consultation with the Board of
            Governors of the Federal Reserve and the Secretary of the
            Treasury, Systemically Important Secondary Market Broker-
            Dealers.
                (2) Establishment of SBA secondary market lending
            authority.--

    [[Page 123 STAT. 160]]

                        (A) Organization.--
                              (i) The Administrator shall establish within
                          the SBA an office to provide loans to Systemically
                          Important Secondary Market Broker-dealers to be
                          used for the purpose of financing the inventory of
                          the government guaranteed portion of loans,
                          originated, underwritten, and closed under the
                          Small Business Act or pools of such loans.
                              (ii) The Administrator shall appoint a
                          Director of the Authority who shall report to the
                          Administrator.
                              (iii) The Administrator is authorized to hire
                          such personnel as are necessary to operate the
                          Authority.
                              (iv) The Administrator may contract such
                          Authority operations as he determines necessary to
                          qualified third-party companies or individuals.
                              (v) The Administrator is authorized to
                          contract with private sector fiduciary and
                          custodial agents as necessary to operate the
                          Authority.
                        (B) Loans.--
                              (i) <<NOTE: Regulations.>> The Administrator
                          shall establish by rule a process under which
                          Systemically Important SBA Secondary Market
                          Broker-Dealers designated under paragraph (1) may
                          apply to the Administrator for loans under this
                          section.
                              (ii) The rule under clause (i) shall provide a
                          process for the Administrator to consider and make
                          decisions regarding whether or not to extend a
                          loan applied for under this section. Such rule
                          shall include provisions to assure each of the
                          following:
                                        (I) That loans made under this
                                    section are for the sole purpose of
                                    financing the inventory of the govern
                                    ment guaranteed portion of loans,
                                    originated, underwritten, and closed
                                    under the Small Business Act or pools of
                                    such loans.
                                        (II) That loans made under this
                                    section are fully collateralized to the
                                    satisfaction of the Administrator.
                                        (III) That there is no limit to the
                                    frequency in which a borrower may borrow
                                    under this section unless the
                                    Administrator determines that doing so
                                    would create an undue risk of loss to
                                    the agency or the United States.
                                        (IV) That there is no limit on the
                                    size of a loan, subject to the
                                    discretion of the Administrator.
                              (iii) Interest on loans under this section
                          shall not exceed the Federal Funds target rate as
                          established by the Federal Reserve Board of
                          Governors plus 25 basis points.
                              (iv) The rule under this section shall provide
                          for such loan documents, legal covenants,
                          collateral requirements and other required
                          documentation as necessary to protect the
                          interests of the agency, the United States, and
                          the taxpayer.
                              (v) The Administrator shall establish
                          custodial accounts to safeguard any collateral
                          pledged to the SBA in connection with a loan under
                          this section.

    [[Page 123 STAT. 161]]

                              (vi) The Administrator shall establish a
                          process to disburse and receive funds to and from
                          borrowers under this section.

        (C) Limitations on use of Loan Proceeds by Systemically Important
    Secondary Market Broker-Dealers.--The Administrator shall ensure that
    borrowers under this section are using funds provided under this section
    only for the purpose specified in subparagraph (B)(ii)(I). If the
    Administrator finds that such funds were used for any other purpose, the
    Administrator shall--
                (i) require immediate repayment of outstanding loans;
                (ii) prohibit the borrower, its affiliates, or any future
            corporate manifestation of the borrower from using the
            Authority; and
                (iii) take any other actions the Administrator, in
            consultation with the Attorney General of the United States,
            deemsappropriate.

        (d) Report to Congress.--The Administrator shall submit a report to
    Congress not later than the third business day of each month containing
    a statement of each of the following:
                (1) The aggregate loan amounts extended during the preceding
            month under this section.
                (2) The aggregate loan amounts repaid under this section
            during the proceeding month.
                (3) The aggregate loan amount outstanding under this
            section.
                (4) The aggregate value of assets held as collateral under
            this section;
                (5) The amount of any defaults or delinquencies on loans
            made under this section.
                (6) The identity of any borrower found by the Administrator
            to misuse funds made available under this section.
                (7) Any other information the Administrator deems necessary
            to fully inform Congress of undue risk of financial loss to the
            United States in connection with loans made under this section.

        (e) Duration.--The authority of this section shall remain in effect
    for a period of 2 years after the date of enactment of this section.
        (f) Fees.--The Administrator shall charge fees, up front, annual, or
    both at a specified percentage of the loan amount that is at such a rate
    that the cost of the program under the Federal Credit Reform Act of 1990
    ((title V of the Congressional Budget and Impoundment Control Act of
    1974; 2 U.S.C. 661) shall be equal to zero.
        (h) Budget treatment.--Nothing in this section shall be construed to
    exempt any activity of the Administrator under this section from the
    Federal Credit Reform Act of 1990 (title V of the Congressional Budget
    and Im poundment Control Act of 1974; 2 U.S.C. 661 and following).
        (i) Emergency Rulemaking Authority.--
    The <<NOTE: Deadline.>> Administrator shall promulgate regulations under
    this section within 30 days after the date of enactment of enactment of
    this section. In promulgating these regulations,the Administrator the
    notice requirements of section 553(b) of title 5 of the United States
    Code shall not apply.

    [[Page 123 STAT. 162]]

                    TITLE VI--DEPARTMENT OF HOMELAND SECURITY

                  Office of the Under Secretary for Management

        For an additional amount for the ``Office of the Under Secretary for
    Management'', $200,000,000 for planning, design, construction costs,
    site security, information technology infrastructure, fixtures, and
    related costs to consolidate the Department of Homeland Security
    headquarters: <<NOTE: Deadline. Expenditure plan.>> Provided, That no
    later than 60 days after the date of enactment of this Act, the
    Secretary of Homeland Security, in consultation with the Administrator
    of General Services, shall submit to the Committees on Appropriations of
    the Senate and the House of Representatives a plan for the expenditure
    of these funds.

                           office of inspector general

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

                       U.S. Customs and Border Protection

                              salaries and expenses

        For an additional amount for ``Salaries and Expenses'',
    $160,000,000, of which $100,000,000 shall be for the procurement and
    deployment of non-intrusive inspection systems; and of which $60,000,000
    shall be for procurement and deployment of tactical communications
    equipment and radios: <<NOTE: Deadline. Expenditure plan.>> Provided,
    That no later than 45 days after the date of enactment of this Act, the
    Secretary of Homeland Security shall submit to the Committees on
    Appropriations of the Senate and the House of Representatives a plan for
    expenditure of these funds.

             border security fencing, infrastructure, and technology

        For an additional amount for ``Border Security Fencing,
    Infrastructure, and Technology'', $100,000,000 for expedited development
    and deployment of border security technology on the Southwest
    border: <<NOTE: Deadline. Expenditure plan.>> Provided, That no later
    than 45 days after the date of enactment of this Act, the Secretary of
    Homeland Security shall submit to the Committees on Appropriations of
    the Senate and the House of Representatives a plan for expenditure of
    these funds.

                                  construction

        For an additional amount for ``Construction'', $420,000,000 solely
    for planning, management, design, alteration, and construction of U.S.
    Customs and Border Protection owned land border ports of
    entry: <<NOTE: Deadline. Expenditure plan.>> 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.

    [[Page 123 STAT. 163]]

                    U.S. Immigration and Customs Enforcement

                            automation modernization

        For an additional amount for ``Automation Modernization'',
    $20,000,000 for the procurement and deployment of tactical
    communications equipment and radios: <<NOTE: Deadline. Expenditure
    plan.>> Provided, That no later than 45 days after the date of enactment
    of this Act, the Secretary of Homeland Security shall submit to the
    Committees on Appropriations of the Senate and the House of
    Representatives a plan for expenditure of these funds.

                     Transportation Security Administration

                                aviation security

        For an additional amount for ``Aviation Security'', $1,000,000,000
    for procurement and installation of checked baggage explosives detection
    systems and checkpoint explosives detection equipment: Provided, That
    the Assistant Secretary of Homeland Security (Transportation Security
    Administration) shall prioritize the award of these funds to accelerate
    the installations at locations with completed design
    plans: <<NOTE: Deadline. Expenditure plan.>> Provided further, That no
    later than 45 days after the date of enactment of this Act, the
    Secretary of Homeland Security shall submit to the Committees on
    Appropriations of the Senate and the House of Representatives a plan for
    the expenditure of these funds.

                                   Coast Guard

                   acquisition, construction, and improvements

        For an additional amount for ``Acquisition, Construction, and
    Improvements'', $98,000,000 for shore facilities and aids to navigation
    facilities; for priority procurements due to materials and labor cost
    increases; and for costs to repair, renovate, assess, or improve
    vessels: <<NOTE: Deadline. Expenditure plan.>> Provided, That no later
    than 45 days after the date of enactment of this Act, the Secretary of
    Homeland Security shall submit to the Committees on Appropriations of
    the Senate and the House of Representatives a plan for the expenditure
    of these funds.

                              alteration of bridges

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

    [[Page 123 STAT. 164]]

                       Federal Emergency Management Agency

                            state and local programs

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

                          firefighter assistance grants

        For an additional amount for competitive grants, $210,000,000 for
    modifying, upgrading, or constructing non-Federal fire stations:
    Provided, That up to 5 percent shall be for program administration:
    Provided further, That no grant shall exceed $15,000,000.

                 disaster assistance direct loan program account

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

                           emergency food and shelter

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

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 601. <<NOTE: President. Panel.>> Notwithstanding any other
    provision of law, the President shall establish an arbitration panel
    under the Federal Emergency Management Agency public assistance program
    to expedite the recovery efforts from Hurricanes Katrina and Rita within
    the Gulf Coast Region. The arbitration panel shall have sufficient
    authority regarding the award or denial of disputed public assistance
    applications for covered hurricane damage under section 403, 406, or 407
    of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
    (42 U.S.C. 5170b, 5172, or 5173) for a project the total amount of which
    is more than $500,000.

        Sec. 602.  The Administrator of the Federal Emergency Management
    Agency may not prohibit or restrict the use of funds designated under
    the hazard mitigation grant program for damage caused by Hurricanes
    Katrina and Rita if the homeowner who is an applicant for assistance
    under such program commenced work

    [[Page 123 STAT. 165]]

    otherwise eligible for hazard mitigation grant program assistance under
    section 404 of the Robert T. Stafford Disaster Relief and Emergency
    Assistance Act (42 U.S.C. 5170c) without approval in writing from the
    Administrator.
        Sec. 603. Subparagraph (E) of section 34(a)(1) of the Federal Fire
    Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not
    apply with respect to funds appropriated in this or any other Act making
    appropriations for fiscal year 2009 or 2010 for grants under such
    section 34.
        Sec. 604. <<NOTE: 6 USC 453b.>> (a) Requirement.--Except as provided
    in subsections (c) through (g), funds appropriated or otherwise
    available to the Department of Homeland Security may not be used for the
    procurement of an item described in subsection (b) if the item is not
    grown, reprocessed, reused, or produced in the United States.

        (b) Covered Items.--An item referred to in subsection (a) is any of
    the following, if the item is directly related to the national security
    interests of the United States:
                (1) An article or item of--
                        (A) clothing and the materials and components
                    thereof, other than sensors, electronics, or other items
                    added to, and not normally associated with, clothing
                    (and the materials and components thereof);
                        (B) tents, tarpaulins, covers, textile belts, bags,
                    protective equipment (including but not limited to body
                    armor), sleep systems, load carrying equipment
                    (including but not limited to fieldpacks), textile
                    marine equipment, parachutes, or bandages;
                        (C) cotton and other natural fiber products, woven
                    silk or woven silk blends, spun silk yarn for cartridge
                    cloth, synthetic fabric or coated synthetic fabric
                    (including all textile fibers and yarns that are for use
                    in such fabrics), canvas products, or wool (whether in
                    the form of fiber or yarn or contained in fabrics,
                    materials, or manufactured articles); or
                        (D) any item of individual equipment manufactured
                    from or containing such fibers, yarns, fabrics, or
                    materials.

        (c) Availability Exception.--Subsection (a) does not apply to the
    extent that the Secretary of Homeland Security determines that
    satisfactory quality and sufficient quantity of any such article or item
    described in subsection (b)(1) grown, reprocessed, reused, or produced
    in the United States cannot be procured as and when needed at United
    States market prices. This section is not applicable to covered items
    that are, or include, materials determined to be non-available in
    accordance with Federal Acquisition Regulation 25.104 Nonavailable
    Articles.
        (d) De Minimis Exception.--Notwithstanding subsection (a), the
    Secretary of Homeland Security may accept delivery of an item covered by
    subsection (b) that contains non-compliant fibers if the total value of
    non-compliant fibers contained in the end item does not exceed 10
    percent of the total purchase price of the end item.
        (e) Exception for Certain Procurements Outside the United States.--
    Subsection (a) does not apply to the following:
                (1) Procurements by vessels in foreign waters.
                (2) Emergency procurements.

        (f) Exception for Small Purchases.--Subsection (a) does not apply to
    purchases for amounts not greater than the simplified

    [[Page 123 STAT. 166]]

    acquisition threshold referred to in section 2304(g) of title 10, United
    States Code.
        (g) Applicability to Contracts and Subcontracts for Procurement of
    Commercial Items.--This section is applicable to contracts and
    subcontracts for the procurement of commercial items not withstanding
    section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
    430), with the exception of commercial items listed under subsections
    (b)(1)(C) and (b)(1)(D) above. For the purposes of this section,
    ``commercial'' shall be as defined in the Federal Acquisition
    Regulation--Part 2.
        (h) Geographic Coverage.--In this section, the term ``United
    States'' includes the possessions of the United States.
        (i) <<NOTE: Internet posting.>> Notification Required Within 7 Days
    After Contract Award if Certain Exceptions Applied.--In the case of any
    contract for the procurement of an item described in subsection (b)(1),
    if the Secretary of Homeland Security applies an exception set forth in
    subsection (c) with respect to that contract, the Secretary shall, not
    later than 7 days after the award of the contract, post a notification
    that the exception has been applied on the Internet site maintained by
    the General Services Administration known as FedBizOps.gov (or any
    successor site).

        (j) Training During Fiscal Year 2009.--
                (1) In general.--The Secretary of Homeland Security shall
            ensure that each member of the acquisition workforce in the
            Department of Homeland Security who participates personally and
            substantially in the acquisition of textiles on a regular basis
            receives training during fiscal year 2009 on the requirements of
            this section and the regulations implementing this section.
                (2) Inclusion of information in new training programs.--The
            Secretary shall ensure that any training program for the
            acquisition workforce developed or implemented after the date of
            the enactment of this Act includes comprehensive information on
            the requirements described in paragraph (1).

        (k) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.--
    <<NOTE: Applicability.>> This section shall be applied in a manner
    consistent with United States obligations under international
    agreements.

        (l) Effective Date.--This section applies with respect to contracts
    entered into by the Department of Homeland Security 180 days after the
    date of the enactment of this Act.

             TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

                           DEPARTMENT OF THE INTERIOR

                            Bureau of Land Management

                        management of lands and resources

        For an additional amount for ``Management of Lands and Resources'',
    for activities on all Bureau of Land Management lands including
    maintenance, rehabilitation, and restoration of facilities, property,
    trails and lands and for remediation of abandoned mines and wells,
    $125,000,000.

    [[Page 123 STAT. 167]]

                                  construction

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

                            wildland fire management

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

                     United States Fish and Wildlife Service

                               resource management

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

                                  construction

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

                              National Park Service

                      operation of the national park system

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

                           Historic Preservation Fund

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

                                  construction

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

    [[Page 123 STAT. 168]]

                         United States Geological Survey

                      surveys, investigations, and research

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

                            Bureau of Indian Affairs

                          operation of indian programs

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

                                  construction

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

                     indian guaranteed loan program account

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

                           Office of Inspector General

                              salaries and expenses

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

                         ENVIROMENTAL PROTECTION AGENCY

                           Office of Inspector General

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

                          Hazardous Substance Superfund

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

    [[Page 123 STAT. 169]]

               Leaking Underground Storage Tank Trust Fund Program

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

                       State and Tribal Assistance Grants

                         (including transfers of funds)

        For an additional amount for ``State and Tribal Assistance Grants'',
    $6,400,000,000, which shall be allocated as follows:
                (1) $4,000,000,000 shall be for capitalization grants for
            the Clean Water State Revolving Funds under title VI of the
            Federal Water Pollution Control Act and $2,000,000,000 shall be
            for capitalization grants under section 1452 of the Safe
            Drinking Water Act: Provided, That the Administrator may retain
            up to 1 percent of the funds appropriated herein for management
            and oversight purposes: Provided further, That funds
            appropriated herein shall not be subject to the matching or cost
            share requirements of sections 602(b)(2), 602(b)(3) or 202 of
            the Federal Water Pollution Control Act nor the matching
            requirements of section 1452(e) of the Safe Drinking Water Act:
            Provided further, <<NOTE: Deadline.>> That the Administrator
            shall reallocate funds appropriated herein for the Clean and
            Drinking Water State Revolving Funds (Revolving Funds) where
            projects are not under contract or construction within 12 months
            of the date of enactment of this Act: Provided further, That
            notwithstanding the priority rankings they would otherwise
            receive under each program, priority for funds appropriated
            herein shall be given to projects on a State priority list that
            are ready to proceed to construction within 12 months of the
            date of enactment of this Act: Provided further, That
            notwithstanding the requirements of section 603(d) of the
            Federal Water Pollution Control Act or section 1452(f) of the
            Safe Drinking Water Act, for the funds appropriated herein, each
            State shall use not less than 50 percent of the amount of its
            capitalization grants to provide additional subsidization to
            eligible recipients in the form of forgiveness of principal,
            negative interest loans or grants or any combination of these:
            Provided further, That, to the extent there are sufficient
            eligible project applications, not less than 20 percent of the
            funds appropriated herein for the Revolving Funds shall be for
            projects to address green infrastructure, water or energy
            efficiency improvements or other environmentally innovative
            activities: Provided further, That notwithstanding the
            limitation on amounts specified in section 518(c) of the Federal
            Water Pollution Control Act, up to 1.5 percent of the funds
            appropriated herein for the Clean Water State Revolving Funds
            may be reserved by the Administrator for tribal grants under
            section 518(c) of such Act: Provided further, That up to 4
            percent of the funds appropriated herein for tribal set-asides
            under the Revolving Funds may be transferred to the Indian

    [[Page 123 STAT. 170]]

            Health Service to support management and oversight of tribal
            projects: Provided further, That none of the funds appropriated
            herein shall be available for the purchase of land or easements
            as authorized by section 603(c) of the Federal Water Pollution
            Control Act or for activities authorized by section 1452(k) of
            the Safe Drinking Water Act: Provided further, That
            notwithstanding section 603(d)(2) of the Federal Water Pollution
            Control Act and section 1452(f)(2) of the Safe Drinking Water
            Act, funds may be used to buy, refinance or restructure the debt
            obligations of eligible recipients only where such debt was
            incurred on or after October 1, 2008;
                (2) $100,000,000 shall be to carry out Brownfields projects
            authorized by section 104(k) of the Comprehensive Environmental
            Response, Compensation, and Liability Act of 1980: Provided,
            That the Administrator may reserve up to 3.5 percent of the
            funds appropriated herein for management and oversight purposes:
            Provided further, That none of the funds appropriated herein
            shall be subject to cost share requirements under section
            104(k)(9)(B)(iii) of such Act; and
                (3) $300,000,000 shall be for Diesel Emission Reduction Act
            grants pursuant to title VII, subtitle G of the Energy Policy
            Act of 2005: Provided, That the Administrator may reserve up to
            2 percent of the funds appropriated herein for management and
            oversight purposes: Provided further, That none of the funds
            appropriated herein for Diesel Emission Reduction Act grants
            shall be subject to the State Grant and Loan Program Matching
            Incentive provisions of section 793(c)(3) of such Act.

            Administrative Provision, Environmental Protection Agency

                         (Including Transfers of Funds)

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

                            DEPARTMENT OF AGRICULTURE

                                 Forest Service

                       capital improvement and maintenance

        For an additional amount for ``Capital Improvement and
    Maintenance'', $650,000,000, for priority road, bridge and trail
    maintenance and decommissioning, including related watershed restoration
    and ecosystem enhancement projects; facilities improvement, maintenance
    and renovation; remediation of abandoned mine sites; and support costs
    necessary to carry out this work.

                            wildland fire management

        For an additional amount for ``Wildland Fire Management'',
    $500,000,000, of which $250,000,000 is for hazardous fuels reduction,
    forest health protection, rehabilitation and hazard mitigation
    activities on Federal lands and of which $250,000,000 is for State and
    private forestry activities including hazardous fuels reduction,

    [[Page 123 STAT. 171]]

    forest health and ecosystem improvement activities on State and private
    lands using all authorities available to the Forest Service: Provided,
    That up to $50,000,000 of the total funding may be used to make wood-to-
    energy grants to promote increased utilization of biomass from Federal,
    State and private lands: Provided further, That funds provided for
    activities on State and private lands shall not be subject to matching
    or cost share requirements.

                     DEPARTMENT OF HEALTH AND HUMAN SERVICES

                              Indian Health Service

                             indian health services

        For an additional amount for ``Indian Health Services'', for health
    information technology activities, $85,000,000: Provided, That such
    funds may be used for both telehealth services development and related
    infrastructure requirements that are typically funded through the
    ``Indian Health Facilities'' account: Provided further, That
    notwithstanding any other provision of law, health information
    technology funds provided within this title shall be allocated at the
    discretion of the Director of the Indian Health Service.

                            indian health facilities

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

                             OTHER RELATED AGENCIES

                             Smithsonian Institution

                               Facilities Capital

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

               National Foundation on the Arts and the Humanities

                         National Endowment for the Arts

                            grants and administration

        For an additional amount for ``Grants and Administration'',
    $50,000,000, to be distributed in direct grants to fund arts projects
    and activities which preserve jobs in the non-profit arts sector
    threatened by declines in philanthropic and other support during

    [[Page 123 STAT. 172]]

    the current economic downturn: Provided, That 40 percent of such funds
    shall be distributed to State arts agencies and regional arts
    organizations in a manner similar to the agency's current practice and
    60 percent of such funds shall be for competitively selected arts
    projects and activities according to sections 2 and 5(c) of the National
    Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 951,
    954(c)): Provided further, <<NOTE: Waiver authority.>> That matching
    requirements under section 5(e) of such Act shall be waived.

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 701. <<NOTE: Deadlines. Expenditure plan.>> (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) <<NOTE: Reports.>> Within 90 days of enactment of this Act, each
    agency receiving funds under this title shall submit to the Committees a
    report containing detailed project level information associated with the
    general plan submitted pursuant to subsection (a).

        Sec. 702.  In carrying out the work for which funds in this title
    are being made available, the Secretary of the Interior and the
    Secretary of Agriculture shall utilize, where practicable, the Public
    Lands Corps, Youth Conservation Corps, Student Conservation Association,
    Job Corps and other related partnerships with Federal, State, local,
    tribal or non-profit groups that serve young adults.
        Sec. 703. <<NOTE: Notification. Deadline.>> Each agency receiving
    funds under this title may transfer up to 10 percent of the funds in any
    account to other appropriation accounts within the agency, if the head
    of the agency (1) determines that the transfer will enhance the
    efficiency or effectiveness of the use of the funds without changing the
    intended purpose; and (2) notifies the Committees on Appropriations of
    the House of Representatives and the Senate 10 days prior to the
    transfer.

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

                               DEPARTMENT OF LABOR

                     Employment and Training Administration

    training and employment <<NOTE: Grants.>> services

        For an additional amount for ``Training and Employment Services''
    for activities under the Workforce Investment Act of 1998 (``WIA''),
    $3,950,000,000, which shall be available for obligation on the date of
    enactment of this Act, as follows:
                (1) $500,000,000 for grants to the States for adult
            employment and training activities, including supportive
            services and needs-related payments described in section
            134(e)(2) and (3) of the WIA: Provided, That a priority use of
            these funds shall be services to individuals described in
            134(d)(4)(E) of the WIA;
                (2) $1,200,000,000 for grants to the States for youth
            activities, including summer employment for youth: Provided,
            That no portion of such funds shall be reserved to carry out
            section 127(b)(1)(A) of the WIA: Provided further, That for
            purposes

    [[Page 123 STAT. 173]]

            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: <<NOTE: Applicability.>> Provided
            further, That with respect to the youth activities provided with
            such funds, section 101(13)(A) of the WIA shall be applied by
            substituting ``age 24'' for ``age 21'': Provided further, That
            the work readiness performance indicator described in section
            136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of
            performance used to assess the effectiveness of summer
            employment for youth provided with such funds;
                (3) $1,250,000,000 for grants to the States for dislocated
            worker employment and training activities;
                (4) $200,000,000 for the dislocated workers assistance
            national reserve;
                (5) $50,000,000 for YouthBuild activities: Provided, That
            for program years 2008 and 2009, the YouthBuild program may
            serve an individual who has dropped out of high school and re-
            enrolled in an alternative school, if that re-enrollment is part
            of a sequential service strategy; and
                (6) $750,000,000 for a program of competitive grants for
            worker training and placement in high growth and emerging
            industry sectors: Provided, That $500,000,000 shall be for
            research, labor exchange and job training projects that prepare
            workers for careers in energy efficiency and renewable energy as
            described in section 171(e)(1)(B) of the WIA: Provided further,
            That in awarding grants from those funds not designated in the
            preceding proviso, the Secretary of Labor shall give priority to
            projects that prepare workers for careers in the health care
            sector:

    Provided, That funds made available in this paragraph shall remain
    available through June 30, 2010: Provided further, That a local board
    may award a contract to an institution of higher education or other
    eligible training provider if the local board determines that it would
    facilitate the training of multiple individuals in high-demand
    occupations, if such contract does not limit customer choice.

                community service employment for older americans

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

         state unemployment insurance and employment service operations

        For an additional amount for ``State Unemployment Insurance and
    Employment Service Operations'' for grants to States in accordance with
    section 6 of the Wagner-Peyser Act, $400,000,000, which may be expended
    from the Employment Security Administration Account in the Unemployment
    Trust Fund, and which shall be

    [[Page 123 STAT. 174]]

    available for obligation on the date of enactment of this Act: Provided,
    That such funds shall remain available to the States through September
    30, 2010: Provided further, That $250,000,000 of such funds shall be
    used by States for reemployment services for unemployment insurance
    claimants (including the integrated Employment Service and Unemployment
    Insurance information technology required to identify and serve the
    needs of such claimants): Provided further, <<NOTE: Procedures.>> That
    the Secretary of Labor shall establish planning and reporting procedures
    necessary to provide oversight of funds used for reemployment services.

                             Departmental Management

                              salaries and expenses

                          (including transfer of funds)

        For an additional amount for ``Departmental Management'',
    $80,000,000, for the enforcement of worker protection laws and
    regulations, oversight, and coordination activities related to the
    infrastructure and unemployment insurance investments in this Act:
    Provided, That the Secretary of Labor may transfer such sums as
    necessary to ``Employment and Standards Administration'', ``Employee
    Benefits Security Administration'', ``Occupational Safety and Health
    Administration'', and ``Employment and Training Administration--Program
    Administration'' for enforcement, oversight, and coordination
    activities: Provided further, <<NOTE: Operating plan.>> That prior to
    obligating any funds proposed to be transferred from this account, the
    Secretary shall provide to the Committees on Appropriations of the House
    of Representatives and the Senate an operating plan describing the
    planned uses of each amount proposed to be transferred.

                               office of job corps

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

    [[Page 123 STAT. 175]]

                           office of inspector general

        For an additional amount for the ``Office of Inspector General'',
    $6,000,000, which shall remain available through September 30, 2012, for
    salaries and expenses necessary for oversight and audit of programs,
    grants, and projects funded in this Act.

                     DEPARTMENT OF HEALTH AND HUMAN SERVICES

                  Health Resources and Services Administration

                          health resources and services

        For an additional amount for ``Health Resources and Services'',
    $2,500,000,000 which shall be used as follows:
                (1) $500,000,000 shall be for grants to health centers
            authorized under section 330 of the Public Health Service Act
            (``PHS Act'');
                (2) $1,500,000,000 shall be available for grants for
            construction, renovation and equipment, and for the acquisition
            of health information technology systems, for health centers
            including health center controlled networks receiving operating
            grants under section 330 of the PHS Act, notwithstanding the
            limitation in section 330(e)(3); and
                (3) $500,000,000 to address health professions workforce
            shortages, of which $75,000,000 for the National Health Service
            Corps shall remain available through September 30, 2011:
            Provided, That funds may be used to provide scholarships, loan
            repayment, and grants to training programs for equipment as
            authorized in the PHS Act, and grants authorized in sections
            330L, 747, 767 and 768 of the PHS Act: Provided further, That 20
            percent of the funds allocated to the National Health Service
            Corps shall be used for field operations:

        Provided, That up to 0.5 percent of funds provided in this paragraph
    may used for administration of such funds: <<NOTE: Operating
    plan. Deadline.>> Provided further, That the Secretary shall provide to
    the Committees on Appropriations of the House of Representatives and the
    Senate an operating plan detailing activities to be supported and
    timelines for expenditure prior to making any Federal obligations of
    funds provided in this paragraph but not later than 90 days after the
    date of enactment of this Act: <<NOTE: Reports. Deadlines.>> Provided
    further, That the Secretary shall provide to the Committees on
    Appropriations of the House of Representatives and the Senate a report
    on the actual obligations, expenditures, and unobligated balances for
    each activity funded in this paragraph not later than November 1, 2009
    and every 6 months thereafter as long as funding provided in this
    paragraph is available for obligation or expenditure.

                          National Institutes of Health

                     national center for research resources

        For <<NOTE: Grants. Contracts.>> an additional amount for ``National
    Center for Research Resources'', $1,300,000,000, of which $1,000,000,000
    shall be for grants or contracts under section 481A of the Public Health
    Service Act to construct, renovate or repair existing non-Federal
    research facilities: Provided, That sections 481A(c)(1)(B)(ii),
    paragraphs (1), (3), and (4) of section 481A(e), and section 481B of
    such Act shall

    [[Page 123 STAT. 176]]

    not apply to the use of such funds: Provided further, That the
    references to ``20 years'' in subsections (c)(1)(B)(i) and (f) of
    section 481A of such Act are deemed to be references to ``10 years'' for
    purposes of using such funds: Provided further, That the National Center
    for Research Resources may also use $300,000,000 to provide, under the
    authority of section 301 and title IV of such Act, shared
    instrumentation and other capital research equipment to recipients of
    grants and contracts under section 481A of such Act and other
    appropriate entities: Provided
    further, <<NOTE: Reports. Deadline.>> That the Director of the Center
    shall provide to the Committees on Appropriations of the House of
    Representatives and the Senate an annual report indicating the number of
    institutions receiving awards of a grant or contract under section 481A
    of such Act, the proposed use of the funding, the average award size, a
    list of grant or contract recipients, and the amount of each award.

                             office of the director

                          (including transfer of funds)

        For an additional amount for ``Office of the Director'',
    $8,200,000,000: Provided, That $7,400,000,000 shall be transferred to
    the Institutes and Centers of the National Institutes of Health
    (``NIH'') and to the Common Fund established under section 402A(c)(1) of
    the Public Health Service Act in proportion to the appropriations
    otherwise made to such Institutes, Centers, and Common Fund for fiscal
    year 2009: Provided further, That these funds shall be used to support
    additional scientific research and shall be merged with and be available
    for the same purposes as the appropriation or fund to which transferred:
    Provided further, That this transfer authority is in addition to any
    other transfer authority available to the NIH: Provided further, That
    none of these funds may be transferred to ``National Institutes of
    Health--Buildings and Facilities'', the Center for Scientific Review,
    the Center for Information Technology, the Clinical Center, or the
    Global Fund for HIV/AIDS, Tuberculosis and Malaria: Provided further,
    That the funds provided in this Act to the NIH shall not be subject to
    the provisions of 15 U.S.C. 638(f)(1) and 15 U.S.C. 638(n)(1): Provided
    further, That $400,000,000 may be used to carry out section 215 of
    division G of Public Law 110-161.

                            buildings and facilities

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

                   Agency for Healthcare Research and Quality

                         healthcare research and quality

                          (including transfer of funds)

        For an additional amount for ``Healthcare Research and Quality'' to
    carry out titles III and IX of the Public Health Service Act, part A of
    title XI of the Social Security Act, and section

    [[Page 123 STAT. 177]]

    1013 of the Medicare Prescription Drug, Improvement, and Modernization
    Act of 2003, $700,000,000 for comparative effectiveness research:
    Provided, That of the amount appropriated in this paragraph,
    $400,000,000 shall be transferred to the Office of the Director of the
    National Institutes of Health (``Office of the Director'') to conduct or
    support comparative effectiveness research under section 301 and title
    IV of the Public Health Service Act: Provided further, That funds
    transferred to the Office of the Director may be transferred to the
    Institutes and Centers of the National Institutes of Health and to the
    Common Fund established under section 402A(c)(1) of the Public Health
    Service Act: Provided further, That this transfer authority is in
    addition to any other transfer authority available to the National
    Institutes of Health: Provided further, That within the amount available
    in this paragraph for the Agency for Healthcare Research and Quality,
    not more than 1 percent shall be made available for additional full-time
    equivalents.
        In addition, $400,000,000 shall be available for comparative
    effectiveness research to be allocated at the discretion of the
    Secretary of Health and Human Services (``Secretary''): Provided, That
    the funding appropriated in this paragraph shall be used to accelerate
    the development and dissemination of research assessing the comparative
    effectiveness of health care treatments and strategies, through efforts
    that: (1) conduct, support, or synthesize research that compares the
    clinical outcomes, effectiveness, and appropriateness of items,
    services, and procedures that are used to prevent, diagnose, or treat
    diseases, disorders, and other health conditions; and (2) encourage the
    development and use of clinical registries, clinical data networks, and
    other forms of electronic health data that can be used to generate or
    obtain outcomes data: Provided
    further, <<NOTE: Contracts. Reports. Deadline.>> That the Secretary
    shall enter into a contract with the Institute of Medicine, for which no
    more than $1,500,000 shall be made available from funds provided in this
    paragraph, to produce and submit a report to the Congress and the
    Secretary by not later than June 30, 2009, that includes recommendations
    on the national priorities for comparative effectiveness research to be
    conducted or supported with the funds provided in this paragraph and
    that considers input from stakeholders: Provided further, That the
    Secretary shall consider any recommendations of the Federal Coordinating
    Council for Comparative Effectiveness Research established by section
    804 of this Act and any recommendations included in the Institute of
    Medicine report pursuant to the preceding proviso in designating
    activities to receive funds provided in this paragraph and may make
    grants and contracts with appropriate entities, which may include
    agencies within the Department of Health and Human Services and other
    governmental agencies, as well as private sector entities, that have
    demonstrated experience and capacity to achieve the goals of comparative
    effectiveness research: <<NOTE: Publication.>> 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: <<NOTE: Public comment.>> 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, <<NOTE: Research and
    development.>> That research conducted with funds appropriated under
    this paragraph

    [[Page 123 STAT. 178]]

    shall be consistent with Departmental policies relating to the inclusion
    of women and minorities in research: Provided
    further, <<NOTE: Reports. Deadline.>> 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 <<NOTE: Operating
    plans. Deadlines.>> heading: Provided further, That the Secretary,
    jointly with the Directors of the Agency for Healthcare Research and
    Quality and the National Institutes of Health, shall provide the
    Committees on Appropriations of the House of Representatives and the
    Senate a fiscal year 2009 operating plan for the funds appropriated
    under this heading prior to making any Federal obligations of such funds
    in fiscal year 2009, but not later than July 30, 2009, and a fiscal year
    2010 operating plan for such funds prior to making any Federal
    obligations of such funds in fiscal year 2010, but not later than
    November 1, 2009, that detail the type of research being conducted or
    supported, including the priority conditions addressed; and specify the
    allocation of resources within the Department of Health and Human
    Services: Provided further, <<NOTE: Reports. Deadlines.>> That the
    Secretary, jointly with the Directors of the Agency for Healthcare
    Research and Quality and the National Institutes of Health, shall
    provide to the Committees on Appropriations of the House of
    Representatives and the Senate a report on the actual obligations,
    expenditures, and unobligated balances for each activity funded under
    this heading not later than November 1, 2009, and every 6 months
    thereafter as long as funding provided under this heading is available
    for obligation or expenditure.

                    Administration for Children and Families

        payments to states for the child care and development block grant

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

                     children and families services programs

        For an additional amount for ``Children and Families Services
    Programs'', $3,150,000,000, which shall be used as follows:
                (1) $1,000,000,000 for carrying out activities under the
            Head Start Act.
                (2) $1,100,000,000 for expansion of Early Head Start
            programs, as described in section 645A of the Head Start Act:
            Provided, That of the funds provided in this paragraph, up to 10
            percent shall be available for the provision of training

    [[Page 123 STAT. 179]]

            and technical assistance to such programs consistent with
            section 645A(g)(2) of such Act, and up to 3 percent shall be
            available for monitoring the operation of such programs
            consistent with section 641A of such Act.
                (3) $1,000,000,000 for carrying out activities under
            sections 674 through 679 of the Community Services Block Grant
            Act, of which no part shall be subject to section 674(b)(3) of
            such Act: Provided, That notwithstanding section 675C(a)(1) and
            675C(b) of such Act, 1 percent of the funds made available to
            each State from this additional amount shall be used for
            benefits enrollment coordination activities relating to the
            identification and enrollment of eligible individuals and
            families in Federal, State, and local benefit programs: Provided
            further, That all funds remaining available to a State from this
            additional amount after application of the previous proviso
            shall be distributed to eligible entities as defined in section
            673(1) of such Act: Provided further, That for services
            furnished under such Act during fiscal years 2009 and 2010,
            States may apply the last sentence of section 673(2) of such Act
            by substituting ``200 percent'' for ``125 percent''.
                (4) $50,000,000 for carrying out activities under section
            1110 of the Social Security Act.

                             Administration on Aging

                             aging services programs

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

                             Office of the Secretary

      office of the national coordinator for health information technology

                          (including transfer of funds)

        For an additional amount for ``Office of the National Coordinator
    for Health Information Technology'', $2,000,000,000, to carry out title
    XIII of this Act, to remain available until expended: Provided, That of
    such amount, the Secretary of Health and Human Services shall transfer
    $20,000,000 to the Director of the National Institute of Standards and
    Technology in the Department of Commerce for continued work on advancing
    health care information enterprise integration through activities such
    as technical standards analysis and establishment of conformance testing
    infrastructure, so long as such activities are coordinated with the
    Office of the National Coordinator for Health Information Technology:
    Provided further, That $300,000,000 is to support regional or sub-
    national efforts toward health information exchange: Provided further,
    That 0.25 percent of the funds provided in this paragraph may be used
    for administration of such funds: <<NOTE: Operating
    plan. Deadline.>> Provided further, That funds available under this
    heading shall become available for obligation only upon submission of an
    annual operating plan by the Secretary

    [[Page 123 STAT. 180]]

    to the Committees on Appropriations of the House of Representatives and
    the Senate: <<NOTE: Operating plans. Deadlines.>> Provided further, That
    the fiscal year 2009 operating plan shall be provided not later than 90
    days after enactment of this Act and that subsequent annual operating
    plans shall be provided not later than November 1 of each year: Provided
    further, That these operating plans shall describe how expenditures are
    aligned with the specific objectives, milestones, and metrics of the
    Federal Health Information Technology Strategic Plan, including any
    subsequent updates to the Plan; the allocation of resources within the
    Department of Health and Human Services and other Federal agencies; and
    the identification of programs and activities that are
    supported: <<NOTE: Reports. Deadlines.>> Provided further, That the
    Secretary shall provide to the Committees on Appropriations of the House
    of Representatives and the Senate a report on the actual obligations,
    expenditures, and unobligated balances for each major set of activities
    not later than November 1, 2009, and every 6 months thereafter as long
    as funding provided under this heading is available for obligation or
    expenditure.

                           office of inspector general

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

                public health and social services emergency fund

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

                          prevention and wellness fund

                          (including transfer of funds)

        For necessary expenses for a ``Prevention and Wellness Fund'' to be
    administered through the Department of Health and Human Services, Office
    of the Secretary, $1,000,000,000: Provided, That of the amount provided
    in this paragraph, $300,000,000 shall be transferred to the Centers for
    Disease Control and Prevention (``CDC'') as an additional amount to
    carry out the immunization program (``section 317 immunization
    program'') authorized by section 317(a), (j), and (k)(1) of the Public
    Health Service Act (``PHS Act''): Provided further, That of the amount
    provided in this paragraph, $650,000,000 shall be to carry out evidence-
    based clinical and community-based prevention and wellness strategies
    authorized by the PHS Act, as determined by the Secretary, that deliver
    specific, measurable health outcomes that address chronic disease rates:
    Provided further, That funds appropriated in the preceding proviso may
    be transferred to other appropriation accounts of the Department of
    Health and Human Services, as determined by the Secretary to be
    appropriate: Provided further, That of the amount appropriated in this
    paragraph, $50,000,000 shall be provided to States for an additional
    amount to carry out activities to implement healthcare associated
    infections reduction strategies: Provided further, That not more than
    0.5 percent of funds made available in this paragraph may be used for
    management and oversight expenses in the office or division of the
    Department of Health and Human Services administering the
    funds: <<NOTE: Contracts. Evaluations. Deadline.>> Provided further,

    [[Page 123 STAT. 181]]

    That the Secretary shall, directly or through contracts with public or
    private entities, provide for annual evaluations of programs carried out
    with funds provided under this heading in order to determine the quality
    and effectiveness of the programs: <<NOTE: Reports. Deadline.>> Provided
    further, That the Secretary shall, not later than 1 year after the date
    of enactment of this Act, submit to the Committees on Appropriations of
    the House of Representatives and the Senate, the Committee on Energy and
    Commerce of the House of Representatives, and the Committee on Health,
    Education, Labor, and Pensions of the Senate, a report summarizing the
    annual evaluations of programs from the preceding proviso: Provided
    further, <<NOTE: Operating plan. Deadline.>> That the Secretary shall
    provide to the Committees on Appropriations of the House of
    Representatives and the Senate an operating plan for the Prevention and
    Wellness Fund prior to making any Federal obligations of funds provided
    in this paragraph (excluding funds to carry out the section 317
    immunization program), but not later than 90 days after the date of
    enactment of this Act, that indicates the prevention priorities to be
    addressed; provides measurable goals for each prevention priority;
    details the allocation of resources within the Department of Health and
    Human Services; and identifies which programs or activities are
    supported, including descriptions of any new programs or
    activities: <<NOTE: Reports. Deadlines.>> Provided further, That the
    Secretary shall provide to the Committees on Appropriations of the House
    of Representatives and the Senate a report on the actual obligations,
    expenditures, and unobligated balances for each activity funded under
    this heading not later than November 1, 2009, and every 6 months
    thereafter as long as funding provided under this heading is available
    for obligation or expenditure.

                             DEPARTMENT OF EDUCATION

    Education for the <<NOTE: Grants.>> Disadvantaged

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

                                   Impact Aid

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

    [[Page 123 STAT. 182]]

    School Improvement <<NOTE: Grants.>> Programs

        For an additional amount for ``School Improvement Programs'' to
    carry out subpart 1, part D of title II of the Elementary and Secondary
    Education Act of 1965 (``ESEA''), and subtitle B of title VII of the
    McKinney-Vento Homeless Assistance Act, $720,000,000: Provided, That
    $650,000,000 shall be available for subpart 1, part D of title II of the
    ESEA: Provided further, That the Secretary shall allot $70,000,000 for
    grants under McKinney-Vento to each State in proportion to the number of
    homeless students identified by the State during the 2007-2008 school
    year relative to the number of such children identified nationally
    during that school year: Provided further, That State educational
    agencies shall subgrant the McKinney-Vento funds to local educational
    agencies on a competitive basis or according to a formula based on the
    number of homeless students identified by the local educational agencies
    in the State: Provided further, <<NOTE: Deadline.>> 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: <<NOTE: Deadline.>> Provided further, That each State shall
    subgrant the McKinney-Vento funds to local educational agencies not
    later than 120 days after receiving its grant from the Secretary.

                           Innovation and Improvement

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

                                Special Education

        For an additional amount for ``Special Education'' for carrying out
    parts B and C of the Individuals with Disabilities Education Act
    (``IDEA''), $12,200,000,000, of which $11,300,000,000 shall be available
    for section 611 of the IDEA: Provided, That if every State, as defined
    by section 602(31) of the IDEA, reaches its maximum allocation under
    section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds,
    such funds shall be proportionally allocated to each State subject to
    the maximum amounts contained in section 611(a)(2) of the
    IDEA: <<NOTE: Deadline. Grants.>> Provided further, That by July 1,
    2009, the Secretary of Education shall reserve the amount needed for
    grants under section 643(e) of the IDEA, with any remaining funds to be
    allocated in accordance with section 643(c) of the IDEA: Provided
    further, That the total amount for each of sections 611(b)(2) and
    643(b)(1) of the IDEA, under this and all other Acts,

    [[Page 123 STAT. 183]]

    for fiscal year 2009, whenever enacted, shall be equal to the amounts
    respectively available for these activities under these sections during
    fiscal year 2008 increased by the amount of inflation as specified in
    section 619(d)(2)(B) of the IDEA: Provided further, That $400,000,000
    shall be available for section 619 of the IDEA and $500,000,000 shall be
    available for part C of the IDEA.

    Rehabilitation Services and Disability <<NOTE: Grants.>> Research

        For an additional amount for ``Rehabilitation Services and
    Disability Research'' for providing grants to States to carry out the
    Vocational Rehabilitation Services program under part B of title I and
    parts B and C of chapter 1 and chapter 2 of title VII of the
    Rehabilitation Act of 1973, $680,000,000: Provided, That $540,000,000
    shall be available for part B of title I of the Rehabilitation Act:
    Provided further, That funds provided herein shall not be considered in
    determining the amount required to be appropriated under section
    100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: Provided
    further, That, notwithstanding section 7(14)(A), the Federal share of
    the costs of vocational rehabilitation services provided with the funds
    provided herein shall be 100 percent: Provided further, That
    $140,000,000 shall be available for parts B and C of chapter 1 and
    chapter 2 of title VII of the Rehabilitation Act: Provided further, That
    $18,200,000 shall be for State Grants, $87,500,000 shall be for
    independent living centers, and $34,300,000 shall be for services for
    older blind individuals.

                          Student Financial Assistance

        For an additional amount for ``Student Financial Assistance'' to
    carry out subpart 1 of part A and part C of title IV of the Higher
    Education Act of 1965 (``HEA''), $15,840,000,000, which shall remain
    available through September 30, 2011: Provided, That $15,640,000,000
    shall be available for subpart 1 of part A of title IV of the HEA:
    Provided further, That $200,000,000 shall be available for part C of
    title IV of the HEA.
        The <<NOTE: 20 USC 1070a note.>> maximum Pell Grant for which a
    student shall be eligible during award year 2009-2010 shall be $4,860.

                           Student Aid Administration

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

                                Higher Education

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

                         Institute of Education Sciences

        For an additional amount for ``Institute of Education Sciences'' to
    carry out section 208 of the Educational Technical Assistance Act,
    $250,000,000, which may be used for Statewide data systems that include
    postsecondary and workforce information, of which

    [[Page 123 STAT. 184]]

    up to $5,000,000 may be used for State data coordinators and for awards
    to public or private organizations or agencies to improve data
    coordination.

                             Departmental Management

                         office of the inspector general

        For an additional amount for the ``Office of the Inspector
    General'', $14,000,000, which shall remain available through September
    30, 2012, for salaries and expenses necessary for oversight and audit of
    programs, grants, and projects funded in this Act.

                                RELATED AGENCIES

                 Corporation for National and Community Service

                               Operating Expenses

                          (including transfer of funds)

        For an additional amount for ``Operating Expenses'' to carry out the
    Domestic Volunteer Service Act of 1973 (``1973 Act'') and the National
    and Community Service Act of 1990 (``1990 Act''), $160,000,000:
    Provided, That $89,000,000 of the funds made available in this paragraph
    shall be used to make additional awards to existing AmeriCorps grantees
    and may be used to provide adjustments to awards under subtitle C of
    title I of the 1990 Act made prior to September 30, 2010 for which the
    Chief Executive Officer of the Corporation for National and Community
    Service (``CEO'') determines that a waiver of the Federal share
    limitation is warranted under section 2521.70 of title 45 of the Code of
    Federal Regulations: Provided further, That of the amount made available
    in this paragraph, not less than $6,000,000 shall be transferred to
    ``Salaries and Expenses'' for necessary expenses relating to information
    technology upgrades, of which up to $800,000 may be used to administer
    the funds provided in this paragraph: Provided further, That of the
    amount provided in this paragraph, not less than $65,000,000 shall be
    for programs under title I, part A of the 1973 Act: Provided further,
    That funds provided in the previous proviso shall not be made available
    in connection with cost-share agreements authorized under section
    192A(g)(10) of the 1990 Act: Provided further, That of the funds
    available under this heading, up to 20 percent of funds allocated to
    grants authorized under section 124(b) of title I, subtitle C of the
    1990 Act may be used to administer, reimburse, or support any national
    service program under section 129(d)(2) of the 1990 Act: Provided
    further, That, except as provided herein and in addition to requirements
    identified herein, funds provided in this paragraph shall be subject to
    the terms and conditions under which funds were appropriated in fiscal
    year 2008: <<NOTE: Operating plans. Deadlines.>> 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

    [[Page 123 STAT. 185]]

    November 1, 2009, that detail the allocation of resources and the
    increased number of members supported by the AmeriCorps
    programs: <<NOTE: Reports. Deadline.>> Provided further, That the CEO
    shall provide to the Committees on Appropriations of the House of
    Representatives and the Senate a report on the actual obligations,
    expenditures, and unobligated balances for each activity funded under
    this heading not later than November 1, 2009, and every 6 months
    thereafter as long as funding provided under this heading is available
    for obligation or expenditure.

                           Office of Inspector General

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

                             National Service Trust

                          (including transfer of funds)

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

                         Social Security Administration

                      Limitation on Administrative Expenses

                          (including transfer of funds)

        For an additional amount for ``Limitation on Administrative
    Expenses'', $1,000,000,000 shall be available as follows:
                (1) $500,000,000 shall remain available until expended for
            necessary expenses of the replacement of the National Computer
            Center and the information technology costs associated with such
            Center: <<NOTE: Notification. Deadline.>> Provided, That the
            Commissioner of Social Security shall notify the Committees on
            Appropriations of the House of Representatives and the Senate
            not later than 10 days prior to each public notice soliciting
            bids related to site selection and construction and prior to the
            lease or purchase of such site: Provided further, That the
            construction plan and site selection for such center shall be
            subject to review and approval by the Office of Management and
            Budget: Provided further, That such center shall continue to be
            a government-operated facility; and
                (2) $500,000,000 for processing disability and retirement
            workloads, including information technology acquisitions and
            research in support of such activities: Provided, That up to

    [[Page 123 STAT. 186]]

            $40,000,000 may be used by the Commissioner of Social Security
            for health information technology research and activities to
            facilitate the adoption of electronic medical records in
            disability claims, including the transfer of funds to
            ``Supplemental Security Income Program'' to carry out activities
            under section 1110 of the Social Security Act.

                           Office of Inspector General

        For an additional amount for the ``Office of Inspector General'',
    $2,000,000, which shall remain available through September 30, 2012, for
    salaries and expenses necessary for oversight and audit of programs,
    projects, and activities funded in this Act.

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 801. (a) Up to 1 percent of the funds made available to the
    Department of Labor in this title may be used for the administration,
    management, and oversight of the programs, grants, and activities funded
    by such appropriation, including the evaluation of the use of such
    funds.
        (b) Funds designated for these purposes may be available for
    obligation through September 30, 2010.
        (c) <<NOTE: Deadline. Operating plan.>> Not later than 30 days after
    enactment of this Act, the Secretary of Labor shall provide an operating
    plan describing the proposed use of funds for the purposes described in
    (a).

        Sec. 802.  Report on the Impact of Past and Future Minimum Wage
    Increases.  (a) In General.--Section 8104 of the U.S. Troop Readiness,
    Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations
    Act, 2007 (Public Law 110-28; 121 Stat. 189) is amended to read as
    follows:

    ``SEC. 8104. <<NOTE: 29 USC 206 note.>> REPORT ON THE IMPACT OF PAST AND
                FUTURE MINIMUM WAGE INCREASES.

        ``(a) <<NOTE: Effective date.>> Study.--Beginning on the date that
    is 60 days after the date of enactment of this Act, and every year
    thereafter until the minimum wage in the respective territory is $7.25
    per hour, the Government Accountability Office shall conduct a study
    to--
                ``(1) assess the impact of the minimum wage increases that
            occurred in American Samoa and the Commonwealth of the Northern
            Mariana Islands in 2007 and 2008, as required under Public Law
            110-28, on the rates of employment and the living standards of
            workers, with full consideration of the other factors that
            impact rates of employment and the living standards of workers
            such as inflation in the cost of food, energy, and other
            commodities; and
                ``(2) estimate the impact of any further wage increases on
            rates of employment and the living standards of workers in
            American Samoa and the Commonwealth of the Northern Mariana
            Islands, with full consideration of the other factors that may
            impact the rates of employment and the living standards of
            workers, including assessing how the profitability of major
            private sector firms may be impacted by wage increases in
            comparison to other factors such as energy costs and the value
            of tax benefits.

        ``(b) Report.--No earlier than March 15, 2010, and not later than
    April 15, 2010, the Government Accountability Office shall transmit its
    first report to Congress concerning the findings of

    [[Page 123 STAT. 187]]

    the study required under subsection (a). The Government Accountability
    Office shall transmit any subsequent reports to Congress concerning the
    findings of a study required by subsection (a) between March 15 and
    April 15 of each year.
        ``(c) Economic Information.--To provide sufficient economic data for
    the conduct of the study under subsection (a) the Bureau of the Census
    of the Department of Commerce shall include and separately report on
    American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
    and the Virgin Islands in its County Business Patterns data with the
    same regularity and to the same extent as each Bureau collects and
    reports such data for the 50 States. In the event that the inclusion of
    American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
    and the Virgin Islands in such surveys and data compilations requires
    time to structure and implement, the Bureau of the Census shall in the
    interim annually report the best available data that can feasibly be
    secured with respect to such territories. Such interim report shall
    describe the steps the Bureau will take to improve future data
    collection in the territories to achieve comparability with the data
    collected in the United States. The Bureau of the Census, together with
    the Department of the Interior, shall coordinate their efforts to
    achieve such improvements.''.
        (b) <<NOTE: 29 USC 206 note.>> Effective Date.--The amendment made
    by this section shall take effect on the date of enactment of this Act.

        Sec. 803.  Eligible Employees in the Recreational Marine Industry.
    Section 2(3)(F) of the Longshore and Harbor Workers' Compensation Act
    (33 U.S.C. 902(3)(F)) is amended--
                (1) by striking ``, repair or dismantle''; and
                (2) by striking the semicolon and inserting ``, or
            individuals employed to repair any recreational vessel, or to
            dismantle any part of a recreational vessel in connection with
            the repair of such vessel;''.

        Sec. 804. <<NOTE: 42 USC 299b-8.>> Federal Coordinating Council for
    Comparative Effectiveness Research. (a) Establishment.--There is hereby
    established a Federal Coordinating Council for Comparative Effectiveness
    Research (in this section referred to as the ``Council'').

        (b) Purpose.--The Council shall foster optimum coordination of
    comparative effectiveness and related health services research conducted
    or supported by relevant Federal departments and agencies, with the goal
    of reducing duplicative efforts and encouraging coordinated and
    complementary use of resources.
        (c) Duties.--The Council shall--
                (1) assist the offices and agencies of the Federal
            Government, including the Departments of Health and Human
            Services, Veterans Affairs, and Defense, and other Federal
            departments or agencies, to coordinate the conduct or support of
            comparative effectiveness and related health services research;
            and
                (2) advise the President and Congress on--
                        (A) strategies with respect to the infrastructure
                    needs of comparative effectiveness research within the
                    Federal Government; and
                        (B) organizational expenditures for comparative
                    effectiveness research by relevant Federal departments
                    and agencies.

        (d) Membership.--

    [[Page 123 STAT. 188]]

                (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''). <<NOTE: Deadline.>> Members shall
            first be appointed to the Council not later than 30 days after
            the date of the enactment of this Act.
                (2) Members.--
                        (A) In general.--The members of the Council shall
                    include one senior officer or employee from each of the
                    following agencies:
                              (i) The Agency for Healthcare Research and
                          Quality.
                              (ii) The Centers for Medicare and Medicaid
                          Services.
                              (iii) The National Institutes of Health.
                              (iv) The Office of the National Coordinator
                          for Health Information Technology.
                              (v) The Food and Drug Administration.
                              (vi) The Veterans Health Administration within
                          the Department of Veterans Affairs.
                              (vii) The office within the Department of
                          Defense responsible for management of the
                          Department of Defense Military Health Care System.
                        (B) Qualifications.--At least half of the members of
                    the Council shall be physicians or other experts with
                    clinical expertise.
                (3) Chairman; vice chairman.--The Secretary shall serve as
            Chairman of the Council and shall designate a member to serve as
            Vice Chairman.

        (e) Reports.--
                (1) Initial report.--Not later than June 30, 2009, the
            Council shall submit to the President and the Congress a report
            containing information describing current Federal activities on
            comparative effectiveness research and recommendations for such
            research conducted or supported from funds made available for
            allotment by the Secretary for comparative effectiveness
            research in this Act.
                (2) Annual report.--The Council shall submit to the
            President and Congress an annual report regarding its activities
            and recommendations concerning the infrastructure needs,
            organizational expenditures and opportunities for better
            coordination of comparative effectiveness research by relevant
            Federal departments and agencies.

        (f) Staffing; Support.--From funds made available for allotment by
    the Secretary for comparative effectiveness research in this Act, the
    Secretary shall make available not more than 1 percent to the Council
    for staff and administrative support.
        (g) Rules of Construction.--
                (1) Coverage.--Nothing in this section shall be construed to
            permit the Council to mandate coverage, reimbursement, or other
            policies for any public or private payer.
                (2) Reports and recommendations.--None of the reports
            submitted under this section or recommendations made by the
            Council shall be construed as mandates or clinical guidelines
            for payment, coverage, or treatment.

    [[Page 123 STAT. 189]]

        Sec. 805. Grants for Impact Aid Construction. (a) Reservation for
    Management and Oversight.--From the funds appropriated to carry out this
    section, the Secretary may reserve up to 1 percent for management and
    oversight of the activities carried out with those funds.
        (b) Construction Payments.--
                (1) Formula grants.--(A) in general.--From 40 percent of the
            amount not reserved under subsection (a), the Secretary shall
            make payments in accordance with section 8007(a) of the
            Elementary and Secondary Education Act of 1965 (20 U.S.C.
            7707(a)), except that the amount of such payments shall be
            determined in accordance with subparagraph (B).
                        (B) Amount of payments.--The Secretary shall make a
                    payment to each local educational agency eligible for a
                    payment under section 8007(a) of the Elementary and
                    Secondary Education Act of 1965 (20 U.S.C. 7707(a)) in
                    an amount that bears the same relationship to the funds
                    made available under subparagraph (A) as the number of
                    children determined under subparagraphs (B), (C), and
                    (D)(i) of section 8003(a)(1) of the Elementary and
                    Secondary Education Act of 1965 (20 U.S.C.
                    7703(a)(1)(B), (C), and (D)(i)) who were in average
                    daily attendance in the local educational agency for the
                    most recent year for which such information is available
                    bears to the number of such children in all the local
                    educational agencies eligible for a payment under
                    section 8007(a) of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7707(a)).
                (2) Competitive grants.--From 60 percent of the amount not
            reserved under subsection (a), the Secretary--
                        (A) shall award emergency grants in accordance with
                    section 8007(b) of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7707(b)) to eligible
                    local educational agencies to enable the agencies to
                    carry out emergency repairs of school facilities; and
                        (B) may award modernization grants in accordance
                    with section 8007(b) of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7707(b)) to eligible
                    local educational agencies to enable the agencies to
                    carry out the modernization of school facilities.
                (3) Provisions not to apply.--Paragraphs (2), (3), (4),
            (5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary
            and Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3),
            (4), (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made
            under paragraph (2).
                (4) Eligibility.--A local educational agency is eligible to
            receive a grant under paragraph (2) if the local educational
            agency--
                        (A) was eligible to receive a payment under section
                    8002 or 8003 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 7702 and 7703) for fiscal year
                    2008; and
                        (B) has--
                              (i) a total taxable assessed value of real
                          property that may be taxed for school purposes of
                          less than $100,000,000; or
                              (ii) an assessed value of real property per
                          student that may be taxed for school purposes that
                          is less

    [[Page 123 STAT. 190]]

                          than the average of the assessed value of real
                          property per student that may be taxed for school
                          purposes in the State in which the local
                          educational agency is located.
                (5) Criteria for grants.--In awarding grants under paragraph
            (2), the Secretary shall consider the following criteria:
                        (A) Whether the facility poses a health or safety
                    threat to students and school personnel, including
                    noncompliance with building codes and inaccessibility
                    for persons with disabilities, or whether the existing
                    building capacity meets the needs of the current
                    enrollment and supports the provision of comprehensive
                    educational services to meet current standards in the
                    State in which the local educational agency is located.
                        (B) The extent to which the new design and proposed
                    construction utilize energy efficient and recyclable
                    materials.
                        (C) The extent to which the new design and proposed
                    construction utilizes non-traditional or alternative
                    building methods to expedite construction and project
                    completion and maximize cost efficiency.
                        (D) The feasibility of project completion within 24
                    months from award.
                        (E) The availability of other resources for the
                    proposed project.

        Sec. 806. Mandatory Pell Grants. Section 401(b)(9)(A) of the Higher
    Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended--
                (1) in clause (ii), by striking ``$2,090,000,000'' and
            inserting ``$2,733,000,000''; and
                (2) in clause (iii), by striking ``$3,030,000,000'' and
            inserting ``$3,861,000,000''.

        Sec. 807. (a) In General.--Notwithstanding any other provision of
    law, and in order to begin expenditures and activities under this Act as
    quickly as possible consistent with prudent management, the Secretary of
    Education may--
                (1) award fiscal year 2009 funds to States and local
            educational agencies on the basis of eligibility determinations
            made for the award of fiscal year 2008 funds; and
                (2) require States to make prompt allocations to local
            educational agencies.

        (b) Interest Not to Accrue.--Notwithstanding <<NOTE: Time
    period.>> sections 3335 and 6503 of title 31, United States Code, or any
    other provision of law, the United States shall not be liable to any
    State or other entity for any interest or fee with respect to any funds
    under this Act that are allocated by the Secretary of Education to the
    State or other entity within 30 days of the date on which they are
    available for obligation.

    [[Page 123 STAT. 191]]

                          TITLE IX--LEGISLATIVE BRANCH

                        GOVERNMENT ACCOUNTABILITY OFFICE

                              Salaries and Expenses

        For an additional amount for ``Salaries and Expenses'' of the
    Government Accountability Office, $25,000,000, to remain available until
    September 30, 2010.

                         GENERAL PROVISIONS--THIS TITLE

        Sec. 901.  Government Accountability Office Reviews and Reports.
    (a) Reviews and Reports.--
                (1) In General.--The Comptroller General shall conduct
            bimonthly reviews and prepare reports on such reviews on the use
            by selected States and localities of funds made available in
            this Act. <<NOTE: Internet posting.>> Such reports, along with
            any audits conducted by the Comptroller General of such funds,
            shall be posted on the Internet and linked to the website
            established under this Act by the Recovery Accountability and
            Transparency Board.
                (2) Redactions.--Any portion of a report or audit under this
            subsection may be redacted when made publicly available, if that
            portion would disclose information that is not subject to
            disclosure under section 552 of title 5, United States Code
            (commonly known as the Freedom of Information Act).

        (b) Examination of Records.--The Comptroller General may examine any
    records related to obligations and use by any Federal, State, or local
    government agency of funds made available in this Act.
        Sec. 902.  Access of Government Accountability Office. (a) Access.--
    Each contract awarded using funds made available in this Act shall
    provide that the Comptroller General and his representatives are
    authorized--
                (1) to examine any records of the contractor or any of its
            subcontractors, or any State or local agency administering such
            contract, that directly pertain to, and involve transactions
            relating to, the contract or subcontract; and
                (2) to interview any officer or employee of the contractor
            or any of its subcontractors, or of any State or local
            government agency administering the contract, regarding such
            transactions.

        (b) Relationship to Existing Authority.--Nothing in this section
    shall be interpreted to limit or restrict in any way any existing
    authority of the Comptroller General.

               TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                              DEPARTMENT OF DEFENSE

                           Military Construction, Army

         For an additional amount for ``Military Construction, Army'',
    $180,000,000, to remain available until September 30, 2013: Provided,
    That notwithstanding any other provision of law, such funds may be
    obligated and expended to carry out planning and design

    [[Page 123 STAT. 192]]

    and military construction projects in the United States not otherwise
    authorized by law: Provided further, That of the amount provided under
    this heading, $80,000,000 shall be for child development centers, and
    $100,000,000 shall be for warrior transition complexes: Provided
    further, <<NOTE: Deadline. Expenditure plan.>> That not later than 30
    days after the date of enactment of this Act, the Secretary of Defense
    shall submit to the Committees on Appropriations of both Houses of
    Congress an expenditure plan for funds provided under this heading.

                  Military Construction, Navy and Marine Corps

         For an additional amount for ``Military Construction, Navy and
    Marine Corps'', $280,000,000, to remain available until September 30,
    2013: Provided, That notwithstanding any other provision of law, such
    funds may be obligated and expended to carry out planning and design and
    military construction projects in the United States not otherwise
    authorized by law: Provided further, That of the amount provided under
    this heading, $100,000,000 shall be for troop housing, $80,000,000 shall
    be for child development centers, and $100,000,000 shall be for energy
    conservation and alternative energy projects: Provided
    further, <<NOTE: Deadline. Expenditure plan.>> That not later than 30
    days after the date of enactment of this Act, the Secretary of Defense
    shall submit to the Committees on Appropriations of both Houses of
    Congress an expenditure plan for funds provided under this heading.

                        Military Construction, Air Force

         For an additional amount for ``Military Construction, Air Force'',
    $180,000,000, to remain available until September 30, 2013: Provided,
    That notwithstanding any other provision of law, such funds may be
    obligated and expended to carry out planning and design and military
    construction projects in the United States not otherwise authorized by
    law: Provided further, That of the amount provided under this heading,
    $100,000,000 shall be for troop housing and $80,000,000 shall be for
    child development centers: <<NOTE: Deadline. Expenditure
    plan.>> Provided further, That not later than 30 days after the date of
    enactment of this Act, the Secretary of Defense shall submit to the
    Committees on Appropriations of both Houses of Congress an expenditure
    plan for funds provided under this heading.

                       Military Construction, Defense-Wide

        For an additional amount for ``Military Construction, Defense-
    Wide'', $1,450,000,000, to remain available until September 30, 2013:
    Provided, That notwithstanding any other provision of law, such funds
    may be obligated and expended to carry out planning and design and
    military construction projects in the United States not otherwise
    authorized by law: Provided further, That of the amount provided under
    this heading, $1,330,000,000 shall be for the construction of hospitals
    and $120,000,000 shall be for the Energy Conservation Investment
    Program: Provided further, <<NOTE: Deadline. Expenditure plan.>> That
    not later than 30 days after the date of enactment of this Act, the
    Secretary of Defense shall submit to the Committees on Appropriations of
    both Houses of Congress an expenditure plan for funds provided under
    this heading.

    [[Page 123 STAT. 193]]

                   Military Construction, Army National Guard

         For an additional amount for ``Military Construction, Army National
    Guard'', $50,000,000, to remain available until September 30, 2013:
    Provided, That notwithstanding any other provision of law, such funds
    may be obligated and expended to carry out planning and design and
    military construction projects in the United States not otherwise
    authorized by law: Provided further, <<NOTE: Deadline. Expenditure
    plan.>> That not later than 30 days after the date of enactment of this
    Act, the Secretary of Defense, in consultation with the Director of the
    Army National Guard, shall submit to the Committees on Appropriations of
    both Houses of Congress an expenditure plan for funds provided under
    this heading.

                    Military Construction, Air National Guard

         For an additional amount for ``Military Construction, Air National
    Guard'', $50,000,000, to remain available until September 30, 2013:
    Provided, That notwithstanding any other provision of law, such funds
    may be obligated and expended to carry out planning and design and
    military construction projects in the United States not otherwise
    authorized by law: Provided further, <<NOTE: Deadline. Expenditure
    plan.>> That not later than 30 days after the date of enactment of this
    Act, the Secretary of Defense, in consultation with the Director of the
    Air National Guard, shall submit to the Committees on Appropriations of
    both Houses of Congress an expenditure plan for funds provided under
    this heading.

                        Family Housing Construction, Army

        For an additional amount for ``Family Housing Construction, Army'',
    $34,507,000, to remain available until September 30, 2013: Provided,
    That notwithstanding any other provision of law, such funds may be
    obligated and expended to carry out planning and design and military
    construction projects in the United States not otherwise authorized by
    law: Provided further, <<NOTE: Deadline. Expenditure plan.>> That within
    30 days of enactment of this Act, the Secretary of Defense shall submit
    to the Committees on Appropriations of both Houses of Congress an
    expenditure plan for funds provided under this heading.

                 Family Housing Operation and Maintenance, Army

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

                     Family Housing Construction, Air Force

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

    [[Page 123 STAT. 194]]

    Congress an expenditure plan for funds provided under this heading.

               Family Housing Operation and Maintenance, Air Force

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

                           Homeowners Assistance Fund

        For an additional amount for ``Homeowners Assistance Fund'',
    established by section 1013 of the Demonstration Cities and Metropolitan
    Development Act of 1966, as amended (42 U.S.C. 3374), $555,000,000, to
    remain available until expended:
    Provided, <<NOTE: Reports. Deadlines.>> That the Secretary of Defense
    shall submit quarterly reports to the Committees on Appropriations of
    both Houses of Congress on the expenditure of funds made available under
    this heading in this or any other Act.

                            Administrative Provision

        Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program
    to Respond to Mortgage Foreclosure and Credit Crisis. Section 1013 of
    the Demonstration Cities and Metropolitan Development Act of 1966 (42
    U.S.C. 3374) is amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraphs (1), (2), and (3) as
                    clauses (i), (ii), and (iii), respectively, and
                    indenting such subparagraphs, as so redesignated, 6 ems
                    from the left margin;
                        (B) by striking ``Notwithstanding any other
                    provision of law'' and inserting the following:
                ``(1) Acquisition of property at or near military
            installations that have been ordered to be closed.--
            Notwithstanding any other provision of law'';
                        (C) by striking ``if he determines'' and inserting
                    ``if--
                        ``(A) the Secretary determines--'';
                        (D) in clause (iii), as redesignated by subparagraph
                    (A), by striking the period at the end and inserting ``;
                    or''; and
                        (E) by adding at the end the following:
                        ``(B) the Secretary determines--
                              ``(i) that the conditions in clauses (i) and
                          (ii) of subparagraph (A) have been met;
                              ``(ii) that the closing or realignment of the
                          base or installation resulted from a realignment
                          or closure carried out under the 2005 round of
                          defense base closure and realignment under the
                          Defense Base Closure and Realignment Act of 1990
                          (part XXIX of Public Law 101-510; 10 U.S.C. 2687
                          note);
                              ``(iii) that the property was purchased by the
                          owner before July 1, 2006;
                              ``(iv) that the property was sold by the owner
                          between July 1, 2006, and September 30, 2012, or
                          an earlier end date designated by the Secretary;

    [[Page 123 STAT. 195]]

                              ``(v) that the property is the primary
                          residence of the owner; and
                              ``(vi) that the owner has not previously
                          received benefit payments authorized under this
                          subsection.
                ``(2) Homeowner assistance for wounded members of the armed
            forces, department of defense and united states coast guard
            civilian employees, and their spouses.--Notwithstanding any
            other provision of law, the Secretary of Defense is authorized
            to acquire title to, hold, manage, and dispose of, or, in lieu
            thereof, to reimburse for certain losses upon private sale of,
            or foreclosure against, any property improved with a one- or
            two-family dwelling which was at the time of the relevant wound,
            injury, or illness, the primary residence of--
                        ``(A) any member of the Armed Forces in medical
                    transition who--
                              ``(i) incurred a wound, injury, or illness in
                          the line of duty during a deployment in support of
                          the Armed Forces;
                              ``(ii) is disabled to a degree of 30 percent
                          or more as a result of such wound, injury, or
                          illness, as determined by the Secretary of
                          Defense; and
                              ``(iii) is reassigned in furtherance of
                          medical treatment or rehabilitation, or due to
                          medical retirement in connection with such
                          disability;
                        ``(B) any civilian employee of the Department of
                    Defense or the United States Coast Guard who--
                              ``(i) was wounded, injured, or became ill in
                          the performance of his or her duties during a
                          forward deployment occurring on or after September
                          11, 2001, in support of the Armed Forces; and
                              ``(ii) is reassigned in furtherance of medical
                          treatment, rehabilitation, or due to medical
                          retirement resulting from the sustained
                          disability; or
                        ``(C) the spouse of a member of the Armed Forces or
                    a civilian employee of the Department of Defense or the
                    United States Coast Guard if--
                              ``(i) the member or employee was killed in the
                          line of duty or in the performance of his or her
                          duties during a deployment on or after September
                          11, 2001, in support of the Armed Forces or died
                          from a wound, injury, or illness incurred in the
                          line of duty during such a deployment; and
                              ``(ii) the spouse relocates from such
                          residence within 2 years after the death of such
                          member or employee.
                ``(3) Temporary homeowner assistance for members of the
            armed forces permanently reassigned during specified mortgage
            crisis.--Notwithstanding any other provision of law, the
            Secretary of Defense is authorized to acquire title to, hold,
            manage, and dispose of, or, in lieu thereof, to reimburse for
            certain losses upon private sale of, or foreclosure against, any
            property improved with a one- or two-family dwelling situated at
            or near a military base or installation, if the Secretary
            determines--
                        ``(A) that the owner is a member of the Armed Forces
                    serving on permanent assignment;

    [[Page 123 STAT. 196]]

                        ``(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

    [[Page 123 STAT. 197]]

                          a private sale, in an amount not to exceed the
                          difference between--
                                        ``(I) 95 per centum of prior fair
                                    market value of their property (as such
                                    value is determined by the Secretary of
                                    Defense); and
                                        ``(II) the fair market value of such
                                    property (as such value is determined by
                                    the Secretary of Defense) at the time of
                                    sale; or
                              ``(ii) to receive, as purchase price for their
                          property an amount not to exceed 90 per centum of
                          prior fair market value as such value is
                          determined by the Secretary of Defense, or the
                          amount of the outstanding mortgages.
                        ``(B) Determination of benefits.--The Secretary may
                    also pay a person who elects to receive a cash payment
                    under subparagraph (A) an amount that the Secretary
                    determines appropriate to reimburse the person for the
                    costs incurred by the person in the sale of the property
                    if the Secretary determines that such payment will
                    benefit the person and is in the best interest of the
                    United States.
                ``(3) Homeowner assistance for permanently reassigned
            individuals.--
                        ``(A) In general.--Persons eligible under the
                    criteria set forth in subsection (a)(3) may elect
                    either--
                              ``(i) to receive a cash payment as
                          compensation for losses which may be or have been
                          sustained in a private sale, in an amount not to
                          exceed the difference between--
                                        ``(I) 95 per centum of prior fair
                                    market value of their property (as such
                                    value is determined by the Secretary of
                                    Defense); and
                                        ``(II) the fair market value of such
                                    property (as such value is determined by
                                    the Secretary of Defense) at the time of
                                    sale; or
                              ``(ii) to receive, as purchase price for their
                          property an amount not to exceed 90 per centum of
                          prior fair market value as such value is
                          determined by the Secretary of Defense, or the
                          amount of the outstanding mortgages.
                        ``(B) Determination of benefits.--The Secretary may
                    also pay a person who elects to receive a cash payment
                    under subparagraph (A) an amount that the Secretary
                    determines appropriate to reimburse the person for the
                    costs incurred by the person in the sale of the property
                    if the Secretary determines that such payment will
                    benefit the person and is in the best interest of the
                    United States.
                ``(4) Compensation and limitations related to foreclosures
            and encumbrances.--Cash payment'';
                (4) by striking subsection (g);
                (5) in subsection (l), by striking ``(a)(2)'' and inserting
            ``(a)(1)(A)(ii)'';
                (6) in subsection (m), by striking ``this section'' and
            inserting ``subsection (a)(1)'';
                (7) in subsection (n)--
                        (A) in paragraph (1), by striking ``this section''
                    and inserting ``subsection (a)(1)''; and

    [[Page 123 STAT. 198]]

                        (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.

    [[Page 123 STAT. 199]]

                         DEPARTMENT OF VETERANS AFFAIRS

                         Veterans Health Administration

                               medical facilities

         For an additional amount for ``Medical Facilities'' for non-
    recurring maintenance, including energy projects, $1,000,000,000, to
    remain available until September 30, 2010: Provided,
    That <<NOTE: Deadline. Expenditure plan.>> not later than 30 days after
    the date of enactment of this Act, the Secretary of Veterans Affairs
    shall submit to the Committees on Appropriations of both Houses of
    Congress an expenditure plan for funds provided under this heading.

                        National Cemetery Administration

        For an additional amount for ``National Cemetery Administration''
    for monument and memorial repairs, including energy projects,
    $50,000,000, to remain available until
    September <<NOTE: Deadline. Expenditure plan.>> 30, 2010: Provided, That
    not later than 30 days after the date of enactment of this Act, the
    Secretary of Veterans Affairs shall submit to the Committees on
    Appropriations of both Houses of Congress an expenditure plan for funds
    provided under this heading.

                           Departmental Administration

                           general operating expenses

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

                         information technology systems

        For an additional amount for ``Information Technology Systems'',
    $50,000,000, to remain available until September 30, 2010, for the
    Veterans Benefits Administration: Provided,
    That <<NOTE: Deadline. Expenditure plan.>> not later than 30 days after
    the enactment of this Act, the Secretary of Veterans Affairs shall
    submit to the Committees on Appropriations of both Houses of Congress an
    expenditure plan for funds provided under this heading.

                           office of inspector general

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

            grants for construction of state extended care facilities

        For an additional amount for ``Grants for Construction of State
    Extended Care Facilities'', $150,000,000, to remain available until
    September 30, 2010, for grants to assist States to acquire or construct
    State nursing home and domiciliary facilities and to remodel, modify, or
    alter existing hospital, nursing home, and domiciliary facilities in
    State homes, for furnishing care to veterans as authorized by sections
    8131 through 8137 of title 38, United States Code.

    [[Page 123 STAT. 200]]

                            Administrative Provision

        Sec. 1002. <<NOTE: 38 USC 107 note.>> Payments to Eligible Persons
    Who Served in the United States Armed Forces in the Far East During
    World War II.  (a) Findings.--Congress makes the following findings:
                (1) The Philippine islands became a United States possession
            in 1898 when they were ceded from Spain following the Spanish-
            American War.
                (2) During World War II, Filipinos served in a variety of
            units, some of which came under the direct control of the United
            States Armed Forces.
                (3) The regular Philippine Scouts, the new Philippine
            Scouts, the Guerrilla Services, and more than 100,000 members of
            the Philippine Commonwealth Army were called into the service of
            the United States Armed Forces of the Far East on July 26, 1941,
            by an executive order of President Franklin D. Roosevelt.
                (4) Even after hostilities had ceased, wartime service of
            the new Philippine Scouts continued as a matter of law until the
            end of 1946, and the force gradually disbanded and was
            disestablished in 1950.
                (5) Filipino veterans who were granted benefits prior to the
            enactment of the so-called Rescissions Acts of 1946 (Public Laws
            79-301 and 79-391) currently receive full benefits under laws
            administered by the Secretary of Veterans Affairs, but under
            section 107 of title 38, United States Code, the service of
            certain other Filipino veterans is deemed not to be active
            service for purposes of such laws.
                (6) These other Filipino veterans only receive certain
            benefits under title 38, United States Code, and, depending on
            where they legally reside, are paid such benefit amounts at
            reduced rates.
                (7) The benefits such veterans receive include service-
            connected compensation benefits paid under chapter 11 of title
            38, United States Code, dependency indemnity compensation
            survivor benefits paid under chapter 13 of title 38, United
            States Code, and burial benefits under chapters 23 and 24 of
            title 38, United States Code, and such benefits are paid to
            beneficiaries at the rate of $0.50 per dollar authorized, unless
            they lawfully reside in the United States.
                (8) Dependents' educational assistance under chapter 35 of
            title 38, United States Code, is also payable for the dependents
            of such veterans at the rate of $0.50 per dollar authorized,
            regardless of the veterans' residency.

        (b) Compensation Fund.--
                (1) In General.--There is in the general fund of the
            Treasury a fund to be known as the ``Filipino Veterans Equity
            Compensation Fund'' (in this section referred to as the
            ``compensation fund'').
                (2) Availability of Funds.--Subject to the availability of
            appropriations for such purpose, amounts in the fund shall be
            available to the Secretary of Veterans Affairs without fiscal
            year limitation to make payments to eligible persons in
            accordance with this section.

        (c) Payments.--

    [[Page 123 STAT. 201]]

                (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,

    [[Page 123 STAT. 202]]

            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) <<NOTE: Applications. Instructions.>> The Secretary
            shall promptly issue application forms and instructions to
            ensure the prompt and efficient administration of the provisions
            of this section.
                (2) The Secretary shall administer the provisions of this
            section in a manner consistent with applicable provisions of
            title 38, United States Code, and other provisions of law, and
            shall apply the definitions in section 101 of such title in the
            administration of such provisions, except to the extent
            otherwise provided in this section.

        (k) Reports.--The Secretary shall include, in documents submitted to
    Congress by the Secretary in support of the President's budget for each
    fiscal year, detailed information on the operation of the compensation
    fund, including the number of applicants, the number of eligible persons
    receiving benefits, the amounts paid out of the compensation fund, and
    the administration of the compensation fund for the most recent fiscal
    year for which such data is available.
        (l) Authorization of Appropriation.--There is authorized to be
    appropriated to the compensation fund $198,000,000, to remain available
    until expended, to make payments under this section.

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

                               DEPARTMENT OF STATE

                        Administration of Foreign Affairs

                        diplomatic and consular programs

        For an additional amount for ``Diplomatic and Consular Programs''
    for urgent domestic facilities requirements for passport and training
    functions, $90,000,000: <<NOTE: Deadline. Spending plan.>> Provided,
    That the Secretary of State shall submit to the Committees on
    Appropriations within 90 days of enactment of this Act a detailed
    spending plan for funds appropriated under this heading: Provided
    further, That with respect to the funds made available for passport
    agencies, such plan shall be developed in consultation with the
    Department of Homeland Security and the General Services Administration
    and shall coordinate and co-locate, to the extent feasible, passport
    agencies with other Federal facilities.

    [[Page 123 STAT. 203]]

                             capital investment fund

                          (including transfer of funds)

        For an additional amount for ``Capital Investment Fund'',
    $290,000,000, for information technology security and upgrades to
    support mission-critical operations, of which up to $38,000,000 shall be
    transferred to, and merged with, funds made available under the heading
    ``Capital Investment Fund'' of the United States Agency for
    International Development: <<NOTE: Deadline. Spending plan.>> Provided,
    That the Secretary of State and the Administrator of the United States
    Agency for International Development shall coordinate information
    technology systems, where appropriate, to increase efficiencies and
    eliminate redundancies, to include co-location of backup information
    management facilities, and shall submit to the Committees on
    Appropriations within 90 days of enactment of this Act a detailed
    spending plan for funds appropriated under this heading.

                           office of inspector general

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

                            International Commissions

      International Boundary and Water Commission, United States and Mexico

                                  construction

                          (including transfer of funds)

        For an additional amount for ``Construction'' for the water quantity
    program to meet immediate repair and rehabilitation requirements,
    $220,000,000: Provided, That up to $2,000,000 may be transferred to, and
    merged with, funds available under the heading ``International Boundary
    and Water Commission, United States and Mexico--Salaries and
    Expenses'': <<NOTE: Deadline. Spending plan.>> Provided further, That
    the Secretary of State shall submit to the Committees on Appropriations
    within 90 days of enactment of this Act a detailed spending plan for
    funds appropriated under this heading.

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

                          DEPARTMENT OF TRANSPORTATION

                             Office of the Secretary

    supplemental discretionary grants for a national surface transportation
                                     system

        For an additional amount for capital investments in surface
    transportation infrastructure, $1,500,000,000, to remain available
    through September 30, 2011: Provided, That the Secretary of
    Transportation shall distribute funds provided under this heading as
    discretionary grants to be awarded to State and local governments or
    transit agencies on a competitive basis for projects that will have a
    significant impact on the Nation, a metropolitan area,

    [[Page 123 STAT. 204]]

    or a region: Provided further, That projects eligible for funding
    provided under this heading shall include, but not be limited to,
    highway or bridge projects eligible under title 23, United States Code,
    including interstate rehabilitation, improvements to the rural collector
    road system, the reconstruction of overpasses and interchanges, bridge
    replacements, seismic retrofit projects for bridges, and road
    realignments; public transportation projects eligible under chapter 53
    of title 49, United States Code, including investments in projects
    participating in the New Starts or Small Starts programs that will
    expedite the completion of those projects and their entry into revenue
    service; passenger and freight rail transportation projects; and port
    infrastructure investments, including projects that connect ports to
    other modes of transportation and improve the efficiency of freight
    movement: Provided further, That of the amount made available under this
    paragraph, the Secretary may use an amount not to exceed $200,000,000
    for the purpose of paying the subsidy and administrative costs of
    projects eligible for federal credit assistance under chapter 6 of title
    23, United States Code, if the Secretary finds that such use of the
    funds would advance the purposes of this paragraph: Provided further,
    That in distributing funds provided under this heading, the Secretary
    shall take such measures so as to ensure an equitable geographic
    distribution of funds and an appropriate balance in addressing the needs
    of urban and rural communities: Provided further, That a grant funded
    under this heading shall be not less than $20,000,000 and not greater
    than $300,000,000: <<NOTE: Waiver authority.>> Provided further, That
    the Secretary may waive the minimum grant size cited in the preceding
    proviso for the purpose of funding significant projects in smaller
    cities, regions, or States: Provided further, That not more than 20
    percent of the funds made available under this paragraph may be awarded
    to projects in a single State: Provided further, That the Federal share
    of the costs for which an expenditure is made under this heading may be
    up to 100 percent: Provided further, That the Secretary shall give
    priority to projects that require a contribution of Federal funds in
    order to complete an overall financing package, and to projects that are
    expected to be completed within 3 years of enactment of this Act:
    Provided further, That <<NOTE: Publication. Criteria. Deadline.>> the
    Secretary shall publish criteria on which to base the competition for
    any grants awarded under this heading not later than 90 days after
    enactment of this Act: <<NOTE: Applications. Deadlines.>> Provided
    further, That the Secretary shall require applications for funding
    provided under this heading to be submitted not later than 180 days
    after the publication of such criteria, and announce all projects
    selected to be funded from such funds not later than 1 year after
    enactment of this Act: Provided further, That projects conducted using
    funds provided under this heading must comply with the requirements of
    subchapter IV of chapter 31 of title 40, United States Code: Provided
    further, That the Secretary may retain up to $1,500,000 of the funds
    provided under this heading, and may transfer portions of those funds to
    the Administrators of the Federal Highway Administration, the Federal
    Transit Administration, the Federal Railroad Administration and the
    Maritime Administration, to fund the award and oversight of grants made
    under this heading.

    [[Page 123 STAT. 205]]

                         Federal Aviation Administration

                supplemental funding for facilities and equipment

        For an additional amount for necessary investments in Federal
    Aviation Administration infrastructure, $200,000,000, to remain
    available through September 30, 2010: Provided, That funding provided
    under this heading shall be used to make improvements to power systems,
    air route traffic control centers, air traffic control towers, terminal
    radar approach control facilities, and navigation and landing equipment:
    Provided further, That priority be given to such projects or activities
    that will be completed within 2 years of enactment of this Act: Provided
    further, That amounts made available under this heading may be provided
    through grants in addition to the other instruments authorized under
    section 106(l)(6) of title 49, United States Code: Provided further,
    That the Federal share of the costs for which an expenditure is made
    under this heading shall be 100 percent: Provided further, That amounts
    provided under this heading may be used for expenses the agency incurs
    in administering this <<NOTE: Deadline. Procedures.>> 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: <<NOTE: Applicability.>> Provided further, That section 50101
    of title 49, United States Code, shall apply to funds provided under
    this heading.

                           Grants-In-Aid for Airports

        For an additional amount for ``Grants-In-Aid for Airports'', to
    enable the Secretary of Transportation to make grants for discretionary
    projects as authorized by subchapter 1 of chapter 471 and subchapter 1
    of chapter 475 of title 49, United States Code, and for the procurement,
    installation and commissioning of runway incursion prevention devices
    and systems at airports of such title, $1,100,000,000, to remain
    available through September 30, 2010: Provided, That such funds shall
    not be subject to apportionment formulas, special apportionment
    categories, or minimum percentages under chapter 471: Provided further,
    That the Secretary shall distribute funds provided under this heading as
    discretionary grants to airports, with priority given to those projects
    that demonstrate to his satisfaction their ability to be completed
    within 2 years of enactment of this Act, and serve to supplement and not
    supplant planned expenditures from airport-generated revenues or from
    other State and local sources on such <<NOTE: Deadlines.>> activities:
    Provided further, That the Secretary shall award grants totaling not
    less than 50 percent of the funds made available under this heading
    within 120 days of enactment of this Act, and award grants for the
    remaining amounts not later than 1 year after enactment of this Act:
    Provided further, That the Federal share payable of the costs for which
    a grant is made under this heading shall be 100 percent: Provided
    further, That the amount made available under this heading shall not be
    subject to any limitation on obligations for the Grants-in-Aid for
    Airports program set forth in any Act: Provided further, That the
    Administrator of the Federal Aviation Administration may retain up to
    0.2 percent of the funds provided under this

    [[Page 123 STAT. 206]]

    heading to fund the award and oversight by the Administrator of grants
    made under this heading.

                         Federal Highway Administration

                        highway infrastructure investment

        For an additional amount for restoration, repair, construction and
    other activities eligible under paragraph (b) of section 133 of title
    23, United States Code, and for passenger and freight rail
    transportation and port infrastructure projects eligible for assistance
    under subsection 601(a)(8) of such title, $27,500,000,000, to remain
    available through September 30, 2010: Provided, That, after making the
    set-asides required under this heading, 50 percent of the funds made
    available under this heading shall be apportioned to States using the
    formula set forth in section 104(b)(3) of title 23, United States Code,
    and the remaining funds shall be apportioned to States in the same ratio
    as the obligation limitation for fiscal year 2008 was distributed among
    the States in accordance with the formula specified in section 120(a)(6)
    of division K of Public Law 110-161: <<NOTE: Deadline.>> Provided
    further, That funds made available under this heading shall be
    apportioned not later than 21 days after the date of enactment of this
    Act: Provided further, That in selecting projects to be carried out with
    funds apportioned under this heading, priority shall be given to
    projects that are projected for completion within a 3-year time frame,
    and are located in economically distressed areas as defined by section
    301 of the Public Works and Economic Development Act of 1965, as amended
    (42 U.S.C. 3161): Provided further, <<NOTE: Effective date.>> That 120
    days following the date of such apportionment, the Secretary of
    Transportation shall withdraw from each State an amount equal to 50
    percent of the funds awarded to that State (excluding funds suballocated
    within the State) less the amount of funding obligated (excluding funds
    suballocated within the State), and the Secretary shall redistribute
    such amounts to other States that have had no funds withdrawn under this
    proviso in the manner described in section 120(c) of division K of
    Public Law 110-161: Provided further, <<NOTE: Effective date.>> That 1
    year following the date of such apportionment, the Secretary shall
    withdraw from each recipient of funds apportioned under this heading any
    unobligated funds, and the Secretary shall redistribute such amounts to
    States that have had no funds withdrawn under this proviso (excluding
    funds suballocated within the State) in the manner described in section
    120(c) of division K of Public Law 110-161: Provided further, That at
    the request of a State, the Secretary of Transportation may provide an
    extension of such 1-year period only to the extent that he feels
    satisfied that the State has encountered extreme conditions that create
    an unworkable bidding environment or other
    extenuating <<NOTE: Submission.>> circumstances: Provided further, That
    before granting such an extension, the Secretary shall send a letter to
    the House and Senate Committees on Appropriations that provides a
    thorough justification for the extension: Provided further, That 3
    percent of the funds apportioned to a State under this heading shall be
    set aside for the purposes described in subsection 133(d)(2) of title
    23, United States Code (without regard to the comparison to fiscal year
    2005): Provided further, That 30 percent of the funds apportioned to a
    State under this heading shall be suballocated within the State in the
    manner and for the purposes described in the first sentence of
    subsection

    [[Page 123 STAT. 207]]

    133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection
    133(d)(3)(D): Provided further, That such suballocation shall be
    conducted in every State: Provided further, That funds suballocated
    within a State to urbanized areas and other areas shall not be subject
    to the redistribution of amounts required 120 days following the date of
    apportionment of funds provided under this heading: Provided further,
    That of the funds provided under this heading, $105,000,000 shall be for
    the Puerto Rico highway program authorized under section 165 of title
    23, United States Code, and $45,000,000 shall be for the territorial
    highway program authorized under section 215 of title 23, United States
    Code: Provided further, That of the funds provided under this heading,
    $60,000,000 shall be for capital expenditures eligible under section 147
    of title 23, United States Code (without regard to
    subsection(d)): <<NOTE: Grants.>> Provided further, That the Secretary
    of Transportation shall distribute such $60,000,000 as competitive
    discretionary grants to States, with priority given to those projects
    that demonstrate to his satisfaction their ability to be completed
    within 2 years of enactment of this Act: Provided further, That of the
    funds provided under this heading, $550,000,000 shall be for investments
    in transportation at Indian reservations and Federal lands: Provided
    further, That of the funds identified in the preceding proviso,
    $310,000,000 shall be for the Indian Reservation Roads program,
    $170,000,000 shall be for the Park Roads and Parkways program,
    $60,000,000 shall be for the Forest Highway Program, and $10,000,000
    shall be for the Refuge Roads program: Provided further, That for
    investments at Indian reservations and Federal lands, priority shall be
    given to capital investments, and to projects and activities that can be
    completed within 2 years of enactment of this Act: <<NOTE: Effective
    date. Redistribution authority.>> Provided further, That 1 year
    following the enactment of this Act, to ensure the prompt use of the
    $550,000,000 provided for investments at Indian reservations and Federal
    lands, the Secretary shall have the authority to redistribute
    unobligated funds within the respective program for which the funds were
    appropriated: Provided further, That up to 4 percent of the funding
    provided for Indian Reservation Roads may be used by the Secretary of
    the Interior for program management and oversight and project-related
    administrative expenses: Provided further, That section
    134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply to
    funds provided under this heading: Provided further, That of the funds
    made available under this heading, $20,000,000 shall be for highway
    surface transportation and technology training under section 140(b) of
    title 23, United States Code, and $20,000,000 shall be for disadvantaged
    business enterprises bonding assistance under section 332(e) of title
    49, United States Code: Provided further, That funds made available
    under this heading shall be administered as if apportioned under chapter
    1 of title 23, United States Code, except for funds made available for
    investments in transportation at Indian reservations and Federal lands,
    and for the territorial highway program, which shall be administered in
    accordance with chapter 2 of title 23, United States Code, and except
    for funds made available for disadvantaged business enterprises bonding
    assistance, which shall be administered in accordance with chapter 3 of
    title 49, United States Code: Provided further, That the Federal share
    payable on account of any project or activity carried out with funds
    made available under this heading shall be, at the option of the
    recipient, up to 100 percent of the total cost thereof: Provided
    further, That

    [[Page 123 STAT. 208]]

    funds made available by this Act shall not be obligated for the purposes
    authorized under section 115(b) of title 23, United States Code:
    Provided further, That funding provided under this heading shall be in
    addition to any and all funds provided for fiscal years 2009 and 2010 in
    any other Act for ``Federal-aid Highways'' and shall not affect the
    distribution of funds provided for ``Federal-aid Highways'' in any other
    Act: Provided further, That the amount made available under this heading
    shall not be subject to any limitation on obligations for Federal-aid
    highways or highway safety construction programs set forth in any
    Act: <<NOTE: Applicability.>> Provided further, That section 1101(b) of
    Public Law 109-59 shall apply to funds apportioned under this heading:
    Provided further, That the Administrator of the Federal Highway
    Administration may retain up to $40,000,000 of the funds provided under
    this heading to fund the oversight by the Administrator of projects and
    activities carried out with funds made available to the Federal Highway
    Administration in this Act, and such funds shall be available through
    September 30, 2012.

                         Federal Railroad Administration

     Capital Assistance for High Speed Rail Corridors <<NOTE: Grants.>> and
    Intercity Passenger Rail Service

        For an additional amount for section 501 of Public Law 110-432 and
    discretionary grants to States to pay for the cost of projects described
    in paragraphs (2)(A) and (2)(B) of section 24401 of title 49, United
    States Code, subsection (b) of section 24105 of such title,
    $8,000,000,000, to remain available through September 30, 2012:
    Provided, That the Secretary of Transportation shall give priority to
    projects that support the development of intercity high speed rail
    service: <<NOTE: Deadline. Strategic plan.>> Provided further, That
    within 60 days of the enactment of this Act, the Secretary shall submit
    to the House and Senate Committees on Appropriations a strategic plan
    that describes how the Secretary will use the funding provided under
    this heading to improve and deploy high speed passenger rail
    systems: <<NOTE: Deadline. Guidance.>> Provided further, That within 120
    days of enactment of this Act, the Secretary shall issue interim
    guidance to applicants covering grant terms, conditions, and procedures
    until final regulations are issued: Provided further, That such interim
    guidance shall provide separate instructions for the high speed rail
    corridor program, capital assistance for intercity passenger rail
    service grants, and congestion grants: <<NOTE: Waiver
    authority.>> Provided further, That the Secretary shall waive the
    requirement that a project conducted using funds provided under this
    heading be in a State rail plan developed under chapter 227 of title 49,
    United States Code: Provided further, That the Federal share payable of
    the costs for which a grant is made under this heading shall be, at the
    option of the recipient, up to 100
    percent: <<NOTE: Compliance.>> 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: <<NOTE: Applicability.>> Provided further, That section 24405 of
    title 49, United States Code, shall apply to funds provided under this
    heading: Provided further, That the Administrator of the Federal
    Railroad Administration may retain up to one-quarter of 1 percent of the
    funds provided under this heading to fund the award and oversight by the
    Administrator of grants made under this heading, and funds retained for
    said purposes shall remain available through September 30, 2014.

    [[Page 123 STAT. 209]]

          capital grants to the national railroad passenger corporation

        For an additional amount for the National Railroad Passenger
    Corporation (Amtrak) to enable the Secretary of Transportation to make
    capital grants to Amtrak as authorized by section 101(c) of the
    Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-
    432), $1,300,000,000, to remain available through September 30, 2010, of
    which $450,000,000 shall be used for capital security grants: Provided,
    That priority for the use of non-security funds shall be given to
    projects for the repair, rehabilitation, or upgrade of railroad assets
    or infrastructure, and for capital projects that expand passenger rail
    capacity including the rehabilitation of rolling stock: Provided
    further, That none of the funds under this heading shall be used to
    subsidize the operating losses of Amtrak: Provided
    further, <<NOTE: Deadline.>> That funds provided under this heading
    shall be awarded not later than 30 days after the date of enactment of
    this Act: Provided further, <<NOTE: Deadline.>> That the Secretary shall
    take measures to ensure that projects funded under this heading shall be
    completed within 2 years of enactment of this Act, and shall serve to
    supplement and not supplant planned expenditures for such activities
    from other Federal, State, local and corporate
    sources: <<NOTE: Certification.>> Provided further, That the Secretary
    shall certify to the House and Senate Committees on Appropriations in
    writing compliance with the preceding proviso: Provided further, That
    not more than 60 percent of the funds provided for non-security
    activities under this heading may be used for capital projects along the
    Northeast Corridor: Provided further, That of the funding provided under
    this heading, $5,000,000 shall be made available for the Amtrak Office
    of Inspector General and made available through September 30, 2013.

                         Federal Transit Administration

    transit capital <<NOTE: Grants.>> assistance

        For an additional amount for transit capital assistance grants
    authorized under section 5302(a)(1) of title 49, United States Code,
    $6,900,000,000, to remain available through September 30, 2010:
    Provided, That the Secretary of Transportation shall provide 80 percent
    of the funds appropriated under this heading for grants under section
    5307 of title 49, United States Code, and apportion such funds in
    accordance with section 5336 of such title (other than subsections
    (i)(1) and (j)): Provided further, That the Secretary shall apportion 10
    percent of the funds appropriated under this heading in accordance with
    section 5340 of such title: Provided further, That the Secretary shall
    provide 10 percent of the funds appropriated under this heading for
    grants under section 5311 of title 49, United States Code, and apportion
    such funds in accordance with such section: <<NOTE: Deadline.>> Provided
    further, That funds apportioned under this heading shall be apportioned
    not later than 21 days after the date of enactment of this Act: Provided
    further, <<NOTE: Effective date.>> That 180 days following the date of
    such apportionment, the Secretary shall withdraw from each urbanized
    area or State an amount equal to 50 percent of the funds apportioned to
    such urbanized areas or States less the amount of funding obligated, and
    the Secretary shall redistribute such amounts to other urbanized areas
    or States that have had no funds withdrawn under this proviso utilizing
    whatever method he deems appropriate to ensure that all funds

    [[Page 123 STAT. 210]]

    redistributed under this proviso shall be utilized
    promptly: <<NOTE: Effective date.>> Provided further, That 1 year
    following the date of such apportionment, the Secretary shall withdraw
    from each urbanized area or State any unobligated funds, and the
    Secretary shall redistribute such amounts to other urbanized areas or
    States that have had no funds withdrawn under this proviso utilizing
    whatever method he deems appropriate to ensure that all funds
    redistributed under this proviso shall be utilized promptly: Provided
    further, That at the request of an urbanized area or State, the
    Secretary of Transportation may provide an extension of such 1-year
    period if he feels satisfied that the urbanized area or State has
    encountered an unworkable bidding environment or other extenuating
    circumstances: <<NOTE: Submission.>> Provided further, That before
    granting such an extension, the Secretary shall send a letter to the
    House and Senate Committees on Appropriations that provides a thorough
    justification for the extension: Provided further, That of the funds
    provided for section 5311 of title 49, United States Code, 2.5 percent
    shall be made available for section 5311(c)(1): Provided further, That
    of the funding provided under this heading, $100,000,000 shall be
    distributed as discretionary grants to public transit agencies for
    capital investments that will assist in reducing the energy consumption
    or greenhouse gas emissions of their public transportation systems:
    Provided further, That for such grants on energy-related investments,
    priority shall be given to projects based on the total energy savings
    that are projected to result from the investment, and projected energy
    savings as a percentage of the total energy usage of the public transit
    agency: <<NOTE: Applicability.>> Provided further, That applicable
    chapter 53 requirements shall apply to funding provided under this
    heading, except that the Federal share of the costs for which any grant
    is made under this heading shall be, at the option of the recipient, up
    to 100 percent: Provided further, That the amount made available under
    this heading shall not be subject to any limitation on obligations for
    transit programs set forth in any Act: <<NOTE: Applicability.>> Provided
    further, That section 1101(b) of Public Law 109-59 shall apply to funds
    appropriated under this heading: Provided further, That the funds
    appropriated under this heading shall not be comingled with any prior
    year funds: Provided further, That notwithstanding any other provision
    of law, three-quarters of 1 percent of the funds provided for grants
    under section 5307 and section 5340, and one-half of 1 percent of the
    funds provided for grants under section 5311, shall be available for
    administrative expenses and program management oversight, and such funds
    shall be available through September 30, 2012.

                    fixed guideway infrastructure investment

        For an amount for capital expenditures authorized under section
    5309(b)(2) of title 49, United States Code, $750,000,000, to remain
    available through September 30, 2010: Provided, That the Secretary of
    Transportation shall apportion funds under this heading pursuant to the
    formula set forth in section 5337 of title 49, United States Code:
    Provided further, That the funds appropriated under this heading shall
    not be commingled with any prior year <<NOTE: Deadline.>> funds:
    Provided further, That funds made available under this heading shall be
    apportioned not later than 21 days after the date of enactment of this
    Act: <<NOTE: Effective date.>> Provided further, That 180 days following
    the date of such apportionment, the Secretary shall

    [[Page 123 STAT. 211]]

    withdraw from each urbanized area an amount equal to 50 percent of the
    funds apportioned to such urbanized area less the amount of funding
    obligated, and the Secretary shall redistribute such amounts to other
    urbanized areas that have had no funds withdrawn under this proviso
    utilizing whatever method he or she deems appropriate to ensure that all
    funds redistributed under this proviso shall be utilized
    promptly: <<NOTE: Effective date.>> Provided further, That 1 year
    following the date of such apportionment, the Secretary shall withdraw
    from each urbanized area any unobligated funds, and the Secretary shall
    redistribute such amounts to other urbanized areas that have had no
    funds withdrawn under this proviso utilizing whatever method he or she
    deems appropriate to ensure that all funds redistributed under this
    proviso shall be utilized promptly: Provided further, That at the
    request of an urbanized area, the Secretary of Transportation may
    provide an extension of such 1-year period if he or she feels satisfied
    that the urbanized area has encountered an unworkable bidding
    environment or other extenuating
    circumstances: <<NOTE: Submission.>> 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: <<NOTE: Applicability.>> Provided
    further, That applicable chapter 53 requirements shall apply except that
    the Federal share of the costs for which a grant is made under this
    heading shall be, at the option of the recipient, up to 100
    percent: <<NOTE: Applicability.>> Provided further, That the provisions
    of section 1101(b) of Public Law 109-59 shall apply to funds made
    available under this heading: Provided further, That notwithstanding any
    other provision of law, up to 1 percent of the funds under this heading
    shall be available for administrative expenses and program management
    oversight and shall remain available for obligation until September 30,
    2012.

                            capital investment grants

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

    [[Page 123 STAT. 212]]

                             Maritime Administration

              supplemental grants for assistance to small shipyards

        To make grants to qualified shipyards as authorized under section
    3508 of Public Law 110-417 or section 54101 of title 46, United States
    Code, $100,000,000, to remain available through September 30,
    2010: <<NOTE: Deadline.>> Provided, That the Secretary of Transportation
    shall institute measures to ensure that funds provided under this
    heading shall be obligated within 180 days of the date of their
    distribution: Provided further, That the Maritime Administrator may
    retain and transfer to ``Maritime Administration, Operations and
    Training'' up to 2 percent of the funds provided under this heading to
    fund the award and oversight by the Administrator of grants made under
    this heading.

                           Office of Inspector General

                              salaries and expenses

        For an additional amount for necessary expenses of the Office of
    Inspector General to carry out the provisions of the Inspector General
    Act of 1978, as amended, $20,000,000, to remain available through
    September 30, 2013: Provided, <<NOTE: Audits. Investigations.>> That the
    funding made available under this heading shall be used for conducting
    audits and investigations of projects and activities carried out with
    funds made available in this Act to the Department of Transportation:
    Provided further, <<NOTE: Fraud.>> That the Inspector General shall have
    all necessary authority, in carrying out the duties specified in the
    Inspector General Act, as amended (5 U.S.C. App. 3), to investigate
    allegations of fraud, including false statements to the Government (18
    U.S.C. 1001), by any person or entity that is subject to regulation by
    the Department.

                 GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION

        Sec. 1201. (a) Maintenance of Effort.--
    Not <<NOTE: Deadline. Certification.>> later than 30 days after the date
    of enactment of this Act, for each amount that is distributed to a State
    or agency thereof from an appropriation in this Act for a covered
    program, the Governor of the State shall certify to the Secretary of
    Transportation that the State will maintain its effort with regard to
    State funding for the types of projects that are funded by the
    appropriation. <<NOTE: Submission. Time period.>> As part of this
    certification, the Governor shall submit to the Secretary of
    Transportation a statement identifying the amount of funds the State
    planned to expend from State sources as of the date of enactment of this
    Act during the period beginning on the date of enactment of this Act
    through September 30, 2010, for the types of projects that are funded by
    the appropriation.

        (b) Failure To Maintain Effort.--
                If a State is unable to maintain the level of effort
            certified pursuant to subsection (a), the State will be
            prohibited by the Secretary of Transportation from receiving
            additional limitation pursuant to the redistribution of the
            limitation on obligations for Federal-aid highway and highway
            safety construction programs that occurs after August 1 for
            fiscal year 2011.

        (c) Periodic Reports.--

    [[Page 123 STAT. 213]]

                (1) In general.--Notwithstanding any other provision of law,
            each grant recipient shall submit to the covered agency from
            which they received funding periodic reports on the use of the
            funds appropriated in this Act for covered programs. Such
            reports shall be collected and compiled by the covered agency
            and transmitted to Congress. Covered agencies may develop such
            reports on behalf of grant recipients to ensure the accuracy and
            consistency of such reports.
                (2) Contents of Reports.--For amounts received under each
            covered program by a grant recipient under this Act, the grant
            recipient shall include in the periodic reports information
            tracking-
                        (A) the amount of Federal funds appropriated,
                    allocated, obligated, and outlayed under the
                    appropriation;
                        (B) the number of projects that have been put out to
                    bid under the appropriation and the amount of Federal
                    funds associated with such projects;
                        (C) the number of projects for which contracts have
                    been awarded under the appropriation and the amount of
                    Federal funds associated with such contracts;
                        (D) the number of projects for which work has begun
                    under such contracts and the amount of Federal funds
                    associated with such contracts;
                        (E) the number of projects for which work has been
                    completed under such contracts and the amount of Federal
                    funds associated with such contracts;
                        (F) the number of direct, on-project jobs created or
                    sustained by the Federal funds provided for projects
                    under the appropriation and, to the extent possible, the
                    estimated indirect jobs created or sustained in the
                    associated supplying industries, including the number of
                    job-years created and the total increase in employment
                    since the date of enactment of this Act; and
                        (G) for each covered program report information
                    tracking the actual aggregate expenditures by each grant
                    recipient from State sources for projects eligible for
                    funding under the program during the period beginning on
                    the date of enactment of this Act through September 30,
                    2010, as compared to the level of such expenditures that
                    were planned to occur during such period as of the date
                    of enactment of this Act.
                (3) Timing of Reports.--Each grant recipient shall submit
            the first of the periodic reports required under this subsection
            not later than 90 days after the date of enactment of this Act
            and shall submit updated reports not later than 180 days, 1
            year, 2 years, and 3 years after such date of enactment.

        (d) Definitions.--In this section, the following definitions apply:
                (1) Covered Agency.--The term ``covered agency'' means the
            Office of the Secretary of Transportation, the Federal Aviation
            Administration, the Federal Highway Administration, the Federal
            Railroad Administration, the Federal Transit Administration and
            the Maritime Administration of the Department of Transportation.
                (2) Covered Program.--The term ``covered program'' means
            funds appropriated in this Act for ``Supplemental Discretionary
            Grants for a National Surface Transportation System''

    [[Page 123 STAT. 214]]

            to the Office of the Secretary of Transportation, for
            ``Supplemental Funding for Facilities and Equipment'' and
            ``Grants-in-Aid for Airports'' to the Federal Aviation
            Administration; for ``Highway Infrastructure Investment'' to the
            Federal Highway Administration; for ``Capital Assistance for
            High Speed Rail Corridors and Intercity Passenger Rail Service''
            and ``Capital Grants to the National Railroad Passenger
            Corporation'' to the Federal Railroad Administration; for
            ``Transit Capital Assistance'', ``Fixed Guideway Infrastructure
            Investment'', and ``Capital Investment Grants'' to the Federal
            Transit Administration; and ``Supplemental Grants for Assistance
            to Small Shipyards'' to the Maritime Administration.
                (3) Grant recipient.--The term ``grant recipient'' means a
            State or other recipient of assistance provided under a covered
            program in this Act. Such term does not include a Federal
            department or agency.

        (e) Notwithstanding any other provision of law, sections 3501-3521
    of title 44, United States Code, shall not apply to the provisions of
    this section.

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                            Public and Indian Housing

                           public housing capital fund

        For an additional amount for the ``Public Housing Capital Fund'' to
    carry out capital and management activities for public housing agencies,
    as authorized under section 9 of the United States Housing Act of 1937
    (42 U.S.C. 1437g) (the ``Act''), $4,000,000,000, to remain available
    until September 30, 2011: Provided, That the Secretary of Housing and
    Urban Development shall distribute $3,000,000,000 of this amount by the
    same formula used for amounts made available in fiscal year 2008, except
    that the Secretary may determine not to allocate funding to public
    housing agencies currently designated as troubled or to public housing
    agencies that elect not to accept such
    funding: <<NOTE: Deadline.>> Provided further, That the Secretary shall
    obligate funds allocated by formula within 30 days of enactment of this
    Act: Provided further, That the Secretary shall make available
    $1,000,000,000 by competition for priority investments, including
    investments that leverage private sector funding or financing for
    renovations and energy conservation retrofit investments:
    Provided <<NOTE: Deadline.>> further, That the Secretary shall obligate
    competitive funding by September 30, 2009: Provided further,
    That <<NOTE: Contracts.>> public housing authorities shall give priority
    to capital projects that can award contracts based on bids within 120
    days from the date the funds are made available to the public housing
    authorities: Provided further, That public housing agencies shall give
    priority consideration to the rehabilitation of vacant rental units:
    Provided further, That public housing agencies shall prioritize capital
    projects that are already underway or included in the 5-year capital
    fund plans required by the Act (42 U.S.C. 1437c-1(a)): Provided further,
    That notwithstanding any other provision of law, (1) funding provided
    under this heading may not be used for operating or rental assistance
    activities, and (2) any restriction of funding to replacement housing
    uses shall be inapplicable: Provided further, That notwithstanding any
    other provision of law, the Secretary shall institute measures to ensure
    that funds provided under this heading

    [[Page 123 STAT. 215]]

    shall serve to supplement and not supplant expenditures from other
    Federal, State, or local sources or funds independently generated by
    the <<NOTE: Deadlines.>> grantee: Provided further, That notwithstanding
    section 9(j), public housing agencies shall obligate 100 percent of the
    funds within 1 year of the date on which funds become available to the
    agency for obligation, shall expend at least 60 percent of funds within
    2 years of the date on which funds become available to the agency for
    obligation, and shall expend 100 percent of the funds within 3 years of
    such date: Provided further, That if a public housing agency fails to
    comply with the 1-year obligation requirement, the Secretary shall
    recapture all remaining unobligated funds awarded to the public housing
    agency and reallocate such funds to agencies that are in compliance with
    those requirements: Provided further, That if a public housing agency
    fails to comply with either the 2-year or the 3-year expenditure
    requirement, the Secretary shall recapture the balance of the funds
    awarded to the public housing agency and reallocate such funds to
    agencies that are in compliance with those <<NOTE: Waiver
    authority.>> requirements: Provided further, That in administering funds
    appropriated or otherwise made available under this heading, the
    Secretary may waive or specify alternative requirements for any
    provision of any statute or regulation in connection with the obligation
    by the Secretary or the use of these funds (except for requirements
    related to fair housing, nondiscrimination, labor standards, and the
    environment), upon a finding that such a waiver is necessary to expedite
    or facilitate the use of such funds: Provided further, That, in addition
    to waivers authorized under the previous proviso, the Secretary may
    direct that requirements relating to the procurement of goods and
    services arising under state and local laws and regulations shall not
    apply to amounts made available under this heading: Provided further,
    That of the funds made available under this heading, up to .5 percent
    shall be available for staffing, training, technical assistance,
    technology, monitoring, travel, enforcement, research and evaluation
    activities: Provided further, That funds set aside in the previous
    proviso shall remain available until September 30, 2012: Provided
    further, That any funds made available under this heading used by the
    Secretary for personnel expenses related to administering funding under
    this heading shall be transferred to ``Personnel Compensation and
    Benefits, Office of Public and Indian Housing'' and shall retain the
    terms and conditions of this account, including reprogramming
    provisions, except that the period of availability set forth in the
    previous proviso shall govern such transferred funds: Provided further,
    That any funds made available under this heading used by the Secretary
    for training or other administrative expenses shall be transferred to
    ``Administration, Operations, and Management'', for non-personnel
    expenses of the Department of Housing and Urban Development: Provided
    further, That any funds made available under this heading used by the
    Secretary for technology shall be transferred to ``Working Capital
    Fund''.

                      Native American Housing Block Grants

        For an additional amount for ``Native American Housing Block
    Grants'', as authorized under title I of the Native American Housing
    Assistance and Self-Determination Act of 1996 (``NAHASDA'') (25

    [[Page 123 STAT. 216]]

    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: <<NOTE: Deadline.>>  Provided further, That the
    Secretary shall obligate funds allocated by formula within 30 days of
    enactment of this Act: Provided further, That the amounts distributed
    through the formula shall be used for new construction, acquisition,
    rehabilitation including energy efficiency and conservation, and
    infrastructure development: Provided further, That in selecting projects
    to be funded, recipients shall give priority to projects for which
    contracts can be awarded within 180 days from the date that funds are
    available to the recipients: Provided further, that the Secretary may
    obligate $255,000,000 of the amount provided under this heading for
    competitive grants to eligible entities that apply for funds authorized
    under <<NOTE: Deadline.>> NAHASDA: Provided further, That the Secretary
    shall obligate competitive funding by September 30, 2009: Provided
    further, That in awarding competitive funds, the Secretary shall give
    priority to projects that will spur construction and rehabilitation and
    will create employment opportunities for low-income and
    unemployed <<NOTE: Deadlines.>> persons: Provided further, That
    recipients of funds under this heading shall obligate 100 percent of
    such funds within 1 year of the date funds are made available to a
    recipient, expend at least 50 percent of such funds within 2 years of
    the date on which funds become available to such recipients for
    obligation and expend 100 percent of such funds within 3 years of such
    date: Provided further, That if a recipient fails to comply with the 2-
    year expenditure requirement, the Secretary shall recapture all
    remaining funds awarded to the recipient and reallocate such funds
    through the funding formula to recipients that are in compliance with
    these requirements: Provided further, That if a recipient fails to
    comply with the 3-year expenditure requirement, the Secretary shall
    recapture the balance of the funds originally awarded to the recipient:
    Provided further, That notwithstanding any other provision of law, the
    Secretary may set aside up to 2 percent of funds made available under
    this paragraph for a housing entity eligible to receive funding under
    title VIII of NAHASDA (25 U.S.C. 4221 et seq.): <<NOTE: Waiver
    authority.>>  Provided further, That in administering funds appropriated
    or otherwise made available under this heading, the Secretary may waive
    or specify alternative requirements for any provision of any statute or
    regulation in connection with the obligation by the Secretary or the use
    of these funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment), upon a finding
    that such a waiver is necessary to expedite or facilitate the use of
    such funds: Provided further, That of the funds made available under
    this heading, up to .5 percent shall be available for staffing,
    training, technical assistance, technology, monitoring, travel,
    enforcement, research and evaluation activities: Provided further, That
    funds set aside in the previous proviso shall remain available until
    September 30, 2012: Provided further, That any funds made available
    under this heading used by the Secretary for personnel expenses related
    to administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Office of Public and Indian
    Housing'' and shall retain the terms and conditions of this account,
    including reprogramming provisions, except that the period of
    availability set forth in the

    [[Page 123 STAT. 217]]

    previous proviso shall govern such transferred funds: Provided further,
    That any funds made available under this heading used by the Secretary
    for training or other administrative expenses shall be transferred to
    ``Administration, Operations, and Management'', for non-personnel
    expenses of the Department of Housing and Urban Development: Provided
    further, That any funds made available under this heading used by the
    Secretary for technology shall be transferred to ``Working Capital
    Fund''.

                       Community Planning and Development

                           community development fund

        For an additional amount for ``Community Development Fund''
    $1,000,000,000, to remain available until September 30, 2010 to carry
    out the community development block grant program under title I of the
    Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.):
    Provided, That the amount appropriated in this paragraph shall be
    distributed pursuant to 42 U.S.C. 5306 to grantees that received funding
    in fiscal year <<NOTE: Requirements.>> 2008: Provided further, That in
    administering the funds appropriated in this paragraph, the Secretary of
    Housing and Urban Development shall establish requirements to expedite
    the use of the funds: Provided further, That in selecting projects to be
    funded, recipients shall give priority to projects that can award
    contracts based on bids within 120 days from the date the funds are made
    available to the <<NOTE: Waiver authority.>> recipients: Provided
    further, That in administering funds appropriated or otherwise made
    available under this heading, the Secretary may waive or specify
    alternative requirements for any provision of any statute or regulation
    in connection with the obligation by the Secretary or the use by the
    recipient of these funds (except for requirements related to fair
    housing, nondiscrimination, labor standards, and the environment), upon
    a finding that such waiver is necessary to expedite or facilitate the
    timely use of such funds and would not be inconsistent with the overall
    purpose of the statute.

        For the provision of emergency assistance for the redevelopment of
    abandoned and foreclosed homes, as authorized under division B, title
    III of the Housing and Economic Recovery Act of 2008 (``the Act'')
    (Public Law 110-289) (42 U.S.C. 5301 note), $2,000,000,000, to remain
    available until September 30, 2010: <<NOTE: Deadlines.>>  Provided, That
    grantees shall expend at least 50 percent of allocated funds within 2
    years of the date funds become available to the grantee for obligation,
    and 100 percent of such funds within 3 years of such date: Provided
    further, That unless otherwise noted herein, the provisions of the Act
    govern the use of the additional funds made available under this
    heading: Provided further, That notwithstanding the provisions of
    sections 2301(b) and (c)(1) and section 2302 of the Act, funding under
    this paragraph shall be allocated by competitions for which eligible
    entities shall be States, units of general local government, and
    nonprofit entities or consortia of nonprofit entities, which may submit
    proposals in partnership with for profit entities: Provided further,
    That in selecting grantees, the Secretary of Housing and Urban
    Development shall ensure that the grantees are in areas with the
    greatest number and percentage of foreclosures and can expend funding
    within the period allowed under this heading: Provided
    further, <<NOTE: Award criteria.>> That additional award criteria for
    such competitions shall include demonstrated grantee

    [[Page 123 STAT. 218]]

    capacity to execute projects, leveraging potential, concentration of
    investment to achieve neighborhood stabilization, and any additional
    factors determined by the Secretary of Housing and Urban Development:
    Provided further, That the Secretary may establish a minimum
    grant <<NOTE: Publication. Criteria. Deadlines.>> size: Provided
    further, That the Secretary shall publish criteria on which to base
    competition for any grants awarded under this heading not later than 75
    days after the enactment of this Act and applications shall be due to
    HUD not later than 150 days after the enactment of
    this <<NOTE: Deadline.>> Act: Provided further, That the Secretary shall
    obligate all funding within 1 year of enactment of this Act: Provided
    further, That section 2301(d)(4) of the Act <<NOTE: 42 USC 5301
    note.>> is repealed: Provided further, That section 2301(c)(3)(C) of the
    Act is amended to read ``establish and operate land banks for homes and
    residential properties that have been foreclosed upon'': Provided
    further, That funding used for section 2301(c)(3)(E) of the Act shall be
    available only for the redevelopment of demolished or vacant properties
    as housing: Provided further, That no amounts made available from a
    grant under this heading may be used to demolish any public housing (as
    such term is defined in section 3 of the United States Housing Act of
    1937 (42 U.S.C. 1437a)): Provided further, That a grantee may not use
    more than 10 percent of its grant under this heading for demolition
    activities under section 2301(c)(3)(C) and (D) unless the Secretary
    determines that such use represents an appropriate response to local
    market conditions: Provided <<NOTE: 42 USC 5301 note.>> further, That
    the recipient of any grant or loan from amounts made available under
    this heading or, after the date of enactment under division B, title III
    of the Housing and Economic Recovery Act of 2008, may not refuse to
    lease a dwelling unit in housing with such loan or grant to a
    participant under section 8 of the United States Housing Act of 1937 (42
    U.S.C 1437f) because of the status of the prospective tenant as such a
    participant: Provided further, That in addition to the eligible uses in
    section 2301, the Secretary may also use up to 10 percent of the funds
    provided under this heading for grantees for the provision of capacity
    building of and support for local communities receiving funding under
    section 2301 of the Act or under this heading: Provided <<NOTE: Waiver
    authority.>> further, That in administering funds appropriated or
    otherwise made available under this section, the Secretary may waive or
    specify alternative requirements for any provision of any statute or
    regulation in connection with the obligation by the Secretary or the use
    of funds except for requirements related to fair housing,
    nondiscrimination, labor standards and the environment, upon a finding
    that such a waiver is necessary to expedite or facilitate the use of
    such funds: Provided further, That <<NOTE: Foreclosure. Notice. 42 USC
    5301 note.>> in the case of any acquisition of a foreclosed upon
    dwelling or residential real property acquired after the date of
    enactment with any amounts made available under this heading or under
    division B, title III of the Housing and Economic Recovery Act of 2008
    (Public Law 110-289), the initial successor in interest in such property
    pursuant to the foreclosure shall assume such interest subject to: (1)
    the provision by such successor in interest of a notice to vacate to any
    bona fide tenant at least 90 days before the effective date of such
    notice; and (2) the rights of any bona fide tenant, as of the date of
    such notice of foreclosure: (A) under any bona fide lease entered into
    before the notice of foreclosure to occupy the premises until the end of
    the remaining term of the lease, except that a successor in interest may
    terminate a lease effective on

    [[Page 123 STAT. 219]]

    the date of sale of the unit to a purchaser who will occupy the unit as
    a primary residence, subject to the receipt by the tenant of the 90-day
    notice under this paragraph; or (B) without a lease or with a lease
    terminable at will under State law, subject to the receipt by the tenant
    of the 90-day notice under this paragraph, except that nothing in this
    paragraph shall affect the requirements for termination of any Federal-
    or State-subsidized tenancy or of any State or local law that provides
    longer time periods or other additional protections for tenants:
    Provided <<NOTE: Contracts.>> further, That, for purposes of this
    paragraph, a lease or tenancy shall be considered bona fide only if: (1)
    the mortgagor under the contract is not the tenant; (2) the lease or
    tenancy was the result of an arms-length transaction; and (3) the lease
    or tenancy requires the receipt of rent that is not substantially less
    than fair market rent for the property: Provided <<NOTE: 42 USC 5301
    note.>> further, That the recipient of any grant or loan from amounts
    made available under this heading or, after the date of enactment, under
    division B, title III of the Housing and Economic Recovery Act of 2008
    (Public Law 110-289) may not refuse to lease a dwelling unit in housing
    assisted with such loan or grant to a holder of a voucher or certificate
    of eligibility under section 8 of the United States Housing Act of 1937
    (42 U.S.C. 1437f) because of the status of the prospective tenant as
    such a holder: Provided further, That in the case of any qualified
    foreclosed housing for which funds made available under this heading or,
    after the date of enactment, under division B, title III of the Housing
    and Economic Recovery Act of 2008 (Public Law 110-289) are used and in
    which a recipient of assistance under section 8(o) of the U.S. Housing
    Act of 1937 resides at the time of foreclosure, the initial successor in
    interest shall be subject to the lease and to the housing assistance
    payments contract for the occupied unit: Provided further, That vacating
    the property prior to sale shall not constitute good cause for
    termination of the tenancy unless the property is unmarketable while
    occupied or unless the owner or subsequent purchaser desires the unit
    for personal or family use: Provided further, That if a public housing
    agency is unable to make payments under the contract to the immediate
    successor in interest after foreclosures, due to (1) an action or
    inaction by the successor in interest, including the rejection of
    payments or the failure of the successor to maintain the unit in
    compliance with section 8(o)(8) of the United States Housing Act of 1937
    (42 U.S.C.1437f) or (2) an inability to identify the successor, the
    agency may use funds that would have been used to pay the rental amount
    on behalf of the family--(i) to pay for utilities that are the
    responsibility of the owner under the lease or applicable law, after
    taking reasonable steps to notify the owner that it intends to make
    payments to a utility provider in lieu of payments to the owner, except
    prior notification shall not be required in any case in which the unit
    will be or has been rendered uninhabitable due to the termination or
    threat of termination of service, in which case the public housing
    agency shall notify the owner within a reasonable time after making such
    payment; or (ii) for the family's reasonable moving costs, including
    security deposit costs: Provided further, That this paragraph shall not
    preempt any Federal, State or local law that provides more protections
    for tenants: Provided further, That of the funds made available under
    this heading, up to 1 percent shall be available for staffing, training,
    technical assistance, technology, monitoring, travel,

    [[Page 123 STAT. 220]]

    enforcement, research and evaluation activities: Provided further, That
    funds set aside in the previous proviso shall remain available until
    September 30, 2012: Provided further, That any funds made available
    under this heading used by the Secretary for personnel expenses related
    to administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Community Planning and
    Development'' and shall retain the terms and conditions of this account,
    including reprogramming provisions, except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available under
    this heading used by the Secretary for training or other administrative
    expenses shall be transferred to ``Administration, Operations, and
    Management'' for non-personnel expenses of the Department of Housing and
    Urban Development: Provided further, That any funds made available under
    this heading used by the Secretary for technology shall be transferred
    to ``Working Capital Fund''.

                      home investment partnerships program

        For an additional amount for capital investments in low-income
    housing tax credit projects, $2,250,000,000, to remain available until
    September 30, 2011: Provided, That such funds shall be made available to
    State housing credit agencies, as defined in section 42(h) of the
    Internal Revenue Code of 1986, and shall be apportioned among the States
    based on the percentage of HOME funds apportioned to each State and the
    participating jurisdictions therein for Fiscal Year 2008: Provided
    further, That the housing credit agencies in each State shall distribute
    these funds competitively under this heading and pursuant to their
    qualified allocation plan (as defined in section 42(m) of the Internal
    Revenue Code of 1986) to owners of projects who have received or receive
    simultaneously an award of low-income housing tax credits under section
    42(h) of the Internal Revenue Code of 1986: <<NOTE: Deadlines.>>
    Provided further, That housing credit agencies in each State shall
    commit not less than 75 percent of such funds within one year of the
    date of enactment of this Act, and shall demonstrate that the project
    owners shall have expended 75 percent of the funds made available under
    this heading within two years of the date of enactment of this Act, and
    shall have expended 100 percent of the funds within 3 years of the date
    of enactment of this Act: Provided further, That failure by an owner to
    expend funds within the parameters required within the previous proviso
    shall result in a redistribution of these funds by a housing credit
    agency to a more deserving project in such State, except any funds not
    expended after 3 years from enactment shall be redistributed by the
    Secretary to other States that have fully utilized the funds made
    available to them: Provided further, That projects awarded low income
    housing tax credits under section 42(h) of the IRC of 1986 in fiscal
    years 2007, 2008, or 2009 shall be eligible for funding under this
    heading: Provided further, That housing credit agencies shall give
    priority to projects that are expected to be completed within 3 years of
    enactment: Provided further, That any assistance provided to an eligible
    low income housing tax credit project under this heading shall be made
    in the same manner and be subject to the same limitations (including
    rent, income, and use restrictions, in lieu of corresponding limitations
    under the HOME program) as required by the state housing

    [[Page 123 STAT. 221]]

    credit agency with respect to an award of low income housing credits
    under section 42 of the IRC of <<NOTE: Contracts.>> 1986: Provided
    further, That the housing credit agency shall perform asset management
    functions, or shall contract for the performance of such services, in
    either case, at the owner's expense, to ensure compliance with section
    42 of the IRC of 1986, and the long term viability of buildings funded
    by assistance under this heading: Provided further, That the term
    eligible basis (as such term is defined in such section 42) of a
    qualified low-income housing tax credit building receiving assistance
    under this heading shall not be reduced by the amount of any grant
    described under this <<NOTE: Web site.>> heading: Provided further, That
    the Secretary shall be given access upon reasonable notice to a State
    housing credit agency to information related to the award of Federal
    funds from such housing credit agency pursuant to this heading and shall
    establish an Internet site that shall identify all projects selected for
    an award, including the amount of the award and such site shall provide
    linkage to the housing credit agency allocation plan which describes the
    process that was used to make the award <<NOTE: Waiver
    authority.>> decision: Provided further, That in administering funds
    under this heading, the Secretary may waive any provision of any statute
    or regulation that the Secretary administers in connection with the
    obligation by the Secretary or the use by the recipient of these funds
    except for requirements imposed by this heading and requirements related
    to fair housing, non-discrimination, labor standards and the
    environment, upon a finding that such waiver is required to expedite the
    use of such funds: Provided further, That for purposes of environmental
    compliance review, funds under this heading that are made available to
    State housing credit agencies for distribution to projects awarded low
    income housing tax credits shall be treated as funds under the HOME
    program and shall be subject to Section 288 of the HOME Investment
    Partnership Act.

                          homelessness prevention fund

        For homelessness prevention and rapid re-housing activities,
    $1,500,000,000, to remain available until September 30, 2011: Provided,
    That funds provided under this heading shall be used for the provision
    of short-term or medium-term rental assistance; housing relocation and
    stabilization services including housing search, mediation or outreach
    to property owners, credit repair, security or utility deposits, utility
    payments, rental assistance for a final month at a location, moving cost
    assistance, and case management; or other appropriate activities for
    homelessness prevention and rapid re-housing of persons who have become
    homeless: Provided further, That grantees receiving such assistance
    shall collect data on the use of the funds awarded and persons served
    with this assistance in the HUD Homeless Management Information System
    (``HMIS'') or other comparable database: Provided further, That grantees
    may use up to 5 percent of any grant for administrative costs: Provided
    further, That funding made available under this heading shall be
    allocated to eligible grantees (as defined and designated in sections
    411 and 412 of subtitle B of title IV of the McKinney-Vento Homeless
    Assistance Act, (the ``Act'')) pursuant to the formula authorized by
    section 413 of the Act: Provided further, That the Secretary may
    establish a minimum grant size: Provided
    further, <<NOTE: Deadlines.>> That grantees shall expend at least 60
    percent

    [[Page 123 STAT. 222]]

    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 <<NOTE: Waiver authority.>> 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 <<NOTE: Publication. Notice. Deadline. Effective
    date.>> further, That the Secretary shall publish a notice to establish
    such requirements as may be necessary to carry out the provisions of
    this section within 30 days of enactment of this Act and that this
    notice shall take effect upon issuance: Provided further, That of the
    funds provided under this heading, up to .5 percent shall be available
    for staffing, training, technical assistance, technology, monitoring,
    research and evaluation activities: Provided further, That funds set
    aside under the previous proviso shall remain available until September
    30, 2012: Provided further, That any funds made available under this
    heading used by the Secretary for personnel expenses related to
    administering funding under this heading shall be transferred to
    ``Community Planning and Development Personnel Compensation and
    Benefits'' and shall retain the terms and conditions of this account
    including reprogramming provisions except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available under
    this heading used by the Secretary for training or other administrative
    expenses shall be transferred to ``Administration, Operations, and
    Management'' for non-personnel expenses of the Department of Housing and
    Urban Development: Provided further, That any funding made available
    under this heading used by the Secretary for technology shall be
    transferred to ``Working Capital Fund.''

                                Housing Programs

      assisted housing stability and energy and green retrofit investments

        For assistance to owners of properties receiving project-based
    assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C.
    17012), section 811 of the Cranston-Gonzalez National Affordable Housing
    Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of
    1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which
    $2,000,000,000 shall be for an additional amount for paragraph (1) under
    the heading ``Project-Based Rental Assistance'' in Public Law 110-161
    for payments to owners for 12-month periods, and of which $250,000,000
    shall be for grants or loans for energy retrofit and green investments
    in such assisted housing: Provided, That projects funded with grants or
    loans provided under this heading must comply with the requirements of
    subchapter IV of chapter 31 of title 40, United States Code: Provided
    further, That such grants or loans shall be provided through the
    policies, procedures, contracts, and transactional infrastructure of the
    authorized programs administered by the Office of Affordable Housing
    Preservation of the Department of Housing and Urban Development, on such
    terms and conditions as the Secretary of Housing and Urban Development
    deems appropriate to ensure the

    [[Page 123 STAT. 223]]

    maintenance and preservation of the property, the continued operation
    and maintenance of energy efficiency technologies, and the timely
    expenditure of funds: Provided further, That the Secretary may provide
    incentives to owners to undertake energy or green retrofits as a part of
    such grant or loan terms, including, but not limited to, fees to cover
    investment oversight and implementation by said owner, or to encourage
    job creation for low-income or very low-income individuals: Provided
    further, That the Secretary may share in a portion of future property
    utility savings resulting from improvements made by grants or loans made
    available under this heading: Provided further, That the grants or loans
    shall include a financial assessment and physical inspection of such
    property: Provided further, That eligible owners must have at least a
    satisfactory management review rating, be in substantial compliance with
    applicable performance standards and legal requirements, and commit to
    an additional period of affordability determined by the Secretary, but
    of not fewer than 15 years: Provided further, That the Secretary shall
    undertake appropriate underwriting and oversight with respect to grant
    and loan transactions and may set aside up to 5 percent of the funds
    made available under this heading for grants or loans for such purpose:
    Provided further, That the Secretary shall take steps necessary to
    ensure that owners receiving funding for energy and green retrofit
    investments under this heading shall expend such funding within 2 years
    of the date they received the funding: Provided <<NOTE: Waiver
    authority.>> further, That in administering funds appropriated or
    otherwise made available under this heading, the Secretary may waive or
    specify alternative requirements for any provision of any statute or
    regulation in connection with the obligation by the Secretary or the use
    of these funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment), upon a finding
    that such a waiver is necessary to expedite or facilitate the use of
    such funds: Provided further, That of the funds provided under this
    heading for grants and loans, up to 1 percent shall be available for
    staffing, training, technical assistance, technology, monitoring,
    research and evaluation activities: Provided further, That funds set
    aside in the previous proviso shall remain available until September 30,
    2012: Provided further, That funding made available under this heading
    and used by the Secretary for personnel expenses related to
    administering funding under this heading shall be transferred to
    ``Housing Personnel Compensation and Benefits'' and shall retain the
    terms and conditions of this account including reprogramming provisos
    except that the period of availability set forth in the previous proviso
    shall govern such transferred funds: Provided further, That any funding
    made available under this heading used by the Secretary for training and
    other administrative expenses shall be transferred to ``Administration,
    Operations and Management'' for non-personnel expenses of the Department
    of Housing and Urban Development: Provided further, That any funding
    made available under this heading used by the Secretary for technology
    shall be transferred to ``Working Capital Fund.''

                 Office of Lead Hazard Control and Healthy Homes

        For an additional amount for the ``Lead Hazard Reduction Program'',
    as authorized by section 1011 of the Residential Lead-Based Paint Hazard
    Reduction Act of 1992, and by sections 501

    [[Page 123 STAT. 224]]

    and 502 of the Housing and Urban Development Act of 1974, $100,000,000,
    to remain available until September 30, 2011: Provided, That for
    purposes of environmental review, pursuant to the National Environmental
    Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law
    that further the purposes of such Act, a grant under the Healthy Homes
    Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead
    Technical Studies program under this heading or under prior
    appropriations Acts for such purposes under this heading, shall be
    considered to be funds for a special project for purposes of section
    305(e) of the Multifamily Housing Property Disposition Reform Act of
    1994: Provided further, That funds shall be awarded first to applicants
    which had applied under the Lead Hazard Reduction Program Notices of
    Funding Availability for fiscal year 2008, and were found in the
    application review to be qualified for award, but were not awarded
    because of funding limitations, and that any funds which remain after
    reservation of funds for such grants shall be added to the amount of
    funds to be awarded under the Lead Hazard Reduction Program Notices of
    Funding Availability for fiscal year 2009:
    Provided <<NOTE: Plans. Strategy.>> further, That each applicant for the
    Lead Hazard Program Notices of Funding Availability for fiscal year 2009
    shall submit a detailed plan and strategy that demonstrates adequate
    capacity that is acceptable to the Secretary to carry out the proposed
    use of funds: Provided <<NOTE: Deadlines.>> further, That recipients of
    funds under this heading shall expend at least 50 percent of such funds
    within 2 years of the date on which funds become available to such
    jurisdictions for obligation, and expend 100 percent of such funds
    within 3 years of such date: Provided further, That if a recipient fails
    to comply with the 2-year expenditure requirement, the Secretary shall
    recapture all remaining funds awarded to the recipient and reallocate
    such funds to recipients that are in compliance with those requirements:
    Provided further, That if a recipient fails to comply with the 3-year
    expenditure requirement, the Secretary shall recapture the balance of
    the funds awarded to the recipient: Provided <<NOTE: Waiver
    authority.>> further, That in administering funds appropriated or
    otherwise made available under this heading, the Secretary may waive or
    specify alternative requirements for any provision of any statute or
    regulation in connection with the obligation by the Secretary or the use
    of these funds (except for requirements related to fair housing,
    nondiscrimination, labor standards and the environment), upon a finding
    that such a waiver is necessary to expedite or facilitate the use of
    such funds: Provided further, That of the funds made available under
    this heading, up to .5 percent shall be available for staffing,
    training, technical assistance, technology, monitoring, travel,
    enforcement, research and evaluation activities: Provided further, That
    funds set aside in the previous proviso shall remain available until
    September 30, 2012: Provided further, That any funds made available
    under this heading used by the Secretary for personnel expenses related
    to administering funding under this heading shall be transferred to
    ``Personnel Compensation and Benefits, Office of Lead Hazard Control and
    Healthy Homes'' and shall retain the terms and conditions of this
    account, including reprogramming provisions, except that the period of
    availability set forth in the previous proviso shall govern such
    transferred funds: Provided further, That any funds made available under
    this heading used by the Secretary for training or other administrative
    expenses shall be transferred

    [[Page 123 STAT. 225]]

    to ``Administration, Operations, and Management'', for non-personnel
    expenses of the Department of Housing and Urban Development: Provided
    further, That any funds made available under this heading used by the
    Secretary for technology shall be transferred to ``Working Capital
    Fund''.

                          Management and Administration

                           office of inspector general

        For an additional amount for the necessary salaries and expenses of
    the Office of Inspector General in carrying out the Inspector General
    Act of 1978, as amended, $15,000,000, to remain available until
    September 30, 2013: Provided, That the Inspector General shall have
    independent authority over all personnel issues within this office.

         GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

    [[Page 123 STAT. 226]]

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

     TITLE XIII--HEALTH <<NOTE: Health Information Technology for Economic
    and Clinical Health Act.>> INFORMATION TECHNOLOGY

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

        (a) Short Title.--This <<NOTE: 42 USC 201 note.>> title (and title
    IV of division B) may be cited as the ``Health Information Technology
    for Economic and Clinical Health Act'' or the ``HITECH Act''.

        (b) Table of Contents of Title.--The table of contents of this title
    is as follows:

    Sec. 13001. Short title; table of contents of title.

             Subtitle A--Promotion of Health Information Technology

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

    Sec. 13101. ONCHIT; standards development and adoption.

             ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

            ``Sec. 3000. Definitions.

    [[Page 123 STAT. 227]]

            ``Subtitle A--Promotion of Health Information Technology

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

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

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

              Subtitle B--Testing of Health Information Technology

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

                      Subtitle C--Grants and Loans Funding

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

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

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

                               Subtitle D--Privacy

    Sec. 13400. Definitions.

           Part 1--Improved Privacy Provisions and Security Provisions

    Sec. 13401. Application of security provisions and penalties to business
               associates of covered entities; annual guidance on security
               provisions.
    Sec. 13402. Notification in the case of breach.
    Sec. 13403. Education on health information privacy.
    Sec. 13404. Application of privacy provisions and penalties to business
               associates of covered entities.
    Sec. 13405. Restrictions on certain disclosures and sales of health
               information; accounting of certain protected health
               information disclosures; access to certain information in
               electronic format.
    Sec. 13406. Conditions on certain contacts as part of health care
               operations.
    Sec. 13407. Temporary breach notification requirement for vendors of
               personal health records and other non-HIPAA covered entities.
    Sec. 13408. Business associate contracts required for certain entities.
    Sec. 13409. Clarification of application of wrongful disclosures
               criminal penalties.
    Sec. 13410. Improved enforcement.
    Sec. 13411. Audits.

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

    Sec. 13421. Relationship to other laws.

    [[Page 123 STAT. 228]]

    Sec. 13422. Regulatory references.
    Sec. 13423. Effective date.
    Sec. 13424. Studies, reports, guidance.

             Subtitle A--Promotion of Health Information Technology

          PART 1--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY

    SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

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

             ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

    ``SEC. 3000. <<NOTE: 42 USC 300jj.>> DEFINITIONS.

        ``In this title:
                ``(1) Certified ehr technology.--The term `certified EHR
            technology' means a qualified electronic health record that is
            certified pursuant to section 3001(c)(5) as meeting standards
            adopted under section 3004 that are applicable to the type of
            record involved (as determined by the Secretary, such as an
            ambulatory electronic health record for office-based physicians
            or an inpatient hospital electronic health record for
            hospitals).
                ``(2) Enterprise integration.--The term `enterprise
            integration' means the electronic linkage of health care
            providers, health plans, the government, and other interested
            parties, to enable the electronic exchange and use of health
            information among all the components in the health care
            infrastructure in accordance with applicable law, and such term
            includes related application protocols and other related
            standards.
                ``(3) Health care provider.--The term `health care provider'
            includes a hospital, skilled nursing facility, nursing facility,
            home health entity or other long term care facility, health care
            clinic, community mental health center (as defined in section
            1913(b)(1)), renal dialysis facility, blood center, ambulatory
            surgical center described in section 1833(i) of the Social
            Security Act, emergency medical services provider, Federally
            qualified health center, group practice, a pharmacist, a
            pharmacy, a laboratory, a physician (as defined in section
            1861(r) of the Social Security Act), a practitioner (as
            described in section 1842(b)(18)(C) of the Social Security Act),
            a provider operated by, or under contract with, the Indian
            Health Service or by an Indian tribe (as defined in the Indian
            Self-Determination and Education Assistance Act), tribal
            organization, or urban Indian organization (as defined in
            section 4 of the Indian Health Care Improvement Act), a rural
            health clinic, a covered entity under section 340B, an
            ambulatory surgical center described in section 1833(i) of the
            Social Security Act, a therapist (as defined in section
            1848(k)(3)(B)(iii) of the Social Security Act), and any other
            category of health care facility, entity,

    [[Page 123 STAT. 229]]

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

    [[Page 123 STAT. 230]]

            ``Subtitle A--Promotion of Health Information Technology

    ``SEC. 3001. OFFICE <<NOTE: 42 USC 300jj-11.>> OF THE NATIONAL
                COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY.

        ``(a) Establishment.--There is established within the Department of
    Health and Human Services an Office of the National Coordinator for
    Health Information Technology (referred to in this section as the
    `Office'). The Office shall be headed by a National Coordinator who
    shall be appointed by the Secretary and shall report directly to the
    Secretary.
        ``(b) Purpose.--The National Coordinator shall perform the duties
    under subsection (c) in a manner consistent with the development of a
    nationwide health information technology infrastructure that allows for
    the electronic use and exchange of information and that--
                ``(1) ensures that each patient's health information is
            secure and protected, in accordance with applicable law;
                ``(2) improves health care quality, reduces medical errors,
            reduces health disparities, and advances the delivery of
            patient-centered medical care;
                ``(3) reduces health care costs resulting from inefficiency,
            medical errors, inappropriate care, duplicative care, and
            incomplete information;
                ``(4) provides appropriate information to help guide medical
            decisions at the time and place of care;
                ``(5) ensures the inclusion of meaningful public input in
            such development of such infrastructure;
                ``(6) improves the coordination of care and information
            among hospitals, laboratories, physician offices, and other
            entities through an effective infrastructure for the secure and
            authorized exchange of health care information;
                ``(7) improves public health activities and facilitates the
            early identification and rapid response to public health threats
            and emergencies, including bioterror events and infectious
            disease outbreaks;
                ``(8) facilitates health and clinical research and health
            care quality;
                ``(9) promotes early detection, prevention, and management
            of chronic diseases;
                ``(10) promotes a more effective marketplace, greater
            competition, greater systems analysis, increased consumer
            choice, and improved outcomes in health care services; and
                ``(11) improves efforts to reduce health disparities.

        ``(c) Duties of the National Coordinator.--
                ``(1) Standards.--The National Coordinator shall--
                        ``(A) review and determine whether to endorse each
                    standard, implementation specification, and
                    certification criterion for the electronic exchange and
                    use of health information that is recommended by the HIT
                    Standards Committee under section 3003 for purposes of
                    adoption under section 3004;
                        ``(B) make <<NOTE: Reports. Deadline.>> such
                    determinations under subparagraph (A), and report to the
                    Secretary such determinations, not later than 45 days
                    after the date the recommendation is received by the
                    Coordinator; and

    [[Page 123 STAT. 231]]

                        ``(C) review Federal health information technology
                    investments to ensure that Federal health information
                    technology programs are meeting the objectives of the
                    strategic plan published under paragraph (3).
                ``(2) HIT policy coordination.--
                        ``(A) In general.--The National Coordinator shall
                    coordinate health information technology policy and
                    programs of the Department with those of other relevant
                    executive branch agencies with a goal of avoiding
                    duplication of efforts and of helping to ensure that
                    each agency undertakes health information technology
                    activities primarily within the areas of its greatest
                    expertise and technical capability and in a manner
                    towards a coordinated national goal.
                        ``(B) HIT policy and standards committees.--The
                    National Coordinator shall be a leading member in the
                    establishment and operations of the HIT Policy Committee
                    and the HIT Standards Committee and shall serve as a
                    liaison among those two Committees and the Federal
                    Government.
                ``(3) Strategic plan.--
                        ``(A) In general.--The National Coordinator shall,
                    in consultation with other appropriate Federal agencies
                    (including the National Institute of Standards and
                    Technology), update the Federal Health IT Strategic Plan
                    (developed as of June 3, 2008) to include specific
                    objectives, milestones, and metrics with respect to the
                    following:
                              ``(i) The electronic exchange and use of
                          health information and the enterprise integration
                          of such information.
                              ``(ii) The utilization of an electronic health
                          record for each person in the United States by
                          2014.
                              ``(iii) The incorporation of privacy and
                          security protections for the electronic exchange
                          of an individual's individually identifiable
                          health information.
                              ``(iv) Ensuring security methods to ensure
                          appropriate authorization and electronic
                          authentication of health information and
                          specifying technologies or methodologies for
                          rendering health information unusable, unreadable,
                          or indecipherable.
                              ``(v) Specifying a framework for coordination
                          and flow of recommendations and policies under
                          this subtitle among the Secretary, the National
                          Coordinator, the HIT Policy Committee, the HIT
                          Standards Committee, and other health information
                          exchanges and other relevant entities.
                              ``(vi) Methods to foster the public
                          understanding of health information technology.
                              ``(vii) Strategies to enhance the use of
                          health information technology in improving the
                          quality of health care, reducing medical errors,
                          reducing health disparities, improving public
                          health, increasing prevention and coordination
                          with community resources, and improving the
                          continuity of care among health care settings.
                              ``(viii) Specific plans for ensuring that
                          populations with unique needs, such as children,
                          are appropriately

    [[Page 123 STAT. 232]]

                          addressed in the technology design, as
                          appropriate, which may include technology that
                          automates enrollment and retention for eligible
                          individuals.
                        ``(B) Collaboration.--The strategic plan shall be
                    updated through collaboration of public and private
                    entities.
                        ``(C) Measurable outcome goals.--The strategic plan
                    update shall include measurable outcome goals.
                        ``(D) Publication.--The National Coordinator shall
                    republish the strategic plan, including all updates.
                ``(4) Website.--The National Coordinator shall maintain and
            frequently update an Internet website on which there is posted
            information on the work, schedules, reports, recommendations,
            and other information to ensure transparency in promotion of a
            nationwide health information technology infrastructure.
                ``(5) Certification.--
                        ``(A) In general.--The National Coordinator, in
                    consultation with the Director of the National Institute
                    of Standards and Technology, shall keep or recognize a
                    program or programs for the voluntary certification of
                    health information technology as being in compliance
                    with applicable certification criteria adopted under
                    this subtitle. Such program shall include, as
                    appropriate, testing of the technology in accordance
                    with section 13201(b) of the Health Information
                    Technology for Economic and Clinical Health Act.
                        ``(B) Certification criteria described.--In this
                    title, the term `certification criteria' means, with
                    respect to standards and implementation specifications
                    for health information technology, criteria to establish
                    that the technology meets such standards and
                    implementation specifications.
                ``(6) Reports and publications.--
                        ``(A) Report on additional funding or authority
                    needed.--Not later than 12 months after the date of the
                    enactment of this title, the National Coordinator shall
                    submit to the appropriate committees of jurisdiction of
                    the House of Representatives and the Senate a report on
                    any additional funding or authority the Coordinator or
                    the HIT Policy Committee or HIT Standards Committee
                    requires to evaluate and develop standards,
                    implementation specifications, and certification
                    criteria, or to achieve full participation of
                    stakeholders in the adoption of a nationwide health
                    information technology infrastructure that allows for
                    the electronic use and exchange of health information.
                        ``(B) Implementation report.--The National
                    Coordinator shall prepare a report that identifies
                    lessons learned from major public and private health
                    care systems in their implementation of health
                    information technology, including information on whether
                    the technologies and practices developed by such systems
                    may be applicable to and usable in whole or in part by
                    other health care providers.
                        ``(C) Assessment of impact of hit on communities
                    with health disparities and uninsured, underinsured, and
                    medically underserved areas.--The National Coordinator
                    shall assess and publish the impact of health

    [[Page 123 STAT. 233]]

                    information technology in communities with health
                    disparities and in areas with a high proportion of
                    individuals who are uninsured, underinsured, and
                    medically underserved individuals (including urban and
                    rural areas) and identify practices to increase the
                    adoption of such technology by health care providers in
                    such communities, and the use of health information
                    technology to reduce and better manage chronic diseases.
                        ``(D) Evaluation of benefits and costs of the
                    electronic use and exchange of health information.--The
                    National Coordinator shall evaluate and publish evidence
                    on the benefits and costs of the electronic use and
                    exchange of health information and assess to whom these
                    benefits and costs accrue.
                        ``(E) Resource requirements.--The National
                    Coordinator shall estimate and publish resources
                    required annually to reach the goal of utilization of an
                    electronic health record for each person in the United
                    States by 2014, including--
                              ``(i) the required level of Federal funding;
                              ``(ii) expectations for regional, State, and
                          private investment;
                              ``(iii) the expected contributions by
                          volunteers to activities for the utilization of
                          such records; and
                              ``(iv) the resources needed to establish a
                          health information technology workforce sufficient
                          to support this effort (including education
                          programs in medical informatics and health
                          information management).
                ``(7) Assistance.--The National Coordinator may provide
            financial assistance to consumer advocacy groups and not-for-
            profit entities that work in the public interest for purposes of
            defraying the cost to such groups and entities to participate
            under, whether in whole or in part, the National Technology
            Transfer Act of 1995 (15 U.S.C. 272 note).
                ``(8) Governance for nationwide health information
            network.--The <<NOTE: Establishment.>> 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 <<NOTE: Deadline.>> 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

    [[Page 123 STAT. 234]]

    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 <<NOTE: 42 USC 300jj-12.>> 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 <<NOTE: Recommen- dations.>> 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.

    [[Page 123 STAT. 235]]

                              ``(iv) Technologies that as a part of a
                          qualified electronic health record allow for an
                          accounting of disclosures made by a covered entity
                          (as defined for purposes of regulations
                          promulgated under section 264(c) of the Health
                          Insurance Portability and Accountability Act of
                          1996) for purposes of treatment, payment, and
                          health care operations (as such terms are defined
                          for purposes of such regulations).
                              ``(v) The use of certified electronic health
                          records to improve the quality of health care,
                          such as by promoting the coordination of health
                          care and improving continuity of health care among
                          health care providers, by reducing medical errors,
                          by improving population health, by reducing health
                          disparities, by reducing chronic disease, and by
                          advancing research and education.
                              ``(vi) Technologies that allow individually
                          identifiable health information to be rendered
                          unusable, unreadable, or indecipherable to
                          unauthorized individuals when such information is
                          transmitted in the nationwide health information
                          network or physically transported outside of the
                          secured, physical perimeter of a health care
                          provider, health plan, or health care
                          clearinghouse.
                              ``(vii) The use of electronic systems to
                          ensure the comprehensive collection of patient
                          demographic data, including, at a minimum, race,
                          ethnicity, primary language, and gender
                          information.
                              ``(viii) Technologies that address the needs
                          of children and other vulnerable populations.
                        ``(C) Other areas for consideration.--In making
                    recommendations under subparagraph (A), the HIT Policy
                    Committee may consider the following additional areas:
                              ``(i) The appropriate uses of a nationwide
                          health information infrastructure, including for
                          purposes of--
                                        ``(I) the collection of quality data
                                    and public reporting;
                                        ``(II) biosurveillance and public
                                    health;
                                        ``(III) medical and clinical
                                    research; and
                                        ``(IV) drug safety.
                              ``(ii) Self-service technologies that
                          facilitate the use and exchange of patient
                          information and reduce wait times.
                              ``(iii) Telemedicine technologies, in order to
                          reduce travel requirements for patients in remote
                          areas.
                              ``(iv) Technologies that facilitate home
                          health care and the monitoring of patients
                          recuperating at home.
                              ``(v) Technologies that help reduce medical
                          errors.
                              ``(vi) Technologies that facilitate the
                          continuity of care among health settings.
                              ``(vii) Technologies that meet the needs of
                          diverse populations.
                              ``(viii) Methods to facilitate secure access
                          by an individual to such individual's protected
                          health information.
                              ``(ix) Methods, guidelines, and safeguards to
                          facilitate secure access to patient information by
                          a family

    [[Page 123 STAT. 236]]

                          member, caregiver, or guardian acting on behalf of
                          a patient due to age-related and other disability,
                          cognitive impairment, or dementia.
                              ``(x) Any other technology that the HIT Policy
                          Committee finds to be among the technologies with
                          the greatest potential to improve the quality and
                          efficiency of health care.
                ``(3) Forum.--The HIT Policy Committee shall serve as a
            forum for broad stakeholder input with specific expertise in
            policies relating to the matters described in paragraphs (1) and
            (2).
                ``(4) Consistency with evaluation conducted under mippa.--
                        ``(A) Requirement for consistency.--The HIT Policy
                    Committee shall ensure that recommendations made under
                    paragraph (2)(B)(vi) are consistent with the evaluation
                    conducted under section 1809(a) of the Social Security
                    Act.
                        ``(B) Scope.--Nothing in subparagraph (A) shall be
                    construed to limit the recommendations under paragraph
                    (2)(B)(vi) to the elements described in section
                    1809(a)(3) of the Social Security Act.
                        ``(C) Timing.--
                    The <<NOTE: Applicability.>> requirement under
                    subparagraph (A) shall be applicable to the extent that
                    evaluations have been conducted under section 1809(a) of
                    the Social Security Act, regardless of whether the
                    report described in subsection (b) of such section has
                    been submitted.

        ``(c) Membership and Operations.--
                ``(1) In general.--The National Coordinator shall take a
            leading position in the establishment and operations of the HIT
            Policy Committee.
                ``(2) Membership.--The HIT Policy Committee shall be
            composed of members to be appointed as follows:
                        ``(A) 3 members shall be appointed by the Secretary,
                    1 of whom shall be appointed to represent the Department
                    of Health and Human Services and 1 of whom shall be a
                    public health official.
                        ``(B) 1 member shall be appointed by the majority
                    leader of the Senate.
                        ``(C) 1 member shall be appointed by the minority
                    leader of the Senate.
                        ``(D) 1 member shall be appointed by the Speaker of
                    the House of Representatives.
                        ``(E) 1 member shall be appointed by the minority
                    leader of the House of Representatives.
                        ``(F) Such <<NOTE: President.>> other members as
                    shall be appointed by the President as representatives
                    of other relevant Federal agencies.
                        ``(G) 13 members shall be appointed by the
                    Comptroller General of the United States of whom--
                              ``(i) 3 members shall advocates for patients
                          or consumers;
                              ``(ii) 2 members shall represent health care
                          providers, one of which shall be a physician;
                              ``(iii) 1 member shall be from a labor
                          organization representing health care workers;
                              ``(iv) 1 member shall have expertise in health
                          information privacy and security;

    [[Page 123 STAT. 237]]

                              ``(v) 1 member shall have expertise in
                          improving the health of vulnerable populations;
                              ``(vi) 1 member shall be from the research
                          community;
                              ``(vii) 1 member shall represent health plans
                          or other third-party payers;
                              ``(viii) 1 member shall represent information
                          technology vendors;
                              ``(ix) 1 member shall represent purchasers or
                          employers; and
                              ``(x) 1 member shall have expertise in health
                          care quality measurement and reporting.
                ``(3) Participation.--The members of the HIT Policy
            Committee appointed under paragraph (2) shall represent a
            balance among various sectors of the health care system so that
            no single sector unduly influences the recommendations of the
            Policy Committee.
                ``(4) Terms.--
                        ``(A) In general.--The terms of the members of the
                    HIT Policy Committee shall be for 3 years, except that
                    the Comptroller General shall designate staggered terms
                    for the members first appointed.
                        ``(B) Vacancies.--Any member appointed to fill a
                    vacancy in the membership of the HIT Policy Committee
                    that occurs prior to the expiration of the term for
                    which the member's predecessor was appointed shall be
                    appointed only for the remainder of that term. A member
                    may serve after the expiration of that member's term
                    until a successor has been appointed. A vacancy in the
                    HIT Policy Committee shall be filled in the manner in
                    which the original appointment was made.
                ``(5) Outside involvement.--The HIT Policy Committee shall
            ensure an opportunity for the participation in activities of the
            Committee of outside advisors, including individuals with
            expertise in the development of policies for the electronic
            exchange and use of health information, including in the areas
            of health information privacy and security.
                ``(6) Quorum.--A majority of the member of the HIT Policy
            Committee shall constitute a quorum for purposes of voting, but
            a lesser number of members may meet and hold hearings.
                ``(7) Failure of initial appointment.--If,
            on <<NOTE: Deadline.>> the date that is 45 days after the date
            of enactment of this title, an official authorized under
            paragraph (2) to appoint one or more members of the HIT Policy
            Committee has not appointed the full number of members that such
            paragraph authorizes such official to appoint, the Secretary is
            authorized to appoint such members.
                ``(8) Consideration.--The National Coordinator shall ensure
            that the relevant and available recommendations and comments
            from the National Committee on Vital and Health Statistics are
            considered in the development of policies.

        ``(d) Application of FACA.--The Federal Advisory Committee Act (5
    U.S.C. App.), other than section 14 of such Act, shall apply to the HIT
    Policy Committee.
        ``(e) Publication.--The <<NOTE: Federal Register, publication. Web
    posting.>> 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

    [[Page 123 STAT. 238]]

    Technology of all policy recommendations made by the HIT Policy
    Committee under this section.

    ``SEC. 3003. HIT <<NOTE: 42 USC 300jj-13.>> STANDARDS COMMITTEE.

        ``(a) Establishment.--There is established a committee to be known
    as the HIT Standards Committee to recommend to the National Coordinator
    standards, implementation specifications, and certification criteria for
    the electronic exchange and use of health information for purposes of
    adoption under section 3004, consistent with the implementation of the
    strategic plan described in section 3001(c)(3) and beginning with the
    areas listed in section 3002(b)(2)(B) in accordance with policies
    developed by the HIT Policy Committee.
        ``(b) Duties.--
                ``(1) Standards development.--
                        ``(A) In general.--The <<NOTE: Recommen-
                    dations.>> HIT Standards Committee shall recommend to
                    the National Coordinator standards, implementation
                    specifications, and certification criteria described in
                    subsection (a) that have been developed, harmonized, or
                    recognized by the HIT Standards Committee. The HIT
                    Standards Committee shall update such recommendations
                    and make new recommendations as appropriate, including
                    in response to a notification sent under section
                    3004(a)(2)(B). Such recommendations shall be consistent
                    with the latest recommendations made by the HIT Policy
                    Committee.
                        ``(B) Harmonization.--The HIT Standards Committee
                    recognize harmonized or updated standards from an entity
                    or entities for the purpose of harmonizing or updating
                    standards and implementation specifications in order to
                    achieve uniform and consistent implementation of the
                    standards and implementation specifications.
                        ``(C) Pilot testing of standards and implementation
                    specifications.--In the development, harmonization, or
                    recognition of standards and implementation
                    specifications, the HIT Standards Committee shall, as
                    appropriate, provide for the testing of such standards
                    and specifications by the National Institute for
                    Standards and Technology under section 13201(a) of the
                    Health Information Technology for Economic and Clinical
                    Health Act.
                        ``(D) Consistency.--The standards, implementation
                    specifications, and certification criteria recommended
                    under this subsection shall be consistent with the
                    standards for information transactions and data elements
                    adopted pursuant to section 1173 of the Social Security
                    Act.
                ``(2) Forum.--The HIT Standards Committee shall serve as a
            forum for the participation of a broad range of stakeholders to
            provide input on the development, harmonization, and recognition
            of standards, implementation specifications, and certification
            criteria necessary for the development and adoption of a
            nationwide health information technology infrastructure that
            allows for the electronic use and exchange of health
            information.
                ``(3) Schedule.--Not <<NOTE: Deadline.>> 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

    [[Page 123 STAT. 239]]

            section 3002. The <<NOTE: Deadline.>> HIT Standards Committee
            shall update such schedule annually. The <<NOTE: Federal
            Register, publication.>> Secretary shall publish such schedule
            in the Federal Register.
                ``(4) Public input.--The HIT Standards Committee shall
            conduct open public meetings and develop a process to allow for
            public comment on the schedule described in paragraph (3) and
            recommendations described in this subsection. Under such process
            comments shall be submitted in a timely manner after the date of
            publication of a recommendation under this subsection.
                ``(5) Consideration.--The National Coordinator shall ensure
            that the relevant and available recommendations and comments
            from the National Committee on Vital and Health Statistics are
            considered in the development of standards.

        ``(c) Membership and Operations.--
                ``(1) In general.--The National Coordinator shall take a
            leading position in the establishment and operations of the HIT
            Standards Committee.
                ``(2) Membership.--The membership of the HIT Standards
            Committee shall at least reflect providers, ancillary healthcare
            workers, consumers, purchasers, health plans, technology
            vendors, researchers, relevant Federal agencies, and individuals
            with technical expertise on health care quality, privacy and
            security, and on the electronic exchange and use of health
            information.
                ``(3) Participation.--The members of the HIT Standards
            Committee appointed under this subsection shall represent a
            balance among various sectors of the health care system so that
            no single sector unduly influences the recommendations of such
            Committee.
                ``(4) Outside involvement.--The HIT Policy Committee shall
            ensure an opportunity for the participation in activities of the
            Committee of outside advisors, including individuals with
            expertise in the development of standards for the electronic
            exchange and use of health information, including in the areas
            of health information privacy and security.
                ``(5) Balance among sectors.--In developing the procedures
            for conducting the activities of the HIT Standards Committee,
            the HIT Standards Committee shall act to ensure a balance among
            various sectors of the health care system so that no single
            sector unduly influences the actions of the HIT Standards
            Committee.
                ``(6) Assistance.--For the purposes of carrying out this
            section, the Secretary may provide or ensure that financial
            assistance is provided by the HIT Standards Committee to defray
            in whole or in part any membership fees or dues charged by such
            Committee to those consumer advocacy groups and not for profit
            entities that work in the public interest as a part of their
            mission.

        ``(d) Application of FACA.--The Federal Advisory Committee Act (5
    U.S.C. App.), other than section 14, shall apply to the HIT Standards
    Committee.
        ``(e) Publication.--The <<NOTE: Federal Register, publication. Web
    posting.>> 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.

    [[Page 123 STAT. 240]]

    ``SEC. 3004. PROCESS <<NOTE: 42 USC 300jj-14.>> 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 <<NOTE: Deadline.>> later than 90 days after the date of
            receipt of standards, implementation specifications, or
            certification criteria endorsed under section 3001(c), the
            Secretary, in consultation with representatives of other
            relevant Federal agencies, shall jointly review such standards,
            implementation specifications, or certification criteria and
            shall determine whether or not to propose adoption of such
            standards, implementation specifications, or certification
            criteria.
                ``(2) Determination to adopt standards, implementation
            specifications, and certification criteria.--If the Secretary
            determines--
                        ``(A) to propose adoption of any grouping of such
                    standards, implementation specifications, or
                    certification criteria, the Secretary shall, by
                    regulation under section 553 of title 5, United States
                    Code, determine whether or not to adopt such grouping of
                    standards, implementation specifications, or
                    certification criteria; or
                        ``(B) <<NOTE: Notification.>> 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 <<NOTE: Federal Register,
            publication.>> 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 <<NOTE: Deadline.>> later than
            December 31, 2009, the Secretary shall, through the rulemaking
            process consistent with subsection (a)(2)(A), adopt an initial
            set of standards, implementation specifications, and
            certification criteria for the areas required for consideration
            under section 3002(b)(2)(B). The rulemaking for the initial set
            of standards, implementation specifications, and certification
            criteria may be issued on an interim, final basis.
                ``(2) Application of current standards, implementation
            specifications, and certification criteria.--The standards,
            implementation specifications, and certification criteria
            adopted before the date of the enactment of this title through
            the process existing through the Office of the National
            Coordinator for Health Information Technology may be applied
            towards meeting the requirement of paragraph (1).
                ``(3) Subsequent standards activity.--The Secretary shall
            adopt additional standards, implementation specifications, and
            certification criteria as necessary and consistent with the
            schedule published under section 3003(b)(2).

    [[Page 123 STAT. 241]]

    ``SEC. 3005. APPLICATION <<NOTE: 42 USC 300jj-15.>> 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 <<NOTE: 42 USC 300jj-16.>> APPLICATION AND USE OF
                ADOPTED STANDARDS AND IMPLEMENTATION SPECIFICATIONS BY
                PRIVATE ENTITIES.

        ``(a) In General.--Except as provided under section 13112 of the
    HITECH Act, nothing in such Act or in the amendments made by such Act
    shall be construed--
                ``(1) to require a private entity to adopt or comply with a
            standard or implementation specification adopted under section
            3004; or
                ``(2) to provide a Federal agency authority, other than the
            authority such agency may have under other provisions of law, to
            require a private entity to comply with such a standard or
            implementation specification.

        ``(b) Rule of Construction.--Nothing in this subtitle shall be
    construed to require that a private entity that enters into a contract
    with the Federal Government apply or use the standards and
    implementation specifications adopted under section 3004 with respect to
    activities not related to the contract.

    ``SEC. 3007. FEDERAL <<NOTE: 42 USC 300jj-17.>> HEALTH INFORMATION
                TECHNOLOGY.

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

    ``SEC. 3008. <<NOTE: 42 USC 300jj-18.>>  TRANSITIONS.

        ``(a) ONCHIT.--To the extent consistent with section 3001, all
    functions, personnel, assets, liabilities, and administrative actions
    applicable to the National Coordinator for Health Information Technology
    appointed under Executive Order No. 13335 or the Office of such National
    Coordinator on the date before the

    [[Page 123 STAT. 242]]

    date of the enactment of this title shall be transferred to the National
    Coordinator appointed under section 3001(a) and the Office of such
    National Coordinator as of the date of the enactment of this title.
        ``(b) National EHealth Collaborative.--Nothing in sections 3002 or
    3003 or this subsection shall be construed as prohibiting the AHIC
    Successor, Inc. doing business as the National eHealth Collaborative
    from modifying its charter, duties, membership, and any other structure
    or function required to be consistent with section 3002 and 3003 so as
    to allow the Secretary to recognize such AHIC Successor, Inc. as the HIT
    Policy Committee or the HIT Standards Committee.
        ``(c) Consistency of Recommendations.--In carrying out section
    3003(b)(1)(A), until recommendations are made by the HIT Policy
    Committee, recommendations of the HIT Standards Committee shall be
    consistent with the most recent recommendations made by such AHIC
    Successor, Inc.

    ``SEC. 3009. MISCELLANEOUS <<NOTE: 42 USC 300jj-19.>> PROVISIONS.

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

        ``(b) Flexibility.--In administering the provisions of this title,
    the Secretary shall have flexibility in applying the definition of
    health care provider under section 3000(3), including the authority to
    omit certain entities listed in such definition when applying such
    definition under this title, where appropriate.''.

    SEC. 13102. TECHNICAL AMENDMENT.

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

      PART 2--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY
                               STANDARDS; REPORTS

    SEC. 13111. COORDINATION <<NOTE: 42 USC 17901.>> OF FEDERAL ACTIVITIES
                WITH ADOPTED STANDARDS AND IMPLEMENTATION SPECIFICATIONS.

        (a) Spending on Health Information Technology Systems.--As each
    agency (as defined by the Director of the Office of Management and
    Budget, in consultation with the Secretary

    [[Page 123 STAT. 243]]

    of Health and Human Services) implements, acquires, or upgrades health
    information technology systems used for the direct exchange of
    individually identifiable health information between agencies and with
    non-Federal entities, it shall utilize, where available, health
    information technology systems and products that meet standards and
    implementation specifications adopted under section 3004 of the Public
    Health Service Act, as added by section 13101.
        (b) Federal Information Collection Activities.--With respect to a
    standard or implementation specification adopted under section 3004 of
    the Public Health Service Act, as added by section 13101, the President
    shall take measures to ensure that Federal activities involving the
    broad collection and submission of health information are consistent
    with such standard or implementation specification, respectively, within
    three years after the date of such adoption.
        (c) Application of Definitions.--The definitions contained in
    section 3000 of the Public Health Service Act, as added by section
    13101, shall apply for purposes of this part.

    SEC. 13112. APPLICATION <<NOTE: 42 USC 17902.>> TO PRIVATE ENTITIES.

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

    SEC. 13113. STUDY <<NOTE: 42 USC 17903.>> 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.--

    [[Page 123 STAT. 244]]

                (1) In <<NOTE: Contracts.>> general.--The Secretary of
            Health and Human Services shall carry out, or contract with a
            private entity to carry out, a study of matters relating to the
            potential use of new aging services technology to assist
            seniors, individuals with disabilities, and their caregivers
            throughout the aging process.
                (2) Matters to be studied.--The study under paragraph (1)
            shall include--
                        (A) an evaluation of--
                              (i) methods for identifying current, emerging,
                          and future health technology that can be used to
                          meet the needs of seniors and individuals with
                          disabilities and their caregivers across all aging
                          services settings, as specified by the Secretary;
                              (ii) methods for fostering scientific
                          innovation with respect to aging services
                          technology within the business and academic
                          communities; and
                              (iii) developments in aging services
                          technology in other countries that may be applied
                          in the United States; and
                        (B) identification of--
                              (i) barriers to innovation in aging services
                          technology and devising strategies for removing
                          such barriers; and
                              (ii) barriers to the adoption of aging
                          services technology by health care providers and
                          consumers and devising strategies to removing such
                          barriers.
                (3) Report.--Not later than 24 months after the date of the
            enactment of this Act, the Secretary shall submit to the
            appropriate committees of jurisdiction of the House of
            Representatives and of the Senate a report on the study carried
            out under paragraph (1).
                (4) Definitions.--For purposes of this subsection:
                        (A) Aging services technology.--The term ``aging
                    services technology'' means health technology that meets
                    the health care needs of seniors, individuals with
                    disabilities, and the caregivers of such seniors and
                    individuals.
                        (B) Senior.--The term ``senior'' has such meaning as
                    specified by the Secretary.

              Subtitle B--Testing of Health Information Technology

    SEC. 13201. NATIONAL <<NOTE: 42 USC 17911.>> 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 123 STAT. 245]]

    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 <<NOTE: 42 USC 17912.>> AND DEVELOPMENT PROGRAMS.

        (a) Health Care Information Enterprise Integration Research
    Centers.--
                (1) In general.--The <<NOTE: Establishment.>> 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 <<NOTE: 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;

    [[Page 123 STAT. 246]]

                        (B) how the Center will promote active collaboration
                    among scientists and engineers from different
                    disciplines, such as information technology, biologic
                    sciences, management, social sciences, and other
                    appropriate disciplines;
                        (C) technology transfer activities to demonstrate
                    and diffuse the research results, technologies, and
                    knowledge; and
                        (D) how the Center will contribute to the education
                    and training of researchers and other professionals in
                    fields relevant to health information enterprise
                    integration.

        (b) National Information Technology Research and Development
    Program.--The National High-Performance Computing Program established by
    section 101 of the High-Performance Computing Act of 1991 (15 U.S.C.
    5511) shall include Federal research and development programs related to
    health information technology.

                      Subtitle C--Grants and Loans Funding

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

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

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

    ``SEC. 3011. IMMEDIATE <<NOTE: 42 USC 300jj-31.>> FUNDING TO STRENGTHEN
                THE HEALTH INFORMATION TECHNOLOGY INFRASTRUCTURE.

        ``(a) In General.--The Secretary shall, using amounts appropriated
    under section 3018, invest in the infrastructure necessary to allow for
    and promote the electronic exchange and use of health information for
    each individual in the United States consistent with the goals outlined
    in the strategic plan developed by the National Coordinator (and as
    available) under section 3001. The Secretary shall invest funds through
    the different agencies with expertise in such goals, such as the Office
    of the National Coordinator for Health Information Technology, the
    Health Resources and Services Administration, the Agency for Healthcare
    Research and Quality, the Centers of Medicare & Medicaid Services, the
    Centers for Disease Control and Prevention, and the Indian Health
    Service to support the following:
                ``(1) Health information technology architecture that will
            support the nationwide electronic exchange and use of health
            information in a secure, private, and accurate manner, including
            connecting health information exchanges, and which may include
            updating and implementing the infrastructure necessary within
            different agencies of the Department of Health and Human
            Services to support the electronic use and exchange of health
            information.
                ``(2) Development and adoption of appropriate certified
            electronic health records for categories of health care
            providers not eligible for support under title XVIII or XIX of
            the Social Security Act for the adoption of such records.
                ``(3) Training on and dissemination of information on best
            practices to integrate health information technology, including

    [[Page 123 STAT. 247]]

            electronic health records, into a provider's delivery of care,
            consistent with best practices learned from the Health
            Information Technology Research Center developed under section
            3012(b), including community health centers receiving assistance
            under section 330, covered entities under section 340B, and
            providers participating in one or more of the programs under
            titles XVIII, XIX, and XXI of the Social Security Act (relating
            to Medicare, Medicaid, and the State Children's Health Insurance
            Program).
                ``(4) Infrastructure and tools for the promotion of
            telemedicine, including coordination among Federal agencies in
            the promotion of telemedicine.
                ``(5) Promotion of the interoperability of clinical data
            repositories or registries.
                ``(6) Promotion of technologies and best practices that
            enhance the protection of health information by all holders of
            individually identifiable health information.
                ``(7) Improvement and expansion of the use of health
            information technology by public health departments.

        ``(b) Coordination.--The Secretary shall ensure funds under this
    section are used in a coordinated manner with other health information
    promotion activities.
        ``(c) Additional Use of Funds.--In addition to using funds as
    provided in subsection (a), the Secretary may use amounts appropriated
    under section 3018 to carry out health information technology activities
    that are provided for under laws in effect on the date of the enactment
    of this title.
        ``(d) Standards for Acquisition of Health Information Technology.--
    To the greatest extent practicable, the Secretary shall ensure that
    where funds are expended under this section for the acquisition of
    health information technology, such funds shall be used to acquire
    health information technology that meets applicable standards adopted
    under section 3004. Where it is not practicable to expend funds on
    health information technology that meets such applicable standards, the
    Secretary shall ensure that such health information technology meets
    applicable standards otherwise adopted by the Secretary.

    ``SEC. 3012. HEALTH <<NOTE: 42 USC 300jj-32.>> 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. <<NOTE: Consultation.>> 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 <<NOTE: Establishment.>> 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

    [[Page 123 STAT. 248]]

            efforts to adopt, implement, and effectively utilize health
            information technology that allows for the electronic exchange
            and use of information in compliance with standards,
            implementation specifications, and certification criteria
            adopted under section 3004.
                ``(2) Input.--The Center shall incorporate input from--
                        ``(A) other Federal agencies with demonstrated
                    experience and expertise in information technology
                    services such as the National Institute of Standards and
                    Technology;
                        ``(B) users of health information technology, such
                    as providers and their support and clerical staff and
                    others involved in the care and care coordination of
                    patients, from the health care and health information
                    technology industry; and
                        ``(C) others as appropriate.
                ``(3) Purposes.--The purposes of the Center are to--
                        ``(A) provide a forum for the exchange of knowledge
                    and experience;
                        ``(B) accelerate the transfer of lessons learned
                    from existing public and private sector initiatives,
                    including those currently receiving Federal financial
                    support;
                        ``(C) assemble, analyze, and widely disseminate
                    evidence and experience related to the adoption,
                    implementation, and effective use of health information
                    technology that allows for the electronic exchange and
                    use of information including through the regional
                    centers described in subsection (c);
                        ``(D) provide technical assistance for the
                    establishment and evaluation of regional and local
                    health information networks to facilitate the electronic
                    exchange of information across health care settings and
                    improve the quality of health care;
                        ``(E) provide technical assistance for the
                    development and dissemination of solutions to barriers
                    to the exchange of electronic health information; and
                        ``(F) learn about effective strategies to adopt and
                    utilize health information technology in medically
                    underserved communities.

        ``(c) Health Information Technology Regional Extension Centers.--
                ``(1) In general.--The Secretary shall provide assistance
            for the creation and support of regional centers (in this
            subsection referred to as `regional centers') to provide
            technical assistance and disseminate best practices and other
            information learned from the Center to support and accelerate
            efforts to adopt, implement, and effectively utilize health
            information technology that allows for the electronic exchange
            and use of information in compliance with standards,
            implementation specifications, and certification criteria
            adopted under section 3004. Activities conducted under this
            subsection shall be consistent with the strategic plan developed
            by the National Coordinator, (and, as available) under section
            3001.
                ``(2) Affiliation.--Regional centers shall be affiliated
            with any United States-based nonprofit institution or
            organization, or group thereof, that applies and is awarded
            financial assistance under this section. Individual awards shall
            be decided on the basis of merit.

    [[Page 123 STAT. 249]]

                ``(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 <<NOTE: Federal Register,
            publication. Deadline.>> shall publish in the Federal Register,
            not later than 90 days after the date of the enactment of this
            title, a draft description of the program for establishing
            regional centers under this subsection. Such description shall
            include the following:
                        ``(A) A detailed explanation of the program and the
                    programs goals.

    [[Page 123 STAT. 250]]

                        ``(B) Procedures <<NOTE: Procedures.>> to be
                    followed by the applicants.
                        ``(C) Criteria <<NOTE: 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 <<NOTE: 42 USC 300jj-33.>> GRANTS TO PROMOTE HEALTH
                INFORMATION TECHNOLOGY.

        ``(a) In General.--The Secretary, acting through the National
    Coordinator, shall establish a program in accordance with this section
    to facilitate and expand the electronic movement and use of health
    information among organizations according to nationally recognized
    standards.
        ``(b) Planning Grants.--The Secretary may award a grant to a State
    or qualified State-designated entity (as described in subsection (f))
    that submits an application to the Secretary at such time, in such
    manner, and containing such information as the Secretary may specify,
    for the purpose of planning activities described in subsection (d).
        ``(c) Implementation Grants.--The Secretary may award a grant to a
    State or qualified State designated entity that--
                ``(1) has submitted, and the Secretary has approved, a plan
            described in subsection (e) (regardless of whether such plan was
            prepared using amounts awarded under subsection (b); and

    [[Page 123 STAT. 251]]

                ``(2) submits an application at such time, in such manner,
            and containing such information as the Secretary may specify.

        ``(d) Use of Funds.--Amounts received under a grant under subsection
    (c) shall be used to conduct activities to facilitate and expand the
    electronic movement and use of health information among organizations
    according to nationally recognized standards through activities that
    include--
                ``(1) enhancing broad and varied participation in the
            authorized and secure nationwide electronic use and exchange of
            health information;
                ``(2) identifying State or local resources available towards
            a nationwide effort to promote health information technology;
                ``(3) complementing other Federal grants, programs, and
            efforts towards the promotion of health information technology;
                ``(4) providing technical assistance for the development and
            dissemination of solutions to barriers to the exchange of
            electronic health information;
                ``(5) promoting effective strategies to adopt and utilize
            health information technology in medically underserved
            communities;
                ``(6) assisting patients in utilizing health information
            technology;
                ``(7) encouraging clinicians to work with Health Information
            Technology Regional Extension Centers as described in section
            3012, to the extent they are available and valuable;
                ``(8) supporting public health agencies' authorized use of
            and access to electronic health information;
                ``(9) promoting the use of electronic health records for
            quality improvement including through quality measures
            reporting; and
                ``(10) such other activities as the Secretary may specify.

        ``(e) Plan.--
                ``(1) In general.--A plan described in this subsection is a
            plan that describes the activities to be carried out by a State
            or by the qualified State-designated entity within such State to
            facilitate and expand the electronic movement and use of health
            information among organizations according to nationally
            recognized standards and implementation specifications.
                ``(2) Required elements.--A plan described in paragraph (1)
            shall--
                        ``(A) be pursued in the public interest;
                        ``(B) be consistent with the strategic plan
                    developed by the National Coordinator, (and, as
                    available) under section 3001;
                        ``(C) include a description of the ways the State or
                    qualified State-designated entity will carry out the
                    activities described in subsection (b); and
                        ``(D) contain such elements as the Secretary may
                    require.

        ``(f) Qualified State-Designated Entity.--For purposes of this
    section, to be a qualified State-designated entity, with respect to a
    State, an entity shall--
                ``(1) be designated by the State as eligible to receive
            awards under this section;
                ``(2) be a not-for-profit entity with broad stakeholder
            representation on its governing board;

    [[Page 123 STAT. 252]]

                ``(3) demonstrate that one of its principal goals is to use
            information technology to improve health care quality and
            efficiency through the authorized and secure electronic exchange
            and use of health information;
                ``(4) adopt nondiscrimination and conflict of interest
            policies that demonstrate a commitment to open, fair, and
            nondiscriminatory participation by stakeholders; and
                ``(5) conform to such other requirements as the Secretary
            may establish.

        ``(g) Required Consultation.--In carrying out activities described
    in subsections (b) and (c), a State or qualified State-designated entity
    shall consult with and consider the recommendations of--
                ``(1) health care providers (including providers that
            provide services to low income and underserved populations);
                ``(2) health plans;
                ``(3) patient or consumer organizations that represent the
            population to be served;
                ``(4) health information technology vendors;
                ``(5) health care purchasers and employers;
                ``(6) public health agencies;
                ``(7) health professions schools, universities and colleges;
                ``(8) clinical researchers;
                ``(9) other users of health information technology such as
            the support and clerical staff of providers and others involved
            in the care and care coordination of patients; and
                ``(10) such other entities, as may be determined appropriate
            by the Secretary.

        ``(h) Continuous Improvement.--
    The <<NOTE: Deadline. Evaluation.>> Secretary shall annually evaluate
    the activities conducted under this section and shall, in awarding
    grants under this section, implement the lessons learned from such
    evaluation in a manner so that awards made subsequent to each such
    evaluation are made in a manner that, in the determination of the
    Secretary, will lead towards the greatest improvement in quality of
    care, decrease in costs, and the most effective authorized and secure
    electronic exchange of health information.

        ``(i) Required Match.--
                ``(1) In general.--For a fiscal year (beginning with fiscal
            year 2011), the Secretary may not make a grant under this
            section to a State unless the State agrees to make available
            non-Federal contributions (which may include in-kind
            contributions) toward the costs of a grant awarded under
            subsection (c) in an amount equal to--
                        ``(A) for fiscal year 2011, not less than $1 for
                    each $10 of Federal funds provided under the grant;
                        ``(B) for fiscal year 2012, not less than $1 for
                    each $7 of Federal funds provided under the grant; and
                        ``(C) for fiscal year 2013 and each subsequent
                    fiscal year, not less than $1 for each $3 of Federal
                    funds provided under the grant.
                ``(2) Authority to require state match for fiscal years
            before fiscal year 2011.--For any fiscal year during the grant
            program under this section before fiscal year 2011, the
            Secretary may determine the extent to which there shall be
            required a non-Federal contribution from a State receiving a
            grant under this section.

    [[Page 123 STAT. 253]]

    ``SEC. 3014. COMPETITIVE <<NOTE: 42 USC 300jj-34.>> 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 <<NOTE: Reports. Deadline.>> reports on
                    quality measures adopted by the Federal Government (by
                    not later than 90 days after the date on which such
                    measures are adopted), to--
                              ``(i) the Administrator of the Centers for
                          Medicare & Medicaid Services (or his or her
                          designee), in the case of an entity participating
                          in the Medicare program under title XVIII of the
                          Social Security Act or the Medicaid program under
                          title XIX of such Act; or
                              ``(ii) the Secretary in the case of other
                          entities;
                        ``(B) demonstrate to the satisfaction of the
                    Secretary (through criteria established by the
                    Secretary) that any certified EHR technology purchased,
                    improved, or otherwise financially supported under a
                    loan under this section is used to exchange health
                    information in a manner that, in accordance with law and
                    standards (as adopted under section 3004) applicable to
                    the exchange of information, improves the quality of
                    health care, such as promoting care coordination; and
                        ``(C) comply with such other requirements as the
                    entity or the Secretary may require;
                        ``(D) include a plan on how health care providers
                    involved intend to maintain and support the certified
                    EHR technology over time;
                        ``(E) include a plan on how the health care
                    providers involved intend to maintain and support the
                    certified EHR technology that would be purchased with
                    such loan, including the type of resources expected to
                    be involved and any such other information as the State
                    or Indian Tribe, respectively, may require; and
                ``(5) agrees to provide matching funds in accordance with
            subsection (h).

    [[Page 123 STAT. 254]]

        ``(c) Establishment of Fund.--For purposes of subsection (b)(3), an
    eligible entity shall establish a certified EHR technology loan fund
    (referred to in this subsection as a `Loan Fund') and comply with the
    other requirements contained in this section. A grant to an eligible
    entity under this section shall be deposited in the Loan Fund
    established by the eligible entity. No funds authorized by other
    provisions of this title to be used for other purposes specified in this
    title shall be deposited in any Loan Fund.
        ``(d) Strategic Plan.--
                ``(1) In general.--For purposes of subsection (b)(2), a
            strategic plan of an eligible entity under this subsection shall
            identify the intended uses of amounts available to the Loan Fund
            of such entity.
                ``(2) Contents.--A strategic plan under paragraph (1), with
            respect to a Loan Fund of an eligible entity, shall include for
            a year the following:
                        ``(A) A list of the projects to be assisted through
                    the Loan Fund during such year.
                        ``(B) A description of the criteria and methods
                    established for the distribution of funds from the Loan
                    Fund during the year.
                        ``(C) A description of the financial status of the
                    Loan Fund as of the date of submission of the plan.
                        ``(D) The short-term and long-term goals of the Loan
                    Fund.

        ``(e) Use of Funds.--Amounts deposited in a Loan Fund, including
    loan repayments and interest earned on such amounts, shall be used only
    for awarding loans or loan guarantees, making reimbursements described
    in subsection (g)(4)(A), or as a source of reserve and security for
    leveraged loans, the proceeds of which are deposited in the Loan Fund
    established under subsection (c). Loans under this section may be used
    by a health care provider to--
                ``(1) facilitate the purchase of certified EHR technology;
                ``(2) enhance the utilization of certified EHR technology
            (which may include costs associated with upgrading health
            information technology so that it meets criteria necessary to be
            a certified EHR technology);
                ``(3) train personnel in the use of such technology; or
                ``(4) improve the secure electronic exchange of health
            information.

        ``(f) Types of Assistance.--Except as otherwise limited by
    applicable State law, amounts deposited into a Loan Fund under this
    section may only be used for the following:
                ``(1) To award loans that comply with the following:
                        ``(A) The interest rate for each loan shall not
                    exceed the market interest rate.
                        ``(B) The principal and interest payments on each
                    loan shall commence not later than 1 year after the date
                    the loan was awarded, and each loan shall be fully
                    amortized not later than 10 years after the date of the
                    loan.
                        ``(C) The Loan Fund shall be credited with all
                    payments of principal and interest on each loan awarded
                    from the Loan Fund.
                ``(2) To guarantee, or purchase insurance for, a local
            obligation (all of the proceeds of which finance a project
            eligible

    [[Page 123 STAT. 255]]

            for assistance under this subsection) if the guarantee or
            purchase would improve credit market access or reduce the
            interest rate applicable to the obligation involved.
                ``(3) As a source of revenue or security for the payment of
            principal and interest on revenue or general obligation bonds
            issued by the eligible entity if the proceeds of the sale of the
            bonds will be deposited into the Loan Fund.
                ``(4) To earn interest on the amounts deposited into the
            Loan Fund.
                ``(5) To make reimbursements described in subsection
            (g)(4)(A).

        ``(g) Administration of Loan Funds.--
                ``(1) Combined financial administration.--An eligible entity
            may (as a convenience and to avoid unnecessary administrative
            costs) combine, in accordance with applicable State law, the
            financial administration of a Loan Fund established under this
            subsection with the financial administration of any other
            revolving fund established by the entity if otherwise not
            prohibited by the law under which the Loan Fund was established.
                ``(2) Cost of administering fund.--Each eligible entity may
            annually use not to exceed 4 percent of the funds provided to
            the entity under a grant under this section to pay the
            reasonable costs of the administration of the programs under
            this section, including the recovery of reasonable costs
            expended to establish a Loan Fund which are incurred after the
            date of the enactment of this title.
                ``(3) Guidance and regulations.--
            The <<NOTE: Publication.>> National Coordinator shall publish
            guidance and promulgate regulations as may be necessary to carry
            out the provisions of this section, including--
                        ``(A) provisions to ensure that each eligible entity
                    commits and expends funds allotted to the entity under
                    this section as efficiently as possible in accordance
                    with this title and applicable State laws; and
                        ``(B) guidance to prevent waste, fraud, and abuse.
                ``(4) Private sector contributions.--
                        ``(A) In general.--A Loan Fund established under
                    this section may accept contributions from private
                    sector entities, except that such entities may not
                    specify the recipient or recipients of any loan issued
                    under this subsection. An eligible entity may agree to
                    reimburse a private sector entity for any contribution
                    made under this subparagraph, except that the amount of
                    such reimbursement may not be greater than the principal
                    amount of the contribution made.
                        ``(B) Availability of information.--An eligible
                    entity shall make publicly available the identity of,
                    and amount contributed by, any private sector entity
                    under subparagraph (A) and may issue letters of
                    commendation or make other awards (that have no
                    financial value) to any such entity.

        ``(h) Matching Requirements.--
                ``(1) In general.--The National Coordinator may not make a
            grant under subsection (a) to an eligible entity unless the
            entity agrees to make available (directly or through donations
            from public or private entities) non-Federal contributions in
            cash to the costs of carrying out the activities for which the

    [[Page 123 STAT. 256]]

            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 <<NOTE: 42 USC 300jj-35.>> 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 <<NOTE: Strategic plan.>> 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.

    [[Page 123 STAT. 257]]

        ``(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 <<NOTE: Publication.>> 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 <<NOTE: 42 USC 300jj-36.>> TECHNOLOGY
                PROFESSIONALS IN HEALTH CARE.

        ``(a) In General.--The Secretary, in consultation with the Director
    of the National Science Foundation, shall provide assistance to
    institutions of higher education (or consortia thereof) to establish or
    expand medical health informatics education programs, including
    certification, undergraduate, and masters degree programs, for both
    health care and information technology students to ensure the rapid and
    effective utilization and development of health information technologies
    (in the United States health care infrastructure).
        ``(b) Activities.--Activities for which assistance may be provided
    under subsection (a) may include the following:
                ``(1) Developing and revising curricula in medical health
            informatics and related disciplines.
                ``(2) Recruiting and retaining students to the program
            involved.
                ``(3) Acquiring equipment necessary for student instruction
            in these programs, including the installation of testbed
            networks for student use.
                ``(4) Establishing or enhancing bridge programs in the
            health informatics fields between community colleges and
            universities.

        ``(c) Priority.--In providing assistance under subsection (a), the
    Secretary shall give preference to the following:
                ``(1) Existing education and training programs.
                ``(2) Programs designed to be completed in less than six
            months.

    ``SEC. 3017. GENERAL <<NOTE: 42 USC 300jj-37.>> GRANT AND LOAN
                PROVISIONS.

        ``(a) Reports.--The Secretary may require that an entity receiving
    assistance under this subtitle shall submit to the Secretary, not later
    than the date that is 1 year after the date of receipt of such
    assistance, a report that includes--

    [[Page 123 STAT. 258]]

                ``(1) an analysis of the effectiveness of the activities for
            which the entity receives such assistance, as compared to the
            goals for such activities; and
                ``(2) an analysis of the impact of the project on health
            care quality and safety.

        ``(b) Requirement to Improve Quality of Care and Decrease in
    Costs.--The <<NOTE: Evaluation. Deadline.>> National Coordinator shall
    annually evaluate the activities conducted under this subtitle and
    shall, in awarding grants, implement the lessons learned from such
    evaluation in a manner so that awards made subsequent to each such
    evaluation are made in a manner that, in the determination of the
    National Coordinator, will result in the greatest improvement in the
    quality and efficiency of health care.

    ``SEC. 3018. AUTHORIZATION <<NOTE: 42 USC 300jj-38.>> FOR
                APPROPRIATIONS.

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

                               Subtitle D--Privacy

    SEC. 13400. <<NOTE: 42 USC 17921.>> DEFINITIONS.

        In this subtitle, except as specified otherwise:
                (1) Breach.--
                        (A) In general.--The term ``breach'' means the
                    unauthorized acquisition, access, use, or disclosure of
                    protected health information which compromises the
                    security or privacy of such information, except where an
                    unauthorized person to whom such information is
                    disclosed would not reasonably have been able to retain
                    such information.
                        (B) Exceptions.--The term ``breach'' does not
                    include--
                              (i) any unintentional acquisition, access, or
                          use of protected health information by an employee
                          or individual acting under the authority of a
                          covered entity or business associate if--
                                        (I) such acquisition, access, or use
                                    was made in good faith and within the
                                    course and scope of the employment or
                                    other professional relationship of such
                                    employee or individual, respectively,
                                    with the covered entity or business
                                    associate; and
                                        (II) such information is not further
                                    acquired, accessed, used, or disclosed
                                    by any person; or
                              (ii) any inadvertent disclosure from an
                          individual who is otherwise authorized to access
                          protected health information at a facility
                          operated by a covered entity or business associate
                          to another similarly situated individual at same
                          facility; and
                              (iii) any such information received as a
                          result of such disclosure is not further acquired,
                          accessed, used, or disclosed without authorization
                          by any person.
                (2) Business associate.--The term ``business associate'' has
            the meaning given such term in section 160.103 of title 45, Code
            of Federal Regulations.
                (3) Covered entity.--The term ``covered entity'' has the
            meaning given such term in section 160.103 of title 45, Code of
            Federal Regulations.

    [[Page 123 STAT. 259]]

                (4) Disclose.--The terms ``disclose'' and ``disclosure''
            have the meaning given the term ``disclosure'' in section
            160.103 of title 45, Code of Federal Regulations.
                (5) Electronic health record.--The term ``electronic health
            record'' means an electronic record of health-related
            information on an individual that is created, gathered, managed,
            and consulted by authorized health care clinicians and staff.
                (6) Health care operations.--The term ``health care
            operation'' has the meaning given such term in section 164.501
            of title 45, Code of Federal Regulations.
                (7) Health care provider.--The term ``health care provider''
            has the meaning given such term in section 160.103 of title 45,
            Code of Federal Regulations.
                (8) Health plan.--The term ``health plan'' has the meaning
            given such term in section 160.103 of title 45, Code of Federal
            Regulations.
                (9) National coordinator.--The term ``National Coordinator''
            means the head of the Office of the National Coordinator for
            Health Information Technology established under section 3001(a)
            of the Public Health Service Act, as added by section 13101.
                (10) Payment.--The term ``payment'' has the meaning given
            such term in section 164.501 of title 45, Code of Federal
            Regulations.
                (11) Personal health record.--The term ``personal health
            record'' means an electronic record of PHR identifiable health
            information (as defined in section 13407(f)(2)) on an individual
            that can be drawn from multiple sources and that is managed,
            shared, and controlled by or primarily for the individual.
                (12) Protected health information.--The term ``protected
            health information'' has the meaning given such term in section
            160.103 of title 45, Code of Federal Regulations.
                (13) Secretary.--The term ``Secretary'' means the Secretary
            of Health and Human Services.
                (14) Security.--The term ``security'' has the meaning given
            such term in section 164.304 of title 45, Code of Federal
            Regulations.
                (15) State.--The term ``State'' means each of the several
            States, the District of Columbia, Puerto Rico, the Virgin
            Islands, Guam, American Samoa, and the Northern Mariana Islands.
                (16) Treatment.--The term ``treatment'' has the meaning
            given such term in section 164.501 of title 45, Code of Federal
            Regulations.
                (17) Use.--The term ``use'' has the meaning given such term
            in section 160.103 of title 45, Code of Federal Regulations.
                (18) Vendor of personal health records.--The term ``vendor
            of personal health records'' means an entity, other than a
            covered entity (as defined in paragraph (3)), that offers or
            maintains a personal health record.

    [[Page 123 STAT. 260]]

           PART 1--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

    SEC. 13401. APPLICATION <<NOTE: 42 USC 17931.>> OF SECURITY PROVISIONS
                AND PENALTIES TO BUSINESS ASSOCIATES OF COVERED ENTITIES;
                ANNUAL GUIDANCE ON SECURITY PROVISIONS.

        (a) Application of Security Provisions.--Sections 164.308, 164.310,
    164.312, and 164.316 of title 45, Code of Federal Regulations, shall
    apply to a business associate of a covered entity in the same manner
    that such sections apply to the covered entity. The additional
    requirements of this title that relate to security and that are made
    applicable with respect to covered entities shall also be applicable to
    such a business associate and shall be incorporated into the business
    associate agreement between the business associate and the covered
    entity.
        (b) Application of Civil and Criminal Penalties.--In the case of a
    business associate that violates any security provision specified in
    subsection (a), sections 1176 and 1177 of the Social Security Act (42
    U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
    respect to such violation in the same manner such sections apply to a
    covered entity that violates such security provision.
        (c) Annual Guidance.--For the first year beginning after the date of
    the enactment of this Act and annually thereafter, the Secretary of
    Health and Human Services shall, after consultation with stakeholders,
    annually issue guidance on the most effective and appropriate technical
    safeguards for use in carrying out the sections referred to in
    subsection (a) and the security standards in subpart C of part 164 of
    title 45, Code of Federal Regulations, including the use of standards
    developed under section 3002(b)(2)(B)(vi) of the Public Health Service
    Act, as added by section 13101 of this Act, as such provisions are in
    effect as of the date before the enactment of this Act.

    SEC. 13402. NOTIFICATION <<NOTE: 42 USC 17932.>> 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

    [[Page 123 STAT. 261]]

    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 <<NOTE: Deadline.>> 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 <<NOTE: Web posting.>> the case in which
                    there is insufficient, or out-of-date contact
                    information (including a phone number, email address, or
                    any other form of appropriate communication) that
                    precludes direct written (or, if specified by the
                    individual under subparagraph (A), electronic)
                    notification to the individual, a substitute form of
                    notice shall be provided, including, in the case that
                    there are 10 or more individuals for which there is
                    insufficient or out-of-date contact information, a
                    conspicuous posting for a period determined by the
                    Secretary on the home page of the Web site of the
                    covered entity involved or notice in major print or
                    broadcast media, including major media in geographic
                    areas where the individuals affected by the breach
                    likely reside. Such a notice in media or web posting
                    will include a toll-free phone number where an
                    individual can learn whether or not the individual's
                    unsecured protected health information is possibly
                    included in the breach.
                        (C) In any case deemed by the covered entity
                    involved to require urgency because of possible imminent
                    misuse of unsecured protected health information, the
                    covered entity, in addition to notice provided under
                    subparagraph (A), may provide information to individuals
                    by telephone or other means, as appropriate.
                (2) Media notice.--Notice shall be provided to prominent
            media outlets serving a State or jurisdiction, following the
            discovery of a breach described in subsection (a), if the
            unsecured protected health information of more than 500
            residents of such State or jurisdiction is, or is reasonably
            believed to have been, accessed, acquired, or disclosed during
            such breach.

    [[Page 123 STAT. 262]]

                (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 <<NOTE: List.>> 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,

    [[Page 123 STAT. 263]]

                    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 <<NOTE: Deadlines.>> purposes of
            paragraph (1) and section 13407(f)(3), not later than the date
            that is 60 days after the date of the enactment of this Act, the
            Secretary shall, after consultation with stakeholders, issue
            (and annually update) guidance specifying the technologies and
            methodologies that render protected health information unusable,
            unreadable, or indecipherable to unauthorized individuals,
            including the use of standards developed under section
            3002(b)(2)(B)(vi) of the Public Health Service Act, as added by
            section 13101 of this Act.

        (i) Report to Congress on Breaches.--
                (1) In general.--Not later than 12 months after the date of
            the enactment of this Act and annually thereafter, the Secretary
            shall prepare and submit to the Committee on Finance and the
            Committee on Health, Education, Labor, and Pensions of the
            Senate and the Committee on Ways and Means and the Committee on
            Energy and Commerce of the House of Representatives a report
            containing the information described in paragraph (2) regarding
            breaches for which notice was provided to the Secretary under
            subsection (e)(3).
                (2) Information.--The information described in this
            paragraph regarding breaches specified in paragraph (1) shall
            include--
                        (A) the number and nature of such breaches; and
                        (B) actions taken in response to such breaches.

        (j) Regulations; Effective Date.--To carry out this section, the
    Secretary of Health and Human Services shall promulgate interim final
    regulations by not later than the date that is 180 days after the date
    of the enactment of this title. <<NOTE: Applicability.>> 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 <<NOTE: 42 USC 17933.>> ON HEALTH INFORMATION
                PRIVACY.

        (a) Regional Office Privacy Advisors.--
    Not <<NOTE: Deadline. Designation.>> 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 <<NOTE: Deadline.>> 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.

    [[Page 123 STAT. 264]]

    SEC. 13404. APPLICATION <<NOTE: 42 USC 17934.>> 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 <<NOTE: 42 USC 17935.>> 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

    [[Page 123 STAT. 265]]

                    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 <<NOTE: Deadline.>> later than 18
                    months after the date of the enactment of this section,
                    the Secretary shall issue guidance on what constitutes
                    ``minimum necessary'' for purposes of subpart E of part
                    164 of title 45, Code of Federal Regulation. In issuing
                    such guidance the Secretary shall take into
                    consideration the guidance under section 13424(c) and
                    the information necessary to improve patient outcomes
                    and to detect, prevent, and manage chronic disease.
                        (C) Sunset.--Subparagraph (A) shall not apply on and
                    after the effective date on which the Secretary issues
                    the guidance under subparagraph (B).
                (2) Determination of minimum necessary.--For purposes of
            paragraph (1), in the case of the disclosure of protected health
            information, the covered entity or business associate disclosing
            such information shall determine what constitutes the minimum
            necessary to accomplish the intended purpose of such disclosure.
                (3) Application of exceptions.--The exceptions described in
            section 164.502(b)(2) of title 45, Code of Federal Regulations,
            shall apply to the requirement under paragraph (1) as of the
            effective date described in section 13423 in the same manner
            that such exceptions apply to section 164.502(b)(1) of such
            title before such date.
                (4) Rule of construction.--Nothing in this subsection shall
            be construed as affecting the use, disclosure, or request of
            protected health information that has been de-identified.

        (c) Accounting of Certain Protected Health Information Disclosures
    Required if Covered Entity Uses Electronic Health Record.--
                ``(1) In general.--In applying section 164.528 of title 45,
            Code of Federal Regulations, in the case that a covered entity
            uses or maintains an electronic health record with respect to
            protected health information--
                        ``(A) the exception under paragraph (a)(1)(i) of
                    such section shall not apply to disclosures through an
                    electronic health record made by such entity of such
                    information; and
                        ``(B) an individual shall have a right to receive an
                    accounting of disclosures described in such paragraph of
                    such information made by such covered entity during only
                    the three years prior to the date on which the
                    accounting is requested.
                ``(2) Regulations.--The <<NOTE: Deadline.>> Secretary shall
            promulgate regulations on what information shall be collected
            about each disclosure referred to in paragraph (1), not later
            than 6 months after the date on which the Secretary adopts
            standards on accounting for disclosure described in the section

    [[Page 123 STAT. 266]]

            3002(b)(2)(B)(iv) of the Public Health Service Act, as added by
            section 13101. Such regulations shall only require such
            information to be collected through an electronic health record
            in a manner that takes into account the interests of the
            individuals in learning the circumstances under which their
            protected health information is being disclosed and takes into
            account the administrative burden of accounting for such
            disclosures.
                ``(3) Process.--In response to an request from an individual
            for an accounting, a covered entity shall elect to provide
            either an--
                        ``(A) accounting, as specified under paragraph (1),
                    for disclosures of protected health information that are
                    made by such covered entity and by a business associate
                    acting on behalf of the covered entity; or
                        ``(B) accounting, as specified under paragraph (1),
                    for disclosures that are made by such covered entity and
                    provide a list of all business associates acting on
                    behalf of the covered entity, including contact
                    information for such associates (such as mailing
                    address, phone, and email address).
            A business associate included on a list under subparagraph (B)
            shall provide an accounting of disclosures (as required under
            paragraph (1) for a covered entity) made by the business
            associate upon a request made by an individual directly to the
            business associate for such an accounting.
                ``(4) Effective <<NOTE: Applicability.>> date.--
                        ``(A) Current users of electronic records.--In the
                    case of a covered entity insofar as it acquired an
                    electronic health record as of January 1, 2009,
                    paragraph (1) shall apply to disclosures, with respect
                    to protected health information, made by the covered
                    entity from such a record on and after January 1, 2014.
                        ``(B) Others.--In the case of a covered entity
                    insofar as it acquires an electronic health record after
                    January 1, 2009, paragraph (1) shall apply to
                    disclosures, with respect to protected health
                    information, made by the covered entity from such record
                    on and after the later of the following:
                              ``(i) January 1, 2011; or
                              ``(ii) the date that it acquires an electronic
                          health record.
                        ``(C) Later date.--The Secretary may set an
                    effective date that is later that the date specified
                    under subparagraph (A) or (B) if the Secretary
                    determines that such later date is necessary, but in no
                    case may the date specified under--
                              ``(i) subparagraph (A) be later than 2016; or
                              ``(ii) subparagraph (B) be later than 2013.''

        (d) Prohibition on Sale of Electronic Health Records or Protected
    Health Information.--
                (1) In general.--Except as provided in paragraph (2), a
            covered entity or business associate shall not directly or
            indirectly receive remuneration in exchange for any protected
            health information of an individual unless the covered entity
            obtained from the individual, in accordance with section 164.508
            of title 45, Code of Federal Regulations, a valid authorization
            that includes, in accordance with such section, a specification

    [[Page 123 STAT. 267]]

            of whether the protected health information can be further
            exchanged for remuneration by the entity receiving protected
            health information of that individual.
                (2) Exceptions.--Paragraph (1) shall not apply in the
            following cases:
                        (A) The purpose of the exchange is for public health
                    activities (as described in section 164.512(b) of title
                    45, Code of Federal Regulations).
                        (B) The purpose of the exchange is for research (as
                    described in sections 164.501 and 164.512(i) of title
                    45, Code of Federal Regulations) and the price charged
                    reflects the costs of preparation and transmittal of the
                    data for such purpose.
                        (C) The purpose of the exchange is for the treatment
                    of the individual, subject to any regulation that the
                    Secretary may promulgate to prevent protected health
                    information from inappropriate access, use, or
                    disclosure.
                        (D) The purpose of the exchange is the health care
                    operation specifically described in subparagraph (iv) of
                    paragraph (6) of the definition of healthcare operations
                    in section 164.501 of title 45, Code of Federal
                    Regulations.
                        (E) The purpose of the exchange is for remuneration
                    that is provided by a covered entity to a business
                    associate for activities involving the exchange of
                    protected health information that the business associate
                    undertakes on behalf of and at the specific request of
                    the covered entity pursuant to a business associate
                    agreement.
                        (F) The purpose of the exchange is to provide an
                    individual with a copy of the individual's protected
                    health information pursuant to section 164.524 of title
                    45, Code of Federal Regulations.
                        (G) The purpose of the exchange is otherwise
                    determined by the Secretary in regulations to be
                    similarly necessary and appropriate as the exceptions
                    provided in subparagraphs (A) through (F).
                (3) Regulations.--Not <<NOTE: Deadline.>> 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.

    [[Page 123 STAT. 268]]

        (e) Access to Certain Information in Electronic Format.--In applying
    section 164.524 of title 45, Code of Federal Regulations, in the case
    that a covered entity uses or maintains an electronic health record with
    respect to protected health information of an individual--
                (1) the individual shall have a right to obtain from such
            covered entity a copy of such information in an electronic
            format and, if the individual chooses, to direct the covered
            entity to transmit such copy directly to an entity or person
            designated by the individual, provided that any such choice is
            clear, conspicuous, and specific; and
                (2) notwithstanding paragraph (c)(4) of such section, any
            fee that the covered entity may impose for providing such
            individual with a copy of such information (or a summary or
            explanation of such information) if such copy (or summary or
            explanation) is in an electronic form shall not be greater than
            the entity's labor costs in responding to the request for the
            copy (or summary or explanation).

    SEC. 13406. CONDITIONS <<NOTE: 42 USC 17936.>> ON CERTAIN CONTACTS AS
                PART OF HEALTH CARE OPERATIONS.

        (a) Marketing.--
                (1) In general.--A communication by a covered entity or
            business associate that is about a product or service and that
            encourages recipients of the communication to purchase or use
            the product or service shall not be considered a health care
            operation for purposes of subpart E of part 164 of title 45,
            Code of Federal Regulations, unless the communication is made as
            described in subparagraph (i), (ii), or (iii) of paragraph (1)
            of the definition of marketing in section 164.501 of such title.
                (2) Payment for certain communications.--A communication by
            a covered entity or business associate that is described in
            subparagraph (i), (ii), or (iii) of paragraph (1) of the
            definition of marketing in section 164.501 of title 45, Code of
            Federal Regulations, shall not be considered a health care
            operation for purposes of subpart E of part 164 of title 45,
            Code of Federal Regulations if the covered entity receives or
            has received direct or indirect payment in exchange for making
            such communication, except where--
                        (A)(i) such communication describes only a drug or
                    biologic that is currently being prescribed for the
                    recipient of the communication; and
                        (ii) any payment received by such covered entity in
                    exchange for making a communication described in clause
                    (i) is reasonable in amount;
                        (B) each of the following conditions apply--
                              (i) the communication is made by the covered
                          entity; and
                              (ii) the covered entity making such
                          communication obtains from the recipient of the
                          communication, in accordance with section 164.508
                          of title 45, Code of Federal Regulations, a valid
                          authorization (as described in paragraph (b) of
                          such section) with respect to such communication;
                          or
                        (C) each of the following conditions apply--

    [[Page 123 STAT. 269]]

                              (i) the communication is made by a business
                          associate on behalf of the covered entity; and
                              (ii) the communication is consistent with the
                          written contract (or other written arrangement
                          described in section 164.502(e)(2) of such title)
                          between such business associate and covered
                          entity.
                (3) Reasonable in amount defined.--For purposes of paragraph
            (2), the term ``reasonable in amount'' shall have the meaning
            given such term by the Secretary by regulation.
                (4) Direct or indirect payment.--For purposes of paragraph
            (2), the term ``direct or indirect payment'' shall not include
            any payment for treatment (as defined in section 164.501 of
            title 45, Code of Federal Regulations) of an individual.

        (b) Opportunity <<NOTE: Regulations.>> to Opt Out of Fundraising.--
    The Secretary shall by rule provide that any written fundraising
    communication that is a healthcare operation as defined under section
    164.501 of title 45, Code of Federal Regulations, shall, in a clear and
    conspicuous manner, provide an opportunity for the recipient of the
    communications to elect not to receive any further such communication.
    When an individual elects not to receive any further such communication,
    such election shall be treated as a revocation of authorization under
    section 164.508 of title 45, Code of Federal Regulations.

        (c) Effective Date.--This section shall apply to written
    communications occurring on or after the effective date specified under
    section 13423.

    SEC. 13407. TEMPORARY <<NOTE: 42 USC 17937.>> BREACH NOTIFICATION
                REQUIREMENT FOR VENDORS OF PERSONAL HEALTH RECORDS AND OTHER
                NON-HIPAA COVERED ENTITIES.

        (a) In General.--In accordance with subsection (c), each vendor of
    personal health records, following the discovery of a breach of security
    of unsecured PHR identifiable health information that is in a personal
    health record maintained or offered by such vendor, and each entity
    described in clause (ii), (iii), or (iv) of section 13424(b)(1)(A),
    following the discovery of a breach of security of such information that
    is obtained through a product or service provided by such entity,
    shall--
                (1) notify each individual who is a citizen or resident of
            the United States whose unsecured PHR identifiable health
            information was acquired by an unauthorized person as a result
            of such a breach of security; and
                (2) notify the Federal Trade Commission.

        (b) Notification by Third Party Service Providers.--A third party
    service provider that provides services to a vendor of personal health
    records or to an entity described in clause (ii), (iii). or (iv) of
    section 13424(b)(1)(A) in connection with the offering or maintenance of
    a personal health record or a related product or service and that
    accesses, maintains, retains, modifies, records, stores, destroys, or
    otherwise holds, uses, or discloses unsecured PHR identifiable health
    information in such a record as a result of such services shall,
    following the discovery of a breach of security of such information,
    notify such vendor or entity, respectively, of such breach. Such notice
    shall include the identification of each individual whose unsecured PHR
    identifiable health information

    [[Page 123 STAT. 270]]

    has been, or is reasonably believed to have been, accessed, acquired, or
    disclosed during such breach.
        (c) Application of Requirements for Timeliness, Method, and Content
    of Notifications.--Subsections (c), (d), (e), and (f) of section 13402
    shall apply to a notification required under subsection (a) and a vendor
    of personal health records, an entity described in subsection (a) and a
    third party service provider described in subsection (b), with respect
    to a breach of security under subsection (a) of unsecured PHR
    identifiable health information in such records maintained or offered by
    such vendor, in a manner specified by the Federal Trade Commission.
        (d) Notification of the Secretary.--Upon receipt of a notification
    of a breach of security under subsection (a)(2), the Federal Trade
    Commission shall notify the Secretary of such breach.
        (e) Enforcement.--A violation of subsection (a) or (b) shall be
    treated as an unfair and deceptive act or practice in violation of a
    regulation under section 18(a)(1)(B) of the Federal Trade Commission Act
    (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or
    practices.
        (f) Definitions.--For purposes of this section:
                (1) Breach of security.--The term ``breach of security''
            means, with respect to unsecured PHR identifiable health
            information of an individual in a personal health record,
            acquisition of such information without the authorization of the
            individual.
                (2) PHR identifiable health information.--The term ``PHR
            identifiable health information'' means individually
            identifiable health information, as defined in section 1171(6)
            of the Social Security Act (42 U.S.C. 1320d(6)), and includes,
            with respect to an individual, information--
                        (A) that is provided by or on behalf of the
                    individual; and
                        (B) that identifies the individual or with respect
                    to which there is a reasonable basis to believe that the
                    information can be used to identify the individual.
                (3) Unsecured phr identifiable health information.--
                        (A) In general.--Subject to subparagraph (B), the
                    term ``unsecured PHR identifiable health information''
                    means PHR identifiable health information that is not
                    protected through the use of a technology or methodology
                    specified by the Secretary in the guidance issued under
                    section 13402(h)(2).
                        (B) Exception in case timely guidance not issued.--
                    In the case that the Secretary does not issue guidance
                    under section 13402(h)(2) by the date specified in such
                    section, for purposes of this section, the term
                    ``unsecured PHR identifiable health information'' shall
                    mean PHR identifiable health information that is not
                    secured by a technology standard that renders protected
                    health information unusable, unreadable, or
                    indecipherable to unauthorized individuals and that is
                    developed or endorsed by a standards developing
                    organization that is accredited by the American National
                    Standards Institute.

        (g) Regulations; Effective Date; Sunset.--
                (1) Regulations; effective date.--To carry out this section,
            the Federal Trade Commission shall promulgate interim final
            regulations by not later than the date that is 180 days

    [[Page 123 STAT. 271]]

            after the date of the enactment of this section.
            The <<NOTE: Applicability.>> provisions of this section shall
            apply to breaches of security that are discovered on or after
            the date that is 30 days after the date of publication of such
            interim final regulations.
                (2) Sunset.--If Congress enacts new legislation establishing
            requirements for notification in the case of a breach of
            security, that apply to entities that are not covered entities
            or business associates, the provisions of this section shall not
            apply to breaches of security discovered on or after the
            effective date of regulations implementing such legislation.

    SEC. 13408. BUSINESS <<NOTE: 42 USC 17938.>> 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 <<NOTE: 42 USC 17939.>> ENFORCEMENT.

        (a) In General.--
                (1) Noncompliance due to willful neglect.--Section 1176 of
            the Social Security Act (42 U.S.C. 1320d-5) is amended--
                        (A) in subsection (b)(1), by striking ``the act
                    constitutes an offense punishable under section 1177''
                    and inserting ``a penalty has been imposed under section
                    1177 with respect to such act''; and
                        (B) by adding at the end the following new
                    subsection:

        ``(c) Noncompliance Due to Willful Neglect.--
                ``(1) In general.--A violation of a provision of this part
            due to willful neglect is a violation for which the Secretary is
            required to impose a penalty under subsection (a)(1).
                ``(2) Required investigation.--For purposes of paragraph
            (1), the Secretary shall formally investigate any complaint of

    [[Page 123 STAT. 272]]

            a violation of a provision of this part if a preliminary
            investigation of the facts of the complaint indicate such a
            possible violation due to willful neglect.''.
                (2) Enforcement under social security act.--Any violation by
            a covered entity under thus subtitle is subject to enforcement
            and penalties under section 1176 and 1177 of the Social Security
            Act.

        (b) Effective Date; Regulations.--
                (1) The amendments made by subsection (a) shall apply to
            penalties imposed on or after the date that is 24 months after
            the date of the enactment of this title.
                (2) Not <<NOTE: Deadline.>> later than 18 months after the
            date of the enactment of this title, the Secretary of Health and
            Human Services shall promulgate regulations to implement such
            amendments.

        (c) Distribution of Certain Civil Monetary Penalties Collected.--
                (1) In general.--Subject to the regulation promulgated
            pursuant to paragraph (3), any civil monetary penalty or
            monetary settlement collected with respect to an offense
            punishable under this subtitle or section 1176 of the Social
            Security Act (42 U.S.C. 1320d-5) insofar as such section relates
            to privacy or security shall be transferred to the Office for
            Civil Rights of the Department of Health and Human Services to
            be used for purposes of enforcing the provisions of this
            subtitle and subparts C and E of part 164 of title 45, Code of
            Federal Regulations, as such provisions are in effect as of the
            date of enactment of this Act.
                (2) GAO report.--Not later than 18 months after the date of
            the enactment of this title, the Comptroller General shall
            submit to the Secretary a report including recommendations for a
            methodology under which an individual who is harmed by an act
            that constitutes an offense referred to in paragraph (1) may
            receive a percentage of any civil monetary penalty or monetary
            settlement collected with respect to such offense.
                (3) Establishment of methodology to distribute percentage of
            cmps collected to harmed individuals.--Not later
            than <<NOTE: Deadline.>> 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

    [[Page 123 STAT. 273]]

                    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

    [[Page 123 STAT. 274]]

                        (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 <<NOTE: Records.>> 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

    [[Page 123 STAT. 275]]

            feasible, in which case the State shall serve such notice
            immediately upon instituting such action. The Secretary shall
            have the right--
                        ``(A) to intervene in the action;
                        ``(B) upon so intervening, to be heard on all
                    matters arising therein; and
                        ``(C) to file petitions for appeal.
                ``(5) Construction.--For purposes of bringing any civil
            action under paragraph (1), nothing in this section shall be
            construed to prevent an attorney general of a State from
            exercising the powers conferred on the attorney general by the
            laws of that State.
                ``(6) Venue; service of process.--
                        ``(A) Venue.--Any action brought under paragraph (1)
                    may be brought in the district court of the United
                    States that meets applicable requirements relating to
                    venue under section 1391 of title 28, United States
                    Code.
                        ``(B) Service of process.--In an action brought
                    under paragraph (1), process may be served in any
                    district in which the defendant--
                              ``(i) is an inhabitant; or
                              ``(ii) maintains a physical place of business.
                ``(7) Limitation on state action while federal action is
            pending.--If the Secretary has instituted an action against a
            person under subsection (a) with respect to a specific violation
            of this part, no State attorney general may bring an action
            under this subsection against the person with respect to such
            violation during the pendency of that action.
                ``(8) Application of cmp statute of limitation.--A civil
            action may not be instituted with respect to a violation of this
            part unless an action to impose a civil money penalty may be
            instituted under subsection (a) with respect to such violation
            consistent with the second sentence of section 1128A(c)(1).''.
                (2) Conforming amendments.--Subsection (b) of such section,
            as amended by subsection (d)(3), is amended--
                        (A) in paragraph (1), by striking ``A penalty may
                    not be imposed under subsection (a)'' and inserting ``No
                    penalty may be imposed under subsection (a) and no
                    damages obtained under subsection (d)'';
                        (B) in paragraph (2)(A)--
                              (i) after ``subsection (a)(1)(C),'', by
                          striking ``a penalty may not be imposed under
                          subsection (a)'' and inserting ``no penalty may be
                          imposed under subsection (a) and no damages
                          obtained under subsection (d)''; and
                              (ii) in clause (ii), by inserting ``or
                          damages'' after ``the penalty'';
                        (C) in paragraph (2)(B)(i), by striking ``The
                    period'' and inserting ``With respect to the imposition
                    of a penalty by the Secretary under subsection (a), the
                    period''; and
                        (D) in paragraph (3), by inserting ``and any damages
                    under subsection (d)'' after ``any penalty under
                    subsection (a)''.
                (3) Effective date.--The amendments made by this subsection
            shall apply to violations occurring after the date of the
            enactment of this Act.

    [[Page 123 STAT. 276]]

        (f) Allowing Continued Use of Corrective Action.--Such section is
    further amended by adding at the end the following new subsection:
        ``(e) Allowing Continued Use of Corrective Action.--Nothing in this
    section shall be construed as preventing the Office for Civil Rights of
    the Department of Health and Human Services from continuing, in its
    discretion, to use corrective action without a penalty in cases where
    the person did not know (and by exercising reasonable diligence would
    not have known) of the violation involved.''.

    SEC. 13411. <<NOTE: 42 USC 17940.>> AUDITS.

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

      PART 2--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE
                                  DATE; REPORTS

    SEC. 13421. RELATIONSHIP <<NOTE: 42 USC 17951.>> TO OTHER LAWS.

        (a) Application of Hipaa State Preemption.--Section 1178 of the
    Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision or
    requirement under this subtitle in the same manner that such section
    applies to a provision or requirement under part C of title XI of such
    Act or a standard or implementation specification adopted or established
    under sections 1172 through 1174 of such Act.
        (b) Health Insurance Portability and Accountability Act.--The
    standards governing the privacy and security of individually
    identifiable health information promulgated by the Secretary under
    sections 262(a) and 264 of the Health Insurance Portability and
    Accountability Act of 1996 shall remain in effect to the extent that
    they are consistent with this subtitle. The Secretary shall by rule
    amend such Federal regulations as required to make such regulations
    consistent with this subtitle.
        (c) Construction.--Nothing in this subtitle shall constitute a
    waiver of any privilege otherwise applicable to an individual with
    respect to the protected health information of such individual.

    SEC. 13422. REGULATORY <<NOTE: 42 USC 17952.>> 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 <<NOTE: 42 USC 17953.>> 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, <<NOTE: 42 USC 17954.>> REPORTS, GUIDANCE.

        (a) Report on Compliance.--

    [[Page 123 STAT. 277]]

                (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 <<NOTE: Web
            posting.>> 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;

    [[Page 123 STAT. 278]]

                              (ii) entities that offer products or services
                          through the website of a vendor of personal health
                          records;
                              (iii) entities that are not covered entities
                          and that offer products or services through the
                          websites of covered entities that offer
                          individuals personal health records;
                              (iv) entities that are not covered entities
                          and that access information in a personal health
                          record or send information to a personal health
                          record; and
                              (v) third party service providers used by a
                          vendor or entity described in clause (i), (ii),
                          (iii), or (iv) to assist in providing personal
                          health record products or services;
                        (B) a determination of which Federal government
                    agency is best equipped to enforce such requirements
                    recommended to be applied to such vendors, entities, and
                    service providers under subparagraph (A); and
                        (C) a timeframe for implementing regulations based
                    on such findings.
                (2) Report.--The Secretary shall submit to the Committee on
            Finance, the Committee on Health, Education, Labor, and
            Pensions, and the Committee on Commerce of the Senate and the
            Committee on Ways and Means and the Committee on Energy and
            Commerce of the House of Representatives a report on the
            findings of the study under paragraph (1) and shall include in
            such report recommendations on the privacy and security
            requirements described in such paragraph.

        (c) Guidance on Implementation Specification to De-Identify
    Protected Health Information.--Not later than 12 months after the date
    of the enactment of this title, the Secretary shall, in consultation
    with stakeholders, issue guidance on how best to implement the
    requirements for the de-identification of protected health information
    under section 164.514(b) of title 45, Code of Federal Regulations.
        (d) GAO Report on Treatment Disclosures.--Not later than one year
    after the date of the enactment of this title, the Comptroller General
    of the United States shall submit to the Committee on Health, Education,
    Labor, and Pensions of the Senate and the Committee on Ways and Means
    and the Committee on Energy and Commerce of the House of Representatives
    a report on the best practices related to the disclosure among health
    care providers of protected health information of an individual for
    purposes of treatment of such individual. Such report shall include an
    examination of the best practices implemented by States and by other
    entities, such as health information exchanges and regional health
    information organizations, an examination of the extent to which such
    best practices are successful with respect to the quality of the
    resulting health care provided to the individual and with respect to the
    ability of the health care provider to manage such best practices, and
    an examination of the use of electronic informed consent for disclosing
    protected health information for treatment, payment, and health care
    operations.
        (e) Report Required.--Not later than 5 years after the date of
    enactment of this section, the Government Accountability Office shall
    submit to Congress and the Secretary of Health and Human Services a
    report on the impact of any of the provisions of this

    [[Page 123 STAT. 279]]

    Act on health insurance premiums, overall health care costs, adoption of
    electronic health records by providers, and reduction in medical errors
    and other quality improvements.
        (f) Study.--The Secretary shall study the definition of
    ``psychotherapy notes'' in section 164.501 of title 45, Code of Federal
    Regulations, with regard to including test data that is related to
    direct responses, scores, items, forms, protocols, manuals, or other
    materials that are part of a mental health evaluation, as determined by
    the mental health professional providing treatment or evaluation in such
    definitions and may, based on such study, issue regulations to revise
    such definition.

                   TITLE XIV--STATE FISCAL STABILIZATION FUND

                             DEPARTMENT OF EDUCATION

                         State Fiscal Stabilization Fund

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

                         GENERAL PROVISIONS--THIS TITLE

    SEC. 14001. ALLOCATIONS.

        (a) Outlying Areas.--From the amount appropriated to carry out this
    title, the Secretary of Education shall first allocate up to one-half of
    1 percent to the outlying areas on the basis of their respective needs,
    as determined by the Secretary, in consultation with the Secretary of
    the Interior, for activities consistent with this title under such terms
    and conditions as the Secretary may determine.
        (b) Administration and Oversight.--The Secretary may, in addition,
    reserve up to $14,000,000 for administration and oversight of this
    title, including for program evaluation.
        (c) Reservation for Additional Programs.--
    After <<NOTE: Grants.>> reserving funds under subsections (a) and (b),
    the Secretary shall reserve $5,000,000,000 for grants under sections
    14006 and 14007.

        (d) State Allocations.--After carrying out subsections (a), (b), and
    (c), the Secretary shall allocate the remaining funds made available to
    carry out this title to the States as follows:
                (1) 61 percent on the basis of their relative population of
            individuals aged 5 through 24.
                (2) 39 percent on the basis of their relative total
            population.

        (e) State Grants.--From funds allocated under subsection (d), the
    Secretary shall make grants to the Governor of each State.
        (f) Reallocation.--The Governor shall return to the Secretary any
    funds received under subsection (e) that the Governor does not award as
    subgrants or otherwise commit within two years of receiving such funds,
    and the Secretary shall reallocate such funds to the remaining States in
    accordance with subsection (d).

    SEC. 14002. STATE USES OF FUNDS.

        (a) Education Fund.--

    [[Page 123 STAT. 280]]

                (1) In general.--For each fiscal year, the Governor shall
            use 81.8 percent of the State's allocation under section
            14001(d) for the support of elementary, secondary, and
            postsecondary education and, as applicable, early childhood
            education programs and services.
                (2) Restoring state support for education.--
                        (A) In general.--The Governor shall first use the
                    funds described in paragraph (1)--
                              (i) to provide the amount of funds, through
                          the State's primary elementary and secondary
                          funding formulae, that is needed--
                                        (I) to restore, in each of fiscal
                                    years 2009, 2010, and 2011, the level of
                                    State support provided through such
                                    formulae to the greater of the fiscal
                                    year 2008 or fiscal year 2009 level; and
                                        (II) where applicable, to allow
                                    existing State formulae increases to
                                    support elementary and secondary
                                    education for fiscal years 2010 and 2011
                                    to be implemented and allow funding for
                                    phasing in State equity and adequacy
                                    adjustments, if such increases were
                                    enacted pursuant to State law prior to
                                    October 1, 2008.
                              (ii) to provide, in each of fiscal years 2009,
                          2010, and 2011, the amount of funds to public
                          institutions of higher education in the State that
                          is needed to restore State support for such
                          institutions (excluding tuition and fees paid by
                          students) to the greater of the fiscal year 2008
                          or fiscal year 2009 level.
                        (B) Shortfall.--If the Governor determines that the
                    amount of funds available under paragraph (1) is
                    insufficient to support, in each of fiscal years 2009,
                    2010, and 2011, public elementary, secondary, and higher
                    education at the levels described in clauses (i) and
                    (ii) of subparagraph (A), the Governor shall allocate
                    those funds between those clauses in proportion to the
                    relative shortfall in State support for the education
                    sectors described in those clauses.
                        (C) Fiscal year.--For purposes of this paragraph,
                    the term ``fiscal year'' shall have the meaning given
                    such term under State law.
                (3) Subgrants to improve basic programs operated by local
            educational agencies.--After carrying out paragraph (2), the
            Governor shall use any funds remaining under paragraph (1) to
            provide local educational agencies in the State with subgrants
            based on their relative shares of funding under part A of title
            I of the Elementary and Secondary Education Act of 1965 (20
            U.S.C. 6311 et seq.) for the most recent year for which data are
            available.

        (b) Other Government Services.--
                (1) In general.--The Governor shall use 18.2 percent of the
            State's allocation under section 14001 for public safety and
            other government services, which may include assistance for
            elementary and secondary education and public institutions of
            higher education, and for modernization, renovation, or repair
            of public school facilities and institutions of higher education
            facilities, including modernization, renovation, and repairs
            that are consistent with a recognized green building rating
            system.

    [[Page 123 STAT. 281]]

                (2) Availability to all institutions of higher education.--A
            Governor shall not consider the type or mission of an
            institution of higher education, and shall consider any
            institution for funding for modernization, renovation, and
            repairs within the State that--
                        (A) qualifies as an institution of higher education,
                    as defined in subsection 14013(3); and
                        (B) continues to be eligible to participate in the
                    programs under title IV of the Higher Education Act of
                    1965.

        (c) Rule of Construction.--Nothing in this section shall allow a
    local educational agency to engage in school modernization, renovation,
    or repair that is inconsistent with State law.

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

        (a) In General.--A local educational agency that receives funds
    under this title may use the funds for any activity authorized by the
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
    (``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C.
    1400 et seq.) (``IDEA''), the Adult and Family Literacy Act (20 U.S.C.
    1400 et seq.), or the Carl D. Perkins Career and Technical Education Act
    of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for
    modernization, renovation, or repair of public school facilities,
    including modernization, renovation, and repairs that are consistent
    with a recognized green building rating system.
        (b) Prohibition.--A local educational agency may not use funds
    received under this title for--
                (1) payment of maintenance costs;
                (2) stadiums or other facilities primarily used for athletic
            contests or exhibitions or other events for which admission is
            charged to the general public;
                (3) purchase or upgrade of vehicles; or
                (4) improvement of stand-alone facilities whose purpose is
            not the education of children, including central office
            administration or operations or logistical support facilities.

        (c) Rule of Construction.--Nothing in this section shall allow a
    local educational agency to engage in school modernization, renovation,
    or repair that is inconsistent with State law.

    SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

        (a) In General.--A public institution of higher education that
    receives funds under this title shall use the funds for education and
    general expenditures, and in such a way as to mitigate the need to raise
    tuition and fees for in-State students, or for modernization,
    renovation, or repair of institution of higher education facilities that
    are primarily used for instruction, research, or student housing,
    including modernization, renovation, and repairs that are consistent
    with a recognized green building rating system.
        (b) Prohibition.--An institution of higher education may not use
    funds received under this title to increase its endowment.
        (c) Additional Prohibition.--No funds awarded under this title may
    be used for--
                (1) the maintenance of systems, equipment, or facilities;
                (2) modernization, renovation, or repair of stadiums or
            other facilities primarily used for athletic contests or
            exhibitions or other events for which admission is charged to
            the general public; or
                (3) modernization, renovation, or repair of facilities--

    [[Page 123 STAT. 282]]

                        (A) used for sectarian instruction or religious
                    worship; or
                        (B) in which a substantial portion of the functions
                    of the facilities are subsumed in a religious mission.

    SEC. 14005. STATE APPLICATIONS.

        (a) In General.--The Governor of a State desiring to receive an
    allocation under section 14001 shall submit an application at such time,
    in such manner, and containing such information as the Secretary may
    reasonably require.
        (b) Application.--In such application, the Governor shall--
                (1) include the assurances described in subsection (d);
                (2) provide baseline data that demonstrates the State's
            current status in each of the areas described in such
            assurances; and
                (3) describe how the State intends to use its allocation,
            including whether the State will use such allocation to meet
            maintenance of effort requirements under the ESEA and IDEA and,
            in such cases, what amount will be used to meet such
            requirements.

        (c) Incentive Grant Application.--The Governor of a State seeking a
    grant under section 14006 shall--
                (1) submit an application for consideration;
                (2) describe the status of the State's progress in each of
            the areas described in subsection (d), and the strategies the
            State is employing to help ensure that students in the subgroups
            described in section 1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C.
            6311(b)(2)(C)(v)(II)) who have not met the State's proficiency
            targets continue making progress toward meeting the State's
            student academic achievement standards;
                (3) describe the achievement and graduation rates (as
            described in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C.
            6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of
            title 34, Code of Federal Regulations) of public elementary and
            secondary school students in the State, and the strategies the
            State is employing to help ensure that all subgroups of students
            identified in section 1111(b)(2) of the ESEA (20 U.S.C.
            6311(b)(2)) in the State continue making progress toward meeting
            the State's student academic achievement standards;
                (4) describe how the State would use its grant funding to
            improve student academic achievement in the State, including how
            it will allocate the funds to give priority to high-need local
            educational agencies; and
                (5) include a plan for evaluating the State's progress in
            closing achievement gaps.

        (d) Assurances.--An application under subsection (b) shall include
    the following assurances:
                (1) Maintenance of effort.--
                        (A) Elementary and secondary education.--The State
                    will, in each of fiscal years 2009, 2010, and 2011,
                    maintain State support for elementary and secondary
                    education at least at the level of such support in
                    fiscal year 2006.
                        (B) Higher education.--The State will, in each of
                    fiscal years 2009, 2010, and 2011, maintain State
                    support for public institutions of higher education (not
                    including support for capital projects or for research
                    and development

    [[Page 123 STAT. 283]]

                    or tuition and fees paid by students) at least at the
                    level of such support in fiscal year 2006.
                (2) Achieving equity in teacher distribution.--The State
            will take actions to improve teacher effectiveness and comply
            with section 1111(b)(8)(C) of the ESEA (20 U.S.C. 6311(b)(8)(C))
            in order to address inequities in the distribution of highly
            qualified teachers between high- and low-poverty schools, and to
            ensure that low-income and minority children are not taught at
            higher rates than other children by inexperienced, unqualified,
            or out-of-field teachers.
                (3) Improving collection and use of data.--The State will
            establish a longitudinal data system that includes the elements
            described in section 6401(e)(2)(D) of the America COMPETES Act
            (20 U.S.C. 9871).
                (4) Standards and assessments.--The State--
                        (A) will enhance the quality of the academic
                    assessments it administers pursuant to section
                    1111(b)(3) of the ESEA (20 U.S.C. 6311(b)(3)) through
                    activities such as those described in section 6112(a) of
                    such Act (20 U.S.C. 7301a(a));
                        (B) will comply with the requirements of paragraphs
                    (3)(C)(ix) and (6) of section 1111(b) of the ESEA (20
                    U.S.C. 6311(b)) and section 612(a)(16) of the IDEA (20
                    U.S.C. 1412(a)(16)) related to the inclusion of children
                    with disabilities and limited English proficient
                    students in State assessments, the development of valid
                    and reliable assessments for those students, and the
                    provision of accommodations that enable their
                    participation in State assessments; and
                        (C) will take steps to improve State academic
                    content standards and student academic achievement
                    standards consistent with section 6401(e)(1)(9)(A)(ii)
                    of the America COMPETES Act.
                (5) Supporting struggling schools.--The State will ensure
            compliance with the requirements of section 1116(a)(7)(C)(iv)
            and section 1116(a)(8)(B) of the ESEA with respect to schools
            identified under such sections.

    SEC. 14006. STATE INCENTIVE GRANTS.

        (a) In General.--
                (1) Reservation.--From the total amount reserved under
            section 14001(c) that is not used for section 14007, the
            Secretary may reserve up to 1 percent for technical assistance
            to States to assist them in meeting the objectives of paragraphs
            (2), (3), (4), and (5) of section 14005(d).
                (2) Remainder.--Of the remaining funds, the Secretary shall,
            in fiscal year 2010, make grants to States that have made
            significant progress in meeting the objectives of paragraphs
            (2), (3), (4), and (5) of section 14005(d).

        (b) Basis for Grants.--The Secretary shall determine which States
    receive grants under this section, and the amount of those grants, on
    the basis of information provided in State applications under section
    14005 and such other criteria as the Secretary determines appropriate,
    which may include a State's need for assistance to help meet the
    objective of paragraphs (2), (3), (4), and (5) of section 14005(d).

    [[Page 123 STAT. 284]]

        (c) Subgrants to Local Educational Agencies.--Each State receiving a
    grant under this section shall use at least 50 percent of the grant to
    provide local educational agencies in the State with subgrants based on
    their relative shares of funding under part A of title I of the ESEA (20
    U.S.C. 6311 et seq.) for the most recent year.

    SEC. 14007. INNOVATION FUND.

        (a) In General.--
                (1) Eligible entities.--For the purposes of this section,
            the term ``eligible entity'' means--
                        (A) a local educational agency; or
                        (B) a partnership between a nonprofit organization
                    and--
                              (i) one or more local educational agencies; or
                              (ii) a consortium of schools.
                (2) Program established.--From the total amount reserved
            under section 14001(c), the Secretary may reserve up to
            $650,000,000 to establish an Innovation Fund, which shall
            consist of academic achievement awards that recognize eligible
            entities that meet the requirements described in subsection (b).
                (3) Basis for awards.--The Secretary shall make awards to
            eligible entities that have made significant gains in closing
            the achievement gap as described in subsection (b)(1)--
                        (A) to allow such eligible entities to expand their
                    work and serve as models for best practices;
                        (B) to allow such eligible entities to work in
                    partnership with the private sector and the
                    philanthropic community; and
                        (C) to identify and document best practices that can
                    be shared, and taken to scale based on demonstrated
                    success.

        (b) Eligibility.--To be eligible for such an award, an eligible
    entity shall--
                (1) have significantly closed the achievement gaps between
            groups of students described in section 1111(b)(2) of the ESEA
            (20 U.S.C. 6311(b)(2));
                (2) have exceeded the State's annual measurable objectives
            consistent with such section 1111(b)(2) for 2 or more
            consecutive years or have demonstrated success in significantly
            increasing student academic achievement for all groups of
            students described in such section through another measure, such
            as measures described in section 1111(c)(2) of the ESEA;
                (3) have made significant improvement in other areas, such
            as graduation rates or increased recruitment and placement of
            high-quality teachers and school leaders, as demonstrated with
            meaningful data; and
                (4) demonstrate that they have established partnerships with
            the private sector, which may include philanthropic
            organizations, and that the private sector will provide matching
            funds in order to help bring results to scale.

        (c) Special Rule.--In the case of an eligible entity that includes a
    nonprofit organization, the eligible entity shall be considered to have
    met the eligibility requirements of paragraphs (1), (2), (3) of
    subsection (b) if such nonprofit organization has a record of meeting
    such requirements.

    [[Page 123 STAT. 285]]

    SEC. 14008. STATE REPORTS.

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

    SEC. 14009. EVALUATION.

        The Comptroller General of the United States shall conduct
    evaluations of the programs under sections 14006 and 14007 which shall
    include, but not be limited to, the criteria used for the awards made,
    the States selected for awards, award amounts, how each State used the
    award received, and the impact of this funding on the progress made
    toward closing achievement gaps.

    SEC. 14010. SECRETARY'S REPORT TO CONGRESS.

        The Secretary shall submit a report to the Committee on Education
    and Labor of the House of Representatives, the Committee on Health,
    Education, Labor, and Pensions of the Senate, and the Committees on
    Appropriations of the House of Representatives and of the Senate, not
    less than 6 months following the submission of State reports, that
    evaluates the information provided in the State reports under section
    14008 and the information required by section 14005(b)(3) including
    State-by-State information.

    SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

        No recipient of funds under this title shall use such funds to
    provide financial assistance to students to attend private elementary or
    secondary schools.

    SEC. 14012. FISCAL RELIEF.

        (a) In General.--For <<NOTE: Waiver authority.>> the purpose of
    relieving fiscal burdens on States and local educational agencies that
    have experienced

    [[Page 123 STAT. 286]]

    a precipitous decline in financial resources, the Secretary of Education
    may waive or modify any requirement of this title relating to
    maintaining fiscal effort.

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

    SEC. 14013. DEFINITIONS.

        Except as otherwise provided in this title, as used in this title--
                (1) the terms ``elementary education'' and ``secondary
            education'' have the meaning given such terms under State law;
                (2) the term ``high-need local educational agency'' means a
            local educational agency--
                        (A) that serves not fewer than 10,000 children from
                    families with incomes below the poverty line; or
                        (B) for which not less than 20 percent of the
                    children served by the agency are from families with
                    incomes below the poverty line;
                (3) the term ``institution of higher education'' has the
            meaning given such term in section 101 of the Higher Education
            Act of 1965 (20 U.S.C. 1001);
                (4) the term ``Secretary'' means the Secretary of Education;
                (5) the term ``State'' means each of the 50 States, the
            District of Columbia, and the Commonwealth of Puerto Rico; and
                (6) any other term used that is defined in section 9101 of
            the ESEA (20 U.S.C. 7801) shall have the meaning given the term
            in such section.

                    TITLE XV--ACCOUNTABILITY AND TRANSPARENCY

    SEC. 1501. DEFINITIONS.

        In this title:
                (1) Agency.--The term ``agency'' has the meaning given under
            section 551 of title 5, United States Code.

    [[Page 123 STAT. 287]]

                (2) Board.--The term ``Board'' means the Recovery
            Accountability and Transparency Board established in section
            1521.
                (3) Chairperson.--The term ``Chairperson'' means the
            Chairperson of the Board.
                (4) Covered funds.--The term ``covered funds'' means any
            funds that are expended or obligated from appropriations made
            under this Act.
                (5) Panel.--The term ``Panel'' means the Recovery
            Independent Advisory Panel established in section 1541.

               Subtitle A--Transparency and Oversight Requirements

    SEC. 1511. CERTIFICATIONS.

        With respect to covered funds made available to State or local
    governments for infrastructure investments, the Governor, mayor, or
    other chief executive, as appropriate, shall certify that the
    infrastructure investment has received the full review and vetting
    required by law and that the chief executive accepts responsibility that
    the infrastructure investment is an appropriate use of taxpayer dollars.
    Such <<NOTE: Web posting.>> certification shall include a description of
    the investment, the estimated total cost, and the amount of covered
    funds to be used, and shall be posted on a website and linked to the
    website established by section 1526. A State or local agency may not
    receive infrastructure investment funding from funds made available in
    this Act unless this certification is made and posted.

    SEC. 1512. REPORTS ON <<NOTE: Jobs Accountability Act.>> USE OF FUNDS.

        (a) Short Title.--This section may be cited as the ``Jobs
    Accountability Act''.
        (b) Definitions.--In this section:
                (1) Recipient.--The term ``recipient''--
                        (A) means any entity that receives recovery funds
                    directly from the Federal Government (including recovery
                    funds received through grant, loan, or contract) other
                    than an individual; and
                        (B) includes a State that receives recovery funds.
                (2) Recovery funds.--The term ``recovery funds'' means any
            funds that are made available from appropriations made under
            this Act.

        (c) Recipient Reports.--Not later than 10 days after the end of each
    calendar quarter, each recipient that received recovery funds from a
    Federal agency shall submit a report to that agency that contains--
                (1) the total amount of recovery funds received from that
            agency;
                (2) the amount of recovery funds received that were expended
            or obligated to projects or activities; and
                (3) a detailed list of all projects or activities for which
            recovery funds were expended or obligated, including--
                        (A) the name of the project or activity;
                        (B) a description of the project or activity;
                        (C) an evaluation of the completion status of the
                    project or activity;

    [[Page 123 STAT. 288]]

                        (D) an estimate of the number of jobs created and
                    the number of jobs retained by the project or activity;
                    and
                        (E) for infrastructure investments made by State and
                    local governments, the purpose, total cost, and
                    rationale of the agency for funding the infrastructure
                    investment with funds made available under this Act, and
                    name of the person to contact at the agency if there are
                    concerns with the infrastructure investment.
                (4) Detailed information on any subcontracts or subgrants
            awarded by the recipient to include the data elements required
            to comply with the Federal Funding Accountability and
            Transparency Act of 2006 (Public Law 109-282), allowing
            aggregate reporting on awards below $25,000 or to individuals,
            as prescribed by the Director of the Office of Management and
            Budget.

        (d) Agency Reports.--Not later than 30 days after the end of each
    calendar quarter, each agency that made recovery funds available to any
    recipient shall make the information in reports submitted under
    subsection (c) publicly available by posting the information on a
    website.
        (e) Other Reports.--The Congressional Budget Office and the
    Government Accountability Office shall comment on the information
    described in subsection (c)(3)(D) for any reports submitted under
    subsection (c). Such comments shall be due within 45 days after such
    reports are submitted.
        (f) Compliance.--Within 180 days of enactment, as a condition of
    receipt of funds under this Act, Federal agencies shall require any
    recipient of such funds to provide the information required under
    subsection (c).
        (g) Guidance.--Federal agencies, in coordination with the Director
    of the Office of Management and Budget, shall provide for user-friendly
    means for recipients of covered funds to meet the requirements of this
    section.
        (h) Registration.--Funding recipients required to report information
    per subsection (c)(4) must register with the Central Contractor
    Registration database or complete other registration requirements as
    determined by the Director of the Office of Management and Budget.

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

        (a) In General.--In consultation with the Director of the Office of
    Management and Budget and the Secretary of the Treasury, the Chairperson
    of the Council of Economic Advisers shall submit quarterly reports to
    the Committees on Appropriations of the Senate and House of
    Representatives that detail the impact of programs funded through
    covered funds on employment, estimated economic growth, and other key
    economic indicators.
        (b) Submission of Reports.--
                (1) First report.--The first report submitted under
            subsection (a) shall be submitted not later than 45 days after
            the end of the first full quarter following the date of
            enactment of this Act.
                (2) Last <<NOTE: Applicability.>> report.--The last report
            required to be submitted under subsection (a) shall apply to the
            quarter in which the Board terminates under section 1530.

    [[Page 123 STAT. 289]]

    SEC. 1514. INSPECTOR GENERAL REVIEWS.

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

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

        (a) Access.--With respect to each contract or grant awarded using
    covered funds, any representative of an appropriate inspector general
    appointed under section 3 or 8G of the Inspector General Act of 1978 (5
    U.S.C. App.), is authorized--
                (1) to examine any records of the contractor or grantee, any
            of its subcontractors or subgrantees, or any State or local
            agency administering such contract, that pertain to, and involve
            transactions relating to, the contract, subcontract, grant, or
            subgrant; and
                (2) to interview any officer or employee of the contractor,
            grantee, subgrantee, or agency regarding such transactions.

        (b) Relationship to Existing Authority.--Nothing in this section
    shall be interpreted to limit or restrict in any way any existing
    authority of an inspector general.

           Subtitle B--Recovery Accountability and Transparency Board

    SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND TRANSPARENCY
                BOARD.

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

    SEC. 1522. COMPOSITION OF BOARD.

        (a) Chairperson.--
                (1) Designation <<NOTE: President.>> 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)

    [[Page 123 STAT. 290]]

                    or (B) to serve as Chairperson, that Federal officer may
                    not receive additional compensation for services
                    performed as Chairperson.
                        (B) Appointment of non-federal officer.--If the
                    President appoints an individual as Chairperson under
                    paragraph (1)(C), that individual shall be compensated
                    at the rate of basic pay prescribed for level IV of the
                    Executive Schedule under section 5315 of title 5, United
                    States Code.

        (b) Members.--The members of the Board shall include--
                (1) the Inspectors General of the Departments of
            Agriculture, Commerce, Education, Energy, Health and Human
            Services, Homeland Security, Justice, Transportation, Treasury,
            and the Treasury Inspector General for Tax Administration; and
                (2) any other Inspector General as designated by the
            President from any agency that expends or obligates covered
            funds.

    SEC. 1523. FUNCTIONS OF THE BOARD.

        (a) Functions.--
                (1) In general.--The Board shall coordinate and conduct
            oversight of covered funds in order to prevent fraud, waste, and
            abuse.
                (2) Specific functions.--The functions of the Board shall
            include--
                        (A) reviewing whether the reporting of contracts and
                    grants using covered funds meets applicable standards
                    and specifies the purpose of the contract or grant and
                    measures of performance;
                        (B) reviewing whether competition requirements
                    applicable to contracts and grants using covered funds
                    have been satisfied;
                        (C) auditing or reviewing covered funds to determine
                    whether wasteful spending, poor contract or grant
                    management, or other abuses are occurring and referring
                    matters it considers appropriate for investigation to
                    the inspector general for the agency that disbursed the
                    covered funds;
                        (D) reviewing whether there are sufficient qualified
                    acquisition and grant personnel overseeing covered
                    funds;
                        (E) reviewing whether personnel whose duties involve
                    acquisitions or grants made with covered funds receive
                    adequate training; and
                        (F) reviewing whether there are appropriate
                    mechanisms for interagency collaboration relating to
                    covered funds, including coordinating and collaborating
                    to the extent practicable with the Inspectors General
                    Council on Integrity and Efficiency established by the
                    Inspector General Reform Act of 2008 (Public Law 110-
                    409).

        (b) Reports.--
                (1) Flash and other reports.--The Board shall submit to the
            President and Congress, including the Committees on
            Appropriations of the Senate and House of Representatives,
            reports, to be known as ``flash reports'', on potential
            management and funding problems that require immediate
            attention. The Board also shall submit to Congress such other
            reports as the Board considers appropriate on the use and
            benefits of funds made available in this Act.

    [[Page 123 STAT. 291]]

                (2) Quarterly reports.--The Board shall submit quarterly
            reports to the President and Congress, including the Committees
            on Appropriations of the Senate and House of Representatives,
            summarizing the findings of the Board and the findings of
            inspectors general of agencies. The Board may submit additional
            reports as appropriate.
                (3) Annual reports.--The Board shall submit annual reports
            to the President and Congress, including the Committees on
            Appropriations of the Senate and House of Representatives,
            consolidating applicable quarterly reports on the use of covered
            funds.
                (4) Public availability.--
                        (A) In general.--All <<NOTE: Web posting.>> reports
                    submitted under this subsection shall be made publicly
                    available and posted on the website established by
                    section 1526.
                        (B) Redactions.--Any portion of a report submitted
                    under this subsection may be redacted when made publicly
                    available, if that portion would disclose information
                    that is not subject to disclosure under sections 552 and
                    552a of title 5, United States Code.

        (c) Recommendations.--
                (1) In general.--The Board shall make recommendations to
            agencies on measures to prevent fraud, waste, and abuse relating
            to covered funds.
                (2) Responsive reports.--Not later than 30 days after
            receipt of a recommendation under paragraph (1), an agency shall
            submit a report to the President, the congressional committees
            of jurisdiction, including the Committees on Appropriations of
            the Senate and House of Representatives, and the Board on--
                        (A) whether the agency agrees or disagrees with the
                    recommendations; and
                        (B) any actions the agency will take to implement
                    the recommendations.

    SEC. 1524. POWERS OF THE BOARD.

        (a) In General.--The <<NOTE: Audits.>> Board shall conduct audits
    and reviews of spending of covered funds and coordinate on such
    activities with the inspectors general of the relevant agency to avoid
    duplication and overlap of work.

        (b) Audits and Reviews.--The Board may--
                (1) conduct its own independent audits and reviews relating
            to covered funds; and
                (2) collaborate on audits and reviews relating to covered
            funds with any inspector general of an agency.

        (c) Authorities.--
                (1) Audits and reviews.--In conducting audits and reviews,
            the Board shall have the authorities provided under section 6 of
            the Inspector General Act of 1978 (5 U.S.C. App.). Additionally,
            the Board may issue subpoenas to compel the testimony of persons
            who are not Federal officers or employees and may enforce such
            subpoenas in the same manner as provided for inspector general
            subpoenas under section 6 of the Inspector General Act of 1978
            (5 U.S.C. App.).
                (2) Standards and guidelines.--The Board shall carry out the
            powers under subsections (a) and (b) in accordance

    [[Page 123 STAT. 292]]

            with section 4(b)(1) of the Inspector General Act of 1978 (5
            U.S.C. App.).

        (d) Public Hearings.--The Board may hold public hearings and Board
    personnel may conduct necessary inquiries. The head of each agency shall
    make all officers and employees of that agency available to provide
    testimony to the Board and Board personnel. The Board may issue
    subpoenas to compel the testimony of persons who are not Federal
    officers or employees at such public hearings. Any such subpoenas may be
    enforced in the same manner as provided for inspector general subpoenas
    under section 6 of the Inspector General Act of 1978 (5 U.S.C. App.).
        (e) Contracts.--The Board may enter into contracts to enable the
    Board to discharge its duties under this subtitle, including contracts
    and other arrangements for audits, studies, analyses, and other services
    with public agencies and with private persons, and make such payments as
    may be necessary to carry out the duties of the Board.
        (f) Transfer of Funds.--The Board may transfer funds appropriated to
    the Board for expenses to support administrative support services and
    audits, reviews, or other activities related to oversight by the Board
    of covered funds to any office of inspector general, the Office of
    Management and Budget, the General Services Administration, and the
    Panel.

    SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.

        (a) Employment and Personnel Authorities.--
                (1) In general.--
                        (A) Authorities.--Subject to paragraph (2), the
                    Board may exercise the authorities of subsections (b)
                    through (i) of section 3161 of title 5, United States
                    Code (without regard to subsection (a) of that section).
                        (B) Application.--For purposes of exercising the
                    authorities described under subparagraph (A), the term
                    ``Chairperson of the Board'' shall be substituted for
                    the term ``head of a temporary organization''.
                        (C) Consultation.--In exercising the authorities
                    described under subparagraph (A), the Chairperson shall
                    consult with members of the Board.
                (2) Employment authorities.--In exercising the employment
            authorities under subsection (b) of section 3161 of title 5,
            United States Code, as provided under paragraph (1) of this
            subsection--
                        (A) paragraph (2) of subsection (b) of section 3161
                    of that title (relating to periods of appointments)
                    shall not apply; and
                        (B) no period of appointment may exceed the date on
                    which the Board terminates under section 1530.

        (b) Information and Assistance.--
                (1) In general.--Upon request of the Board for information
            or assistance from any agency or other entity of the Federal
            Government, the head of such entity shall, insofar as is
            practicable and not in contravention of any existing law,
            furnish such information or assistance to the Board, or an
            authorized designee.
                (2) Report of refusals.--Whenever information or assistance
            requested by the Board is, in the judgment of the Board,
            unreasonably refused or not provided, the Board shall report

    [[Page 123 STAT. 293]]

            the circumstances to the congressional committees of
            jurisdiction, including the Committees on Appropriations of the
            Senate and House of Representatives, without delay.

        (c) Administrative Support.--The General Services Administration
    shall provide the Board with administrative support services, including
    the provision of office space and facilities.

    SEC. 1526. BOARD WEBSITE.

        (a) Establishment.--The <<NOTE: Deadline. Public
    information.>> Board shall establish and maintain, no later than 30 days
    after enactment of this Act, a user-friendly, public-facing website to
    foster greater accountability and transparency in the use of covered
    funds.

        (b) Purpose.--The website established and maintained under
    subsection (a) shall be a portal or gateway to key information relating
    to this Act and provide connections to other Government websites with
    related information.
        (c) Content and Function.--
    In <<NOTE: Contracts. Grants.>> establishing the website established and
    maintained under subsection (a), the Board shall ensure the following:
                (1) The website shall provide materials explaining what this
            Act means for citizens. The materials shall be easy to
            understand and regularly updated.
                (2) The website shall provide accountability information,
            including findings from audits, inspectors general, and the
            Government Accountability Office.
                (3) The website shall provide data on relevant economic,
            financial, grant, and contract information in user-friendly
            visual presentations to enhance public awareness of the use of
            covered funds.
                (4) The website shall provide detailed data on contracts
            awarded by the Federal Government that expend covered funds,
            including information about the competitiveness of the
            contracting process, information about the process that was used
            for the award of contracts, and for contracts over $500,000 a
            summary of the contract.
                (5) The website shall include printable reports on covered
            funds obligated by month to each State and congressional
            district.
                (6) The website shall provide a means for the public to give
            feedback on the performance of contracts that expend covered
            funds.
                (7) The website shall include detailed information on
            Federal Government contracts and grants that expend covered
            funds, to include the data elements required to comply with the
            Federal Funding Accountability and Transparency Act of 2006
            (Public Law 109-282), allowing aggregate reporting on awards
            below $25,000 or to individuals, as prescribed by the Director
            of the Office of Management and Budget.
                (8) The website shall provide a link to estimates of the
            jobs sustained or created by the Act.
                (9) The website shall provide a link to information about
            announcements of grant competitions and solicitations for
            contracts to be awarded.
                (10) The website shall include appropriate links to other
            government websites with information concerning covered funds,
            including Federal agency and State websites.

    [[Page 123 STAT. 294]]

                (11) The <<NOTE: Plan.>> website shall include a plan from
            each Federal agency for using funds made available in this Act
            to the agency.
                (12) The website shall provide information on Federal
            allocations of formula grants and awards of competitive grants
            using covered funds.
                (13) The website shall provide information on Federal
            allocations of mandatory and other entitlement programs by
            State, county, or other appropriate geographical unit.
                (14) To the extent practical, the website shall provide,
            organized by the location of the job opportunities involved,
            links to and information about how to access job opportunities,
            including, if possible, links to or information about local
            employment agencies, job banks operated by State workforce
            agencies, the Department of Labor's CareerOneStop website,
            State, local and other public agencies receiving Federal
            funding, and private firms contracted to perform work with
            Federal funding, in order to direct job seekers to job
            opportunities created by this Act.
                (15) The website shall be enhanced and updated as necessary
            to carry out the purposes of this subtitle.

        (d) Waiver.--The Board may exclude posting contractual or other
    information on the website on a case-by-case basis when necessary to
    protect national security or to protect information that is not subject
    to disclosure under sections 552 and 552a of title 5, United States
    Code.

    SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL.

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

    SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE AUDITORS.

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

    SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.

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

    SEC. 1530. TERMINATION OF THE BOARD.

        The Board shall terminate on September 30, 2013.

    [[Page 123 STAT. 295]]

                 Subtitle C--Recovery Independent Advisory Panel

    SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.

        (a) Establishment.--There is established the Recovery Independent
    Advisory Panel.
        (b) Membership.--The <<NOTE: President.>> 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 <<NOTE: Deadline.>> later than 30 days
    after the date on which all members of the Panel have been appointed,
    the Panel shall hold its first meeting.

        (e) Meetings.--The Panel shall meet at the call of the Chairperson
    of the Panel.
        (f) Quorum.--A majority of the members of the Panel shall constitute
    a quorum, but a lesser number of members may hold hearings.
        (g) Chairperson and Vice Chairperson.--The Panel shall select a
    Chairperson and Vice Chairperson from among its members.

    SEC. 1542. DUTIES OF THE PANEL.

        The <<NOTE: Recommen- dations.>> Panel shall make recommendations to
    the Board on actions the Board could take to prevent fraud, waste, and
    abuse relating to covered funds.

    SEC. 1543. POWERS OF THE PANEL.

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

    SEC. 1544. PANEL PERSONNEL MATTERS.

        (a) Compensation of Members.--Each member of the Panel who is not an
    officer or employee of the Federal Government shall be compensated at a
    rate equal to the daily equivalent of the annual rate of basic pay
    prescribed for level IV of the Executive Schedule under section 5315 of
    title 5, United States Code, for each day (including travel time) during
    which such member is engaged in the performance of the duties of the
    Panel. All members of the Panel who are officers or employees of the
    United States shall serve without compensation in addition to that
    received for their services as officers or employees of the United
    States.

    [[Page 123 STAT. 296]]

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

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

    SEC. 1545. TERMINATION OF THE PANEL.

        The Panel shall terminate on September 30, 2013.

    SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.

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

       Subtitle D--Additional Accountability and Transparency Requirements

    SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.

        Although <<NOTE: Waiver authority.>> this Act provides supplemental
    appropriations for programs, projects, and activities in existing
    Treasury accounts,

    [[Page 123 STAT. 297]]

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

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

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

    SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
                WHISTLEBLOWERS.

        (a) Prohibition of Reprisals.--An employee of any non-Federal
    employer receiving covered funds may not be discharged, demoted, or
    otherwise discriminated against as a reprisal for disclosing, including
    a disclosure made in the ordinary course of an employee's duties, to the
    Board, an inspector general, the Comptroller General, a member of
    Congress, a State or Federal regulatory or law enforcement agency, a
    person with supervisory authority over the employee (or such other
    person working for the employer who has the authority to investigate,
    discover, or terminate misconduct), a court or grand jury, the head of a
    Federal agency, or their representatives, information that the employee
    reasonably believes is evidence of--
                (1) gross mismanagement of an agency contract or grant
            relating to covered funds;
                (2) a gross waste of covered funds;
                (3) a substantial and specific danger to public health or
            safety related to the implementation or use of covered funds;
                (4) an abuse of authority related to the implementation or
            use of covered funds; or
                (5) a violation of law, rule, or regulation related to an
            agency contract (including the competition for or negotiation of
            a contract) or grant, awarded or issued relating to covered
            funds.

        (b) Investigation of Complaints.--
                (1) In general.--A person who believes that the person has
            been subjected to a reprisal prohibited by subsection (a) may
            submit a complaint regarding the reprisal to the appropriate
            inspector general. Except as provided under paragraph (3),
            unless the inspector general determines that the complaint is
            frivolous, does not relate to covered funds, or another Federal
            or State judicial or administrative proceeding has previously
            been invoked to resolve such complaint, the inspector general
            shall investigate the complaint and, upon completion of such
            investigation, submit a report of the findings of the
            investigation to the person, the person's employer, the head of
            the appropriate agency, and the Board.
                (2) Time limitations for actions.--
                        (A) In general.--Except <<NOTE: Deadline.>> as
                    provided under subparagraph (B), the inspector general
                    shall, not later than 180 days after receiving a
                    complaint under paragraph (1)--

    [[Page 123 STAT. 298]]

                              (i) make <<NOTE: Determination.>> a
                          determination that the complaint is frivolous,
                          does not relate to covered funds, or another
                          Federal or State judicial or administrative
                          proceeding has previously been invoked to resolve
                          such complaint; or
                              (ii) submit <<NOTE: Reports.>> a report under
                          paragraph (1).
                        (B) Extensions.--
                              (i) Voluntary extension agreed to between
                          inspector general and complainant.--If the
                          inspector general is unable to complete an
                          investigation under this section in time to submit
                          a report within the 180-day period specified under
                          subparagraph (A) and the person submitting the
                          complaint agrees to an extension of time, the
                          inspector general shall submit a report under
                          paragraph (1) within such additional period of
                          time as shall be agreed upon between the inspector
                          general and the person submitting the complaint.
                              (ii) Extension granted by inspector general.--
                          If the inspector general is unable to complete an
                          investigation under this section in time to submit
                          a report within the 180-day period specified under
                          subparagraph (A), the inspector general may extend
                          the period for not more than 180 days without
                          agreeing with the person submitting the complaint
                          to such extension, provided that the inspector
                          general provides a written explanation (subject to
                          the authority to exclude information under
                          paragraph (4)(C)) for the decision, which shall be
                          provided to both the person submitting the
                          complaint and the non-Federal employer.
                              (iii) Semi-annual report on extensions.--The
                          inspector general shall include in semi-annual
                          reports to Congress a list of those investigations
                          for which the inspector general received an
                          extension.
                (3) Discretion not to investigate complaints.--
                        (A) In general.--The inspector general may decide
                    not to conduct or continue an investigation under this
                    section upon providing to the person submitting the
                    complaint and the non-Federal employer a written
                    explanation (subject to the authority to exclude
                    information under paragraph (4)(C)) for such decision.
                        (B) Assumption of rights to civil remedy.--Upon
                    receipt of an explanation of a decision not to conduct
                    or continue an investigation under subparagraph (A), the
                    person submitting a complaint shall immediately assume
                    the right to a civil remedy under subsection (c)(3) as
                    if the 210-day period specified under such subsection
                    has already passed.
                        (C) Semi-annual report.--The inspector general shall
                    include in semi-annual reports to Congress a list of
                    those investigations the inspector general decided not
                    to conduct or continue under this paragraph.
                (4) Access to investigative file of inspector general.--
                        (A) In general.--The person alleging a reprisal
                    under this section shall have access to the
                    investigation file of

    [[Page 123 STAT. 299]]

                    the appropriate inspector general in accordance with
                    section 552a of title 5, United States Code (commonly
                    referred to as the ``Privacy Act''). The investigation
                    of the inspector general shall be deemed closed for
                    purposes of disclosure under such section when an
                    employee files an appeal to an agency head or a court of
                    competent jurisdiction.
                        (B) Civil action.--In the event the person alleging
                    the reprisal brings suit under subsection (c)(3), the
                    person alleging the reprisal and the non-Federal
                    employer shall have access to the investigative file of
                    the inspector general in accordance with the Privacy
                    Act.
                        (C) Exception.--The inspector general may exclude
                    from disclosure--
                              (i) information protected from disclosure by a
                          provision of law; and
                              (ii) any additional information the inspector
                          general determines disclosure of which would
                          impede a continuing investigation, provided that
                          such information is disclosed once such disclosure
                          would no longer impede such investigation, unless
                          the inspector general determines that disclosure
                          of law enforcement techniques, procedures, or
                          information could reasonably be expected to risk
                          circumvention of the law or disclose the identity
                          of a confidential source.
                (5) Privacy of information.--An inspector general
            investigating an alleged reprisal under this section may not
            respond to any inquiry or disclose any information from or about
            any person alleging such reprisal, except in accordance with the
            provisions of section 552a of title 5, United States Code, or as
            required by any other applicable Federal law.

        (c) Remedy and Enforcement Authority.--
                (1) Burden of proof.--
                        (A) Disclosure as contributing factor in reprisal.--
                              (i) In general.--A person alleging a reprisal
                          under this section shall be deemed to have
                          affirmatively established the occurrence of the
                          reprisal if the person demonstrates that a
                          disclosure described in subsection (a) was a
                          contributing factor in the reprisal.
                              (ii) Use of circumstantial evidence.--A
                          disclosure may be demonstrated as a contributing
                          factor in a reprisal for purposes of this
                          paragraph by circumstantial evidence, including--
                                        (I) evidence that the official
                                    undertaking the reprisal knew of the
                                    disclosure; or
                                        (II) evidence that the reprisal
                                    occurred within a period of time after
                                    the disclosure such that a reasonable
                                    person could conclude that the
                                    disclosure was a contributing factor in
                                    the reprisal.
                        (B) Opportunity for rebuttal.--The head of an agency
                    may not find the occurrence of a reprisal with respect
                    to a reprisal that is affirmatively established under
                    subparagraph (A) if the non-Federal employer
                    demonstrates by clear and convincing evidence that the
                    non-Federal employer would have taken the action
                    constituting the reprisal in the absence of the
                    disclosure.

    [[Page 123 STAT. 300]]

                (2) Agency action.--
            Not <<NOTE: Deadline. Determination. Relief orders.>> later than
            30 days after receiving an inspector general report under
            subsection (b), the head of the agency concerned shall determine
            whether there is sufficient basis to conclude that the non-
            Federal employer has subjected the complainant to a reprisal
            prohibited by subsection (a) and shall either issue an order
            denying relief in whole or in part or shall take 1 or more of
            the following actions:
                        (A) Order the employer to take affirmative action to
                    abate the reprisal.
                        (B) Order the employer to reinstate the person to
                    the position that the person held before the reprisal,
                    together with the compensation (including back pay),
                    compensatory damages, employment benefits, and other
                    terms and conditions of employment that would apply to
                    the person in that position if the reprisal had not been
                    taken.
                        (C) Order the employer to pay the complainant an
                    amount equal to the aggregate amount of all costs and
                    expenses (including attorneys' fees and expert
                    witnesses' fees) that were reasonably incurred by the
                    complainant for, or in connection with, bringing the
                    complaint regarding the reprisal, as determined by the
                    head of the agency or a court of competent jurisdiction.
                (3) Civil action.--If <<NOTE: Deadlines.>> the head of an
            agency issues an order denying relief in whole or in part under
            paragraph (1), has not issued an order within 210 days after the
            submission of a complaint under subsection (b), or in the case
            of an extension of time under subsection (b)(2)(B)(i), within 30
            days after the expiration of the extension of time, or decides
            under subsection (b)(3) not to investigate or to discontinue an
            investigation, and there is no showing that such delay or
            decision is due to the bad faith of the complainant, the
            complainant shall be deemed to have exhausted all administrative
            remedies with respect to the complaint, and the complainant may
            bring a de novo action at law or equity against the employer to
            seek compensatory damages and other relief available under this
            section in the appropriate district court of the United States,
            which shall have jurisdiction over such an action without regard
            to the amount in controversy. Such an action shall, at the
            request of either party to the action, be tried by the court
            with a jury.
                (4) Judicial enforcement of order.--Whenever a person fails
            to comply with an order issued under paragraph (2), the head of
            the agency shall file an action for enforcement of such order in
            the United States district court for a district in which the
            reprisal was found to have occurred. In any action brought under
            this paragraph, the court may grant appropriate relief,
            including injunctive relief, compensatory and exemplary damages,
            and attorneys fees and costs.
                (5) Judicial review.--Any person adversely affected or
            aggrieved by an order issued under paragraph (2) may obtain
            review of the order's conformance with this subsection, and any
            regulations issued to carry out this section, in the United
            States court of appeals for a circuit in which the reprisal is
            alleged in the order to have occurred.
            No <<NOTE: Deadline.>> 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.

    [[Page 123 STAT. 301]]

        (d) Nonenforceability of Certain Provisions Waiving Rights and
    Remedies or Requiring Arbitration of Disputes.--
                (1) Waiver of rights and remedies.--Except as provided under
            paragraph (3), the rights and remedies provided for in this
            section may not be waived by any agreement, policy, form, or
            condition of employment, including by any predispute arbitration
            agreement.
                (2) Predispute arbitration agreements.--Except as provided
            under paragraph (3), no predispute arbitration agreement shall
            be valid or enforceable if it requires arbitration of a dispute
            arising under this section.
                (3) Exception for collective bargaining agreements.--
            Notwithstanding paragraphs (1) and (2), an arbitration provision
            in a collective bargaining agreement shall be enforceable as to
            disputes arising under the collective bargaining agreement.

        (e) Requirement to Post Notice of Rights and Remedies.--Any employer
    receiving covered funds shall post notice of the rights and remedies
    provided under this section.
        (f) Rules of Construction.--
                (1) No implied authority to retaliate for non-protected
            disclosures.--Nothing in this section may be construed to
            authorize the discharge of, demotion of, or discrimination
            against an employee for a disclosure other than a disclosure
            protected by subsection (a) or to modify or derogate from a
            right or remedy otherwise available to the employee.
                (2) Relationship to state laws.--Nothing in this section may
            be construed to preempt, preclude, or limit the protections
            provided for public or private employees under State
            whistleblower laws.

        (g) Definitions.--In this section:
                (1) Abuse of authority.--The term ``abuse of authority''
            means an arbitrary and capricious exercise of authority by a
            contracting official or employee that adversely affects the
            rights of any person, or that results in personal gain or
            advantage to the official or employee or to preferred other
            persons.
                (2) Covered funds.--The term ``covered funds'' means any
            contract, grant, or other payment received by any non-Federal
            employer if--
                        (A) the Federal Government provides any portion of
                    the money or property that is provided, requested, or
                    demanded; and
                        (B) at least some of the funds are appropriated or
                    otherwise made available by this Act.
                (3) Employee.--The term ``employee''--
                        (A) except as provided under subparagraph (B), means
                    an individual performing services on behalf of an
                    employer; and
                        (B) does not include any Federal employee or member
                    of the uniformed services (as that term is defined in
                    section 101(a)(5) of title 10, United States Code).
                (4) Non-federal employer.--The term ``non-Federal
            employer''--
                        (A) means any employer--
                              (i) with respect to covered funds--
                                        (I) the contractor, subcontractor,
                                    grantee, or recipient, as the case may
                                    be, if the contractor,

    [[Page 123 STAT. 302]]

                                    subcontractor, grantee, or recipient is
                                    an employer; and
                                        (II) any professional membership
                                    organization, certification or other
                                    professional body, any agent or licensee
                                    of the Federal government, or any person
                                    acting directly or indirectly in the
                                    interest of an employer receiving
                                    covered funds; or
                              (ii) with respect to covered funds received by
                          a State or local government, the State or local
                          government receiving the funds and any contractor
                          or subcontractor of the State or local government;
                          and
                        (B) does not mean any department, agency, or other
                    entity of the Federal Government.
                (5) State or local government.--The term ``State or local
            government'' means--
                        (A) the government of each of the several States,
                    the District of Columbia, the Commonwealth of Puerto
                    Rico, Guam, American Samoa, the Virgin Islands, the
                    Commonwealth of the Northern Mariana Islands, or any
                    other territory or possession of the United States; or
                        (B) the government of any political subdivision of a
                    government listed in subparagraph (A).

    SEC. 1554. SPECIAL CONTRACTING PROVISIONS.

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

                     TITLE XVI--GENERAL PROVISIONS--THIS ACT

                      RELATIONSHIP TO OTHER APPROPRIATIONS

        Sec. 1601.  Each amount appropriated or made available in this Act
    is in addition to amounts otherwise appropriated for the fiscal year
    involved. Enactment of this Act shall have no effect on the availability
    of amounts under the Continuing Appropriations Resolution, 2009
    (division A of Public Law 110-329).

                      PREFERENCE FOR QUICK-START ACTIVITIES

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

                             PERIOD OF AVAILABILITY

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

    [[Page 123 STAT. 303]]

                                 LIMIT ON FUNDS

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

                                  BUY AMERICAN

        Sec. 1605.  Use of American Iron, Steel, and Manufactured Goods. (a)
    None of the funds appropriated or otherwise made available by this Act
    may be used for a project for the construction, alteration, maintenance,
    or repair of a public building or public work unless all of the iron,
    steel, and manufactured goods used in the project are produced in the
    United States.
        (b) Subsection (a) shall <<NOTE: Waiver authority.>> not apply in
    any case or category of cases in which the head of the Federal
    department or agency involved finds that--
                (1) applying subsection (a) would be inconsistent with the
            public interest;
                (2) iron, steel, and the relevant manufactured goods are not
            produced in the United States in sufficient and reasonably
            available quantities and of a satisfactory quality; or
                (3) inclusion of iron, steel, and manufactured goods
            produced in the United States will increase the cost of the
            overall project by more than 25 percent.

        (c) If <<NOTE: Federal Register, publication.>> the head of a
    Federal department or agency determines that it is necessary to waive
    the application of subsection (a) based on a finding under subsection
    (b), the head of the department or agency shall publish in the Federal
    Register a detailed written justification as to why the provision is
    being waived.

        (d) This <<NOTE: Applicability.>> section shall be applied in a
    manner consistent with United States obligations under international
    agreements.

                             WAGE RATE REQUIREMENTS

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

      ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF
                                      FUNDS

        Sec. 1607. (a) Certification <<NOTE: Deadline.>> by Governor.--Not
    later than 45 days after the date of enactment of this Act, for funds
    provided to any State or agency thereof, the Governor of the State shall
    certify that: (1) the State will request and use funds provided by this
    Act; and (2) the funds will be used to create jobs and promote economic
    growth.

    [[Page 123 STAT. 304]]

        (b) Acceptance by State Legislature.--If funds provided to any State
    in any division of this Act are not accepted for use by the Governor,
    then acceptance by the State legislature, by means of the adoption of a
    concurrent resolution, shall be sufficient to provide funding to such
    State.
        (c) Distribution.--After the adoption of a State legislature's
    concurrent resolution, funding to the State will be for distribution to
    local governments, councils of government, public entities, and public-
    private entities within the State either by formula or at the State's
    discretion.

                       economic stabilization contracting

        Sec. 1608. Reform of Contracting Procedures Under EESA. Section
    107(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
    5217(b)) is amended by inserting ``and individuals with disabilities and
    businesses owned by individuals with disabilities (for purposes of this
    subsection the term `individual with disability' has the same meaning as
    the term `handicapped individual' as that term is defined in section
    3(f) of the Small Business Act (15 U.S.C. 632(f)),'' after ``(12 U.S.C.
    1441a(r)(4)),''.
        Sec. 1609. (a) Findings.--
                (1) The National Environmental Policy Act protects public
            health, safety and environmental quality: by ensuring
            transparency, accountability and public involvement in federal
            actions and in the use of public funds;
                (2) When President Nixon signed the National Environmental
            Policy Act into law on January 1, 1970, he said that the Act
            provided the ``direction'' for the country to ``regain a
            productive harmony between man and nature'';
                (3) The National Environmental Policy Act helps to provide
            an orderly process for considering federal actions and funding
            decisions and prevents ligation and delay that would otherwise
            be inevitable and existed prior to the establishment of the
            National Environmental Policy Act.

        (b) Adequate resources within this bill must be devoted to ensuring
    that applicable environmental reviews under the National Environmental
    Policy Act are completed on an expeditious basis and that the shortest
    existing applicable process under the National Environmental Policy Act
    shall be utilized.
        (c) The <<NOTE: President. Reports. Deadlines.>> President shall
    report to the Senate Environment and Public Works Committee and the
    House Natural Resources Committee every 90 days following the date of
    enactment until September 30, 2011 on the status and progress of
    projects and activities funded by this Act with respect to compliance
    with National Environmental Policy Act requirements and documentation.

        Sec. 1610. (a) None of the funds appropriated or otherwise made
    available by this Act, for projects initiated after the effective date
    of this Act, may be used by an executive agency to enter into any
    Federal contract unless such contract is entered into in accordance with
    the Federal Property and Administrative Services Act (41 U.S.C. 253) or
    chapter 137 of title 10, United States Code, and the Federal Acquisition
    Regulation, unless such contract is otherwise authorized by statute to
    be entered into without regard to the above referenced statutes.
        (b) All projects to be conducted under the authority of the Indian
    Self-Determination and Education Assistance Act, the Tribally-Controlled
    Schools Act, the Sanitation and Facilities Act, the

    [[Page 123 STAT. 305]]

    Native American Housing and Self-Determination Assistance Act and the
    Buy-Indian Act shall be identified by the appropriate Secretary and the
    appropriate Secretary shall incorporate provisions to ensure that the
    agreement conforms with the provisions of this Act regarding the timing
    for use of funds and transparency, oversight, reporting, and
    accountability, including review by the Inspectors General, the
    Accountability and Transparency Board, and Government Accountability
    Office, consistent with the objectives of this Act.
        Sec. 1611. Hiring <<NOTE: Employ American Workers Act.>> American
    Workers in Companies Receiving TARP Funding. (a) Short Title.--This
    section may be cited as the ``Employ American Workers Act''.

        (b) Prohibition.--
                (1) In general.--Notwithstanding any other provision of law,
            it shall be unlawful for any recipient of funding under title I
            of the Emergency Economic Stabilization Act of 2008 (Public Law
            110-343) or section 13 of the Federal Reserve Act (12 U.S.C. 342
            et seq.) to hire any nonimmigrant described in section
            101(a)(15)(h)(i)(b) of the Immigration and Nationality Act (8
            U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in
            compliance with the requirements for an H-1B dependent employer
            (as defined in section 212(n)(3) of such Act (8 U.S.C.
            1182(n)(3))), except that the second sentence of section
            212(n)(1)(E)(ii) of such Act shall not apply.
                (2) Defined term.--In this subsection, the term ``hire''
            means to permit a new employee to commence a period of
            employment.

        (c) Sunset Provision.--This section shall be effective during the 2-
    year period beginning on the date of the enactment of this Act.
        Sec. 1612. During the current fiscal year not to exceed 1 percent of
    any appropriation made available by this Act may be transferred by an
    agency head between such appropriations funded in this Act of that
    department or agency: Provided, That such appropriations shall be merged
    with and available for the same purposes, and for the same time period,
    as the appropriation to which transferred: Provided further,
    That <<NOTE: Notification. Deadline.>> the agency head shall notify the
    Committees on Appropriations of the Senate and House of Representatives
    of the transfer 15 days in advance: Provided further,
    That <<NOTE: Notification. Web posting. Deadline.>> notice of any
    transfer made pursuant to this authority be posted on the website
    established by the Recovery Act Accountability and Transparency Board 15
    days following such transfer: Provided further, That the authority
    contained in this section is in addition to transfer authorities
    otherwise available under current law: Provided further, That the
    authority provided in this section shall not apply to any appropriation
    that is subject to transfer provisions included elsewhere in this Act.

    [[Page 123 STAT. 306]]

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

       TITLE I--TAX <<NOTE: American Recovery and Reinvestment Tax Act of
    2009.>> PROVISIONS

    SEC. 1000. SHORT TITLE, ETC.

        (a) Short Title.--This <<NOTE: 26 USC 1 note.>> title may be cited
    as the ``American Recovery and Reinvestment Tax Act of 2009''.

        (b) Reference.--Except <<NOTE: 26 USC 1 et seq.>> as otherwise
    expressly provided, whenever in this title an amendment or repeal is
    expressed in terms of an amendment to, or repeal of, a section or other
    provision, the reference shall be considered to be made to a section or
    other provision of the Internal Revenue Code of 1986.

        (c) Table of Contents.--The table of contents for this title is as
    follows:

                             TITLE I--TAX PROVISIONS

    Sec. 1000. Short title, etc.

               Subtitle A--Tax Relief for Individuals and Families

                           PART I--General Tax Relief

    Sec. 1001. Making work pay credit.
    Sec. 1002. Temporary increase in earned income tax credit.
    Sec. 1003. Temporary increase of refundable portion of child credit.
    Sec. 1004. American opportunity tax credit.
    Sec. 1005. Computer technology and equipment allowed as a qualified
               higher education expense for section 529 accounts in 2009 and
               2010.
    Sec. 1006. Extension of and increase in first-time homebuyer credit;
               waiver of requirement to repay.
    Sec. 1007. Suspension of tax on portion of unemployment compensation.
    Sec. 1008. Additional deduction for State sales tax and excise tax on
               the purchase of certain motor vehicles.

                     PART II--Alternative Minimum Tax Relief

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

                          Subtitle B--Energy Incentives

                       PART I--Renewable Energy Incentives

    Sec. 1101. Extension of credit for electricity produced from certain
               renewable resources.
    Sec. 1102. Election of investment credit in lieu of production credit.
    Sec. 1103. Repeal of certain limitations on credit for renewable energy
               property.
    Sec. 1104. Coordination with renewable energy grants.

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

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

                    PART III--Energy Conservation Incentives

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

        PART IV--Modification of Credit for Carbon Dioxide Sequestration

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

    [[Page 123 STAT. 307]]

                  PART V--Plug-in Electric Drive Motor Vehicles

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

               PART VI--Parity for Transportation Fringe Benefits

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

                     Subtitle C--Tax Incentives for Business

                     PART I--Temporary Investment Incentives

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

                       PART II--Small Business Provisions

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

                        PART III--Incentives for New Jobs

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

                   PART IV--Rules Relating to Debt Instruments

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

                     PART V--Qualified Small Business Stock

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

                             PART VI--S Corporations

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

                  PART VII--Rules Relating to Ownership Changes

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

                  Subtitle D--Manufacturing Recovery Provisions

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

                       Subtitle E--Economic Recovery Tools

    Sec. 1401. Recovery zone bonds.
    Sec. 1402. Tribal economic development bonds.
    Sec. 1403. Increase in new markets tax credit.
    Sec. 1404. Coordination of low-income housing credit and low-income
               housing grants.

                   Subtitle F--Infrastructure Financing Tools

               PART I--Improved Marketability for Tax-Exempt Bonds

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

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

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

    [[Page 123 STAT. 308]]

                     PART III--Tax Credit Bonds for Schools

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

                          PART IV--Build America Bonds

    Sec. 1531. Build America bonds.

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

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

                          Subtitle G--Other Provisions

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

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

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

                     Subtitle I--Trade Adjustment Assistance

    Sec. 1800. Short title.

                 PART I--Trade Adjustment Assistance for Workers

        subpart a--trade adjustment assistance for service sector workers

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

        subpart b--industry notifications following certain affirmative
                                 determinations

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

                           subpart c--program benefits

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

           subpart d--reemployment trade adjustment assistance program

    Sec. 1841. Reemployment trade adjustment assistance program.

                            subpart e--other matters

    Sec. 1851. Office of Trade Adjustment Assistance.
    Sec. 1852. Accountability of State agencies; collection and publication
               of program data; agreements with States.

    [[Page 123 STAT. 309]]

    Sec. 1853. Verification of eligibility for program benefits.
    Sec. 1854. Collection of data and reports; information to workers.
    Sec. 1855. Fraud and recovery of overpayments.
    Sec. 1856. Sense of Congress on application of trade adjustment
               assistance.
    Sec. 1857. Consultations in promulgation of regulations.
    Sec. 1858. Technical corrections.

                 PART II--Trade Adjustment Assistance for Firms

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

              PART III--Trade Adjustment Assistance for Communities

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

                PART IV--Trade Adjustment Assistance for Farmers

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

                           PART V--General Provisions

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

                      PART VI--Health Coverage Improvement

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

               Subtitle A--Tax Relief for Individuals and Families

                           PART I--GENERAL TAX RELIEF

    SEC. 1001. MAKING WORK PAY CREDIT.

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

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

        ``(a) Allowance of Credit.--In the case of an eligible individual,
    there shall be allowed as a credit against the tax imposed

    [[Page 123 STAT. 310]]

    by this subtitle for the taxable year an amount equal to the lesser of--
                ``(1) 6.2 percent of earned income of the taxpayer, or
                ``(2) $400 ($800 in the case of a joint return).

        ``(b) Limitation Based on Modified Adjusted Gross Income.--
                ``(1) In general.--The amount allowable as a credit under
            subsection (a) (determined without regard to this paragraph and
            subsection (c)) for the taxable year shall be reduced (but not
            below zero) by 2 percent of so much of the taxpayer's modified
            adjusted gross income as exceeds $75,000 ($150,000 in the case
            of a joint return).
                ``(2) Modified adjusted gross income.--For purposes of
            subparagraph (A), the term `modified adjusted gross income'
            means the adjusted gross income of the taxpayer for the taxable
            year increased by any amount excluded from gross income under
            section 911, 931, or 933.

        ``(c) Reduction for Certain Other Payments.--The credit allowed
    under subsection (a) for any taxable year shall be reduced by the amount
    of any payments received by the taxpayer during such taxable year under
    section 2201, and any credit allowed to the taxpayer under section 2202,
    of the American Recovery and Reinvestment Tax Act of 2009.
        ``(d) Definitions and Special Rules.--For purposes of this section--
                ``(1) Eligible individual.--
                        ``(A) In general.--The term `eligible individual'
                    means any individual other than--
                              ``(i) any nonresident alien individual,
                              ``(ii) any individual with respect to whom a
                          deduction under section 151 is allowable to
                          another taxpayer for a taxable year beginning in
                          the calendar year in which the individual's
                          taxable year begins, and
                              ``(iii) an estate or trust.
                        ``(B) Identification number requirement.--Such term
                    shall not include any individual who does not include on
                    the return of tax for the taxable year--
                              ``(i) such individual's social security
                          account number, and
                              ``(ii) in the case of a joint return, the
                          social security account number of one of the
                          taxpayers on such return.
                    For purposes of the preceding sentence, the social
                    security account number shall not include a TIN issued
                    by the Internal Revenue Service.
                ``(2) Earned income.--The term `earned income' has the
            meaning given such term by section 32(c)(2), except that such
            term shall not include net earnings from self-employment which
            are not taken into account in computing taxable income. For
            purposes of the preceding sentence, any amount excluded from
            gross income by reason of section 112 shall be treated as earned
            income which is taken into account in computing taxable income
            for the taxable year.

        ``(e) Termination.--This section shall not apply to taxable years
    beginning after December 31, 2010.''.
        (b) Treatment <<NOTE: 26 USC 36A note.>> of Possessions.--
                (1) Payments to possessions.--

    [[Page 123 STAT. 311]]

                        (A) Mirror code possession.--The <<NOTE: Effective
                    dates.>> 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 <<NOTE: Effective
                    dates.>> 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 <<NOTE: 26 USC 36A note.>> 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,

    [[Page 123 STAT. 312]]

    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 <<NOTE: 26 USC 6213.>> amended by striking ``and'' at the end of
    subparagraph (L)(ii), by striking the period at the end of subparagraph
    (M) and inserting ``, and'', and by adding at the end the following new
    subparagraph:
                        ``(N) an omission of the reduction required under
                    section 36A(c) with respect to the credit allowed under
                    section 36A or an omission of the correct social
                    security account number required under section
                    36A(d)(1)(B).''.

        (e) Conforming Amendments.--
                (1) Section 6211(b)(4)(A) is amended by inserting ``36A,''
            after ``36,''.
                (2) Section 1324(b)(2) of title 31, United States Code, is
            amended by inserting ``36A,'' after ``36,''.
                (3) The table of sections for subpart C of part IV of
            subchapter A of chapter 1 is amended by inserting after the item
            relating to section 36 the following new item:

    ``Sec. 36A. Making work pay credit.''.

        (f) Effective <<NOTE: 26 USC 36A note.>> 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 <<NOTE: 26 USC
    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 <<NOTE: Applicability.>> (A) of
                          subsection (j)(2) shall apply after taking into
                          account any increase under clause (ii).''.

        (b) Effective <<NOTE: 26 USC 32 note.>> Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

    [[Page 123 STAT. 313]]

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

        (a) In General.--Paragraph (4) of section 24(d) <<NOTE: 26 USC
    24.>> is amended to read as follows:
                ``(4) Special rule for 2009 and 2010.--Notwithstanding
            paragraph (3), in the case of any taxable year beginning in 2009
            or 2010, the dollar amount in effect for such taxable year under
            paragraph (1)(B)(i) shall be $3,000.''.

        (b) Effective Date.--The <<NOTE: 26 USC 24 note.>> amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

    SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

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

    [[Page 123 STAT. 314]]

            Any reference in this section or section 24, 25, 26, 25B, 904,
            or 1400C to a credit allowable under this subsection shall be
            treated as a reference to so much of the credit allowable under
            subsection (a) as is attributable to the Hope Scholarship
            Credit.
                ``(6) Portion of credit made refundable.--40 percent of so
            much of the credit allowed under subsection (a) as is
            attributable to the Hope Scholarship Credit (determined after
            application of paragraph (4) and without regard to this
            paragraph and section 26(a)(2) or paragraph (5), as the case may
            be) shall be treated as a credit allowable under subpart C (and
            not allowed under subsection (a)). The preceding sentence shall
            not apply to any taxpayer for any taxable year if such taxpayer
            is a child to whom subsection (g) of section 1 applies for such
            taxable year.
                ``(7) Coordination with midwestern disaster area benefits.--
            In the case of a taxpayer with respect to whom section
            702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008
            applies for any taxable year, such taxpayer may elect to waive
            the application of this subsection to such taxpayer for such
            taxable year.''.

        (b) Conforming Amendments.--
                (1) Section <<NOTE: 26 USC 24.>> 24(b)(3)(B) is amended by
            inserting ``25A(i),'' after ``23,''.
                (2) Section 25(e)(1)(C)(ii) is amended by inserting
            ``25A(i),'' after ``24,''.
                (3) Section 26(a)(1) is amended by inserting ``25A(i),''
            after ``24,''.
                (4) Section 25B(g)(2) is amended by inserting ``25A(i),''
            after ``23,''.
                (5) Section 904(i) is amended by inserting ``25A(i),'' after
            ``24,''.
                (6) Section 1400C(d)(2) is amended by inserting ``25A(i),''
            after ``24,''.
                (7) Section 6211(b)(4)(A) is amended by inserting ``25A by
            reason of subsection (i)(6) thereof,'' after ``24(d),''.
                (8) Section 1324(b)(2) of title 31, United States Code, is
            amended by inserting ``25A,'' before ``35''.

        (c) Treatment <<NOTE: 26 USC 25A note.>> of Possessions.--
                (1) Payments to possessions.--
                        (A) Mirror <<NOTE: Effective dates.>> code
                    possession.--The Secretary of the Treasury shall pay to
                    each possession of the United States with a mirror code
                    tax system amounts equal to the loss to that possession
                    by reason of the application of section 25A(i)(6) of the
                    Internal Revenue Code of 1986 (as added by this section)
                    with respect to taxable years beginning in 2009 and
                    2010. Such amounts shall be determined by the Secretary
                    of the Treasury based on information provided by the
                    government of the respective possession.
                        (B) Other <<NOTE: Effective dates.>> possessions.--
                    The Secretary of the Treasury shall pay to each
                    possession of the United States which does not have a
                    mirror code tax system amounts estimated by the
                    Secretary of the Treasury as being equal to the
                    aggregate benefits that would have been provided to
                    residents of such possession by reason of the
                    application of section 25A(i)(6) of such Code (as so
                    added) for taxable years beginning in 2009 and 2010 if a
                    mirror code tax

    [[Page 123 STAT. 315]]

                    system had been in effect in such possession. The
                    preceding sentence shall not apply with respect to any
                    possession of the United States unless such possession
                    has a plan, which has been approved by the Secretary of
                    the Treasury, under which such possession will promptly
                    distribute such payments to the residents of such
                    possession.
                (2) Coordination with credit allowed against united states
            income taxes.--Section 25A(i)(6) of such Code (as added by this
            section) shall not apply to a bona fide resident of any
            possession of the United States.
                (3) Definitions and special rules.--
                        (A) Possession of the united states.--For purposes
                    of this subsection, the term ``possession of the United
                    States'' includes the Commonwealth of Puerto Rico and
                    the Commonwealth of the Northern Mariana Islands.
                        (B) Mirror code tax system.--For purposes of this
                    subsection, the term ``mirror code tax system'' means,
                    with respect to any possession of the United States, the
                    income tax system of such possession if the income tax
                    liability of the residents of such possession under such
                    system is determined by reference to the income tax laws
                    of the United States as if such possession were the
                    United States.
                        (C) Treatment of payments.--For purposes of section
                    1324(b)(2) of title 31, United States Code, the payments
                    under this subsection shall be treated in the same
                    manner as a refund due from the credit allowed under
                    section 25A of the Internal Revenue Code of 1986 by
                    reason of subsection (i)(6) of such section (as added by
                    this section).

        (d) <<NOTE: 26 USC 24 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

        (e) <<NOTE: 26 USC 24 note.>>  Application of EGTRRA Sunset.--The
    amendment made by subsection (b)(1) shall be subject to title IX of the
    Economic Growth and Tax Relief Reconciliation Act of 2001 in the same
    manner as the provision of such Act to which such amendment relates.

        (f) Treasury Studies Regarding Education Incentives.--
                (1) Study regarding coordination with non-tax student
            financial assistance.--The Secretary of the Treasury and the
            Secretary of Education, or their delegates, shall--
                        (A) study how to coordinate the credit allowed under
                    section 25A of the Internal Revenue Code of 1986 with
                    the Federal Pell Grant program under section 401 of the
                    Higher Education Act of 1965 to maximize their
                    effectiveness at promoting college affordability, and
                        (B) examine ways to expedite the delivery of the tax
                    credit.
                (2) Study regarding inclusion of community service
            requirements.--The Secretary of the Treasury and the Secretary
            of Education, or their delegates, shall study the feasibility of
            requiring including community service as a condition of taking
            their tuition and related expenses into account under section
            25A of the Internal Revenue Code of 1986.
                (3) Report.--Not later than 1 year after the date of the
            enactment of this Act, the Secretary of the Treasury, or the
            Secretary's delegate, shall report to Congress on the results of
            the studies conducted under this paragraph.

    [[Page 123 STAT. 316]]

    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) <<NOTE: 26 USC 529.>>  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) <<NOTE: 26 USC 529 note.>>  Effective Date.--The amendments made
    by this section shall apply to expenses paid or incurred after December
    31, 2008.

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

        (a) Extension.--
                (1) In general.--Section 36(h) is amended by striking ``July
            1, 2009'' and inserting ``December 1, 2009''.
                (2) Conforming amendment.--Section 36(g) is amended by
            striking ``July 1, 2009'' and inserting ``December 1, 2009''.

        (b) Increase.--
                (1) In general.--Section 36(b) is amended by striking
            ``$7,500'' each place it appears and inserting ``$8,000''.
                (2) Conforming amendment.--Section 36(b)(1)(B) is amended by
            striking ``$3,750'' and inserting ``$4,000''.

        (c) Waiver of Recapture.--
                (1) In general.--Paragraph (4) of section 36(f) is amended
            by adding at the end the following new subparagraph:
                        ``(D) Waiver of recapture for purchases in 2009.--In
                    the case <<NOTE: Time period.>>  of any credit allowed
                    with respect to the purchase of a principal residence
                    after December 31, 2008, and before December 1, 2009--
                              ``(i) paragraph (1) shall not apply, and
                              ``(ii) <<NOTE: Applicability.>>  paragraph (2)
                          shall apply only if the disposition or cessation
                          described in paragraph (2) with respect to such
                          residence occurs during the 36-month period
                          beginning on the date of the purchase of such
                          residence by the taxpayer.''.
                (2) Conforming amendment.--Subsection (g) of section 36 is
            amended by striking ``subsection (c)'' and inserting
            ``subsections (c) and (f)(4)(D)''.

        (d) Coordination With First-Time Homebuyer Credit for District of
    Columbia.--
                (1) In general.--Subsection (e) of section 1400C is amended
            by adding at the end the following new paragraph:
                ``(4) Coordination with national first-time homebuyers
            credit.--No credit shall <<NOTE: Time period.>>  be allowed
            under this section to any taxpayer with respect to the purchase
            of a residence after December 31, 2008, and before December 1,
            2009, if a credit

    [[Page 123 STAT. 317]]

            under section 36 is allowable to such taxpayer (or the
            taxpayer's spouse) with respect to such purchase.''.
                (2) Conforming amendment.--Section 36(d) <<NOTE: 26 USC
            36.>>  is amended by striking paragraph (1).

        (e) Removal of Prohibition on Financing by Mortgage Revenue Bonds.--
    Section 36(d), as amended by subsection (c)(2), is amended by striking
    paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs
    (1) and (2), respectively.
        (f) <<NOTE: 26 USC 36 note.>>  Effective Date.--The amendments made
    by this section shall apply to residences purchased after December 31,
    2008.

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

        (a) In General.--Section 85 of the Internal Revenue Code of 1986
    (relating to unemployment compensation) is amended by adding at the end
    the following new subsection:
        ``(c) Special Rule for 2009.--In the case of any taxable year
    beginning in 2009, gross income shall not include so much of the
    unemployment compensation received by an individual as does not exceed
    $2,400.''.
        (b) <<NOTE: 26 USC 85 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2008.

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

        (a) In General.--Subsection (a) of section 164 is amended by
    inserting after paragraph (5) the following new paragraph:
                ``(6) Qualified motor vehicle taxes.''.

        (b) Qualified Motor Vehicle Taxes.--Subsection (b) of section 164 is
    amended by adding at the end the following new paragraph:
                ``(6) Qualified motor vehicle taxes.--
                        ``(A) In general.--For purposes of this section, the
                    term `qualified motor vehicle taxes' means any State or
                    local sales or excise tax imposed on the purchase of a
                    qualified motor vehicle.
                        ``(B) Limitation based on vehicle price.--The amount
                    of any State or local sales or excise tax imposed on the
                    purchase of a qualified motor vehicle taken into account
                    under subparagraph (A) shall not exceed the portion of
                    such tax attributable to so much of the purchase price
                    as does not exceed $49,500.
                        ``(C) Income limitation.--The amount otherwise taken
                    into account under subparagraph (A) (after the
                    application of subparagraph (B)) for any taxable year
                    shall be reduced (but not below zero) by the amount
                    which bears the same ratio to the amount which is so
                    treated as--
                              ``(i) the excess (if any) of--
                                        ``(I) the taxpayer's modified
                                    adjusted gross income for such taxable
                                    year, over
                                        ``(II) $125,000 ($250,000 in the
                                    case of a joint return), bears to
                              ``(ii) $10,000.
                    For purposes of the preceding sentence, the term
                    `modified adjusted gross income' means the adjusted
                    gross income of the taxpayer for the taxable year
                    (determined without regard to sections 911, 931, and
                    933).

    [[Page 123 STAT. 318]]

                        ``(D) Qualified motor vehicle.--For purposes of this
                    paragraph--
                              ``(i) In general.--The term `qualified motor
                          vehicle' means--
                                        ``(I) a passenger automobile or
                                    light truck which is treated as a motor
                                    vehicle for purposes of title II of the
                                    Clean Air Act, the gross vehicle weight
                                    rating of which is not more than 8,500
                                    pounds, and the original use of which
                                    commences with the taxpayer,
                                        ``(II) a motorcycle the gross
                                    vehicle weight rating of which is not
                                    more than 8,500 pounds and the original
                                    use of which commences with the
                                    taxpayer, and
                                        ``(III) a motor home the original
                                    use of which commences with the
                                    taxpayer.
                              ``(ii) Other terms.--The terms `motorcycle'
                          and `motor home' have the meanings given such
                          terms under section 571.3 of title 49, Code of
                          Federal Regulations (as in effect on the date of
                          the enactment of this paragraph).
                        ``(E) Qualified motor vehicle taxes not included in
                    cost of acquired property.--The last sentence of
                    subsection (a) shall not apply to any qualified motor
                    vehicle taxes.
                        ``(F) Coordination with general sales tax.--This
                    paragraph shall not apply in the case of a taxpayer who
                    makes an election under paragraph (5) for the taxable
                    year.
                        ``(G) Termination.--This paragraph shall not apply
                    to purchases after December 31, 2009.''.

        (c) Deduction Allowed to Nonitemizers.--
                (1) In general.--Paragraph (1) of section 63(c) <<NOTE: 26
            USC 63.>>  is amended by striking ``and'' at the end of
            subparagraph (C), by striking the period at the end of
            subparagraph (D) and inserting ``, and'', and by adding at the
            end the following new subparagraph:
                        ``(E) the motor vehicle sales tax deduction.''.
                (2) Definition.--Section 63(c) is amended by adding at the
            end the following new paragraph:
                ``(9) Motor vehicle sales tax deduction.--For purposes of
            paragraph (1), the term `motor vehicle sales tax deduction'
            means the amount allowable as a deduction under section
            164(a)(6). Such term shall not include any amount taken into
            account under section 62(a).''.

        (d) Treatment of Deduction Under Alternative Minimum Tax.--The last
    sentence of section 56(b)(1)(E) is amended by striking ``section
    63(c)(1)(D)'' and inserting ``subparagraphs (D) and (E) of section
    63(c)(1)''.
        (e) <<NOTE: 26 USC 56 note.>>  Effective Date.--The amendments made
    by this section shall apply to purchases on or after the date of the
    enactment of this Act in taxable years ending after such date.

    [[Page 123 STAT. 319]]

                     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) <<NOTE: 26 USC
    26.>>  (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) <<NOTE: 26 USC 26 note.>>  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) <<NOTE: 26 USC 55 note.>>  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) <<NOTE: 26 USC 45 note.>>  Effective Date.--
                (1) In general.--The amendments made by subsection (a) shall
            apply to property placed in service after the date of the
            enactment of this Act.
                (2) Technical amendment.--The amendment made by subsection
            (b) shall take effect as if included in section 102 of the
            Energy Improvement and Extension Act of 2008.

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

        (a) In General.--Subsection (a) of section 48 is amended by adding
    at the end the following new paragraph:
                ``(5) Election to treat qualified facilities as energy
            property.--
                        ``(A) In general.--In the case of any qualified
                    property which is part of a qualified investment credit
                    facility--

    [[Page 123 STAT. 320]]

                              ``(i) such property shall be treated as energy
                          property for purposes of this section, and
                              ``(ii) the energy percentage with respect to
                          such property shall be 30 percent.
                        ``(B) Denial of production credit.--No credit shall
                    be allowed under section 45 for any taxable year with
                    respect to any qualified investment credit facility.
                        ``(C) Qualified investment credit facility.--For
                    purposes of this paragraph, the term `qualified
                    investment credit facility' means any of the following
                    facilities if no credit has been allowed under section
                    45 with respect to such facility and the taxpayer makes
                    an irrevocable election to have this paragraph apply to
                    such facility:
                              ``(i) Wind facilities.--Any qualified facility
                          (within the meaning of section 45) described in
                          paragraph (1) of section 45(d) if such facility is
                          placed in service in 2009, 2010, 2011, or 2012.
                              ``(ii) Other facilities.--Any qualified
                          facility (within the meaning of section 45)
                          described in paragraph (2), (3), (4), (6), (7),
                          (9), or (11) of section 45(d) if such facility is
                          placed in service in 2009, 2010, 2011, 2012, or
                          2013.
                        ``(D) Qualified property.--For purposes of this
                    paragraph, the term `qualified property' means
                    property--
                              ``(i) which is--
                                        ``(I) tangible personal property, or
                                        ``(II) other tangible property (not
                                    including a building or its structural
                                    components), but only if such property
                                    is used as an integral part of the
                                    qualified investment credit facility,
                                    and
                              ``(ii) with respect to which depreciation (or
                          amortization in lieu of depreciation) is
                          allowable.''.

        (b) <<NOTE: 26 USC 48 note.>>  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) <<NOTE: 26 USC 48.>>  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).

    [[Page 123 STAT. 321]]

                        (C) Section 48A(b)(2) <<NOTE: 26 USC 48A.>>  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) <<NOTE: Applicability. 26 USC 25C.>>  Effective Date.--
                (1) In general.--Except as provided in paragraph (2), the
            amendment made by this section shall apply to periods after
            December 31, 2008, under rules similar to the rules of section
            48(m) of the Internal Revenue Code of 1986 (as in effect on the
            day before the date of the enactment of the Revenue
            Reconciliation Act of 1990).
                (2) Conforming amendments.--The amendments made by
            subparagraphs (A) and (B) of subsection (b)(2) shall apply to
            taxable years beginning after December 31, 2008.

    SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.

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

    [[Page 123 STAT. 322]]

     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 <<NOTE: 26 USC 54C.>>  is amended by
    adding at the end the following new paragraph:
                ``(4) Additional limitation.--The national new clean
            renewable energy bond limitation shall be increased by
            $1,600,000,000. Such increase shall be allocated by the
            Secretary consistent with the rules of paragraphs (2) and
            (3).''.

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

        (a) In General.--Section 54D(d) is amended by striking
    ``$800,000,000'' and inserting ``$3,200,000,000''.
        (b) Clarification With Respect to Green Community Programs.--
                (1) In general.--Clause (ii) of section 54D(f)(1)(A) is
            amended by inserting ``(including the use of loans, grants, or
            other repayment mechanisms to implement such programs)'' after
            ``green community programs''.
                (2) Special rules for bonds for implementing green community
            programs.--Subsection (e) of section 54D is amended by adding at
            the end the following new paragraph:
                ``(4) Special rules for bonds to implement green community
            programs.--In the case of any bond issued for the purpose of
            providing loans, grants, or other repayment mechanisms for
            capital expenditures to implement green community programs, such
            bond shall not be treated as a private activity bond for
            purposes of paragraph (3).''.

                    PART III--ENERGY CONSERVATION INCENTIVES

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

        (a) In General.--Section 25C is amended by striking subsections (a)
    and (b) and inserting the following new subsections:
        ``(a) Allowance of Credit.--In the case of an individual, there
    shall be allowed as a credit against the tax imposed by this chapter for
    the taxable year an amount equal to 30 percent of the sum of--
                ``(1) the amount paid or incurred by the taxpayer during
            such taxable year for qualified energy efficiency improvements,
            and
                ``(2) the amount of the residential energy property
            expenditures paid or incurred by the taxpayer during such
            taxable year.

        ``(b) Limitation.--The aggregate amount of the credits allowed under
    this section for taxable years beginning in 2009 and 2010 with respect
    to any taxpayer shall not exceed $1,500.''.
        (b) Modifications of Standards for Energy-Efficient Building
    Property.--

    [[Page 123 STAT. 323]]

                (1) Electric heat pumps.--Subparagraph (B) of section
            25C(d)(3) <<NOTE: 26 USC 25C.>>  is amended to read as follows:
                        ``(B) an electric heat pump which achieves the
                    highest efficiency tier established by the Consortium
                    for Energy Efficiency, as in effect on January 1,
                    2009.''.
                (2) Central air conditioners.--Subparagraph (C) of section
            25C(d)(3) is amended by striking ``2006'' and inserting
            ``2009''.
                (3) Water heaters.--Subparagraph (D) of section 25C(d)(3) is
            amended to read as follows:
                        ``(D) a natural gas, propane, or oil water heater
                    which has either an energy factor of at least 0.82 or a
                    thermal efficiency of at least 90 percent.''.
                (4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is
            amended by inserting ``, as measured using a lower heating
            value'' after ``75 percent''.

        (c) Modifications of Standards for Oil Furnaces and Hot Water
    Boilers.--
                (1) In general.--Paragraph (4) of section 25C(d) is amended
            to read as follows:
                ``(4) Qualified natural gas, propane, and oil furnaces and
            hot water boilers.--
                        ``(A) Qualified natural gas furnace.--The term
                    `qualified natural gas furnace' means any natural gas
                    furnace which achieves an annual fuel utilization
                    efficiency rate of not less than 95.
                        ``(B) Qualified natural gas hot water boiler.--The
                    term `qualified natural gas hot water boiler' means any
                    natural gas hot water boiler which achieves an annual
                    fuel utilization efficiency rate of not less than 90.
                        ``(C) Qualified propane furnace.--The term
                    `qualified propane furnace' means any propane furnace
                    which achieves an annual fuel utilization efficiency
                    rate of not less than 95.
                        ``(D) Qualified propane hot water boiler.--The term
                    `qualified propane hot water boiler' means any propane
                    hot water boiler which achieves an annual fuel
                    utilization efficiency rate of not less than 90.
                        ``(E) Qualified oil furnaces.--The term `qualified
                    oil furnace' means any oil furnace which achieves an
                    annual fuel utilization efficiency rate of not less than
                    90.
                        ``(F) Qualified oil hot water boiler.--The term
                    `qualified oil hot water boiler' means any oil hot water
                    boiler which achieves an annual fuel utilization
                    efficiency rate of not less than 90.''.
                (2) Conforming amendment.--Clause (ii) of section
            25C(d)(2)(A) is amended to read as follows:
                              ``(ii) any qualified natural gas furnace,
                          qualified propane furnace, qualified oil furnace,
                          qualified natural gas hot water boiler, qualified
                          propane hot water boiler, or qualified oil hot
                          water boiler, or''.

        (d) Modifications of Standards for Qualified Energy Efficiency
    Improvements.--
                (1) Qualifications for exterior windows, doors, and
            skylights.--Subsection (c) of section 25C is amended by adding
            at the end the following new paragraph:

    [[Page 123 STAT. 324]]

                ``(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) <<NOTE: 26 USC 25C.>>  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) <<NOTE: Applicability. 26 USC 25C note.>>  Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to taxable years
            beginning after December 31, 2008.
                (2) Efficiency standards.--The amendments made by paragraphs
            (1), (2), and (3) of subsection (b) and subsections (c) and (d)
            shall apply to property placed in service after the date of the
            enactment of this Act.

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

        (a) Removal of Credit Limitation for Property Placed in Service.--
                (1) In general.--Paragraph (1) of section 25D(b) is amended
            to read as follows:
                ``(1) Maximum credit for fuel cells.--In the case of any
            qualified fuel cell property expenditure, the credit allowed
            under subsection (a) (determined without regard to subsection
            (c)) for any taxable year shall not exceed $500 with respect to
            each half kilowatt of capacity of the qualified fuel cell
            property (as defined in section 48(c)(1)) to which such
            expenditure relates.''.
                (2) Conforming amendment.--Paragraph (4) of section 25D(e)
            is amended--
                        (A) by striking all that precedes subparagraph (B)
                    and inserting the following:
                ``(4) <<NOTE: Regulations. Applicability.>>  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) <<NOTE: 26 USC 25D note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

    [[Page 123 STAT. 325]]

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

        (a) In General.--Section 30C(e) <<NOTE: 26 USC 30C.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 30C note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2008.

        PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

    SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED
                AS A TERTIARY INJECTANT.

        (a) In General.--Section 45Q(a)(2) is amended by striking ``and'' at
    the end of subparagraph (A), by striking the period at the end of
    subparagraph (B) and inserting ``, and'', and by adding at the end the
    following new subparagraph:
                        ``(C) disposed of by the taxpayer in secure
                    geological storage.''.

        (b) Conforming Amendments.--
                (1) Section 45Q(d)(2) is amended--
                        (A) by striking ``subsection (a)(1)(B)'' and
                    inserting ``paragraph (1)(B) or (2)(C) of subsection
                    (a)'',
                        (B) by striking ``and unminable coal seems'' and
                    inserting ``, oil and gas reservoirs, and unminable coal
                    seams'', and
                        (C) by inserting ``the Secretary of Energy, and the
                    Secretary of the Interior,'' after ``Environmental
                    Protection Agency''.
                (2) Section 45Q(a)(1)(B) is amended by inserting ``and not
            used by the taxpayer as described in paragraph (2)(B)'' after
            ``storage''.
                (3) Section 45Q(e) is amended by striking ``captured and
            disposed of or used as a tertiary injectant'' and inserting
            ``taken into account in accordance with subsection (a)''.

        (c) <<NOTE: 26 USC 45Q note.>>  Effective Date.--The amendments made
    by this section shall apply to carbon dioxide captured after the date of
    the enactment of this Act.

    [[Page 123 STAT. 326]]

                  PART V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

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

        (a) In General.--Section 30D <<NOTE: 26 USC 30D.>>  is amended to
    read as follows:

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

        ``(a) Allowance of Credit.--There shall be allowed as a credit
    against the tax imposed by this chapter for the taxable year an amount
    equal to the sum of the credit amounts determined under subsection (b)
    with respect to each new qualified plug-in electric drive motor vehicle
    placed in service by the taxpayer during the taxable year.
        ``(b) Per Vehicle Dollar Limitation.--
                ``(1) In general.--The amount determined under this
            subsection with respect to any new qualified plug-in electric
            drive motor vehicle is the sum of the amounts determined under
            paragraphs (2) and (3) with respect to such vehicle.
                ``(2) Base amount.--The amount determined under this
            paragraph is $2,500.
                ``(3) Battery capacity.--In the case of a vehicle which
            draws propulsion energy from a battery with not less than 5
            kilowatt hours of capacity, the amount determined under this
            paragraph is $417, plus $417 for each kilowatt hour of capacity
            in excess of 5 kilowatt hours. The amount determined under this
            paragraph shall not exceed $5,000.

        ``(c) Application With Other Credits.--
                ``(1) Business credit treated as part of general business
            credit.--So much of the credit which would be allowed under
            subsection (a) for any taxable year (determined without regard
            to this subsection) that is attributable to property of a
            character subject to an allowance for depreciation shall be
            treated as a credit listed in section 38(b) for such taxable
            year (and not allowed under subsection (a)).
                ``(2) Personal credit.--
                        ``(A) In general.--For purposes of this title, the
                    credit allowed under subsection (a) for any taxable year
                    (determined after application of paragraph (1)) shall be
                    treated as a credit allowable under subpart A for such
                    taxable year.
                        ``(B) Limitation based on amount of tax.--In the
                    case of a taxable year to which section 26(a)(2) does
                    not apply, the credit allowed under subsection (a) for
                    any taxable year (determined after application of
                    paragraph (1)) shall not exceed the excess of--
                              ``(i) the sum of the regular tax liability (as
                          defined in section 26(b)) plus the tax imposed by
                          section 55, over
                              ``(ii) the sum of the credits allowable under
                          subpart A (other than this section and sections 23
                          and 25D) and section 27 for the taxable year.

        ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For
    purposes of this section--
                ``(1) In general.--The term `new qualified plug-in electric
            drive motor vehicle' means a motor vehicle--

    [[Page 123 STAT. 327]]

                        ``(A) the original use of which commences with the
                    taxpayer,
                        ``(B) which is acquired for use or lease by the
                    taxpayer and not for resale,
                        ``(C) which is made by a manufacturer,
                        ``(D) which is treated as a motor vehicle for
                    purposes of title II of the Clean Air Act,
                        ``(E) which has a gross vehicle weight rating of
                    less than 14,000 pounds, and
                        ``(F) which is propelled to a significant extent by
                    an electric motor which draws electricity from a battery
                    which--
                              ``(i) has a capacity of not less than 4
                          kilowatt hours, and
                              ``(ii) is capable of being recharged from an
                          external source of electricity.
                ``(2) Motor vehicle.--The term `motor vehicle' means any
            vehicle which is manufactured primarily for use on public
            streets, roads, and highways (not including a vehicle operated
            exclusively on a rail or rails) and which has at least 4 wheels.
                ``(3) Manufacturer.--The term `manufacturer' has the meaning
            given such term in regulations prescribed by the Administrator
            of the Environmental Protection Agency for purposes of the
            administration of title II of the Clean Air Act (42 U.S.C. 7521
            et seq.).
                ``(4) Battery capacity.--The term `capacity' means, with
            respect to any battery, the quantity of electricity which the
            battery is capable of storing, expressed in kilowatt hours, as
            measured from a 100 percent state of charge to a 0 percent state
            of charge.

        ``(e) Limitation on Number of New Qualified Plug-in Electric Drive
    Motor Vehicles Eligible for Credit.--
                ``(1) In general.--In the case of a new qualified plug-in
            electric drive motor vehicle sold during the phaseout period,
            only the applicable percentage of the credit otherwise allowable
            under subsection (a) shall be allowed.
                ``(2) Phaseout period.--For purposes of this subsection, the
            phaseout period is the period beginning with the second calendar
            quarter following the calendar quarter which includes the first
            date on which the number of new qualified plug-in electric drive
            motor vehicles manufactured by the manufacturer of the vehicle
            referred to in paragraph (1) sold for use in the United States
            after December 31, 2009, is at least 200,000.
                ``(3) Applicable percentage.--For purposes of paragraph (1),
            the applicable percentage is--
                        ``(A) 50 percent for the first 2 calendar quarters
                    of the phaseout period,
                        ``(B) 25 percent for the 3d and 4th calendar
                    quarters of the phaseout period, and
                        ``(C) 0 percent for each calendar quarter
                    thereafter.
                ``(4) <<NOTE: Regulations. Applicability.>>  Controlled
            groups.--Rules similar to the rules of section 30B(f)(4) shall
            apply for purposes of this subsection.

        ``(f) Special Rules.--
                ``(1) Basis reduction.--For purposes of this subtitle, the
            basis of any property for which a credit is allowable under

    [[Page 123 STAT. 328]]

            subsection (a) shall be reduced by the amount of such credit so
            allowed.
                ``(2) No double benefit.--The amount of any deduction or
            other credit allowable under this chapter for a new qualified
            plug-in electric drive motor vehicle shall be reduced by the
            amount of credit allowed under subsection (a) for such vehicle.
                ``(3) Property used by tax-exempt entity.--In the case of a
            vehicle the use of which is described in paragraph (3) or (4) of
            section 50(b) and which is not subject to a lease, the person
            who sold such vehicle to the person or entity using such vehicle
            shall be treated as the taxpayer that placed such vehicle in
            service, but only if such person clearly discloses to such
            person or entity in a document the amount of any credit
            allowable under subsection (a) with respect to such vehicle
            (determined without regard to subsection (c)).
                ``(4) Property used outside united states not qualified.--No
            credit shall be allowable under subsection (a) with respect to
            any property referred to in section 50(b)(1).
                ``(5) <<NOTE: Regulations.>>  Recapture.--The Secretary
            shall, by regulations, provide for recapturing the benefit of
            any credit allowable under subsection (a) with respect to any
            property which ceases to be property eligible for such credit.
                ``(6) Election not to take credit.--No credit shall be
            allowed under subsection (a) for any vehicle if the taxpayer
            elects to not have this section apply to such vehicle.
                ``(7) Interaction with air quality and motor vehicle safety
            standards.--A motor vehicle shall not be considered eligible for
            a credit under this section unless such vehicle is in compliance
            with--
                        ``(A) the applicable provisions of the Clean Air Act
                    for the applicable make and model year of the vehicle
                    (or applicable air quality provisions of State law in
                    the case of a State which has adopted such provision
                    under a waiver under section 209(b) of the Clean Air
                    Act), and
                        ``(B) the motor vehicle safety provisions of
                    sections 30101 through 30169 of title 49, United States
                    Code.''.

        (b) Conforming Amendments.--
                (1) Section 30B(d)(3)(D) <<NOTE: 26 USC 30B.>>  is amended
            by striking ``subsection (d) thereof'' and inserting
            ``subsection (c) thereof''.
                (2) Section 38(b)(35) is amended by striking ``30D(d)(1)''
            and inserting ``30D(c)(1)''.
                (3) Section 1016(a)(25) is amended by striking ``section
            30D(e)(4)'' and inserting ``section 30D(f)(1)''.
                (4) Section 6501(m) is amended by striking ``section
            30D(e)(9)'' and inserting ``section 30D(e)(4)''.

        (c) <<NOTE: 26 USC 30B note.>>  Effective Date.--The amendments made
    by this section shall apply to vehicles acquired after December 31,
    2009.

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

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

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

        ``(a) Allowance of Credit.--There shall be allowed as a credit
    against the tax imposed by this chapter for the taxable year an amount
    equal to 10 percent of the cost of any qualified plug-in electric
    vehicle placed in service by the taxpayer during the taxable year.

    [[Page 123 STAT. 329]]

        ``(b) Per Vehicle Dollar Limitation.--The amount of the credit
    allowed under subsection (a) with respect to any vehicle shall not
    exceed $2,500.
        ``(c) Application With Other Credits.--
                ``(1) Business credit treated as part of general business
            credit.--So much of the credit which would be allowed under
            subsection (a) for any taxable year (determined without regard
            to this subsection) that is attributable to property of a
            character subject to an allowance for depreciation shall be
            treated as a credit listed in section 38(b) for such taxable
            year (and not allowed under subsection (a)).
                ``(2) Personal credit.--
                        ``(A) In general.--For purposes of this title, the
                    credit allowed under subsection (a) for any taxable year
                    (determined after application of paragraph (1)) shall be
                    treated as a credit allowable under subpart A for such
                    taxable year.
                        ``(B) Limitation based on amount of tax.--In the
                    case of a taxable year to which section 26(a)(2) does
                    not apply, the credit allowed under subsection (a) for
                    any taxable year (determined after application of
                    paragraph (1)) shall not exceed the excess of--
                              ``(i) the sum of the regular tax liability (as
                          defined in section 26(b)) plus the tax imposed by
                          section 55, over
                              ``(ii) the sum of the credits allowable under
                          subpart A (other than this section and sections
                          23, 25D, and 30D) and section 27 for the taxable
                          year.

        ``(d) Qualified Plug-in Electric Vehicle.--For purposes of this
    section--
                ``(1) In general.--The term `qualified plug-in electric
            vehicle' means a specified vehicle--
                        ``(A) the original use of which commences with the
                    taxpayer,
                        ``(B) which is acquired for use or lease by the
                    taxpayer and not for resale,
                        ``(C) which is made by a manufacturer,
                        ``(D) which is manufactured primarily for use on
                    public streets, roads, and highways,
                        ``(E) which has a gross vehicle weight rating of
                    less than 14,000 pounds, and
                        ``(F) which is propelled to a significant extent by
                    an electric motor which draws electricity from a battery
                    which--
                              ``(i) has a capacity of not less than 4
                          kilowatt hours (2.5 kilowatt hours in the case of
                          a vehicle with 2 or 3 wheels), and
                              ``(ii) is capable of being recharged from an
                          external source of electricity.
                ``(2) Specified vehicle.--The term `specified vehicle' means
            any vehicle which--
                        ``(A) is a low speed vehicle within the meaning of
                    section 571.3 of title 49, Code of Federal Regulations
                    (as in effect on the date of the enactment of the
                    American Recovery and Reinvestment Tax Act of 2009), or
                        ``(B) has 2 or 3 wheels.

    [[Page 123 STAT. 330]]

                ``(3) Manufacturer.--The term `manufacturer' has the meaning
            given such term in regulations prescribed by the Administrator
            of the Environmental Protection Agency for purposes of the
            administration of title II of the Clean Air Act (42 U.S.C. 7521
            et seq.).
                ``(4) Battery capacity.--The term `capacity' means, with
            respect to any battery, the quantity of electricity which the
            battery is capable of storing, expressed in kilowatt hours, as
            measured from a 100 percent state of charge to a 0 percent state
            of charge.

        ``(e) Special Rules.--
                ``(1) Basis reduction.--For purposes of this subtitle, the
            basis of any property for which a credit is allowable under
            subsection (a) shall be reduced by the amount of such credit so
            allowed.
                ``(2) No double benefit.--The amount of any deduction or
            other credit allowable under this chapter for a new qualified
            plug-in electric drive motor vehicle shall be reduced by the
            amount of credit allowable under subsection (a) for such
            vehicle.
                ``(3) Property used by tax-exempt entity.--In the case of a
            vehicle the use of which is described in paragraph (3) or (4) of
            section 50(b) and which is not subject to a lease, the person
            who sold such vehicle to the person or entity using such vehicle
            shall be treated as the taxpayer that placed such vehicle in
            service, but only if such person clearly discloses to such
            person or entity in a document the amount of any credit
            allowable under subsection (a) with respect to such vehicle
            (determined without regard to subsection (c)).
                ``(4) Property used outside united states not qualified.--No
            credit shall be allowable under subsection (a) with respect to
            any property referred to in section 50(b)(1).
                ``(5) <<NOTE: Regulations.>>  Recapture.--The Secretary
            shall, by regulations, provide for recapturing the benefit of
            any credit allowable under subsection (a) with respect to any
            property which ceases to be property eligible for such credit.
                ``(6) Election not to take credit.--No credit shall be
            allowed under subsection (a) for any vehicle if the taxpayer
            elects to not have this section apply to such vehicle.

        ``(f) Termination.--This section shall not apply to any vehicle
    acquired after December 31, 2011.''.
        (b) Conforming Amendments.--
                (1)(A) Section 24(b)(3)(B) <<NOTE: 26 USC 24.>>  is amended
            by inserting ``30,'' after ``25D,''.
                (B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,''
            after ``25D,''.
                (C) Section 25B(g)(2) is amended by inserting ``30,'' after
            ``25D,''.
                (D) Section 26(a)(1) is amended by inserting ``30,'' after
            ``25D,''.
                (E) Section 904(i) is amended by striking ``and 25B'' and
            inserting ``25B, 30, and 30D''.
                (F) Section 1400C(d)(2) is amended by striking ``and 25D''
            and inserting ``25D, and 30''.
                (2) Paragraph (1) of section 30B(h) is amended to read as
            follows:
                ``(1) Motor vehicle.--The term `motor vehicle' means any
            vehicle which is manufactured primarily for use on public

    [[Page 123 STAT. 331]]

            streets, roads, and highways (not including a vehicle operated
            exclusively on a rail or rails) and which has at least 4
            wheels.''.
                (3) Section 30C(d)(2)(A) <<NOTE: 26 USC 30C.>>  is amended
            by striking ``, 30,''.
                (4)(A) Section 53(d)(1)(B) is amended by striking clause
            (iii) and redesignating clause (iv) as clause (iii).
                (B) Subclause (II) of section 53(d)(1)(B)(iii), as so
            redesignated, is amended by striking ``increased in the manner
            provided in clause (iii)''.
                (5) Section 55(c)(3) is amended by striking ``30(b)(3),''.
                (6) Section 1016(a)(25) is amended by striking ``section
            30(d)(1)'' and inserting ``section 30(e)(1)''.
                (7) Section 6501(m) is amended by striking ``section
            30(d)(4)'' and inserting ``section 30(e)(6)''.
                (8) The item in the table of sections for subpart B of part
            IV of subchapter A of chapter 1 is amended to read as follows:

    ``Sec. 30. Certain plug-in electric vehicles.''.

        (c) <<NOTE: 26 USC 24 note.>>  Effective Date.--The amendments made
    by this section shall apply to vehicles acquired after the date of the
    enactment of this Act.

        (d) Transitional Rule.--In the <<NOTE: Time period. 26 USC 30
    note.>>  case of a vehicle acquired after the date of the enactment of
    this Act and before January 1, 2010, no credit shall be allowed under
    section 30 of the Internal Revenue Code of 1986, as added by this
    section, if credit is allowable under section 30D of such Code with
    respect to such vehicle.

        (e) <<NOTE: 26 USC 24 note.>>  Application of EGTRRA Sunset.--The
    amendment made by subsection (b)(1)(A) shall be subject to title IX of
    the Economic Growth and Tax Relief Reconciliation Act of 2001 in the
    same manner as the provision of such Act to which such amendment
    relates.

    SEC. 1143. CONVERSION KITS.

        (a) In General.--Section 30B (relating to alternative motor vehicle
    credit) is amended by redesignating subsections (i) and (j) as
    subsections (j) and (k), respectively, and by inserting after subsection
    (h) the following new subsection:
        ``(i) Plug-in Conversion Credit.--
                ``(1) In general.--For purposes of subsection (a), the plug-
            in conversion credit determined under this subsection with
            respect to any motor vehicle which is converted to a qualified
            plug-in electric drive motor vehicle is 10 percent of so much of
            the cost of the converting such vehicle as does not exceed
            $40,000.
                ``(2) Qualified plug-in electric drive motor vehicle.--For
            purposes of this subsection, the term `qualified plug-in
            electric drive motor vehicle' means any new qualified plug-in
            electric drive motor vehicle (as defined in section 30D,
            determined without regard to whether such vehicle is made by a
            manufacturer or whether the original use of such vehicle
            commences with the taxpayer).
                ``(3) Credit allowed in addition to other credits.--The
            credit allowed under this subsection shall be allowed with
            respect to a motor vehicle notwithstanding whether a credit has
            been allowed with respect to such motor vehicle under this
            section (other than this subsection) in any preceding taxable
            year.

    [[Page 123 STAT. 332]]

                ``(4) Termination.--This subsection shall not apply to
            conversions made after December 31, 2011.''.

        (b) Credit Treated as Part of Alternative Motor Vehicle Credit.--
    Section 30B(a) <<NOTE: 26 USC 30B.>>  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) <<NOTE: 26 USC 30B note.>>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after the date
    of the enactment of this Act.

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

        (a) In General.--Paragraph (2) of section 30B(g) is amended to read
    as follows:
                ``(2) Personal credit.--
                        ``(A) In general.--For purposes of this title, the
                    credit allowed under subsection (a) for any taxable year
                    (determined after application of paragraph (1)) shall be
                    treated as a credit allowable under subpart A for such
                    taxable year.
                        ``(B) Limitation based on amount of tax.--In the
                    case of a taxable year to which section 26(a)(2) does
                    not apply, the credit allowed under subsection (a) for
                    any taxable year (determined after application of
                    paragraph (1)) shall not exceed the excess of--
                              ``(i) the sum of the regular tax liability (as
                          defined in section 26(b)) plus the tax imposed by
                          section 55, over
                              ``(ii) the sum of the credits allowable under
                          subpart A (other than this section and sections
                          23, 25D, 30, and 30D) and section 27 for the
                          taxable year.''.

        (b) Conforming Amendments.--
                (1)(A) Section 24(b)(3)(B), as amended by this Act, is
            amended by inserting ``30B,'' after ``30,''.
                (B) Section 25(e)(1)(C)(ii), as amended by this Act, is
            amended by inserting ``30B,'' after ``30,''.
                (C) Section 25B(g)(2), as amended by this Act, is amended by
            inserting ``30B,'' after ``30,''.
                (D) Section 26(a)(1), as amended by this Act, is amended by
            inserting ``30B,'' after ``30,''.
                (E) Section 904(i), as amended by this Act, is amended by
            inserting ``30B,'' after ``30''.
                (F) Section 1400C(d)(2), as amended by this Act, is amended
            by striking ``and 30'' and inserting ``30, and 30B''.
                (2) Section 30C(d)(2)(A), as amended by this Act, is amended
            by striking ``sections 27 and 30B'' and inserting ``section
            27''.
                (3) Section 55(c)(3) is amended by striking ``30B(g)(2),''.

    [[Page 123 STAT. 333]]

        (c) <<NOTE: 26 USC 24 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

        (d) <<NOTE: 26 USC 24 note.>>  Application of EGTRRA Sunset.--The
    amendment made by subsection (b)(1)(A) shall be subject to title IX of
    the Economic Growth and Tax Relief Reconciliation Act of 2001 in the
    same manner as the provision of such Act to which such amendment
    relates.

               PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

    SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND
                TRANSIT PASSES.

        (a) In General.--Paragraph (2) of section 132(f) <<NOTE: 26 USC
    132.>>  is amended by adding at the end the following flush sentence:
            ``In <<NOTE: Applicability.>>  the case of any month beginning
            on or after the date of the enactment of this sentence and
            before January 1, 2011, subparagraph (A) shall be applied as if
            the dollar amount therein were the same as the dollar amount in
            effect for such month under subparagraph (B).''.

        (b) <<NOTE: 26 USC 132 note.>>  Effective Date.--The amendment made
    by this section shall apply to months beginning on or after the date of
    the enactment of this section.

                     Subtitle C--Tax Incentives for Business

                     PART I--TEMPORARY INVESTMENT INCENTIVES

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

        (a) Extension of Special Allowance.--
                (1) In general.--Paragraph (2) of section 168(k) is
            amended--
                        (A) by striking ``January 1, 2010'' and inserting
                    ``January 1, 2011'', and
                        (B) by striking ``January 1, 2009'' each place it
                    appears and inserting ``January 1, 2010''.
                (2) Conforming amendments.--
                        (A) The heading for subsection (k) of section 168 is
                    amended by striking ``January 1, 2009'' and inserting
                    ``January 1, 2010''.
                        (B) The heading for clause (ii) of section
                    168(k)(2)(B) is amended by striking ``pre-january 1,
                    2009'' and inserting ``pre-january 1, 2010''.
                        (C) Subparagraph (B) of section 168(l)(5) is amended
                    by striking ``January 1, 2009'' and inserting ``January
                    1, 2010''.
                        (D) Subparagraph (C) of section 168(n)(2) is amended
                    by striking ``January 1, 2009'' and inserting ``January
                    1, 2010''.
                        (E) Subparagraph (B) of section 1400N(d)(3) is
                    amended by striking ``January 1, 2009'' and inserting
                    ``January 1, 2010''.
                (3) Technical amendments.--
                        (A) Subparagraph (D) of section 168(k)(4) is
                    amended--

    [[Page 123 STAT. 334]]

                              (i) by striking ``and'' at the end of clause
                          (i),
                              (ii) by redesignating clause (ii) as clause
                          (iii), and
                              (iii) by inserting after clause (i) the
                          following new clause:
                              ``(ii) `April 1, 2008' shall be substituted
                          for `January 1, 2008' in subparagraph (A)(iii)(I)
                          thereof, and''.
                        (B) Subparagraph (A) of section
                    6211(b)(4) <<NOTE: 26 USC 6211.>>  is amended by
                    inserting ``168(k)(4),'' after ``53(e),''.

        (b) Extension of Election to Accelerate the Amt and Research Credits
    in Lieu of Bonus Depreciation.--
                (1) In general.--Section 168(k)(4) (relating to election to
            accelerate the AMT and research credits in lieu of bonus
            depreciation) is amended--
                        (A) by striking ``2009'' and inserting ``2010''in
                    subparagraph (D)(iii) (as redesignated by subsection
                    (a)(3)), and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(H) Special rules for extension property.--
                              ``(i) Taxpayers previously electing
                          acceleration.--In the case of a taxpayer who made
                          the election under subparagraph (A) for its first
                          taxable year ending after March 31, 2008--
                                        ``(I) the taxpayer may elect not to
                                    have this paragraph apply to extension
                                    property, but
                                        ``(II) if the taxpayer does not make
                                    the election under subclause (I), in
                                    applying this paragraph to the taxpayer
                                    a separate bonus depreciation amount,
                                    maximum amount, and maximum increase
                                    amount shall be computed and applied to
                                    eligible qualified property which is
                                    extension property and to eligible
                                    qualified property which is not
                                    extension property.
                              ``(ii) Taxpayers not previously electing
                          acceleration.--In the case of a taxpayer who did
                          not make the election under subparagraph (A) for
                          its first taxable year ending after March 31,
                          2008--
                                        ``(I) the taxpayer may elect to have
                                    this paragraph apply to its first
                                    taxable year ending after December 31,
                                    2008, and each subsequent taxable year,
                                    and
                                        ``(II) if the taxpayer makes the
                                    election under subclause (I), this
                                    paragraph shall only apply to eligible
                                    qualified property which is extension
                                    property.
                              ``(iii) Extension property.--For purposes of
                          this subparagraph, the term `extension property'
                          means property which is eligible qualified
                          property solely by reason of the extension of the
                          application of the special allowance under
                          paragraph (1) pursuant to the amendments made by
                          section 1201(a) of the American Recovery and
                          Reinvestment Tax Act of 2009 (and the application
                          of such extension to this paragraph pursuant to
                          the amendment made by section 1201(b)(1) of such
                          Act).''.
                (2) Technical amendment.--Section 6211(b)(4)(A) is amended
            by inserting ``168(k)(4),'' after ``53(e),''.

        (c) <<NOTE: Applicability. 26 USC 168 note.>>  Effective Dates.--

    [[Page 123 STAT. 335]]

                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to property placed
            in service after December 31, 2008, in taxable years ending
            after such date.
                (2) Technical amendments.--The amendments made by
            subsections (a)(3) and (b)(2) shall apply to taxable years
            ending after March 31, 2008.

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

        (a) In General.--Paragraph (7) of section 179(b) <<NOTE: 26 USC
    179.>>  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) <<NOTE: 26 USC 179 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2008.

                       PART II--SMALL BUSINESS PROVISIONS

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

        (a) In General.--Subparagraph (H) of section 172(b)(1) is amended to
    read as follows:
                        ``(H) Carryback for 2008 net operating losses of
                    small businesses.--
                              ``(i) <<NOTE: Applicability.>>  In general.--
                          If an eligible small business elects the
                          application of this subparagraph with respect to
                          an applicable 2008 net operating loss--
                                        ``(I) subparagraph (A)(i) shall be
                                    applied by substituting any whole number
                                    elected by the taxpayer which is more
                                    than 2 and less than 6 for `2',
                                        ``(II) subparagraph (E)(ii) shall be
                                    applied by substituting the whole number
                                    which is one less than the whole number
                                    substituted under subclause (I) for `2',
                                    and
                                        ``(III) subparagraph (F) shall not
                                    apply.
                              ``(ii) Applicable 2008 net operating loss.--
                          For purposes of this subparagraph, the term
                          `applicable 2008 net operating loss' means--
                                        ``(I) the taxpayer's net operating
                                    loss for any taxable year ending in
                                    2008, or
                                        ``(II) if the taxpayer elects to
                                    have this subclause apply in lieu of
                                    subclause (I), the taxpayer's net
                                    operating loss for any taxable year
                                    beginning in 2008.
                              ``(iii) Election.--Any election under this
                          subparagraph shall be made in such manner as may
                          be prescribed by the Secretary, and shall be made
                          by the due date (including extension of time) for
                          filing the taxpayer's return for the taxable year
                          of the net operating loss. Any such election, once
                          made, shall be irrevocable. Any election under
                          this subparagraph may be made only with respect to
                          1 taxable year.
                              ``(iv) <<NOTE: Applicability.>>  Eligible
                          small business.--For purposes of this
                          subparagraph, the term `eligible small business'
                          has the meaning given such term by subparagraph

    [[Page 123 STAT. 336]]

                          (F)(iii), except that in applying such
                          subparagraph, section 448(c) shall be applied by
                          substituting `$15,000,000' for `$5,000,000' each
                          place it appears.''.

        (b) Conforming Amendment.--Section 172 <<NOTE: 26 USC 172.>>  is
    amended by striking subsection (k) and by redesignating subsection (l)
    as subsection (k).

        (c) <<NOTE: 26 USC 172 note.>>  Anti-Abuse Rules.--The Secretary of
    Treasury or the Secretary's designee shall prescribe such rules as are
    necessary to prevent the abuse of the purposes of the amendments made by
    this section, including anti-stuffing rules, anti-churning rules
    (including rules relating to sale-leasebacks), and rules similar to the
    rules under section 1091 of the Internal Revenue Code of 1986 relating
    to losses from wash sales.

        (d) <<NOTE: 26 USC 172 note.>>  Effective Date.--
                (1) <<NOTE: Applicability.>>  In general.--Except as
            otherwise provided in this subsection, the amendments made by
            this section shall apply to net operating losses arising in
            taxable years ending after December 31, 2007.
                (2) Transitional rule.--In the case of a net operating loss
            for a taxable year ending before the date of the enactment of
            this Act--
                        (A) any election made under section 172(b)(3) of the
                    Internal Revenue Code of 1986 with respect to such loss
                    may (notwithstanding such section) be revoked before the
                    applicable date,
                        (B) any election made under section 172(b)(1)(H) of
                    such Code with respect to such loss shall
                    (notwithstanding such section) be treated as timely made
                    if made before the applicable date, and
                        (C) any application under section 6411(a) of such
                    Code with respect to such loss shall be treated as
                    timely filed if filed before the applicable date.
            For <<NOTE: Definition.>>  purposes of this paragraph, the term
            ``applicable date'' means the date which is 60 days after the
            date of the enactment of this Act.

    SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR CERTAIN
                SMALL BUSINESSES.

        Paragraph (1) of section 6654(d) is amended by adding at the end the
    following new subparagraph:
                        ``(D) Special rule for 2009.--
                              ``(i) <<NOTE: Applicability.>>  In general.--
                          Notwithstanding subparagraph (C), in the case of
                          any taxable year beginning in 2009, clause (ii) of
                          subparagraph (B) shall be applied to any qualified
                          individual by substituting `90 percent' for `100
                          percent'.
                              ``(ii) Qualified individual.--For purposes of
                          this subparagraph, the term `qualified individual'
                          means any individual if--
                                        ``(I) the adjusted gross income
                                    shown on the return of such individual
                                    for the preceding taxable year is less
                                    than $500,000, and
                                        ``(II) <<NOTE: Certification.>>
                                    such individual certifies that more than
                                    50 percent of the gross income shown on
                                    the return of such individual for the
                                    preceding taxable year was income from a
                                    small business.

    [[Page 123 STAT. 337]]

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

                        PART III--INCENTIVES FOR NEW JOBS

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

        (a) In General.--Subsection (d) of section 51 <<NOTE: 26 USC 51.>>
    is amended by adding at the end the following new paragraph:
                ``(14) Credit allowed for unemployed veterans and
            disconnected youth hired in 2009 or 2010.--
                        ``(A) In general.--Any unemployed veteran or
                    disconnected youth who begins work for the employer
                    during 2009 or 2010 shall be treated as a member of a
                    targeted group for purposes of this subpart.
                        ``(B) Definitions.--For purposes of this paragraph--
                              ``(i) Unemployed veteran.--The term
                          `unemployed veteran' means any veteran (as defined
                          in paragraph (3)(B), determined without regard to
                          clause (ii) thereof) who is certified by the
                          designated local agency as--
                                        ``(I) having been discharged or
                                    released from active duty in the Armed
                                    Forces at any time during the 5-year
                                    period ending on the hiring date, and
                                        ``(II) being in receipt of
                                    unemployment compensation under State or
                                    Federal law for not less than 4 weeks
                                    during the 1-year period ending on the
                                    hiring date.
                              ``(ii) Disconnected youth.--The term
                          `disconnected youth' means any individual who is
                          certified by the designated local agency--
                                        ``(I) as having attained age 16 but
                                    not age 25 on the hiring date,
                                        ``(II) as not regularly attending
                                    any secondary, technical, or post-
                                    secondary school during the 6-month
                                    period preceding the hiring date,
                                        ``(III) as not regularly employed
                                    during such 6-month period, and
                                        ``(IV) as not readily employable by
                                    reason of lacking a sufficient number of
                                    basic skills.''.

    [[Page 123 STAT. 338]]

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

                   PART IV--RULES RELATING TO DEBT INSTRUMENTS

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

        (a) In General.--Section 108 <<NOTE: 26 USC 108.>>  (relating to
    income from discharge of indebtedness) is amended by adding at the end
    the following new subsection:

        ``(i) Deferral and Ratable Inclusion of Income Arising From Business
    Indebtedness Discharged by the Reacquisition of a Debt Instrument.--
                ``(1) In general.--At the <<NOTE: Time periods.>>  election
            of the taxpayer, income from the discharge of indebtedness in
            connection with the reacquisition after December 31, 2008, and
            before January 1, 2011, of an applicable debt instrument shall
            be includible in gross income ratably over the 5-taxable-year
            period beginning with--
                        ``(A) in the case of a reacquisition occurring in
                    2009, the fifth taxable year following the taxable year
                    in which the reacquisition occurs, and
                        ``(B) in the case of a reacquisition occurring in
                    2010, the fourth taxable year following the taxable year
                    in which the reacquisition occurs.
                ``(2) Deferral of deduction for original issue discount in
            debt for debt exchanges.--
                        ``(A) In general.--If, as part of a reacquisition to
                    which paragraph (1) applies, any debt instrument is
                    issued for the applicable debt instrument being
                    reacquired (or is treated as so issued under subsection
                    (e)(4) and the regulations thereunder) and there is any
                    original issue discount determined under subpart A of
                    part V of subchapter P of this chapter with respect to
                    the debt instrument so issued--
                              ``(i) except as provided in clause (ii), no
                          deduction otherwise allowable under this chapter
                          shall be allowed to the issuer of such debt
                          instrument with respect to the portion of such
                          original issue discount which--
                                        ``(I) accrues before the 1st taxable
                                    year in the 5-taxable-year period in
                                    which income from the discharge of
                                    indebtedness attributable to the
                                    reacquisition of the debt instrument is
                                    includible under paragraph (1), and
                                        ``(II) does not exceed the income
                                    from the discharge of indebtedness with
                                    respect to the debt instrument being
                                    reacquired, and
                              ``(ii) the aggregate amount of deductions
                          disallowed under clause (i) shall be allowed as a
                          deduction ratably over the 5-taxable-year period
                          described in clause (i)(I).
                    If the amount of the original issue discount accruing
                    before such 1st taxable year exceeds the income from the
                    discharge of indebtedness with respect to the applicable
                    debt

    [[Page 123 STAT. 339]]

                    instrument being reacquired, the deductions shall be
                    disallowed in the order in which the original issue
                    discount is accrued.
                        ``(B) Deemed debt for debt exchanges.--For purposes
                    of subparagraph (A), if any debt instrument is issued by
                    an issuer and the proceeds of such debt instrument are
                    used directly or indirectly by the issuer to reacquire
                    an applicable debt instrument of the issuer, the debt
                    instrument so issued shall be treated as issued for the
                    debt instrument being
                    reacquired. <<NOTE: Regulations. Applicability.>>  If
                    only a portion of the proceeds from a debt instrument
                    are so used, the rules of subparagraph (A) shall apply
                    to the portion of any original issue discount on the
                    newly issued debt instrument which is equal to the
                    portion of the proceeds from such instrument used to
                    reacquire the outstanding instrument.
                ``(3) Applicable debt instrument.--For purposes of this
            subsection--
                        ``(A) Applicable debt instrument.--The term
                    `applicable debt instrument' means any debt instrument
                    which was issued by--
                              ``(i) a C corporation, or
                              ``(ii) any other person in connection with the
                          conduct of a trade or business by such person.
                        ``(B) Debt instrument.--The term `debt instrument'
                    means a bond, debenture, note, certificate, or any other
                    instrument or contractual arrangement constituting
                    indebtedness (within the meaning of section 1275(a)(1)).
                ``(4) Reacquisition.--For purposes of this subsection--
                        ``(A) In general.--The term `reacquisition' means,
                    with respect to any applicable debt instrument, any
                    acquisition of the debt instrument by--
                              ``(i) the debtor which issued (or is otherwise
                          the obligor under) the debt instrument, or
                              ``(ii) a related person to such debtor.
                        ``(B) Acquisition.--The term `acquisition' shall,
                    with respect to any applicable debt instrument, include
                    an acquisition of the debt instrument for cash, the
                    exchange of the debt instrument for another debt
                    instrument (including an exchange resulting from a
                    modification of the debt instrument), the exchange of
                    the debt instrument for corporate stock or a partnership
                    interest, and the contribution of the debt instrument to
                    capital. Such term shall also include the complete
                    forgiveness of the indebtedness by the holder of the
                    debt instrument.
                ``(5) Other definitions and rules.--For purposes of this
            subsection--
                        ``(A) Related person.--The determination of whether
                    a person is related to another person shall be made in
                    the same manner as under subsection (e)(4).
                        ``(B) Election.--
                              ``(i) In general.--An election under this
                          subsection with respect to any applicable debt
                          instrument shall be made by including with the
                          return of tax imposed by chapter 1 for the taxable
                          year in which the reacquisition of the debt
                          instrument occurs a statement which--
                                        ``(I) clearly identifies such
                                    instrument, and

    [[Page 123 STAT. 340]]

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

    [[Page 123 STAT. 341]]

                        ``(C) rules for the application of this subsection
                    to partnerships, S corporations, and other pass-thru
                    entities, including for the allocation of deferred
                    deductions.''.

        (b) <<NOTE: 26 USC 108 note.>>  Effective Date.--The amendments made
    by this section shall apply to discharges in taxable years ending after
    December 31, 2008.

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

        (a) Suspension of Special Rules.--Section 163(e)(5) <<NOTE: 26 USC
    163.>>  (relating to special rules for original issue discount on
    certain high yield obligations) is amended by redesignating subparagraph
    (F) as subparagraph (G) and by inserting after subparagraph (E) the
    following new subparagraph:
                        ``(F) Suspension of application of paragraph.--
                              ``(i) Temporary suspension.--This <<NOTE: Time
                          period.>>  paragraph shall not apply to any
                          applicable high yield discount obligation issued
                          during the period beginning on September 1, 2008,
                          and ending on December 31, 2009, in exchange
                          (including an exchange resulting from a
                          modification of the debt instrument) for an
                          obligation which is not an applicable high yield
                          discount obligation and the issuer (or obligor) of
                          which is the same as the issuer (or obligor) of
                          such applicable high yield discount obligation.
                          The preceding sentence shall not apply to any
                          obligation the interest on which is interest
                          described in section 871(h)(4) (without regard to
                          subparagraph (D) thereof) or to any obligation
                          issued to a related person (within the meaning of
                          section 108(e)(4)).
                              ``(ii) Successive application.--Any obligation
                          to which clause (i) applies shall not be treated
                          as an applicable high yield discount obligation
                          for purposes of applying this subparagraph to any
                          other obligation issued in exchange for such
                          obligation.
                              ``(iii) Secretarial authority to suspend
                          application.--The Secretary may apply this
                          paragraph with respect to debt instruments issued
                          in periods following the period described in
                          clause (i) if the Secretary determines that such
                          application is appropriate in light of distressed
                          conditions in the debt capital markets.''.

        (b) Interest Rate Used in Determining High Yield Obligations.--The
    last sentence of section 163(i)(1) is amended--
                (1) by inserting ``(i)'' after ``regulation'', and
                (2) by inserting ``, or (ii) permit, on a temporary basis, a
            rate to be used with respect to any debt instrument which is
            higher than the applicable Federal rate if the Secretary
            determines that such rate is appropriate in light of distressed
            conditions in the debt capital markets'' before the period at
            the end.

        (c) <<NOTE: 26 USC 163 note.>>  Effective Date.--
                (1) Suspension.--The amendments made by subsection (a) shall
            apply to obligations issued after August 31, 2008, in taxable
            years ending after such date.
                (2) Interest rate authority.--The amendments made by
            subsection (b) shall apply to obligations issued after December
            31, 2009, in taxable years ending after such date.

    [[Page 123 STAT. 342]]

                     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) <<NOTE: 26 USC 1202 note.>>  Effective Date.--The amendment made
    by this section shall apply to stock acquired after the date of the
    enactment of this Act.

                             PART VI--S CORPORATIONS

    SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS
                TAX.

        (a) In General.--Paragraph (7) of section 1374(d) <<NOTE: 26 USC
    1374.>>  (relating to definitions and special rules) is amended to read
    as follows:
                ``(7) Recognition period.--
                        ``(A) In general.--The term `recognition period'
                    means the 10-year period beginning with the 1st day of
                    the 1st taxable year for which the corporation was an S
                    corporation.
                        ``(B) Special rule for 2009 and 2010.--In the case
                    of any taxable year beginning in 2009 or 2010, no tax
                    shall be imposed on the net recognized built-in gain of
                    an S corporation if the 7th taxable year in the
                    recognition period preceded such taxable
                    year. <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  subparagraph
                          (A) shall be applied without regard to the phrase
                          `10-year', and
                              ``(ii) subparagraph (B) shall not apply.''.

        (b) <<NOTE: 26 USC 1374 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2008.

                  PART VII--RULES RELATING TO OWNERSHIP CHANGES

    SEC. 1261. <<NOTE: 26 USC 382 note.>>  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.

    [[Page 123 STAT. 343]]

                (2) Internal Revenue Service Notice 2008-83 is inconsistent
            with the congressional intent in enacting such section 382(m).
                (3) The legal authority to prescribe Internal Revenue
            Service Notice 2008-83 is doubtful.
                (4) However, as taxpayers should generally be able to rely
            on guidance issued by the Secretary of the Treasury legislation
            is necessary to clarify the force and effect of Internal Revenue
            Service Notice 2008-83 and restore the proper application under
            the Internal Revenue Code of 1986 of the limitation on built-in
            losses following an ownership change of a bank.

        (b) Determination of Force and Effect of Internal Revenue Service
    Notice 2008-83 Exempting Banks From Limitation on Certain Built-in
    Losses Following Ownership Change.--
                (1) In general.--Internal Revenue Service Notice 2008-83--
                        (A) shall be deemed to have the force and effect of
                    law with respect to any ownership change (as defined in
                    section 382(g) of the Internal Revenue Code of 1986)
                    occurring on or before January 16, 2009, and
                        (B) shall have no force or effect with respect to
                    any ownership change after such date.
                (2) Binding contracts.--Notwithstanding paragraph (1),
            Internal Revenue Service Notice 2008-83 shall have the force and
            effect of law with respect to any ownership change (as so
            defined) which occurs after January 16, 2009, if such change--
                        (A) is pursuant to a written binding contract
                    entered into on or before such date, or
                        (B) is pursuant to a written agreement entered into
                    on or before such date and such agreement was described
                    on or before such date in a public announcement or in a
                    filing with the Securities and Exchange Commission
                    required by reason of such ownership change.

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

        (a) In General.--Section 382 <<NOTE: 26 USC 382.>>  is amended by
    adding at the end the following new subsection:

        ``(n) Special Rule for Certain Ownership Changes.--
                ``(1) In general.--The limitation contained in subsection
            (a) shall not apply in the case of an ownership change which is
            pursuant to a restructuring plan of a taxpayer which--
                        ``(A) is required under a loan agreement or a
                    commitment for a line of credit entered into with the
                    Department of the Treasury under the Emergency Economic
                    Stabilization Act of 2008, and
                        ``(B) is intended to result in a rationalization of
                    the costs, capitalization, and capacity with respect to
                    the manufacturing workforce of, and suppliers to, the
                    taxpayer and its subsidiaries.
                ``(2) Subsequent acquisitions.--Paragraph (1) shall not
            apply in the case of any subsequent ownership change unless such
            ownership change is described in such paragraph.
                ``(3) Limitation based on control in corporation.--

    [[Page 123 STAT. 344]]

                        ``(A) In general.--Paragraph (1) shall not apply in
                    the case of any ownership change if, immediately after
                    such ownership change, any person (other than a
                    voluntary employees' beneficiary association under
                    section 501(c)(9)) owns stock of the new loss
                    corporation possessing 50 percent or more of the total
                    combined voting power of all classes of stock entitled
                    to vote, or of the total value of the stock of such
                    corporation.
                        ``(B) Treatment of related persons.--
                              ``(i) In general.--Related persons shall be
                          treated as a single person for purposes of this
                          paragraph.
                              ``(ii) Related persons.--For purposes of
                          clause (i), a person shall be treated as related
                          to another person if--
                                        ``(I) such person bears a
                                    relationship to such other person
                                    described in section 267(b) or 707(b),
                                    or
                                        ``(II) such persons are members of a
                                    group of persons acting in concert.''.

        (b) <<NOTE: 26 USC 382 note.>>  Effective Date.--The amendment made
    by this section shall apply to ownership changes after the date of the
    enactment of this Act.

                  Subtitle D--Manufacturing Recovery Provisions

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

        (a) In General.--Subparagraph (C) of section 144(a)(12) <<NOTE: 26
    USC 144.>>  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

    [[Page 123 STAT. 345]]

                                        ``(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) <<NOTE: 26 USC 144 note.>>  Effective Date.--The amendments made
    by this section shall apply to obligations issued after the date of the
    enactment of this Act.

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

        (a) In General.--Section 46 <<NOTE: 26 USC 46.>>  (relating to
    amount of credit) is amended by striking ``and'' at the end of paragraph
    (3), by striking the period at the end of paragraph (4), and by adding
    at the end the following new paragraph:
                ``(5) the qualifying advanced energy project credit.''.

        (b) Amount of Credit.--Subpart E of part IV of subchapter A of
    chapter 1 (relating to rules for computing investment credit) is amended
    by inserting after section 48B the following new section:

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

        ``(a) In General.--For purposes of section 46, the qualifying
    advanced energy project credit for any taxable year is an amount equal
    to 30 percent of the qualified investment for such taxable year with
    respect to any qualifying advanced energy project of the taxpayer.
        ``(b) Qualified Investment.--
                ``(1) In general.--For purposes of subsection (a), the
            qualified investment for any taxable year is the basis of
            eligible property placed in service by the taxpayer during such
            taxable year which is part of a qualifying advanced energy
            project.
                ``(2) Certain qualified progress expenditures rules made
            applicable.--Rules similar to the rules of subsections (c)(4)
            and (d) of section 46 (as in effect on the day before the
            enactment of the Revenue Reconciliation Act of 1990) shall apply
            for purposes of this section.
                ``(3) Limitation.--The amount which is treated for all
            taxable years with respect to any qualifying advanced energy
            project shall not exceed the amount designated by the Secretary
            as eligible for the credit under this section.

        ``(c) Definitions.--
                ``(1) Qualifying advanced energy project.--
                        ``(A) In general.--The term `qualifying advanced
                    energy project' means a project--
                              ``(i) which re-equips, expands, or establishes
                          a manufacturing facility for the production of--
                                        ``(I) property designed to be used
                                    to produce energy from the sun, wind,
                                    geothermal deposits (within the meaning
                                    of section 613(e)(2)), or other
                                    renewable resources,
                                        ``(II) fuel cells, microturbines, or
                                    an energy storage system for use with
                                    electric or hybrid-electric motor
                                    vehicles,
                                        ``(III) electric grids to support
                                    the transmission of intermittent sources
                                    of renewable energy, including storage
                                    of such energy,
                                        ``(IV) property designed to capture
                                    and sequester carbon dioxide emissions,

    [[Page 123 STAT. 346]]

                                        ``(V) property designed to refine or
                                    blend renewable fuels or to produce
                                    energy conservation technologies
                                    (including energy-conserving lighting
                                    technologies and smart grid
                                    technologies),
                                        ``(VI) new qualified plug-in
                                    electric drive motor vehicles (as
                                    defined by section 30D), qualified plug-
                                    in electric vehicles (as defined by
                                    section 30(d)), or components which are
                                    designed specifically for use with such
                                    vehicles, including electric motors,
                                    generators, and power control units, or
                                        ``(VII) other advanced energy
                                    property designed to reduce greenhouse
                                    gas emissions as may be determined by
                                    the Secretary, and
                              ``(ii) any portion of the qualified investment
                          of which is certified by the Secretary under
                          subsection (d) as eligible for a credit under this
                          section.
                        ``(B) Exception.--Such term shall not include any
                    portion of a project for the production of any property
                    which is used in the refining or blending of any
                    transportation fuel (other than renewable fuels).
                ``(2) Eligible property.--The term `eligible property' means
            any property--
                        ``(A) which is necessary for the production of
                    property described in paragraph (1)(A)(i),
                        ``(B) which is--
                              ``(i) tangible personal property, or
                              ``(ii) other tangible property (not including
                          a building or its structural components), but only
                          if such property is used as an integral part of
                          the qualified investment credit facility, and
                        ``(C) with respect to which depreciation (or
                    amortization in lieu of depreciation) is allowable.

        ``(d) Qualifying Advanced Energy Project Program.--
                ``(1) Establishment.--
                        ``(A) In general.--Not later <<NOTE: Deadline.>>
                    than 180 days after the date of enactment of this
                    section, the Secretary, in consultation with the
                    Secretary of Energy, shall establish a qualifying
                    advanced energy project program to consider and award
                    certifications for qualified investments eligible for
                    credits under this section to qualifying advanced energy
                    project sponsors.
                        ``(B) Limitation.--The total amount of credits that
                    may be allocated under the program shall not exceed
                    $2,300,000,000.
                ``(2) Certification.--
                        ``(A) Application period.--Each applicant for
                    certification under this paragraph shall submit an
                    application containing such information as the Secretary
                    may require during the 2-year period beginning on the
                    date the Secretary establishes the program under
                    paragraph (1).
                        ``(B) <<NOTE: Deadline.>>  Time to meet criteria for
                    certification.--Each applicant for certification shall
                    have 1 year from the date of acceptance by the Secretary
                    of the application during which to provide to the
                    Secretary evidence that the requirements of the
                    certification have been met.
                        ``(C) <<NOTE: Deadline.>>  Period of issuance.--An
                    applicant which receives a certification shall have 3
                    years from the date of issuance

    [[Page 123 STAT. 347]]

                    of the certification in order to place the project in
                    service and if such project is not placed in service by
                    that time period, then the certification shall no longer
                    be valid.
                ``(3) Selection criteria.--In determining which qualifying
            advanced energy projects to certify under this section, the
            Secretary--
                        ``(A) shall take into consideration only those
                    projects where there is a reasonable expectation of
                    commercial viability, and
                        ``(B) shall take into consideration which projects--
                              ``(i) will provide the greatest domestic job
                          creation (both direct and indirect) during the
                          credit period,
                              ``(ii) will provide the greatest net impact in
                          avoiding or reducing air pollutants or
                          anthropogenic emissions of greenhouse gases,
                              ``(iii) have the greatest potential for
                          technological innovation and commercial
                          deployment,
                              ``(iv) have the lowest levelized cost of
                          generated or stored energy, or of measured
                          reduction in energy consumption or greenhouse gas
                          emission (based on costs of the full supply
                          chain), and
                              ``(v) have the shortest project time from
                          certification to completion.
                ``(4) Review and redistribution.--
                        ``(A) <<NOTE: Deadline.>>  Review.--Not later than 4
                    years after the date of enactment of this section, the
                    Secretary shall review the credits allocated under this
                    section as of such date.
                        ``(B) Redistribution.--The Secretary may reallocate
                    credits awarded under this section if the Secretary
                    determines that--
                              ``(i) there is an insufficient quantity of
                          qualifying applications for certification pending
                          at the time of the review, or
                              ``(ii) any certification made pursuant to
                          paragraph (2) has been revoked pursuant to
                          paragraph (2)(B) because the project subject to
                          the certification has been delayed as a result of
                          third party opposition or litigation to the
                          proposed project.
                        ``(C) Reallocation.--If the Secretary determines
                    that credits under this section are available for
                    reallocation pursuant to the requirements set forth in
                    paragraph (2), the Secretary is authorized to conduct an
                    additional program for applications for certification.
                ``(5) Disclosure of allocations.--The Secretary shall, upon
            making a certification under this subsection, publicly disclose
            the identity of the applicant and the amount of the credit with
            respect to such applicant.

        ``(e) Denial of Double Benefit.--A credit shall not be allowed under
    this section for any qualified investment for which a credit is allowed
    under section 48, 48A, or 48B.''.
        (c) Conforming Amendments.--
                (1) Section 49(a)(1)(C) <<NOTE: 26 USC 49.>>  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:

    [[Page 123 STAT. 348]]

                              ``(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) <<NOTE: 26 USC 46 note.>>  Effective Date.--The amendments made
    by this section shall apply to periods after the date of the enactment
    of this Act, under rules similar to the rules of section 48(m) of the
    Internal Revenue Code of 1986 (as in effect on the day before the date
    of the enactment of the Revenue Reconciliation Act of 1990).

                       Subtitle E--Economic Recovery Tools

    SEC. 1401. RECOVERY ZONE BONDS.

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

                         ``PART III--RECOVERY ZONE BONDS

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

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

        ``(a) Allocations.--
                ``(1) In general.--
                        ``(A) General allocation.--The Secretary shall
                    allocate the national recovery zone economic development
                    bond limitation and the national recovery zone facility
                    bond limitation among the States in the proportion that
                    each such State's 2008 State employment decline bears to
                    the aggregate of the 2008 State employment declines for
                    all of the States.
                        ``(B) Minimum allocation.--The Secretary shall
                    adjust the allocations under subparagraph (A) for any
                    calendar year for each State to the extent necessary to
                    ensure that no State receives less than 0.9 percent of
                    the national recovery zone economic development bond
                    limitation and 0.9 percent of the national recovery zone
                    facility bond limitation.
                ``(2) 2008 state employment decline.--For purposes of this
            subsection, the term `2008 State employment decline' means, with
            respect to any State, the excess (if any) of--
                        ``(A) the number of individuals employed in such
                    State determined for December 2007, over
                        ``(B) the number of individuals employed in such
                    State determined for December 2008.
                ``(3) Allocations by states.--
                        ``(A) In general.--Each State with respect to which
                    an allocation is made under paragraph (1) shall
                    reallocate such allocation among the counties and large
                    municipalities in such State in the proportion to each
                    such county's or municipality's 2008 employment decline
                    bears to the aggregate of the 2008 employment declines
                    for all the counties and municipalities in such
                    State. <<NOTE: Waiver authority.>>  A county or
                    municipality

    [[Page 123 STAT. 349]]

                    may waive any portion of an allocation made under this
                    subparagraph.
                        ``(B) Large municipalities.--For purposes of
                    subparagraph (A), the term `large municipality' means a
                    municipality with a population of more than 100,000.
                        ``(C) Determination of local employment declines.--
                    For purposes of this paragraph, the employment decline
                    of any municipality or county shall be determined in the
                    same manner as determining the State employment decline
                    under paragraph (2), except that in the case of a
                    municipality any portion of which is in a county, such
                    portion shall be treated as part of such municipality
                    and not part of such county.
                ``(4) National limitations.--
                        ``(A) Recovery zone economic development bonds.--
                    There is a national recovery zone economic development
                    bond limitation of $10,000,000,000.
                        ``(B) Recovery zone facility bonds.--There is a
                    national recovery zone facility bond limitation of
                    $15,000,000,000.

        ``(b) Recovery Zone.--For purposes of this part, the term `recovery
    zone' means--
                ``(1) any area designated by the issuer as having
            significant poverty, unemployment, rate of home foreclosures, or
            general distress,
                ``(2) any area designated by the issuer as economically
            distressed by reason of the closure or realignment of a military
            installation pursuant to the Defense Base Closure and
            Realignment Act of 1990, and
                ``(3) any area for which a designation as an empowerment
            zone or renewal community is in effect.

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

        ``(a) In General.--In the case of a recovery zone economic
    development bond--
                ``(1) such bond shall be treated as a qualified bond for
            purposes of section 6431, and
                ``(2) <<NOTE: Applicability.>>  subsection (b) of such
            section shall be applied by substituting `45 percent' for `35
            percent'.

        ``(b) Recovery Zone Economic Development Bond.--
                ``(1) In general.--For purposes of this section, the term
            `recovery zone economic development bond' means any build
            America bond (as defined in section 54AA(d)) issued before
            January 1, 2011, as part of issue if--
                        ``(A) 100 percent of the excess of--
                              ``(i) the available project proceeds (as
                          defined in section 54A) of such issue, over
                              ``(ii) the amounts in a reasonably required
                          reserve (within the meaning of section 150(a)(3))
                          with respect to such issue,
                    are to be used for one or more qualified economic
                    development purposes, and
                        ``(B) the issuer designates such bond for purposes
                    of this section.
                ``(2) Limitation on amount of bonds designated.--The maximum
            aggregate face amount of bonds which may be designated by any
            issuer under paragraph (1) shall not exceed

    [[Page 123 STAT. 350]]

            the amount of the recovery zone economic development bond
            limitation allocated to such issuer under section 1400U-1.

        ``(c) Qualified Economic Development Purpose.--For purposes of this
    section, the term `qualified economic development purpose' means
    expenditures for purposes of promoting development or other economic
    activity in a recovery zone, including--
                ``(1) capital expenditures paid or incurred with respect to
            property located in such zone,
                ``(2) expenditures for public infrastructure and
            construction of public facilities, and
                ``(3) expenditures for job training and educational
            programs.

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

        ``(a) In General.--For purposes of part IV of subchapter B (relating
    to tax exemption requirements for State and local bonds), the term
    `exempt facility bond' includes any recovery zone facility bond.
        ``(b) Recovery Zone Facility Bond.--
                ``(1) In general.--For purposes of this section, the term
            `recovery zone facility bond' means any bond issued as part of
            an issue if--
                        ``(A) 95 percent or more of the net proceeds (as
                    defined in section 150(a)(3)) of such issue are to be
                    used for recovery zone property,
                        ``(B) such bond is issued before January 1, 2011,
                    and
                        ``(C) the issuer designates such bond for purposes
                    of this section.
                ``(2) Limitation on amount of bonds designated.--The maximum
            aggregate face amount of bonds which may be designated by any
            issuer under paragraph (1) shall not exceed the amount of
            recovery zone facility bond limitation allocated to such issuer
            under section 1400U-1.

        ``(c) Recovery Zone Property.--For purposes of this section--
                ``(1) In general.--The term `recovery zone property' means
            any property to which section 168 applies (or would apply but
            for section 179) if--
                        ``(A) such property was constructed, reconstructed,
                    renovated, or acquired by purchase (as defined in
                    section 179(d)(2)) by the taxpayer after the date on
                    which the designation of the recovery zone took effect,
                        ``(B) the original use of which in the recovery zone
                    commences with the taxpayer, and
                        ``(C) substantially all of the use of which is in
                    the recovery zone and is in the active conduct of a
                    qualified business by the taxpayer in such zone.
                ``(2) Qualified business.--The term `qualified business'
            means any trade or business except that--
                        ``(A) the rental to others of real property located
                    in a recovery zone shall be treated as a qualified
                    business only if the property is not residential rental
                    property (as defined in section 168(e)(2)), and
                        ``(B) such term shall not include any trade or
                    business consisting of the operation of any facility
                    described in section 144(c)(6)(B).
                ``(3) Special rules for substantial renovations and sale-
            leaseback.--Rules similar <<NOTE: Applicability.>>  to the rules
            of subsections

    [[Page 123 STAT. 351]]

            (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) <<NOTE: 26 USC 1400U-1 note.>>  Effective Date.--The amendments
    made by this section shall apply to obligations issued after the date of
    the enactment of this Act.

    SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

        (a) In General.--Section 7871 <<NOTE: 26 USC 7871.>>  is amended by
    adding at the end the following new subsection:

        ``(f) Tribal Economic Development Bonds.--
                ``(1) Allocation of limitation.--
                        ``(A) In general.--The Secretary shall allocate the
                    national tribal economic development bond limitation
                    among the Indian tribal governments in such manner as
                    the Secretary, in consultation with the Secretary of the
                    Interior, determines appropriate.
                        ``(B) National limitation.--There is a national
                    tribal economic development bond limitation of
                    $2,000,000,000.
                ``(2) Bonds treated as exempt from tax.--In the case of a
            tribal economic development bond--
                        ``(A) notwithstanding subsection (c), such bond
                    shall be treated for purposes of this title in the same
                    manner as if such bond were issued by a State,
                        ``(B) the Indian tribal government issuing such bond
                    and any instrumentality of such Indian tribal government
                    shall be treated as a State for purposes of section 141,
                    and
                        ``(C) section 146 shall not apply.
                ``(3) Tribal economic development bond.--
                        ``(A) In general.--For purposes of this section, the
                    term `tribal economic development bond' means any bond
                    issued by an Indian tribal government--
                              ``(i) the interest on which would be exempt
                          from tax under section 103 if issued by a State or
                          local government, and
                              ``(ii) which is designated by the Indian
                          tribal government as a tribal economic development
                          bond for purposes of this subsection.
                        ``(B) Exceptions.--Such term shall not include any
                    bond issued as part of an issue if any portion of the
                    proceeds of such issue are used to finance--
                              ``(i) any portion of a building in which class
                          II or class III gaming (as defined in section 4 of
                          the Indian Gaming Regulatory Act) is conducted or
                          housed or any other property actually used in the
                          conduct of such gaming, or
                              ``(ii) any facility located outside the Indian
                          reservation (as defined in section 168(j)(6)).

    [[Page 123 STAT. 352]]

                        ``(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). <<NOTE: Deadline. Reports.>>  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) <<NOTE: 26 USC 7871 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to obligations issued after the date of
    the enactment of this Act.

    SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT.

        (a) In General.--Section 45D(f)(1) <<NOTE: 26 USC 45.>>  is
    amended--
                (1) by striking ``and'' at the end of subparagraph (C),
                (2) by striking ``, 2007, 2008, and 2009.'' in subparagraph
            (D), and inserting ``and 2007,'', and
                (3) by adding at the end the following new subparagraphs:
                        ``(E) $5,000,000,000 for 2008, and
                        ``(F) $5,000,000,000 for 2009.''.

        (b) <<NOTE: 26 USC 45D note.>>  Special Rule for Allocation of
    Increased 2008 Limitation.--The amount of the increase in the new
    markets tax credit limitation for calendar year 2008 by reason of the
    amendments made by subsection (a) shall be allocated in accordance with
    section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified
    community development entities (as defined in section 45D(c) of such
    Code) which--
                (1) submitted an allocation application with respect to
            calendar year 2008, and
                (2)(A) did not receive an allocation for such calendar year,
            or
                (B) received an allocation for such calendar year in an
            amount less than the amount requested in the allocation
            application.

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

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

    [[Page 123 STAT. 353]]

                   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 <<NOTE: 26 USC
    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) <<NOTE: 26 USC 265 note.>>  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 <<NOTE: Applicability.>>  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 <<NOTE: Applicability.>>  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

    [[Page 123 STAT. 354]]

                                    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) <<NOTE: 26 USC 265 note.>>  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) <<NOTE: 26 USC 57.>>  is amended by adding at the end a new
    clause:
                              ``(vi) Exception for bonds issued in 2009 and
                          2010.--
                                        ``(I) In general.--For purposes of
                                    clause (i), the term `private activity
                                    bond' shall not include any bond issued
                                    after December 31, 2008, and before
                                    January 1, 2011.
                                        ``(II) Treatment of refunding
                                    bonds.--For purposes of subclause (I), a
                                    refunding bond (whether a current or
                                    advance refunding) shall be treated as
                                    issued on the date of the issuance of
                                    the refunded bond (or in the case of a
                                    series of refundings, the original
                                    bond).
                                        ``(III) Exception for certain
                                    refunding bonds.--Subclause (II) shall
                                    not apply to any refunding bond which is
                                    issued to refund any bond which was
                                    issued after December 31, 2003, and
                                    before January 1, 2009.''.

        (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-
    Exempt Bonds Issued During 2009 and 2010.--Subparagraph (B) of section
    56(g)(4) is amended by adding at the end the following new clause:
                              ``(iv) Tax exempt interest on bonds issued in
                          2009 and 2010.--
                                        ``(I) In general.--Clause (i) shall
                                    not apply in the case of any interest on
                                    a bond issued after December 31, 2008,
                                    and before January 1, 2011.

    [[Page 123 STAT. 355]]

                                        ``(II) Treatment of refunding
                                    bonds.--For purposes of subclause (I), a
                                    refunding bond (whether a current or
                                    advance refunding) shall be treated as
                                    issued on the date of the issuance of
                                    the refunded bond (or in the case of a
                                    series of refundings, the original
                                    bond).
                                        ``(III) Exception for certain
                                    refunding bonds.--Subclause (II) shall
                                    not apply to any refunding bond which is
                                    issued to refund any bond which was
                                    issued after December 31, 2003, and
                                    before January 1, 2009.''.

        (c) <<NOTE: 26 USC 56 note.>>  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) <<NOTE: 26 USC
    142.>>  is amended by striking ``operate at speeds in excess of'' and
    inserting ``be capable of attaining a maximum speed in excess of''.

        (b) <<NOTE: 26 USC 142 note.>>  Effective Date.--The amendment made
    by this section shall apply to obligations issued after the date of the
    enactment of this Act.

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

    SEC. 1511. <<NOTE: 26 USC 3402 note.>>  DELAY IN APPLICATION OF
                WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

        Subsection (b) of section 511 of the Tax Increase Prevention and
    Reconciliation Act of 2005 <<NOTE: 26 USC 3402.>>  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

    [[Page 123 STAT. 356]]

    shall not exceed the limitation amount allocated under subsection (d)
    for such calendar year to such issuer.
        ``(c) National Limitation on Amount of Bonds Designated.--There is a
    national qualified school construction bond limitation for each calendar
    year. Such limitation is--
                ``(1) $11,000,000,000 for 2009,
                ``(2) $11,000,000,000 for 2010, and
                ``(3) except as provided in subsection (e), zero after 2010.

        ``(d) Allocation of Limitation.--
                ``(1) Allocation among states.--Except as provided in
            paragraph (2)(C), the limitation applicable under subsection (c)
            for any calendar year shall be allocated by the Secretary among
            the States in proportion to the respective amounts each such
            State is eligible to receive under section 1124 of the
            Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333)
            for the most recent fiscal year ending before such calendar
            year. The limitation amount allocated to a State under the
            preceding sentence shall be allocated by the State to issuers
            within such State.
                ``(2) 40 percent of limitation allocated among largest
            school districts.--
                        ``(A) In general.--40 percent of the limitation
                    applicable under subsection (c) for any calendar year
                    shall be allocated under subparagraph (B) by the
                    Secretary among local educational agencies which are
                    large local educational agencies for such year.
                        ``(B) Allocation formula.--The amount to be
                    allocated under subparagraph (A) for any calendar year
                    shall be allocated among large local educational
                    agencies in proportion to the respective amounts each
                    such agency received under section 1124 of the
                    Elementary and Secondary Education Act of 1965 (20
                    U.S.C. 6333) for the most recent fiscal year ending
                    before such calendar year.
                        ``(C) Reduction in state allocation.--The allocation
                    to any State under paragraph (1) shall be reduced by the
                    aggregate amount of the allocations under this paragraph
                    to large local educational agencies within such State.
                        ``(D) Allocation of unused limitation to state.--The
                    amount allocated under this paragraph to a large local
                    educational agency for any calendar year may be
                    reallocated by such agency to the State in which such
                    agency is located for such calendar year. Any amount
                    reallocated to a State under the preceding sentence may
                    be allocated as provided in paragraph (1).
                        ``(E) Large local educational agency.--For purposes
                    of this paragraph, the term `large local educational
                    agency' means, with respect to a calendar year, any
                    local educational agency if such agency is--
                              ``(i) among the 100 local educational agencies
                          with the largest numbers of children aged 5
                          through 17 from families living below the poverty
                          level, as determined by the Secretary using the
                          most recent data available from the Department of
                          Commerce that are satisfactory to the Secretary,
                          or
                              ``(ii) 1 of not more than 25 local educational
                          agencies (other than those described in clause
                          (i)) that the Secretary of Education determines
                          (based on the

    [[Page 123 STAT. 357]]

                          most recent data available satisfactory to the
                          Secretary) are in particular need of assistance,
                          based on a low level of resources for school
                          construction, a high level of enrollment growth,
                          or such other factors as the Secretary deems
                          appropriate.
                ``(3) Allocations to certain possessions.--The amount to be
            allocated under paragraph (1) to any possession of the United
            States other than Puerto Rico shall be the amount which would
            have been allocated if all allocations under paragraph (1) were
            made on the basis of respective populations of individuals below
            the poverty line (as defined by the Office of Management and
            Budget). In making other allocations, the amount to be allocated
            under paragraph (1) shall be reduced by the aggregate amount
            allocated under this paragraph to possessions of the United
            States.
                ``(4) Allocations for indian schools.--In addition to the
            amounts otherwise allocated under this subsection, $200,000,000
            for calendar year 2009, and $200,000,000 for calendar year 2010,
            shall be allocated by the Secretary of the Interior for purposes
            of the construction, rehabilitation, and repair of schools
            funded by the Bureau of Indian Affairs. In the case of amounts
            allocated under the preceding sentence, Indian tribal
            governments (as defined in section 7701(a)(40)) shall be treated
            as qualified issuers for purposes of this subchapter.

        ``(e) Carryover of Unused Limitation.--If for any calendar year--
                ``(1) the amount allocated under subsection (d) to any
            State, exceeds
                ``(2) the amount of bonds issued during such year which are
            designated under subsection (a) pursuant to such allocation,

    the limitation amount under such subsection for such State for the
    following calendar year shall be increased by the amount of such
    excess. <<NOTE: Applicability.>>  A similar rule shall apply to the
    amounts allocated under subsection (d)(4).''.

        (b) Conforming Amendments.--
                (1) Paragraph (1) of section 54A(d) <<NOTE: 26 USC 54.>>  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) <<NOTE: 26 USC 54A note.>>  Effective Date.--The amendments made
    by this section shall apply to obligations issued after the date of the
    enactment of this Act.

    [[Page 123 STAT. 358]]

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

        (a) In General.--Section 54E(c)(1) <<NOTE: 26 USC 54.>>  is amended
    by striking ``and 2009'' and inserting ``and $1,400,000,000 for 2009 and
    2010''.

        (b) <<NOTE: 26 USC 54E note.>>  Effective Date.--The amendment made
    by this section shall apply to obligations issued after December 31,
    2008.

                          PART IV--BUILD AMERICA BONDS

    SEC. 1531. BUILD AMERICA BONDS.

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

                        ``Subpart J--Build America Bonds

    ``Sec. 54AA. Build America bonds.

    ``SEC. 54AA. BUILD AMERICA BONDS.

        ``(a) In General.--If a taxpayer holds a build America bond on one
    or more interest payment dates of the bond during any taxable year,
    there shall be allowed as a credit against the tax imposed by this
    chapter for the taxable year an amount equal to the sum of the credits
    determined under subsection (b) with respect to such dates.
        ``(b) Amount of Credit.--The amount of the credit determined under
    this subsection with respect to any interest payment date for a build
    America bond is 35 percent of the amount of interest payable by the
    issuer with respect to such date .
        ``(c) Limitation Based on Amount of Tax.--
                ``(1) In general.--The credit allowed under subsection (a)
            for any taxable year shall not exceed the excess of--
                        ``(A) the sum of the regular tax liability (as
                    defined in section 26(b)) plus the tax imposed by
                    section 55, over
                        ``(B) the sum of the credits allowable under this
                    part (other than subpart C and this subpart).
                ``(2) Carryover of unused credit.--If the credit allowable
            under subsection (a) exceeds the limitation imposed by paragraph
            (1) for such taxable year, such excess shall be carried to the
            succeeding taxable year and added to the credit allowable under
            subsection (a) for such taxable year (determined before the
            application of paragraph (1) for such succeeding taxable year).

        ``(d) Build America Bond.--
                ``(1) In general.--For purposes of this section, the term
            `build America bond' means any obligation (other than a private
            activity bond) if--
                        ``(A) the interest on such obligation would (but for
                    this section) be excludable from gross income under
                    section 103,
                        ``(B) such obligation is issued before January 1,
                    2011, and
                        ``(C) the issuer makes an irrevocable election to
                    have this section apply.
                ``(2) Applicable rules.--For purposes of applying paragraph
            (1)--

    [[Page 123 STAT. 359]]

                        ``(A) for purposes of section 149(b), a build
                    America bond shall not be treated as federally
                    guaranteed by reason of the credit allowed under
                    subsection (a) or section 6431,
                        ``(B) for purposes of section 148, the yield on a
                    build America bond shall be determined without regard to
                    the credit allowed under subsection (a), and
                        ``(C) a bond shall not be treated as a build America
                    bond if the issue price has more than a de minimis
                    amount (determined under rules similar to the rules of
                    section 1273(a)(3)) of premium over the stated principal
                    amount of the bond.

        ``(e) Interest Payment Date.--For purposes of this section, the term
    `interest payment date' means any date on which the holder of record of
    the build America bond is entitled to a payment of interest under such
    bond.
        ``(f) Special Rules.--
                ``(1) Interest on build america bonds includible in gross
            income for federal income tax purposes.--For purposes of this
            title, interest on any build America bond shall be includible in
            gross income.
                ``(2) Application of certain rules.--Rules similar to the
            rules of subsections (f), (g), (h), and (i) of section 54A shall
            apply for purposes of the credit allowed under subsection (a).

        ``(g) Special Rule for Qualified Bonds Issued Before 2011.--In the
    case of a qualified bond issued before January 1, 2011--
                ``(1) Issuer allowed refundable credit.--In lieu of any
            credit allowed under this section with respect to such bond, the
            issuer of such bond shall be allowed a credit as provided in
            section 6431.
                ``(2) Qualified bond.--For purposes of this subsection, the
            term `qualified bond' means any build America bond issued as
            part of an issue if--
                        ``(A) 100 percent of the excess of--
                              ``(i) the available project proceeds (as
                          defined in section 54A) of such issue, over
                              ``(ii) the amounts in a reasonably required
                          reserve (within the meaning of section 150(a)(3))
                          with respect to such issue,
                    are to be used for capital expenditures, and
                        ``(B) the issuer makes an irrevocable election to
                    have this subsection apply.

        ``(h) Regulations.--The Secretary may prescribe such regulations and
    other guidance as may be necessary or appropriate to carry out this
    section and section 6431.''.
        (b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of
    chapter 65 is amended by adding at the end the following new section:

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

        ``(a) In General.--In the case of a qualified bond issued before
    January 1, 2011, the issuer of such bond shall be allowed a credit with
    respect to each interest payment under such bond which shall be payable
    by the Secretary as provided in subsection (b).
        ``(b) Payment of Credit.--The Secretary shall pay (contemporaneously
    with each interest payment date under such bond) to the issuer of such
    bond (or to any person who makes such

    [[Page 123 STAT. 360]]

    interest payments on behalf of the issuer) 35 percent of the interest
    payable under such bond on such date.
        ``(c) Application of Arbitrage Rules.--For purposes of section 148,
    the yield on a qualified bond shall be reduced by the credit allowed
    under this section.
        ``(d) Interest Payment Date.--For purposes of this subsection, the
    term `interest payment date' means each date on which interest is
    payable by the issuer under the terms of the bond.
        ``(e) Qualified Bond.--For purposes of this subsection, the term
    `qualified bond' has the meaning given such term in section 54AA(g).''.
        (c) Conforming Amendments.--
                (1) Section 1324(b)(2) of title 31, United States Code, is
            amended by striking ``or 6428'' and inserting ``6428, or
            6431,''.
                (2) Section 54A(c)(1)(B) <<NOTE: 26 USC 54.>>  is amended by
            striking ``subpart C'' and inserting ``subparts C and J''.
                (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are
            each amended by striking ``and I'' and inserting ``, I, and J''.
                (4) Section 6211(b)(4)(A) is amended by striking ``and
            6428'' and inserting ``6428, and 6431''.
                (5) Section 6401(b)(1) is amended by striking ``and I'' and
            inserting ``I, and J''.
                (6) The table of subparts for part IV of subchapter A of
            chapter 1 is amended by adding at the end the following new
            item:

                      ``subpart j. build america bonds.''.

                (7) The table of section for subchapter B of chapter 65 is
            amended by adding at the end the following new item:

    ``Sec. 6431. Credit for qualified bonds allowed to issuer.''.

        (d) <<NOTE: 26 USC 54AA note.>>  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) <<NOTE: 26 USC 54 note.>>  Effective Date.--The amendments made
    by this section shall apply to obligations issued after the date of the
    enactment of this Act.

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

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

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

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

        ``(a) General Rule.--A regulated investment company--
                ``(1) which holds (directly or indirectly) one or more tax
            credit bonds on one or more applicable dates during the taxable
            year, and

    [[Page 123 STAT. 361]]

                ``(2) which meets the requirements of section 852(a) for the
            taxable year,

    may elect the application of this section with respect to credits
    allowable to the investment company during such taxable year with
    respect to such bonds.
        ``(b) Effect of Election.--If the election provided in subsection
    (a) is in effect for any taxable year--
                ``(1) the regulated investment company shall not be allowed
            any credits to which subsection (a) applies for such taxable
            year,
                ``(2) the regulated investment company shall--
                        ``(A) include in gross income (as interest) for such
                    taxable year an amount equal to the amount that such
                    investment company would have included in gross income
                    with respect to such credits if this section did not
                    apply, and
                        ``(B) increase the amount of the dividends paid
                    deduction for such taxable year by the amount of such
                    income, and
                ``(3) each shareholder of such investment company shall--
                        ``(A) include in gross income an amount equal to
                    such shareholder's proportionate share of the interest
                    income attributable to such credits, and
                        ``(B) be allowed the shareholder's proportionate
                    share of such credits against the tax imposed by this
                    chapter.

        ``(c) <<NOTE: Deadline.>>  Notice to Shareholders.--For purposes of
    subsection (b)(3), the shareholder's proportionate share of--
                ``(1) credits described in subsection (a), and
                ``(2) gross income in respect of such credits,

    shall not exceed the amounts so designated by the regulated investment
    company in a written notice mailed to its shareholders not later than 60
    days after the close of its taxable year.
        ``(d) Manner of Making Election and Notifying Shareholders.--The
    election provided in subsection (a) and the notice to shareholders
    required by subsection (c) shall be made in such manner as the Secretary
    may prescribe.
        ``(e) Definitions and Special Rules.--
                ``(1) Definitions.--For purposes of this subsection--
                        ``(A) Tax credit bond.--The term `tax credit bond'
                    means--
                              ``(i) a qualified tax credit bond (as defined
                          in section 54A(d)),
                              ``(ii) a build America bond (as defined in
                          section 54AA(d)), and
                              ``(iii) any bond for which a credit is
                          allowable under subpart H of part IV of subchapter
                          A of this chapter.
                        ``(B) Applicable date.--The term `applicable date'
                    means--
                              ``(i) in the case of a qualified tax credit
                          bond or a bond described in subparagraph (A)(iii),
                          any credit allowance date (as defined in section
                          54A(e)(1)), and
                              ``(ii) in the case of a build America bond (as
                          defined in section 54AA(d)), any interest payment
                          date (as defined in section 54AA(e)).
                ``(2) <<NOTE: Applicability.>>  Stripped tax credit bonds.--
            If the ownership of a tax credit bond is separated from the
            credit with respect to such bond, subsection (a) shall be
            applied by reference to the

    [[Page 123 STAT. 362]]

            instruments evidencing the entitlement to the credit rather than
            the tax credit bond.

        ``(f) Regulations, etc.--The Secretary shall prescribe such
    regulations or other guidance as may be necessary or appropriate to
    carry out the purposes of this section, including methods for
    determining a shareholder's proportionate share of credits.''.
        (b) Conforming Amendments.--
                (1) Section 54(l) <<NOTE: 26 USC 54.>>  is amended by
            striking paragraph (4) and by redesignating paragraphs (5) and
            (6) as paragraphs (4) and (5), respectively.
                (2) Section 54A(h) is amended to read as follows:

        ``(h) <<NOTE: Procedures.>>  Bonds Held by Real Estate Investment
    Trusts.--If any qualified tax credit bond is held by a real estate
    investment trust, the credit determined under subsection (a) shall be
    allowed to beneficiaries of such trust (and any gross income included
    under subsection (f) with respect to such credit shall be distributed to
    such beneficiaries) under procedures prescribed by the Secretary.''.
                (3) The table of sections for part I of subchapter M of
            chapter 1 is amended by inserting after the item relating to
            section 853 the following new item:

    ``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.

        (c) <<NOTE: 26 USC 54 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years ending after the date of
    the enactment of this Act.

                          Subtitle G--Other Provisions

    SEC. 1601. <<NOTE: 26 USC 54C note.>>  APPLICATION OF CERTAIN LABOR
                STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED
                BONDS.

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

    SEC. 1602. <<NOTE: 26 USC 42 note.>>  GRANTS TO STATES FOR LOW-INCOME
                HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT
                ALLOCATIONS FOR 2009.

        (a) In General.--The Secretary of the Treasury shall make a grant to
    the housing credit agency of each State in an amount equal to such
    State's low-income housing grant election amount.
        (b) Low-Income Housing Grant Election Amount.--For purposes of this
    section, the term ``low-income housing grant election amount'' means,
    with respect to any State, such amount as the

    [[Page 123 STAT. 363]]

    State may elect which does not exceed 85 percent of the product of--
                (1) the sum of--
                        (A) 100 percent of the State housing credit ceiling
                    for 2009 which is attributable to amounts described in
                    clauses (i) and (iii) of section 42(h)(3)(C) of the
                    Internal Revenue Code of 1986, and
                        (B) 40 percent of the State housing credit ceiling
                    for 2009 which is attributable to amounts described in
                    clauses (ii) and (iv) of such section, multiplied by
                (2) 10.

        (c) Subawards for Low-Income Buildings.--
                (1) In general.--A State housing credit agency receiving a
            grant under this section shall use such grant to make subawards
            to finance the construction or acquisition and rehabilitation of
            qualified low-income buildings. A subaward under this section
            may be made to finance a qualified low-income building with or
            without an allocation under section 42 of the Internal Revenue
            Code of 1986, except that a State housing credit agency may make
            subawards to finance qualified low-income buildings without an
            allocation only if it makes a determination that such use will
            increase the total funds available to the State to build and
            rehabilitate affordable housing. <<NOTE: Procedures.>>  In
            complying with such determination requirement, a State housing
            credit agency shall establish a process in which applicants that
            are allocated credits are required to demonstrate good faith
            efforts to obtain investment commitments for such credits before
            the agency makes such subawards.
                (2) Subawards subject to same requirements as low-income
            housing credit allocations.--Any such subaward with respect to
            any qualified low-income building shall be made in the same
            manner and shall be subject to the same limitations (including
            rent, income, and use restrictions on such building) as an
            allocation of housing credit dollar amount allocated by such
            State housing credit agency under section 42 of the Internal
            Revenue Code of 1986, except that such subawards shall not be
            limited by, or otherwise affect (except as provided in
            subsection (h)(3)(J) of such section), the State housing credit
            ceiling applicable to such agency.
                (3) Compliance and asset management.--The State housing
            credit agency shall perform asset management functions to ensure
            compliance with section 42 of the Internal Revenue Code of 1986
            and the long-term viability of buildings funded by any subaward
            under this section. The State housing credit agency may collect
            reasonable fees from a subaward recipient to cover expenses
            associated with the performance of its duties under this
            paragraph. The State housing credit agency may retain an agent
            or other private contractor to satisfy the requirements of this
            paragraph.
                (4) Recapture.--The State housing credit agency shall impose
            conditions or restrictions, including a requirement providing
            for recapture, on any subaward under this section so as to
            assure that the building with respect to which such subaward is
            made remains a qualified low-income building during the
            compliance period. Any such recapture shall be payable to the
            Secretary of the Treasury for deposit in the general fund of the
            Treasury and may be enforced by means

    [[Page 123 STAT. 364]]

            of liens or such other methods as the Secretary of the Treasury
            determines appropriate.

        (d) <<NOTE: Deadline.>>  Return of Unused Grant Funds.--Any grant
    funds not used to make subawards under this section before January 1,
    2011, shall be returned to the Secretary of the Treasury on such date.
    Any subawards returned to the State housing credit agency on or after
    such date shall be promptly returned to the Secretary of the Treasury.
    Any amounts returned to the Secretary of the Treasury under this
    subsection shall be deposited in the general fund of the Treasury.

        (e) Definitions.--Any term used in this section which is also used
    in section 42 of the Internal Revenue Code of 1986 shall have the same
    meaning for purposes of this section as when used in such section 42.
    Any reference in this section to the Secretary of the Treasury shall be
    treated as including the Secretary's delegate.
        (f) Appropriations.--There is hereby appropriated to the Secretary
    of the Treasury such sums as may be necessary to carry out this section.

    SEC. 1603. <<NOTE: 26 USC 48 note.>>  GRANTS FOR SPECIFIED ENERGY
                PROPERTY IN LIEU OF TAX CREDITS.

        (a) In General.--Upon application, the Secretary of the Treasury
    shall, subject to the requirements of this section, provide a grant to
    each person who places in service specified energy property to reimburse
    such person for a portion of the expense of such property as provided in
    subsection (b). No grant shall be made under this section with respect
    to any property unless such property--
                (1) is placed in service during 2009 or 2010, or
                (2) is placed in service after 2010 and before the credit
            termination date with respect to such property, but only if the
            construction of such property began during 2009 or 2010.

        (b) Grant Amount.--
                (1) In general.--The amount of the grant under subsection
            (a) with respect to any specified energy property shall be the
            applicable percentage of the basis of such property.
                (2) Applicable percentage.--For purposes of paragraph (1),
            the term ``applicable percentage'' means--
                        (A) 30 percent in the case of any property described
                    in paragraphs (1) through (4) of subsection (d), and
                        (B) 10 percent in the case of any other property.
                (3) Dollar limitations.--In the case of property described
            in paragraph (2), (6), or (7) of subsection (d), the amount of
            any grant under this section with respect to such property shall
            not exceed the limitation described in section 48(c)(1)(B),
            48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of
            1986, respectively, with respect to such property.

        (c) Time for Payment of Grant.--The Secretary of the Treasury shall
    make payment of any grant under subsection (a) during the 60-day period
    beginning on the later of--
                (1) the date of the application for such grant, or
                (2) the date the specified energy property for which the
            grant is being made is placed in service.

        (d) Specified Energy Property.--For purposes of this section, the
    term ``specified energy property'' means any of the following:

    [[Page 123 STAT. 365]]

                (1) Qualified facilities.--Any qualified property (as
            defined in section 48(a)(5)(D) of the Internal Revenue Code of
            1986) which is part of a qualified facility (within the meaning
            of section 45 of such Code) described in paragraph (1), (2),
            (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code.
                (2) Qualified fuel cell property.--Any qualified fuel cell
            property (as defined in section 48(c)(1) of such Code).
                (3) Solar property.--Any property described in clause (i) or
            (ii) of section 48(a)(3)(A) of such Code.
                (4) Qualified small wind energy property.--Any qualified
            small wind energy property (as defined in section 48(c)(4) of
            such Code).
                (5) Geothermal property.--Any property described in clause
            (iii) of section 48(a)(3)(A) of such Code.
                (6) Qualified microturbine property.--Any qualified
            microturbine property (as defined in section 48(c)(2) of such
            Code).
                (7) Combined heat and power system property.--Any combined
            heat and power system property (as defined in section 48(c)(3)
            of such Code).
                (8) Geothermal heat pump property.--Any property described
            in clause (vii) of section 48(a)(3)(A) of such Code.

    Such term shall not include any property unless depreciation (or
    amortization in lieu of depreciation) is allowable with respect to such
    property.
        (e) Credit Termination Date.--For purposes of this section, the term
    ``credit termination date'' means--
                (1) in the case of any specified energy property which is
            part of a facility described in paragraph (1) of section 45(d)
            of the Internal Revenue Code of 1986, January 1, 2013,
                (2) in the case of any specified energy property which is
            part of a facility described in paragraph (2), (3), (4), (6),
            (7), (9), or (11) of section 45(d) of such Code, January 1,
            2014, and
                (3) in the case of any specified energy property described
            in section 48 of such Code, January 1, 2017.

    In the case <<NOTE: Applicability.>>  of any property which is described
    in paragraph (3) and also in another paragraph of this subsection,
    paragraph (3) shall apply with respect to such property.

        (f) Application of Certain Rules.--In making grants under this
    section, the Secretary of the Treasury shall apply rules similar to the
    rules of section 50 of the Internal Revenue Code of 1986. In applying
    such rules, if the property is disposed of, or otherwise ceases to be
    specified energy property, the Secretary of the Treasury shall provide
    for the recapture of the appropriate percentage of the grant amount in
    such manner as the Secretary of the Treasury determines appropriate.
        (g) Exception for Certain Non-Taxpayers.--The Secretary of the
    Treasury shall not make any grant under this section to--
                (1) any Federal, State, or local government (or any
            political subdivision, agency, or instrumentality thereof),
                (2) any organization described in section 501(c) of the
            Internal Revenue Code of 1986 and exempt from tax under section
            501(a) of such Code,
                (3) any entity referred to in paragraph (4) of section 54(j)
            of such Code, or

    [[Page 123 STAT. 366]]

                (4) any partnership or other pass-thru entity any partner
            (or other holder of an equity or profits interest) of which is
            described in paragraph (1), (2) or (3).

        (h) Definitions.--Terms used in this section which are also used in
    section 45 or 48 of the Internal Revenue Code of 1986 shall have the
    same meaning for purposes of this section as when used in such section
    45 or 48. Any reference in this section to the Secretary of the Treasury
    shall be treated as including the Secretary's delegate.
        (i) Appropriations.--There is hereby appropriated to the Secretary
    of the Treasury such sums as may be necessary to carry out this section.
        (j) Termination.--The <<NOTE: Deadline.>>  Secretary of the Treasury
    shall not make any grant to any person under this section unless the
    application of such person for such grant is received before October 1,
    2011.

    SEC. 1604. <<NOTE: 31 USC 3101.>>  INCREASE IN PUBLIC DEBT LIMIT.

        Subsection (b) of section 3101 of title 31, United States Code, is
    amended by striking out the dollar limitation contained in such
    subsection and inserting ``$12,104,000,000,000''.

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

    SEC. 1701. <<NOTE: 19 USC 1675c note.>>  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 <<NOTE: Deadline.>>  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

    [[Page 123 STAT. 367]]

                (2) fully distribute any antidumping or countervailing
            duties that the U.S. Customs and Border Protection is
            withholding as an offset as described in subsection (a)(2).

        (d) Limitation.--Nothing in this section shall be construed to
    prevent the Secretary of Homeland Security, or any other person, from
    requiring repayment of, or attempting to otherwise recoup, any payments
    described in subsection (b) as a result of--
                (1) a finding of false statements or other misconduct by a
            recipient of such a payment; or
                (2) the reliquidation of an entry with respect to which such
            a payment was made.

     Subtitle <<NOTE: Trade and Globalization Adjustment Assistance Act of
    2009. 19 USC 2101 note.>>  I--Trade Adjustment Assistance

    SEC. 1800. SHORT TITLE.

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

                 PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

        Subpart A--Trade Adjustment Assistance for Service Sector Workers

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

        (a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
    2319) is amended--
                (1) in paragraph (1)--
                        (A) by striking ``or appropriate subdivision of a
                    firm''; and
                        (B) by striking ``or subdivision'';
                (2) in paragraph (2), by striking ``employment--'' and all
            that follows and inserting ``employment, has been totally or
            partially separated from such employment.'';
                (3) by inserting after paragraph (2) the following:
                ``(3) Subject to section 222(d)(5), the term `firm' means--
                        ``(A) a firm, including an agricultural firm,
                    service sector firm, or public agency; or
                        ``(B) an appropriate subdivision thereof.'';
                (4) by inserting after paragraph (6) the following:
                ``(7) The term `public agency' means a department or agency
            of a State or local government or of the Federal Government, or
            a subdivision thereof.'';
                (5) in paragraph (11), by striking ``, or in a subdivision
            of which,''; and
                (6) by adding at the end the following:
                ``(18) The term `service sector firm' means a firm engaged
            in the business of supplying services.''.

        (b) Group Eligibility Requirements.--Section 222 of the Trade Act of
    1974 (19 U.S.C. 2272) is amended--
                (1) in subsection (a)(2)--
                        (A) by amending subparagraph (A)(ii) to read as
                    follows:

    [[Page 123 STAT. 368]]

                ``(ii)(I) imports of articles or services like or directly
            competitive with articles produced or services supplied by such
            firm have increased;
                ``(II) imports of articles like or directly competitive with
            articles--
                        ``(aa) into which one or more component parts
                    produced by such firm are directly incorporated, or
                        ``(bb) which are produced directly using services
                    supplied by such firm,
            have increased; or
                ``(III) imports of articles directly incorporating one or
            more component parts produced outside the United States that are
            like or directly competitive with imports of articles
            incorporating one or more component parts produced by such firm
            have increased; and''; and
                        (B) by amending subparagraph (B) to read as follows:
                ``(B)(i)(I) there has been a shift by such workers' firm to
            a foreign country in the production of articles or the supply of
            services like or directly competitive with articles which are
            produced or services which are supplied by such firm; or
                ``(II) such workers' firm has acquired from a foreign
            country articles or services that are like or directly
            competitive with articles which are produced or services which
            are supplied by such firm; and
                ``(ii) the shift described in clause (i)(I) or the
            acquisition of articles or services described in clause (i)(II)
            contributed importantly to such workers' separation or threat of
            separation.'';
                (2) by redesignating subsections (b) and (c) as subsections
            (c) and (d), respectively; and
                (3) by inserting after subsection (a) the following:

        ``(b) Adversely Affected Workers in Public Agencies.--A
    group <<NOTE: Certification.>>  of workers in a public agency shall be
    certified by the Secretary as eligible to apply for adjustment
    assistance under this chapter pursuant to a petition filed under section
    221 if the Secretary determines that--
                ``(1) a significant number or proportion of the workers in
            the public agency have become totally or partially separated, or
            are threatened to become totally or partially separated;
                ``(2) the public agency has acquired from a foreign country
            services like or directly competitive with services which are
            supplied by such agency; and
                ``(3) the acquisition of services described in paragraph (2)
            contributed importantly to such workers' separation or threat of
            separation.''.

        (c) Basis for Secretary's Determinations.--Section 222 of the Trade
    Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding
    at the end the following:
        ``(e) Basis for Secretary's Determinations.--
                ``(1) In general.--The Secretary shall, in determining
            whether to certify a group of workers under section 223, obtain
            from the workers' firm, or a customer of the workers' firm,
            information the Secretary determines to be necessary to make the
            certification, through questionnaires and in such other manner
            as the Secretary determines appropriate.

    [[Page 123 STAT. 369]]

                ``(2) Additional information.--The Secretary may seek
            additional information to determine whether to certify a group
            of workers under subsection (a), (b), or (c)--
                        ``(A) by contacting--
                              ``(i) officials or employees of the workers'
                          firm;
                              ``(ii) officials of customers of the workers'
                          firm;
                              ``(iii) officials of certified or recognized
                          unions or other duly authorized representatives of
                          the group of workers; or
                              ``(iv) one-stop operators or one-stop partners
                          (as defined in section 101 of the Workforce
                          Investment Act of 1998 (29 U.S.C. 2801)); or
                        ``(B) by using other available sources of
                    information.
                ``(3) Verification of information.--
                        ``(A) Certification.--The Secretary shall require a
                    firm or customer to certify--
                              ``(i) all information obtained under paragraph
                          (1) from the firm or customer (as the case may be)
                          through questionnaires; and
                              ``(ii) all other information obtained under
                          paragraph (1) from the firm or customer (as the
                          case may be) on which the Secretary relies in
                          making a determination under section 223, unless
                          the Secretary has a reasonable basis for
                          determining that such information is accurate and
                          complete without being certified.
                        ``(B) Use of subpoenas.--The
                    Secretary <<NOTE: Deadline.>>  shall require the
                    workers' firm or a customer of the workers' firm to
                    provide information requested by the Secretary under
                    paragraph (1) by subpoena pursuant to section 249 if the
                    firm or customer (as the case may be) fails to provide
                    the information within 20 days after the date of the
                    Secretary's request, unless the firm or customer (as the
                    case may be) demonstrates to the satisfaction of the
                    Secretary that the firm or customer (as the case may be)
                    will provide the information within a reasonable period
                    of time.
                        ``(C) Protection of confidential information.--The
                    Secretary may not release information obtained under
                    paragraph (1) that the Secretary considers to be
                    confidential business information unless the firm or
                    customer (as the case may be) submitting the
                    confidential business information had notice, at the
                    time of submission, that the information would be
                    released by the Secretary, or the firm or customer (as
                    the case may be) subsequently consents to the release of
                    the information. Nothing in this subparagraph shall be
                    construed to prohibit the Secretary from providing such
                    confidential business information to a court in camera
                    or to another party under a protective order issued by a
                    court.''.

        (d) Penalties.--Section 244 of the Trade Act of 1974 (19 U.S.C.
    2316) is amended to read as follows:

    ``SEC. 244. PENALTIES.

        ``Any person who--
                ``(1) makes a false statement of a material fact knowing it
            to be false, or knowingly fails to disclose a material fact, for
            the purpose of obtaining or increasing for that person or for
            any other person any payment authorized to be furnished

    [[Page 123 STAT. 370]]

            under this chapter or pursuant to an agreement under section
            239, or
                ``(2) makes a false statement of a material fact knowing it
            to be false, or knowingly fails to disclose a material fact,
            when providing information to the Secretary during an
            investigation of a petition under section 221,

    shall be imprisoned for not more than one year, or fined under title 18,
    United States Code, or both.''.
        (e) Conforming Amendments.--
                (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C.
            2271(a)) is amended--
                        (A) in paragraph (1)--
                              (i) in the matter preceding subparagraph (A)--
                                        (I) by striking ``Secretary'' and
                                    inserting ``Secretary of Labor''; and
                                        (II) by striking ``or subdivision''
                                    and inserting ``(as defined in section
                                    247)''; and
                              (ii) in subparagraph (A), by striking
                          ``(including workers in an agricultural firm or
                          subdivision of any agricultural firm)'';
                        (B) in paragraph (2)(A), by striking ``rapid
                    response assistance'' and inserting ``rapid response
                    activities''; and
                        (C) in paragraph (3), by inserting ``and on the
                    website of the Department of Labor'' after ``Federal
                    Register''.
                (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272),
            as amended, is further amended--
                        (A) by striking ``(including workers in any
                    agricultural firm or subdivision of an agricultural
                    firm)'' each place it appears;
                        (B) in subsection (a)--
                              (i) in paragraph (1), by striking ``, or an
                          appropriate subdivision of the firm,''; and
                              (ii) in paragraph (2), by striking ``or
                          subdivision'' each place it appears;
                        (C) in subsection (c) (as redesignated)--
                              (i) in paragraph (2)--
                                        (I) by striking ``(or subdivision)''
                                    each place it appears;
                                        (II) by inserting ``or service''
                                    after ``the article''; and
                                        (III) by striking ``(c) (3)'' and
                                    inserting ``(d) (3)''; and
                              (ii) in paragraph (3), by striking ``(or
                          subdivision)'' each place it appears; and
                        (D) in subsection (d) (as redesignated)--
                              (i) by striking ``For purposes'' and inserting
                          ``Definitions.--For purposes'';
                              (ii) in paragraph (2), by striking ``, or
                          appropriate subdivision of a firm,'' each place it
                          appears;
                              (iii) by amending paragraph (3) to read as
                          follows:
                ``(3) Downstream producer.--
                        ``(A) In general.--The term `downstream producer'
                    means a firm that performs additional, value-added
                    production processes or services directly for another
                    firm for articles or services with respect to which a
                    group of workers in such other firm has been certified
                    under subsection (a).

    [[Page 123 STAT. 371]]

                        ``(B) Value-added production processes or
                    services.--For purposes of subparagraph (A), value-added
                    production processes or services include final assembly,
                    finishing, testing, packaging, or maintenance or
                    transportation services.'';
                              (iv) in paragraph (4)--
                                        (I) by striking ``(or
                                    subdivision)''; and
                                        (II) by inserting ``, or services,
                                    used in the production of articles or in
                                    the supply of services, as the case may
                                    be,'' after ``for articles''; and
                              (v) by adding at the end the following:
                ``(5) Reference to firm.--For purposes of subsection (a),
            the term `firm' does not include a public agency.''.
                (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C.
            2291(a)(2)) is amended--
                        (A) in the matter preceding subparagraph (A), by
                    striking ``or subdivision of a firm''; and
                        (B) in subparagraph (C), by striking ``or
                    subdivision''.

    SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.

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

    [[Page 123 STAT. 372]]

    SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.

        Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
                (1) in subsection (b), by striking ``or appropriate
            subdivision of the firm before his application'' and all that
            follows and inserting ``before the worker's application under
            section 231 occurred more than one year before the date of the
            petition on which such certification was granted.'';
                (2) in subsection (c), by striking ``together with his
            reasons'' and inserting ``and on the website of the Department
            of Labor, together with the Secretary's reasons'';
                (3) in subsection (d)--
                        (A) by striking ``or subdivision of the firm'' and
                    all that follows through ``he shall'' and inserting ``,
                    that total or partial separations from such firm are no
                    longer attributable to the conditions specified in
                    section 222, the Secretary shall''; and
                        (B) by striking ``together with his reasons'' and
                    inserting ``and on the website of the Department of
                    Labor, together with the Secretary's reasons''; and
                (4) by adding at the end the following:

        ``(e) Standards for Investigations and Determinations.--
                ``(1) In general.--The Secretary <<NOTE: Criteria.>>  shall
            establish standards, including data requirements, for
            investigations of petitions filed under section 221 and criteria
            for making determinations under subsection (a).
                ``(2) Consultations.--Not less <<NOTE: Deadline.>>  than 90
            days before issuing a final rule with respect to the standards
            required under paragraph (1), the Secretary shall consult with
            the Committee on Finance of the Senate and the Committee on Ways
            and Means of the House of Representatives with respect to such
            rule.''.

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

        (a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C.
    2393) is amended--
                (1) in the heading, by striking ``system'' and inserting
            ``and data collection'';
                (2) in the first sentence--
                        (A) by striking ``The Secretary'' and inserting
                    ``(a) Monitoring Programs.--The Secretary'';
                        (B) by inserting ``and services'' after ``imports of
                    articles'';
                        (C) by inserting ``and domestic supply of services''
                    after ``domestic production'';
                        (D) by inserting ``or supplying services'' after
                    ``producing articles''; and
                        (E) by inserting ``, or supply of services,'' after
                    ``changes in production''; and
                (3) by adding at the end the following:

        ``(b) Collection of Data and Reports on Service Sector.--
                ``(1) Secretary of labor.--Not later <<NOTE: System.>>  than
            90 days after the date of the enactment of this subsection, the
            Secretary of Labor shall implement a system to collect data on
            adversely affected workers employed in the service sector that
            includes the number of workers by State and industry, and by the

    [[Page 123 STAT. 373]]

            cause of the dislocation of each worker, as identified in the
            certification.
                ``(2) <<NOTE: Study.>>  Secretary of commerce.--Not later
            than 1 year after such date of enactment, the Secretary of
            Commerce shall, in consultation with the Secretary of Labor,
            conduct a study and submit to the Committee on Finance of the
            Senate and the Committee on Ways and Means of the House of
            Representatives a report on ways to improve the timeliness and
            coverage of data on trade in services, including methods to
            identify increased imports due to the relocation of United
            States firms to foreign countries, and increased imports due to
            United States firms acquiring services from firms in foreign
            countries.''.

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 282 and
    inserting the following:

    ``Sec. 282. Trade monitoring and data collection.''.

        (c) <<NOTE: 19 USC 2393 note.>>  Effective Date.--The amendments
    made by this section shall take effect on the date of the enactment of
    this Act.

        Subpart B--Industry Notifications Following Certain Affirmative
                                 Determinations

    SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.

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

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

                (2) in subsection (a), by striking ``Whenever'' and
            inserting ``Study of Domestic Industry.--Whenever'';
                (3) in subsection (b)--
                        (A) by striking ``The report'' and inserting
                    ``Report by the Secretary.--The report''; and
                        (B) by inserting ``and on the website of the
                    Department of Labor'' after ``Federal Register''; and
                (4) by adding at the end the following:

        ``(c) Notifications Following Affirmative Global Safeguard
    Determinations.--Upon making an affirmative determination under section
    202(b)(1), the Commission shall promptly notify the Secretary of Labor
    and the Secretary of Commerce and, in the case of a determination with
    respect to an agricultural commodity, the Secretary of Agriculture, of
    the determination.
        ``(d) Notifications Following Affirmative Bilateral or Plurilateral
    Safeguard Determinations.--
                ``(1) Notifications of determinations of market
            disruption.--Upon making an affirmative determination under
            section 421(b)(1), the Commission shall promptly notify the
            Secretary of Labor and the Secretary of Commerce and, in the
            case of a determination with respect to an agricultural
            commodity, the Secretary of Agriculture, of the determination.
                ``(2) Notifications regarding trade agreement safeguards.--
            Upon making an affirmative determination in a proceeding
            initiated under an applicable safeguard provision (other than a
            provision described in paragraph (3)) that is enacted

    [[Page 123 STAT. 374]]

            to implement a trade agreement to which the United States is a
            party, the Commission shall promptly notify the Secretary of
            Labor and the Secretary of Commerce and, in the case of a
            determination with respect to an agricultural commodity, the
            Secretary of Agriculture, of the determination.
                ``(3) Notifications regarding textile and apparel
            safeguards.--Upon making an affirmative determination in a
            proceeding initiated under any safeguard provision relating to
            textile and apparel articles that is enacted to implement a
            trade agreement to which the United States is a party, the
            President shall promptly notify the Secretary of Labor and the
            Secretary of Commerce of the determination.

        ``(e) Notifications Following Certain Affirmative Determinations
    Under Title Vii of the Tariff Act of 1930.--Upon making an affirmative
    determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff
    Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the
    Commission shall promptly notify the Secretary of Labor and the
    Secretary of Commerce and, in the case of a determination with respect
    to an agricultural commodity, the Secretary of Agriculture, of the
    determination.
        ``(f) Industry Notification of Assistance.--Upon receiving a
    notification of a determination under subsection (c), (d), or (e) with
    respect to a domestic industry--
                ``(1) the Secretary of Labor shall--
                        ``(A) notify the representatives of the domestic
                    industry affected by the determination, firms publicly
                    identified by name during the course of the proceeding
                    relating to the determination, and any certified or
                    recognized union or, to the extent practicable, other
                    duly authorized representative of workers employed by
                    such representatives of the domestic industry, of--
                              ``(i) the allowances, training, employment
                          services, and other benefits available under this
                          chapter;
                              ``(ii) the manner in which to file a petition
                          and apply for such benefits; and
                              ``(iii) the availability of assistance in
                          filing such petitions;
                        ``(B) notify the Governor of each State in which one
                    or more firms in the industry described in subparagraph
                    (A) are located of the Commission's determination and
                    the identity of the firms; and
                        ``(C) upon request, provide any assistance that is
                    necessary to file a petition under section 221;
                ``(2) the Secretary of Commerce shall--
                        ``(A) notify the representatives of the domestic
                    industry affected by the determination and any firms
                    publicly identified by name during the course of the
                    proceeding relating to the determination of--
                              ``(i) the benefits available under chapter 3;
                              ``(ii) the manner in which to file a petition
                          and apply for such benefits; and
                              ``(iii) the availability of assistance in
                          filing such petitions; and
                        ``(B) upon request, provide any assistance that is
                    necessary to file a petition under section 251; and

    [[Page 123 STAT. 375]]

                ``(3) in the case of an affirmative determination based upon
            imports of an agricultural commodity, the Secretary of
            Agriculture shall--
                        ``(A) notify representatives of the domestic
                    industry affected by the determination and any
                    agricultural commodity producers publicly identified by
                    name during the course of the proceeding relating to the
                    determination of--
                              ``(i) the benefits available under chapter 6;
                              ``(ii) the manner in which to file a petition
                          and apply for such benefits; and
                              ``(iii) the availability of assistance in
                          filing such petitions; and
                        ``(B) upon request, provide any assistance that is
                    necessary to file a petition under section 292.

        ``(g) Representatives of the Domestic Industry.--For purposes of
    subsection (f), the term `representatives of the domestic industry'
    means the persons that petitioned for relief in connection with--
                ``(1) a proceeding under section 202 or 421 of this Act;
                ``(2) a proceeding under section 702(b) or 732(b) of the
            Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or
                ``(3) any safeguard investigation described in subsection
            (d)(2) or (d)(3).''.

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 224 and
    inserting the following:

    ``Sec. 224. Study and notifications regarding certain affirmative
               determinations; industry notification of assistance.''.

    SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.

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

                           Subpart C--Program Benefits

    SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.

        (a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act of 1974
    (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
                (1) <<NOTE: Certification.>>  by striking subclauses (I) and
            (II) and inserting the following:
                              ``(I) in the case of a worker whose most
                          recent total separation from adversely affected
                          employment that meets the requirements of
                          paragraphs (1) and (2) occurs after the date on
                          which the Secretary issues a certification
                          covering the worker, the last day of the 26th week
                          after such total separation,
                              ``(II) in the case of a worker whose most
                          recent total separation from adversely affected
                          employment that meets the requirements of
                          paragraphs (1) and (2) occurs before the date on
                          which the Secretary issues a certification
                          covering the worker, the last day of the 26th week
                          after the date of such certification,'';
                (2) in subclause (III)--

    [[Page 123 STAT. 376]]

                        (A) by striking ``later of the dates specified in
                    subclause (I) or (II)'' and inserting ``date specified
                    in subclause (I) or (II), as the case may be''; and
                        (B) by striking ``or'' at the end;
                (3) by redesignating subclause (IV) as subclause (V); and
                (4) by inserting after subclause (III) the following:
                              ``(IV) in the case of a worker who fails to
                          enroll by the date required by subclause (I),
                          (II), or (III), as the case may be, due to the
                          failure to provide the worker with timely
                          information regarding the date specified in such
                          subclause, the last day of a period determined by
                          the Secretary, or''.

        (b) Waivers of Training Requirements.--Section 231(c) of the Trade
    Act of 1974 (19 U.S.C. 2291(c)) is amended--
                (1) in paragraph (1)(B)--
                        (A) by striking ``The worker possesses'' and
                    inserting the following:
                              ``(i) In general.--The worker possesses''; and
                        (B) by adding at the end the following:
                              ``(ii) Marketable skills defined.--For
                          purposes of clause (i), the term `marketable
                          skills' may include the possession of a
                          postgraduate degree from an institution of higher
                          education (as defined in section 102 of the Higher
                          Education Act of 1965 (20 U.S.C. 1002)) or an
                          equivalent institution, or the possession of an
                          equivalent postgraduate certification in a
                          specialized field.'';
                (2) in paragraph (2)(A), by striking ``A waiver'' and
            inserting ``Except as provided in paragraph (3)(B), a waiver'';
            and
                (3) in paragraph (3)--
                        (A) in subparagraph (A), by striking ``Pursuant to
                    an agreement under section 239, the Secretary may
                    authorize a'' and inserting ``An agreement under section
                    239 shall authorize a'';
                        (B) by redesignating subparagraph (B) as
                    subparagraph (C); and
                        (C) by inserting after subparagraph (A) the
                    following:
                        ``(B) Review of waivers.--An
                    agreement <<NOTE: Deadlines.>>  under section 239 shall
                    require a cooperating State to review each waiver issued
                    by the State under subparagraph (A), (B), (D), (E), or
                    (F) of paragraph (1)--
                              ``(i) 3 months after the date on which the
                          State issues the waiver; and
                              ``(ii) on a monthly basis thereafter.''.

        (c) Conforming Amendments.--
                (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291),
            as amended, is further amended--
                        (A) in subsection (a), in the matter preceding
                    paragraph (1), by striking ``more than 60 days'' and all
                    that follows through ``section 221'' and inserting ``on
                    or after the date of such certification''; and
                        (B) in subsection (b)--
                              (i) by striking paragraph (2); and
                              (ii) in paragraph (1)--
                                        (I) by striking ``(1)'';
                                        (II) by redesignating subparagraphs
                                    (A) and (B) as paragraphs (1) and (2),
                                    respectively;

    [[Page 123 STAT. 377]]

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

    SEC. 1822. WEEKLY AMOUNTS.

        Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended--
                (1) in subsection (a)--
                        (A) by striking ``subsections (b) and (c)'' and
                    inserting ``subsections (b), (c), and (d)'';
                        (B) by striking ``total unemployment'' the first
                    place it appears and inserting ``unemployment''; and
                        (C) in paragraph (2), by inserting before the period
                    the following: ``, except that in the case of an
                    adversely affected worker who is participating in
                    training under this chapter, such income shall not
                    include earnings from work for such week that are equal
                    to or less than the most recent weekly benefit amount of
                    the unemployment insurance payable to the worker for a
                    week of total unemployment preceding the worker's first
                    exhaustion of unemployment insurance (as determined for
                    purposes of section 231(a)(3)(B))''; and
                (2) by adding at the end the following:

        ``(d) Election of Trade Readjustment Allowance or Unemployment
    Insurance.--Notwithstanding section 231(a)(3)(B), an adversely affected
    worker may elect to receive a trade readjustment allowance instead of
    unemployment insurance during any week with respect to which the
    worker--
                ``(1) is entitled to receive unemployment insurance as a
            result of the establishment by the worker of a new benefit year
            under State law, based in whole or in part upon part-time or
            short-term employment in which the worker engaged after the
            worker's most recent total separation from adversely affected
            employment; and
                ``(2) is otherwise entitled to a trade readjustment
            allowance.''.

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

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

    [[Page 123 STAT. 378]]

                        (B) in the matter following subparagraph (B), by
                    striking ``52-week'' and inserting ``91-week''.

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

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

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

        Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
                (1) by striking ``Except where inconsistent'' and inserting
            ``(a) In General.--Except where inconsistent''; and
                (2) by adding at the end the following:

        ``(b) Special Rule With Respect to State Laws and Regulations on
    Good Cause for Waiver of Time Limits or Late Filing of Claims.--Any
    law, <<NOTE: Applicability.>>  regulation, policy, or practice of a
    cooperating State that allows for a waiver for good cause of any time
    limitation relating to the administration of the State unemployment
    insurance law shall, in the administration of the program under this
    chapter

    [[Page 123 STAT. 379]]

    by the State, apply to any time limitation with respect to an
    application for a trade readjustment allowance or enrollment in training
    under this chapter.''.

    SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

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

    ``SEC. 235. <<NOTE: Contracts.>>  EMPLOYMENT AND CASE MANAGEMENT
                SERVICES.

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

    [[Page 123 STAT. 380]]

                        ``(C) information relating to local occupations that
                    are in demand and earnings potential of such
                    occupations; and
                        ``(D) skills requirements for local occupations
                    described in subparagraph (C).
                ``(8) Information relating to the availability of supportive
            services, including services relating to child care,
            transportation, dependent care, housing assistance, and need-
            related payments that are necessary to enable an individual to
            participate in training.''.

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 235 and
    inserting the following:

    ``235. Employment and case management services.''.

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

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

    ``SEC. 235A. <<NOTE: 19 USC 2295a.>>  FUNDING FOR ADMINISTRATIVE
                EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT SERVICES.

        ``(a) Funding for Administrative Expenses and Employment and Case
    Management Services.--
                ``(1) In general.--In addition to any funds made available
            to a State to carry out section 236 for a fiscal year, the State
            shall receive for the fiscal year a payment in an amount that is
            equal to 15 percent of the amount of such funds.
                ``(2) Use of funds.--A State that receives a payment under
            paragraph (1) shall--
                        ``(A) use not more than \2/3\ of such payment for
                    the administration of the trade adjustment assistance
                    for workers program under this chapter, including for--
                              ``(i) processing waivers of training
                          requirements under section 231;
                              ``(ii) collecting, validating, and reporting
                          data required under this chapter; and
                              ``(iii) providing reemployment trade
                          adjustment assistance under section 246; and
                        ``(B) use not less than \1/3\ of such payment for
                    employment and case management services under section
                    235.

        ``(b) Additional Funding for Employment and Case Management
    Services.--
                ``(1) In general.--In addition to any funds made available
            to a State to carry out section 236 and the payment under
            subsection (a)(1) for a fiscal year, the Secretary shall provide
            to the State for the fiscal year a payment in the amount of
            $350,000.
                ``(2) Use of funds.--A State that receives a payment under
            paragraph (1) shall use such payment for the purpose of
            providing employment and case management services under section
            235.
                ``(3) Voluntary return of funds.--A State that receives a
            payment under paragraph (1) may decline or otherwise return such
            payment to the Secretary.''.

    [[Page 123 STAT. 381]]

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 235 the
    following:

    ``Sec. 235A. Funding for administrative expenses and employment and case
               management services.''.

        (c) <<NOTE: 19 USC 2295a note.>>  Effective Date.--The amendments
    made by this section shall take effect on the date of the enactment of
    this Act.

    SEC. 1828. TRAINING FUNDING.

        (a) In General.--Section 236(a)(2) of the Trade Act of 1974 (19
    U.S.C. 2296(a)(2)) is amended to read as follows:
        ``(2)(A) The total amount of payments that may be made under
    paragraph (1) shall not exceed--
                ``(i) for each of the fiscal years 2009 and 2010,
            $575,000,000; and
                ``(ii) <<NOTE: Time period.>>  for the period beginning
            October 1, 2010, and ending December 31, 2010, $143,750,000.

        ``(B)(i) The Secretary shall, as soon as practicable after the
    beginning of each fiscal year, make an initial distribution of the funds
    made available to carry out this section, in accordance with the
    requirements of subparagraph (C).
        ``(ii) <<NOTE: Deadline.>>  The Secretary shall ensure that not less
    than 90 percent of the funds made available to carry out this section
    for a fiscal year are distributed to the States by not later than July
    15 of that fiscal year.

        ``(C)(i) In making the initial distribution of funds pursuant to
    subparagraph (B)(i) for a fiscal year, the Secretary shall hold in
    reserve 35 percent of the funds made available to carry out this section
    for that fiscal year for additional distributions during the remainder
    of the fiscal year.
        ``(ii) Subject to clause (iii), in determining how to apportion the
    initial distribution of funds pursuant to subparagraph (B)(i) in a
    fiscal year, the Secretary shall take into account, with respect to each
    State--
                ``(I) the trend in the number of workers covered by
            certifications of eligibility under this chapter during the most
            recent 4 consecutive calendar quarters for which data are
            available;
                ``(II) the trend in the number of workers participating in
            training under this section during the most recent 4 consecutive
            calendar quarters for which data are available;
                ``(III) the number of workers estimated to be participating
            in training under this section during the fiscal year;
                ``(IV) the amount of funding estimated to be necessary to
            provide training approved under this section to such workers
            during the fiscal year; and
                ``(V) such other factors as the Secretary considers
            appropriate relating to the provision of training under this
            section.

        ``(iii) In no case may the amount of the initial distribution to a
    State pursuant to subparagraph (B)(i) in a fiscal year be less than 25
    percent of the initial distribution to the State in the preceding fiscal
    year.
        ``(D) <<NOTE: Procedures.>>  The Secretary shall establish
    procedures for the distribution of the funds that remain available for
    the fiscal year after the initial distribution required under
    subparagraph (B)(i). Such procedures may include the distribution of
    funds pursuant to requests submitted by States in need of such funds.

    [[Page 123 STAT. 382]]

        ``(E) If, during a fiscal year, the Secretary estimates that the
    amount of funds necessary to pay the costs of training approved under
    this section will exceed the dollar amount limitation specified in
    subparagraph (A), the Secretary shall decide how the amount of funds
    made available to carry out this section that have not been distributed
    at the time of the estimate will be apportioned among the States for the
    remainder of the fiscal year.''.
        (b) Determinations Regarding Training.--Section 236(a)(9) of the
    Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
                (1) by striking ``The Secretary'' and inserting ``(A)
            Subject to subparagraph (B), the Secretary''; and
                (2) by adding at the end the following:

        ``(B)(i) In determining under paragraph (1)(E) whether a worker is
    qualified to undertake and complete training, the Secretary may approve
    training for a period longer than the worker's period of eligibility for
    trade readjustment allowances under part I if the worker demonstrates a
    financial ability to complete the training after the expiration of the
    worker's period of eligibility for such trade readjustment allowances.
        ``(ii) In determining the reasonable cost of training under
    paragraph (1)(F) with respect to a worker, the Secretary may consider
    whether other public or private funds are reasonably available to the
    worker, except that the Secretary may not require a worker to obtain
    such funds as a condition of approval of training under paragraph
    (1).''.
        (c) Regulations.--Section 236 of the Trade Act of 1974 (19 U.S.C.
    2296) is amended by adding at the end the following:
        ``(g) <<NOTE: Deadlines.>>  Regulations With Respect to
    Apportionment of Training Funds to States.--
                ``(1) In general.--Not later than 1 year after the date of
            the enactment of this subsection, the Secretary shall issue such
            regulations as may be necessary to carry out the provisions of
            subsection (a)(2).
                ``(2) Consultations.--The Secretary shall consult with the
            Committee on Finance of the Senate and the Committee on Ways and
            Means of the House of Representatives not less than 90 days
            before issuing any regulation pursuant to paragraph (1).''.

        (d) <<NOTE: 19 USC 2296 note.>>  Effective Date.--This section and
    the amendments made by this section shall take effect upon the
    expiration of the 90-day period beginning on the date of the enactment
    of this Act, except that--
                (1) subparagraph (A) of section 236(a)(2) of the Trade Act
            of 1974, as amended by subsection (a) of this section, shall
            take effect on the date of the enactment of this Act; and
                (2) subparagraphs (B), (C), and (D) of such section
            236(a)(2) shall take effect on October 1, 2009.

    SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.

        (a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19
    U.S.C. 2296(a)(5)) is amended--
                (1) in subparagraph (A)--
                        (A) by striking ``and'' at the end of clause (i);
                        (B) by adding ``and'' at the end of clause (ii); and
                        (C) by inserting after clause (ii) the following:

    [[Page 123 STAT. 383]]

                        ``(iii) apprenticeship programs registered under the
                    Act of August 16, 1937 (commonly known as the `National
                    Apprenticeship Act'; 50 Stat. 664, chapter 663; 29
                    U.S.C. 50 et seq.),'';
                (2) by redesignating subparagraphs (E) and (F) as
            subparagraphs (F) and (G), respectively;
                (3) by inserting after subparagraph (D) the following:
                ``(E) any program of prerequisite education or coursework
            required to enroll in training that may be approved under this
            section,'';
                (4) in subparagraph (F)(ii), as redesignated by paragraph
            (2), by striking ``and'' at the end;
                (5) in subparagraph (G), as redesignated by paragraph (2),
            by striking the period at the end and inserting ``, and''; and
                (6) by adding at the end the following:
                ``(H) any training program or coursework at an accredited
            institution of higher education (described in section 102 of the
            Higher Education Act of 1965 (20 U.S.C. 1002)), including a
            training program or coursework for the purpose of--
                        ``(i) obtaining a degree or certification; or
                        ``(ii) completing a degree or certification that the
                    worker had previously begun at an accredited institution
                    of higher education.

    The Secretary may not limit approval of a training program under
    paragraph (1) to a program provided pursuant to title I of the Workforce
    Investment Act of 1998 (29 U.S.C. 2801 et seq.).''.
        (b) Conforming Amendments.--Section 233 of the Trade Act of 1974 (19
    U.S.C. 2293) is amended--
                (1) in subsection (a)(2), by inserting ``prerequisite
            education or'' after ``requires a program of''; and
                (2) in subsection (f) (as redesignated by section 1821(c) of
            this subtitle), by inserting ``prerequisite education or'' after
            ``includes a program of''.

        (c) Technical Corrections.--Section 236 of the Trade Act of 1974 (19
    U.S.C. 2296) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), in the flush text, by striking
                    ``his behalf'' and inserting ``the worker's behalf'';
                    and
                        (B) in paragraph (3), by striking ``this paragraph
                    (1)'' and inserting ``paragraph (1)''; and
                (2) in subsection (b)(2), by striking ``, and'' and
            inserting a period.

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

        (a) Pre-Layoff Training.--
                (1) In general.--Section 236(a) of the Trade Act of 1974 (19
            U.S.C. 2296(a)) is amended--
                        (A) in paragraph (1), by inserting after
                    ``determines'' the following: ``, with respect to an
                    adversely affected worker or an adversely affected
                    incumbent worker,'';
                        (B) in paragraph (4)--
                              (i) in subparagraphs (A) and (B), by inserting
                          ``or an adversely affected incumbent worker''
                          after ``an adversely affected worker'' each place
                          it appears; and

    [[Page 123 STAT. 384]]

                              (ii) in subparagraph (C), by inserting ``or
                          adversely affected incumbent worker'' after
                          ``adversely affected worker'' each place it
                          appears;
                        (C) in paragraph (5), in the matter preceding
                    subparagraph (A), by striking ``The training programs''
                    and inserting ``Except as provided in paragraph (10),
                    the training programs'';
                        (D) in paragraph (6)(B), by inserting ``or adversely
                    affected incumbent worker'' after ``adversely affected
                    worker'';
                        (E) in paragraph (7)(B), by inserting ``or adversely
                    affected incumbent worker'' after ``adversely affected
                    worker''; and
                        (F) by inserting after paragraph (9) the following:

        ``(10) In the case of an adversely affected incumbent worker, the
    Secretary may not approve--
                ``(A) on-the-job training under paragraph (5)(A)(i); or
                ``(B) customized training under paragraph (5)(A)(ii), unless
            such training is for a position other than the worker's
            adversely affected employment.

        ``(11) If the Secretary determines that an adversely affected
    incumbent worker for whom the Secretary approved training under this
    section is no longer threatened with a total or partial separation, the
    Secretary shall terminate the approval of such training.''.
                (2) Definitions.--Section 247 of the Trade Act of 1974 (19
            U.S.C. 2319), as amended, is further amended by adding at the
            end the following:
                ``(19) The term `adversely affected incumbent worker' means
            a worker who--
                        ``(A) is a member of a group of workers who have
                    been certified as eligible to apply for adjustment
                    assistance under subchapter A;
                        ``(B) has not been totally or partially separated
                    from adversely affected employment; and
                        ``(C) the Secretary determines, on an individual
                    basis, is threatened with total or partial
                    separation.''.

        (b) Part-Time Training.--Section 236 of the Trade Act of 1974 (19
    U.S.C. 2296), as amended, is further amended by adding at the end the
    following:
        ``(h) Part-Time Training.--
                ``(1) In general.--The Secretary may approve full-time or
            part-time training for a worker under subsection (a).
                ``(2) Limitation.--Notwithstanding paragraph (1), a worker
            participating in part-time training approved under subsection
            (a) may not receive a trade readjustment allowance under section
            231.''.

    SEC. 1831. ON-THE-JOB TRAINING.

        (a) In General.--Section 236(c) of the Trade Act of 1974 (19 U.S.C.
    2296(c)) is amended--
                (1) by redesignating paragraphs (1) through (10) as
            subparagraphs (A) through (J) and moving such subparagraphs 2
            ems to the right;
                (2) by striking ``(c) The Secretary shall'' and all that
            follows through ``such costs,'' and inserting the following:

        ``(c) On-the-Job Training Requirements.--

    [[Page 123 STAT. 385]]

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

    [[Page 123 STAT. 386]]

        (b) Repeal of Preference for Training on the Job.--Section 236(a)(1)
    of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by striking
    the last sentence.

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

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

    SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.

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

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

           Subpart D--Reemployment Trade Adjustment Assistance Program

    SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.

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

    [[Page 123 STAT. 387]]

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

                (2) in subsection (a)--
                        (A) in paragraph (1)--
                              (i) by striking ``Not later than'' and all
                          that follows through ``2002, the Secretary'' and
                          inserting ``The Secretary''; and
                              (ii) by striking ``an alternative trade
                          adjustment assistance program for older workers''
                          and inserting ``a reemployment trade adjustment
                          assistance program'';
                        (B) in paragraph (2)--
                              (i) in subparagraph (A)--
                                        (I) in the matter preceding clause
                                    (i), by striking ``for a period not to
                                    exceed 2 years'' and inserting ``for the
                                    eligibility period under subparagraph
                                    (A) or (B) of paragraph (4) (as the case
                                    may be)''; and
                                        (II) by striking clauses (i) and
                                    (ii) and inserting the following:
                              ``(i) the wages received by the worker at the
                          time of separation; and
                              ``(ii) the wages received by the worker from
                          reemployment.'';
                              (ii) in subparagraph (B)--
                                        (I) by striking ``for a period not
                                    to exceed 2 years'' and inserting ``for
                                    the eligibility period under
                                    subparagraph (A) or (B) of paragraph (4)
                                    (as the case may be)''; and
                                        (II) by striking ``, as added by
                                    section 201 of the Trade Act of 2002'';
                                    and
                              (iii) by adding at the end the following:
                        ``(C) Training and other services.--A worker
                    described in paragraph (3)(B) participating in the
                    program established under paragraph (1) is eligible to
                    receive training approved under section 236 and
                    employment and case management services under section
                    235.''; and
                        (C) by striking paragraphs (3) through (5) and
                    inserting the following:
                ``(3) Eligibility.--
                        ``(A) In general.--A group of workers certified
                    under subchapter A as eligible for adjustment assistance
                    under subchapter A is eligible for benefits described in
                    paragraph (2) under the program established under
                    paragraph (1).
                        ``(B) Individual eligibility.--A worker in a group
                    of workers described in subparagraph (A) may elect to
                    receive benefits described in paragraph (2) under the
                    program established under paragraph (1) if the worker--
                              ``(i) is at least 50 years of age;
                              ``(ii) earns not more than $55,000 each year
                          in wages from reemployment;
                              ``(iii)(I) is employed on a full-time basis as
                          defined by the law of the State in which the
                          worker is employed and is not enrolled in a
                          training program approved under section 236; or

    [[Page 123 STAT. 388]]

                              ``(II) is employed at least 20 hours per week
                          and is enrolled in a training program approved
                          under section 236; and
                              ``(iv) is not employed at the firm from which
                          the worker was separated.
                ``(4) Eligibility period for payments.--
                        ``(A) Worker who has not received trade readjustment
                    allowance.--In the <<NOTE: Effective date.>>  case of a
                    worker described in paragraph (3)(B) who has not
                    received a trade readjustment allowance under part I of
                    subchapter B pursuant to the certification described in
                    paragraph (3)(A), the worker may receive benefits
                    described in paragraph (2) for a period not to exceed 2
                    years beginning on the earlier of--
                              ``(i) the date on which the worker exhausts
                          all rights to unemployment insurance based on the
                          separation of the worker from the adversely
                          affected employment that is the basis of the
                          certification; or
                              ``(ii) the date on which the worker obtains
                          reemployment described in paragraph (3)(B).
                        ``(B) Worker who has received trade readjustment
                    allowance.--In the case of a worker described in
                    paragraph (3)(B) who has received a trade readjustment
                    allowance under part I of subchapter B pursuant to the
                    certification described in paragraph (3)(A), the worker
                    may receive benefits described in paragraph (2) for a
                    period of 104 weeks beginning on the date on which the
                    worker obtains reemployment described in paragraph
                    (3)(B), reduced by the total number of weeks for which
                    the worker received such trade readjustment allowance.
                ``(5) Total amount of payments.--
                        ``(A) In general.--The payments described in
                    paragraph (2)(A) made to a worker may not exceed--
                              ``(i) $12,000 per worker during the
                          eligibility period under paragraph (4)(A); or
                              ``(ii) the amount described in subparagraph
                          (B) per worker during the eligibility period under
                          paragraph (4)(B).
                        ``(B) Amount described.--The amount described in
                    this subparagraph is the amount equal to the product
                    of--
                              ``(i) $12,000, and
                              ``(ii) the ratio of--
                                        ``(I) the total number of weeks in
                                    the eligibility period under paragraph
                                    (4)(B) with respect to the worker, to
                                        ``(II) 104 weeks.
                ``(6) Calculation of amount of payments for certain
            workers.--
                        ``(A) In general.--In the <<NOTE: Applicability.>>
                    case of a worker described in paragraph (3)(B)(iii)(II),
                    paragraph (2)(A) shall be applied by substituting the
                    percentage described in subparagraph (B) for `50
                    percent'.
                        ``(B) Percentage described.--The percentage
                    described in this subparagraph is the percentage--
                              ``(i) equal to \1/2\ of the ratio of--

    [[Page 123 STAT. 389]]

                                        ``(I) the number of weekly hours of
                                    employment of the worker referred to in
                                    paragraph (3)(B)(iii)(II), to
                                        ``(II) the number of weekly hours of
                                    employment of the worker at the time of
                                    separation, but
                              ``(ii) in no case more than 50 percent.
                ``(7) Limitation on other benefits.--A worker described in
            paragraph (3)(B) may not receive a trade readjustment allowance
            under part I of subchapter B pursuant to the certification
            described in paragraph (3)(A) during any week for which the
            worker receives a payment described in paragraph (2)(A).''; and
                (3) in subsection (b)(2), by striking ``subsection
            (a)(3)(B)'' and inserting ``subsection (a)(3)''.

        (b) Extension of Program.--Section 246(b)(1) of the Trade Act of
    1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the date that is 5
    years'' and all that follows through the end period and inserting
    ``December 31, 2010.''.
        (c) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 246 and
    inserting the following:

    ``Sec. 246. Reemployment trade adjustment assistance program.''.

                            Subpart E--Other Matters

    SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

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

    ``SEC. 249A. <<NOTE: 19 USC 2322.>>  OFFICE OF TRADE ADJUSTMENT
                ASSISTANCE.

        ``(a) Establishment.--There is established in the Department of
    Labor an office to be known as the Office of Trade Adjustment Assistance
    (in this section referred to as the `Office').
        ``(b) Head of Office.--The head of the Office shall be an
    administrator, who shall report directly to the Deputy Assistant
    Secretary for Employment and Training.
        ``(c) Principal Functions.--The principal functions of the
    administrator of the Office shall be--
                ``(1) to oversee and implement the administration of trade
            adjustment assistance program under this chapter; and
                ``(2) to carry out functions delegated to the Secretary of
            Labor under this chapter, including--
                        ``(A) making determinations under section 223;
                        ``(B) providing information under section 225 about
                    trade adjustment assistance to workers and assisting
                    such workers to prepare petitions or applications for
                    program benefits;
                        ``(C) providing assistance to employers of groups of
                    workers that have filed petitions under section 221 in
                    submitting information required by the Secretary
                    relating to the petitions;
                        ``(D) ensuring workers covered by a certification of
                    eligibility under subchapter A receive the employment
                    and case management services described in section 235;

    [[Page 123 STAT. 390]]

                        ``(E) ensuring that States fully comply with
                    agreements entered into under section 239;
                        ``(F) advocating for workers applying for benefits
                    available under this chapter;
                        ``(G) establishing and overseeing a hotline that
                    workers, employers, and other entities may call to
                    obtain information regarding eligibility criteria,
                    procedural requirements, and benefits available under
                    this chapter; and
                        ``(H) carrying out such other duties with respect to
                    this chapter as the Secretary specifies for purposes of
                    this section.

        ``(d) Administration.--
                ``(1) Designation.--The administrator shall designate an
            employee of the Department of Labor with appropriate experience
            and expertise to carry out the duties described in paragraph
            (2).
                ``(2) Duties.--The employee designated under paragraph (1)
            shall--
                        ``(A) receive complaints and requests for assistance
                    related to the trade adjustment assistance program under
                    this chapter;
                        ``(B) resolve such complaints and requests for
                    assistance, in coordination with other employees of the
                    Office;
                        ``(C) compile basic information concerning such
                    complaints and requests for assistance; and
                        ``(D) carry out such other duties with respect to
                    this chapter as the Secretary specifies for purposes of
                    this section.''.

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 249 the
    following:

    ``Sec. 249A. Office of Trade Adjustment Assistance.''.

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

        (a) In General.--Section 239(a) of the Trade Act of 1974 (19 U.S.C.
    2311(a)) is amended--
                (1) by amending clause (2) to read as follows: ``(2) in
            accordance with subsection (f), shall make available to
            adversely affected workers and adversely affected incumbent
            workers covered by a certification under subchapter A the
            employment and case management services described in section
            235,''; and
                (2) by striking ``will'' each place it appears and inserting
            ``shall''.

        (b) Form and Manner of Data.--Section 239 of the Trade Act of 1974
    (19 U.S.C. 2311) is amended--
                (1) by redesignating subsections (c) through (g) as
            subsections (d) through (h), respectively; and
                (2) by inserting after subsection (b) the following:

        ``(c) Form and Manner of Data.--Each agreement under this subchapter
    shall--
                ``(1) provide the Secretary with the authority to collect
            any data the Secretary determines necessary to meet the
            requirements of this chapter; and
                ``(2) specify the form and manner in which any such data
            requested by the Secretary shall be reported.''.

    [[Page 123 STAT. 391]]

        (c) State Activities.--Section 239(g) of the Trade Act of 1974 (as
    redesignated) is amended--
                (1) in paragraph (3), by striking ``and'' at the end;
                (2) by amending paragraph (4) to read as follows:
                ``(4) perform outreach to, intake of, and orientation for
            adversely affected workers and adversely affected incumbent
            workers covered by a certification under subchapter A with
            respect to assistance and benefits available under this chapter,
            and''; and
                (3) by adding at the end the following:
                ``(5) make employment and case management services described
            in section 235 available to adversely affected workers and
            adversely affected incumbent workers covered by a certification
            under subchapter A and, if funds provided to carry out this
            chapter are insufficient to make such services available, make
            arrangements to make such services available through other
            Federal programs.''.

        (d) Reporting Requirement.--Section 239(h) of the Trade Act of 1974
    (as redesignated) is amended by striking ``1998.'' and inserting ``1998
    (29 U.S.C. 2822(b)) and a description of the State's rapid response
    activities under section 221(a)(2)(A).''.
        (e) Control Measures.--Section 239 of the Trade Act of 1974 (19
    U.S.C. 2311), as amended, is further amended by adding at the end the
    following:
        ``(i) Control Measures.--
                ``(1) In general.--The Secretary <<NOTE: Requirements.>>
            shall require each cooperating State and cooperating State
            agency to implement effective control measures and to
            effectively oversee the operation and administration of the
            trade adjustment assistance program under this chapter,
            including by means of monitoring the operation of control
            measures to improve the accuracy and timeliness of the data
            being collected and reported.
                ``(2) Definition.--For purposes of paragraph (1), the term
            `control measures' means measures that--
                        ``(A) are internal to a system used by a State to
                    collect data; and
                        ``(B) are designed to ensure the accuracy and
                    verifiability of such data.

        ``(j) Data Reporting.--
                ``(1) In general.--Any agreement entered into under this
            section shall require the cooperating State or cooperating State
            agency to report to the Secretary on a quarterly basis
            comprehensive performance accountability data, to consist of--
                        ``(A) the core indicators of performance described
                    in paragraph (2)(A);
                        ``(B) the additional indicators of performance
                    described in paragraph (2)(B), if any; and
                        ``(C) a description of efforts made to improve
                    outcomes for workers under the trade adjustment
                    assistance program.
                ``(2) Core indicators described.--
                        ``(A) In general.--The core indicators of
                    performance described in this paragraph are--
                              ``(i) the percentage of workers receiving
                          benefits under this chapter who are employed
                          during the second calendar quarter following the
                          calendar quarter in which the workers cease
                          receiving such benefits;

    [[Page 123 STAT. 392]]

                              ``(ii) the percentage of such workers who are
                          employed in each of the third and fourth calendar
                          quarters following the calendar quarter in which
                          the workers cease receiving such benefits; and
                              ``(iii) the earnings of such workers in each
                          of the third and fourth calendar quarters
                          following the calendar quarter in which the
                          workers cease receiving such benefits.
                        ``(B) Additional indicators.--The Secretary and a
                    cooperating State or cooperating State agency may agree
                    upon additional indicators of performance for the trade
                    adjustment assistance program under this chapter, as
                    appropriate.
                ``(3) Standards with respect to reliability of data.--In
            preparing <<NOTE: Procedures.>>  the quarterly report required
            by paragraph (1), each cooperating State or cooperating State
            agency shall establish procedures that are consistent with
            guidelines to be issued by the Secretary to ensure that the data
            reported are valid and reliable.''.

    SEC. 1853. <<NOTE: Immigration.>>  VERIFICATION OF ELIGIBILITY FOR
                PROGRAM BENEFITS.

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

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

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

    ``SEC. 249B. <<NOTE: 19 USC 2323.>>  COLLECTION AND PUBLICATION OF DATA
                AND REPORTS; INFORMATION TO WORKERS.

        ``(a) In General.--Not later <<NOTE: System.>>  than 180 days after
    the date of the enactment of this section, the Secretary shall implement
    a system to collect and report the data described in subsection (b), as
    well as any other information that the Secretary considers appropriate
    to effectively carry out this chapter.

    [[Page 123 STAT. 393]]

        ``(b) Data to Be Included.--The system required under subsection (a)
    shall include collection of and reporting on the following data for each
    fiscal year:
                ``(1) Data on petitions filed, certified, and denied.--
                        ``(A) The number of petitions filed, certified, and
                    denied under this chapter.
                        ``(B) The number of workers covered by petitions
                    filed, certified, and denied.
                        ``(C) The number of petitions, classified by--
                              ``(i) the basis for certification, including
                          increased imports, shifts in production, and other
                          bases of eligibility; and
                              ``(ii) congressional district of the United
                          States.
                        ``(D) The average time for processing such
                    petitions.
                ``(2) Data on benefits received.--
                        ``(A) The number of workers receiving benefits under
                    this chapter.
                        ``(B) The number of workers receiving each type of
                    benefit, including training, trade readjustment
                    allowances, employment and case management services, and
                    relocation and job search allowances, and, to the extent
                    feasible, credits for health insurance costs under
                    section 35 of the Internal Revenue Code of 1986.
                        ``(C) The average time during which such workers
                    receive each such type of benefit.
                ``(3) Data on training.--
                        ``(A) The number of workers enrolled in training
                    approved under section 236, classified by major types of
                    training, including classroom training, training through
                    distance learning, on-the-job training, and customized
                    training.
                        ``(B) The number of workers enrolled in full-time
                    training and part-time training.
                        ``(C) The average duration of training.
                        ``(D) The number of training waivers granted under
                    section 231(c), classified by type of waiver.
                        ``(E) The number of workers who complete training
                    and the duration of such training.
                        ``(F) The number of workers who do not complete
                    training.
                ``(4) Data on outcomes.--
                        ``(A) A summary of the quarterly reports required
                    under section 239(j).
                        ``(B) The sectors in which workers are employed
                    after receiving benefits under this chapter.
                ``(5) Data on rapid response activities.--Whether rapid
            response activities were provided with respect to each petition
            filed under section 221.

        ``(c) Classification of Data.--To the extent possible, in collecting
    and reporting the data described in subsection (b), the Secretary shall
    classify the data by industry, State, and national totals.
        ``(d) Report.--Not later than December 15 of each year, the
    Secretary shall submit to the Committee on Finance of the Senate and the
    Committee on Ways and Means of the House of Representatives a report
    that includes--

    [[Page 123 STAT. 394]]

                ``(1) a summary of the information collected under this
            section for the preceding fiscal year;
                ``(2) information on the distribution of funds to each State
            pursuant to section 236(a)(2); and
                ``(3) any recommendations of the Secretary with respect to
            changes in eligibility requirements, benefits, or training
            funding under this chapter based on the data collected under
            this section.

        ``(e) Availability of Data.--
                ``(1) In general.--The Secretary <<NOTE: Web posting.>>
            shall make available to the public, by publishing on the website
            of the Department of Labor and by other means, as appropriate--
                        ``(A) the report required under subsection (d);
                        ``(B) the data collected under this section, in a
                    searchable format; and
                        ``(C) a list of cooperating States and cooperating
                    State agencies that failed to submit the data required
                    by this section to the Secretary in a timely manner.
                ``(2) Updates.--The Secretary <<NOTE: Deadline.>>  shall
            update the data under paragraph (1) on a quarterly basis.''.

        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 249A the
    following:

    ``Sec. 249B. Collection and publication of data and reports; information
               to workers.''.

        (c) Effective Date.--The amendments <<NOTE: 19 USC 2323 note.>>
    made by this section shall take effect on the date of the enactment of
    this Act.

    SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.

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

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

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

    ``SEC. 288. <<NOTE: 19 USC 2397a.>>  SENSE OF CONGRESS.

        ``It is the sense of Congress that the Secretaries of Labor,
    Commerce, and Agriculture should apply the provisions of chapter 2
    (relating to adjustment assistance for workers), chapter 3 (relating to
    adjustment assistance for firms), chapter 4 (relating to adjustment
    assistance for communities), and chapter 6 (relating to adjustment
    assistance for farmers), respectively, with the utmost regard

    [[Page 123 STAT. 395]]

    for the interests of workers, firms, communities, and farmers
    petitioning for benefits under such chapters.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by inserting after the item relating to section 287 the
    following:

    ``Sec. 288. Sense of Congress.''.

    SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.

        Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended--
                (1) by striking ``The Secretary shall'' and inserting the
            following:

        ``(a) In General.--The Secretary shall''; and
                (2) by adding at the end the following:

        ``(b) Consultations.--Not later <<NOTE: Deadline.>>  than 90 days
    before issuing a regulation under subsection (a), the Secretary shall
    consult with the Committee on Finance of the Senate and the Committee on
    Ways and Means of the House of Representatives with respect to the
    regulation.''.

    SEC. 1858. TECHNICAL CORRECTIONS.

        (a) Determinations by Secretary of Labor.--Section 223(c) of the
    Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking ``his
    determination'' and inserting ``a determination''.
        (b) Qualifying Requirements for Workers.--Section 231(a) of the
    Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
                (1) in paragraph (1)--
                        (A) in the matter preceding subparagraph (A), by
                    striking ``his application'' and inserting ``the
                    worker's application''; and
                        (B) in subparagraph (A), by striking ``he is
                    covered'' and inserting ``the worker is covered'';
                (2) in paragraph (2)--
                        (A) in subparagraph (A), by striking the period and
                    inserting a comma; and
                        (B) in subparagraph (D), by striking ``5 U.S.C.
                    8521(a)(1)'' and inserting ``section 8521(a)(1) of title
                    5, United States Code''; and
                (3) in paragraph (3)--
                        (A) by striking ``he'' each place it appears and
                    inserting ``the worker''; and
                        (B) in subparagraph (C), by striking ``him'' and
                    inserting ``the worker''.

        (c) Subpoena Power.--Section 249 of the Trade Act of 1974 (19 U.S.C.
    2321) is amended--
                (1) in the section heading, by striking ``subpena'' and
            inserting ``subpoena'';
                (2) by striking ``subpena'' and inserting ``subpoena'' each
            place it appears; and
                (3) in subsection (a), by striking ``him'' and inserting
            ``the Secretary''.

        (d) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 249 and
    inserting the following:

    ``Sec. 249. Subpoena power.''.

    [[Page 123 STAT. 396]]

                 PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

    SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.

        (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
    2341) is amended by inserting ``or service sector firm'' after
    ``agricultural firm'' each place it appears.
        (b) Definition of Service Sector Firm.--Section 261 of the Trade Act
    of 1974 (19 U.S.C. 2351) is amended--
                (1) by striking ``chapter,'' and inserting ``chapter:'';
                (2) by striking ``the term `firm' '' and inserting the
            following:
                ``(1) Firm.--The term `firm' ''; and
                (3) by adding at the end the following:
                ``(2) Service sector firm.--The term `service sector firm'
            means a firm engaged in the business of supplying services.''.

        (c) Conforming Amendments.--
                (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C.
            2341(c)(1)(C)) is amended--
                        (A) by inserting ``or services'' after ``articles''
                    the first place it appears; and
                        (B) by inserting ``or services which are supplied''
                    after ``produced''.
                (2) Section 251(c)(2)(B)(ii) of such Act is amended to read
            as follows:
                ``(ii) Any firm that engages in exploration or drilling for
            oil or natural gas, or otherwise produces oil or natural gas,
            shall be considered to be producing articles directly
            competitive with imports of oil and with imports of natural
            gas.''.

    SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.

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

    [[Page 123 STAT. 397]]

                              ``(II) the average annual sales or production
                          for the article or service during the 36-month
                          period preceding that 12-month period, and''.

    SEC. 1863. BASIS FOR DETERMINATIONS.

        Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended,
    is further amended by adding at the end the following:
        ``(e) Basis for Secretary's Determinations.--
    For <<NOTE: Certification.>>  purposes of subsection (c)(1)(C), the
    Secretary may determine that there are increased imports of like or
    directly competitive articles or services, if customers accounting for a
    significant percentage of the decrease in the sales or production of the
    firm certify to the Secretary that such customers have increased their
    imports of such articles or services from a foreign country, either
    absolutely or relative to their acquisition of such articles or services
    from suppliers located in the United States.

        ``(f) Notification to Firms of Availability of Benefits.--Upon
    receiving notice from the Secretary of Labor under section 225 of the
    identity of a firm that is covered by a certification issued under
    section 223, the Secretary of Commerce shall notify the firm of the
    availability of adjustment assistance under this chapter.''.

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

        (a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19
    U.S.C. 2341 et seq.) is amended--
                (1) by striking sections 254, 255, 256, and <<NOTE: 19
            USC 2344-2347.>>  257;
                (2) by redesignating sections 258, 259, 260, 261, 262, 264,
            and 265, as <<NOTE: 19 USC 2348-2352, 2354, 2355.>>  sections
            256, 257, 258, 259, 260, 261, and 262, respectively; and
                (3) by inserting after section 253 the following:

    ``SEC. 254. <<NOTE: 19 USC 2344.>>  OVERSIGHT AND ADMINISTRATION.

        ``(a) In General.--The Secretary <<NOTE: Grants.>>  shall, to such
    extent and in such amounts as are provided in appropriations Acts,
    provide grants to intermediary organizations (referred to in section
    253(b)(1)) throughout the United States pursuant to agreements with such
    intermediary organizations. Each such agreement shall require the
    intermediary organization to provide benefits to firms certified under
    section 251. <<NOTE: Deadline. Contracts.>>  The Secretary shall, to the
    maximum extent practicable, provide by October 1, 2010, that contracts
    entered into with intermediary organizations be for a 12-month period
    and that all such contracts have the same beginning date and the same
    ending date.

        ``(b) Distribution of Funds.--
                ``(1) In general.--Not
            later <<NOTE: Deadline. Methodology.>>  than 90 days after the
            date of the enactment of this subsection, the Secretary shall
            develop a methodology for the distribution of funds among the
            intermediary organizations described in subsection (a).
                ``(2) Prompt initial distribution.--The <<NOTE: Criteria.>>
            methodology described in paragraph (1) shall ensure the prompt
            initial distribution of funds and establish additional criteria
            governing the apportionment and distribution of the remainder of
            such funds among the intermediary organizations.
                ``(3) Criteria.--The methodology described in paragraph (1)
            shall include criteria based on the data in the annual report on
            the trade adjustment assistance for firms program

    [[Page 123 STAT. 398]]

            described in section 1866 of the Trade and Globalization
            Adjustment Assistance Act of 2009.

        ``(c) Requirements for Contracts.--An
    agreement <<NOTE: Guidelines.>>  with an intermediary organization
    described in subsection (a) shall require the intermediary organization
    to contract for the supply of services to carry out grants under this
    chapter in accordance with terms and conditions that are consistent with
    guidelines established by the Secretary.

        ``(d) <<NOTE: Deadlines.>>  Consultations.--
                ``(1) Consultations regarding methodology.--The Secretary
            shall consult with the Committee on Finance of the Senate and
            the Committee on Ways and Means of the House of
            Representatives--
                        ``(A) not less than 30 days before finalizing the
                    methodology described in subsection (b); and
                        ``(B) not less than 60 days before adopting any
                    changes to such methodology.
                ``(2) Consultations regarding guidelines.--The Secretary
            shall consult with the Committee on Finance of the Senate and
            the Committee on Ways and Means of the House of Representatives
            not less than 60 days before finalizing the guidelines described
            in subsection (c) or adopting any subsequent changes to such
            guidelines.

    ``SEC. 255. <<NOTE: 19 USC 2345.>>  AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There are <<NOTE: Time period.>>  authorized to
    be appropriated to the Secretary $50,000,000 for each of the fiscal
    years 2009 through 2010, and $12,501,000 for the period beginning
    October 1, 2010, and ending December 31, 2010, to carry out the
    provisions of this chapter. Amounts appropriated pursuant to this
    subsection shall--
                ``(1) be <<NOTE: Deadline.>>  available to provide
            adjustment assistance to firms that file a petition for such
            assistance pursuant to this chapter on or before December 31,
            2010; and
                ``(2) otherwise remain available until expended.

        ``(b) Personnel.--Of the amounts appropriated pursuant to this
    section for each fiscal year, $350,000 shall be available for full-time
    positions in the Department of Commerce to administer the provisions of
    this chapter. <<NOTE: Establishment.>>  Of such funds the Secretary
    shall make available to the Economic Development Administration such
    sums as may be necessary to establish the position of Director of
    Adjustment Assistance for Firms and such other full-time positions as
    may be appropriate to administer the provisions of this chapter.''.

        (b) <<NOTE: 19 USC 2344 note.>>  Residual Authority.--The Secretary
    of Commerce shall have the authority to modify, terminate, resolve,
    liquidate, or take any other action with respect to a loan, guarantee,
    contract, or any other financial assistance that was extended under
    section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344,
    2345, 2346, and 2347), as in effect on the day before the effective date
    set forth in section 1891.

        (c) Conforming Amendments.--
                (1) Section 256 of the Trade Act of 1974, as redesignated by
            subsection (a) of this section, <<NOTE: 19 USC 2348.>>  is
            amended by striking subsection (d).
                (2) Section 258 of the Trade Act of 1974, as redesignated by
            subsection (a) of this section, <<NOTE: 19 USC 2350.>>  is
            amended--

    [[Page 123 STAT. 399]]

                        (A) in the first sentence, by striking ``and
                    financial''; and
                        (B) in the last sentence--
                              (i) by striking ``sections 253 and 254'' and
                          inserting ``section 253''; and
                              (ii) by striking ``title 28 of the United
                          States Code'' and inserting ``title 28, United
                          States Code''.

        (d) Clerical Amendments.--The table of contents of the Trade Act of
    1974 is amended by striking the items relating to sections 254, 255,
    256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the
    following:

    ``Sec. 254. Oversight and administration.
    ``Sec. 255. Authorization of appropriations.
    ``Sec. 256. Protective provisions.
    ``Sec. 257. Penalties.
    ``Sec. 258. Civil actions.
    ``Sec. 259. Definitions.
    ``Sec. 260. Regulations.
    ``Sec. 261. Study by Secretary of Commerce when International Trade
               Commission begins investigation; action where there is
               affirmative finding.
    ``Sec. 262. Assistance to industries.''.

        (e) <<NOTE: 19 USC 2344 note.>>  Effective Date.--This section and
    the amendments made by this section shall take effect upon the
    expiration of the 90-day period beginning on the date of the enactment
    of this Act, except that subsections (b) and (d) of section 254 of the
    Trade Act of 1974 (as added by subsection (a) of this section) shall
    take effect on such date of enactment.

    SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.

        Section 257 of the Trade Act of 1974, as redesignated by section
    1864(a), is <<NOTE: 19 USC 2349.>>  amended to read as follows:

    ``SEC. 257. PENALTIES.

        ``Any person who--
                ``(1) makes a false statement of a material fact knowing it
            to be false, or knowingly fails to disclose a material fact, or
            willfully overvalues any security, for the purpose of
            influencing in any way a determination under this chapter, or
            for the purpose of obtaining money, property, or anything of
            value under this chapter, or
                ``(2) makes a false statement of a material fact knowing it
            to be false, or knowingly fails to disclose a material fact,
            when providing information to the Secretary during an
            investigation of a petition under this chapter,

    shall be imprisoned for not more than 2 years, or fined under title 18,
    United States Code, or both.''.

    SEC. 1866. <<NOTE: 19 USC 2356.>>  ANNUAL REPORT ON TRADE ADJUSTMENT
                ASSISTANCE FOR FIRMS.

        (a) In General.--Not later than December 15, 2009, and each year
    thereafter, the Secretary of Commerce shall prepare a report containing
    data regarding the trade adjustment assistance for firms program
    provided for in chapter 3 of title II of the Trade Act of 1974 (19
    U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall
    include the following:
                (1) The number of firms that inquired about the program.
                (2) The number of petitions filed under section 251.
                (3) The number of petitions certified and denied.
                (4) The average time for processing petitions.

    [[Page 123 STAT. 400]]

                (5) The number of petitions filed and firms certified for
            each congressional district of the United States.
                (6) The number of firms that received assistance in
            preparing their petitions.
                (7) The number of firms that received assistance developing
            business recovery plans.
                (8) The number of business recovery plans approved and
            denied by the Secretary of Commerce.
                (9) Sales, employment, and productivity at each firm
            participating in the program at the time of certification.
                (10) Sales, employment, and productivity at each firm upon
            completion of the program and each year for the 2-year period
            following completion.
                (11) The financial assistance received by each firm
            participating in the program.
                (12) The financial contribution made by each firm
            participating in the program.
                (13) The types of technical assistance included in the
            business recovery plans of firms participating in the program.
                (14) The number of firms leaving the program before
            completing the project or projects in their business recovery
            plans and the reason the project was not completed.

        (b) Classification of Data.--To the extent possible, in collecting
    and reporting the data described in subsection (a), the Secretary shall
    classify the data by intermediary organization, State, and national
    totals.
        (c) Report to Congress; Publication.--The Secretary of Commerce
    shall--
                (1) submit the report described in subsection (a) to the
            Committee on Finance of the Senate and the Committee on Ways and
            Means of the House of Representatives; and
                (2) <<NOTE: Federal Register, publication.>>  publish the
            report in the Federal Register and on the website of the
            Department of Commerce.

        (d) Protection of Confidential Information.--The Secretary of
    Commerce may not release information described in subsection (a) that
    the Secretary considers to be confidential business information unless
    the person submitting the confidential business information had notice,
    at the time of submission, that such information would be released by
    the Secretary, or such person subsequently consents to the release of
    the information. Nothing in this subsection shall be construed to
    prohibit the Secretary from providing such confidential business
    information to a court in camera or to another party under a protective
    order issued by a court.

    SEC. 1867. TECHNICAL CORRECTIONS.

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

        (b) Technical Assistance.--Section 253(a)(3) of the Trade Act of
    1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of a certified
    firm'' and inserting ``to a certified firm''.

    [[Page 123 STAT. 401]]

              PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

    SEC. 1871. <<NOTE: 19 USC 2371 note.>>  PURPOSE.

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

    SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

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

            ``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

           ``Subchapter A--Trade Adjustment Assistance for Communities

    ``SEC. 271. <<NOTE: 19 USC 2371.>>  DEFINITIONS.

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

    ``SEC. 272. <<NOTE: 19 USC 2371a.>>  ESTABLISHMENT OF TRADE ADJUSTMENT
                ASSISTANCE FOR COMMUNITIES PROGRAM.

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

    ``SEC. 273. <<NOTE: 19 USC 2371b.>>  ELIGIBILITY; NOTIFICATION.

        ``(a) <<NOTE: Deadlines.>>  Petition.--
                ``(1) In general.--A community may submit a petition to the
            Secretary for an affirmative determination under subsection
            (b)(1) that the community is eligible to apply for assistance
            under this subchapter if--

    [[Page 123 STAT. 402]]

                        ``(A) on or after August 1, 2009, one or more
                    certifications described in subsection (b)(3) are made
                    with respect to the community; and
                        ``(B) the community submits the petition not later
                    than 180 days after the date of the most recent
                    certification.
                ``(2) Special rule with respect to certain communities.--In
            the <<NOTE: Time period.>>  case of a community with respect to
            which one or more certifications described in subsection (b)(3)
            were made on or after January 1, 2007, and before August 1,
            2009, the community may submit not later than February 1, 2010,
            a petition to the Secretary for an affirmative determination
            under subsection (b)(1).

        ``(b) Affirmative Determination.--
                ``(1) In general.--The Secretary shall make an affirmative
            determination that a community is eligible to apply for
            assistance under this subchapter if the Secretary determines
            that the community is a community impacted by trade.
                ``(2) Community impacted by trade.--A community is a
            community impacted by trade if--
                        ``(A) one or more certifications described in
                    paragraph (3) are made with respect to the community;
                    and
                        ``(B) the Secretary determines that the community is
                    significantly affected by the threat to, or the loss of,
                    jobs associated with any such certification.
                ``(3) Certification described.--A certification described in
            this paragraph is a certification--
                        ``(A) by the Secretary of Labor that a group of
                    workers in the community is eligible to apply for
                    assistance under section 223;
                        ``(B) by the Secretary of Commerce that a firm
                    located in the community is eligible to apply for
                    adjustment assistance under section 251; or
                        ``(C) by the Secretary of Agriculture that a group
                    of agricultural commodity producers in the community is
                    eligible to apply for adjustment assistance under
                    section 293.

        ``(c) Notifications.--
                ``(1) Notification to the governor.--The Governor of a State
            shall be notified promptly--
                        ``(A) by the Secretary of Labor, upon making a
                    determination that a group of workers in the State is
                    eligible for assistance under section 223;
                        ``(B) by the Secretary of Commerce, upon making a
                    determination that a firm in the State is eligible for
                    assistance under section 251; and
                        ``(C) by the Secretary of Agriculture, upon making a
                    determination that a group of agricultural commodity
                    producers in the State is eligible for assistance under
                    section 293.
                ``(2) Notification to community.--Upon making an affirmative
            determination under subsection (b)(1) that a community is
            eligible to apply for assistance under this subchapter, the
            Secretary shall promptly notify the community and the Governor
            of the State in which the community is located--
                        ``(A) of the affirmative determination;

    [[Page 123 STAT. 403]]

                        ``(B) of the applicable provisions of this
                    subchapter; and
                        ``(C) of the means for obtaining assistance under
                    this subchapter and other appropriate economic
                    assistance that may be available to the community.

    ``SEC. 274. <<NOTE: 19 USC 2371c.>>  TECHNICAL ASSISTANCE.

        ``(a) In General.--The Secretary shall provide comprehensive
    technical assistance to an eligible community to assist the community
    to--
                ``(1) diversify and strengthen the economy in the community;
                ``(2) identify significant impediments to economic
            development that result from the impact of trade on the
            community; and
                ``(3) develop a strategic plan under section 276 to address
            economic adjustment and workforce dislocation in the community,
            including unemployment among agricultural commodity producers.

        ``(b) Coordination of Federal Response.--The Secretary shall
    coordinate the Federal response to an eligible community by--
                ``(1) identifying Federal, State, and local resources that
            are available to assist the community in responding to economic
            distress; and
                ``(2) assisting the community in accessing available Federal
            assistance and ensuring that such assistance is provided in a
            targeted, integrated manner.

        ``(c) Interagency Community Assistance Working Group.--
                ``(1) In general.--The Secretary <<NOTE: Establishment.>>
            shall establish an interagency Community Assistance Working
            Group, to be chaired by the Secretary or the Secretary's
            designee, which shall assist the Secretary with the coordination
            of the Federal response pursuant to subsection (b).
                ``(2) Membership.--The Working Group shall consist of
            representatives of any Federal department or agency with
            responsibility for providing economic adjustment assistance,
            including the Department of Agriculture, the Department of
            Defense, the Department of Education, the Department of Labor,
            the Department of Housing and Urban Development, the Department
            of Health and Human Services, the Small Business Administration,
            the Department of the Treasury, and any other Federal, State, or
            regional public department or agency the Secretary determines to
            be appropriate.

    ``SEC. 275. <<NOTE: 19 USC 2371d.>>  GRANTS FOR ELIGIBLE COMMUNITIES.

        ``(a) In General.--The Secretary may award a grant under this
    section to an eligible community to assist the community in carrying out
    any project or program that is included in a strategic plan developed by
    the community under section 276.
        ``(b) Application.--
                ``(1) In general.--An eligible community seeking to receive
            a grant under this section shall submit a grant application to
            the Secretary that contains--
                        ``(A) the strategic plan developed by the community
                    under section 276(a)(1)(A) and approved by the Secretary
                    under section 276(a)(1)(B); and

    [[Page 123 STAT. 404]]

                        ``(B) a description of the project or program
                    included in the strategic plan with respect to which the
                    community seeks the grant.
                ``(2) Coordination among grant programs.--If an entity in an
            eligible community is seeking or plans to seek a Community
            College and Career Training Grant under section 278 or a Sector
            Partnership Grant under section 279A while the eligible
            community is seeking a grant under this section, the eligible
            community shall include in the grant application a description
            of how the eligible community will integrate any projects or
            programs carried out using a grant under this section with any
            projects or programs that may be carried out using such other
            grants.

        ``(c) Limitation.--An eligible community may not be awarded more
    than $5,000,000 under this section.
        ``(d) Cost-Sharing.--
                ``(1) Federal share.--The Federal share of a project or
            program for which a grant is awarded under this section may not
            exceed 95 percent of the cost of such project or program.
                ``(2) Community share.--The Secretary shall require, as a
            condition of awarding a grant to an eligible community under
            this section, that the eligible community contribute not less
            than an amount equal to 5 percent of the amount of the grant
            toward the cost of the project or program for which the grant is
            awarded.

        ``(e) Grants to Small- and Medium-Sized Communities.--The Secretary
    shall give priority to grant applications submitted under this section
    by eligible communities that are small- and medium-sized communities.
        ``(f) Annual Report.--Not later than December 15 in each of the
    calendar years 2009 through 2011, the Secretary shall submit to the
    Committee on Finance of the Senate and the Committee on Ways and Means
    of the House of Representatives a report--
                ``(1) describing each grant awarded under this section
            during the preceding fiscal year; and
                ``(2) assessing the impact on the eligible community of each
            such grant awarded in a fiscal year before the fiscal year
            referred to in paragraph (1).

    ``SEC. 276. <<NOTE: 19 USC 2371e.>>  STRATEGIC PLANS.

        ``(a) In General.--
                ``(1) Development.--An eligible community that intends to
            apply for a grant under section 275 shall--
                        ``(A) develop a strategic plan for the community's
                    economic adjustment to the impact of trade; and
                        ``(B) submit the plan to the Secretary for
                    evaluation and approval.
                ``(2) Involvement of private and public entities.--
                        ``(A) In general.--To the extent practicable, an
                    eligible community shall consult with entities described
                    in subparagraph (B) in developing a strategic plan under
                    paragraph (1).
                        ``(B) Entities described.--Entities described in
                    this subparagraph are public and private entities within
                    the eligible community, including--
                              ``(i) local, county, or State government
                          agencies serving the community;

    [[Page 123 STAT. 405]]

                              ``(ii) firms, including small- and medium-
                          sized firms, within the community;
                              ``(iii) local workforce investment boards
                          established under section 117 of the Workforce
                          Investment Act of 1998 (29 U.S.C. 2832);
                              ``(iv) labor organizations, including State
                          labor federations and labor-management
                          initiatives, representing workers in the
                          community; and
                              ``(v) educational institutions, local
                          educational agencies, or other training providers
                          serving the community.

        ``(b) Contents.--The strategic plan shall, at a minimum, contain the
    following:
                ``(1) A description and analysis of the capacity of the
            eligible community to achieve economic adjustment to the impact
            of trade.
                ``(2) An analysis of the economic development challenges and
            opportunities facing the community as well as the strengths and
            weaknesses of the economy of the community.
                ``(3) An assessment of the commitment of the eligible
            community to the strategic plan over the long term and the
            participation and input of members of the community affected by
            economic dislocation.
                ``(4) A description of the role and the participation of the
            entities described in subsection (a)(2)(B) in developing the
            strategic plan.
                ``(5) A description of the projects to be undertaken by the
            eligible community under the strategic plan.
                ``(6) A description of how the strategic plan and the
            projects to be undertaken by the eligible community will
            facilitate the community's economic adjustment.
                ``(7) A description of the educational and training programs
            available to workers in the eligible community and the future
            employment needs of the community.
                ``(8) An assessment of the cost of implementing the
            strategic plan, the timing of funding required by the eligible
            community to implement the strategic plan, and the method of
            financing to be used to implement the strategic plan.
                ``(9) A strategy for continuing the economic adjustment of
            the eligible community after the completion of the projects
            described in paragraph (5).

        ``(c) Grants to Develop Strategic Plans.--
                ``(1) In general.--The Secretary, upon receipt of an
            application from an eligible community, may award a grant to the
            community to assist the community in developing a strategic plan
            under subsection (a)(1). A grant awarded under this paragraph
            shall not exceed 75 percent of the cost of developing the
            strategic plan.
                ``(2) <<NOTE: Time period.>>  Funds to be used.--Of the
            funds appropriated pursuant to section 277(c), the Secretary may
            make available not more than $25,000,000 for each of the fiscal
            years 2009 and 2010, and $6,250,000 for the period beginning
            October 1, 2010, and ending December 31, 2010, to provide grants
            to eligible communities under paragraph (1).

    ``SEC. 277. <<NOTE: 19 USC 2371f.>>  GENERAL PROVISIONS.

        ``(a) Regulations.--

    [[Page 123 STAT. 406]]

                ``(1) In general.--The Secretary shall prescribe such
            regulations as are necessary to carry out the provisions of this
            subchapter, including--
                        ``(A) establishing specific guidelines for the
                    submission and evaluation of strategic plans under
                    section 276;
                        ``(B) establishing specific guidelines for the
                    submission and evaluation of grant applications under
                    section 275; and
                        ``(C) administering the grant programs established
                    under sections 275 and 276.
                ``(2) <<NOTE: Deadline.>>  Consultations.--The Secretary
            shall consult with the Committee on Finance of the Senate and
            the Committee on Ways and Means of the House of Representatives
            not less than 90 days prior to promulgating any final rule or
            regulation pursuant to paragraph (1).

        ``(b) <<NOTE: Designation.>>  Personnel.--The Secretary shall
    designate such staff as may be necessary to carry out the
    responsibilities described in this subchapter.

        ``(c) Authorization of Appropriations.--
                ``(1) In general.--There are authorized to be appropriated
            to the Secretary $150,000,000 for each of the fiscal years 2009
            and 2010, and $37,500,000 for the period beginning October 1,
            2010, and ending December 31, 2010, to carry out this
            subchapter.
                ``(2) Availability.--Amounts appropriated pursuant to this
            subchapter--
                        ``(A) shall be available to provide adjustment
                    assistance to communities that have been approved for
                    assistance pursuant to this chapter on or before
                    December 31, 2010; and
                        ``(B) shall otherwise remain available until
                    expended.
                ``(3) Supplement not supplant.--Funds appropriated pursuant
            to this subchapter shall be used to supplement and not supplant
            other Federal, State, and local public funds expended to provide
            economic development assistance for communities.

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

    ``SEC. 278. <<NOTE: 19 USC 2372.>>  COMMUNITY COLLEGE AND CAREER
                TRAINING GRANT PROGRAM.

        ``(a) Grants Authorized.--
                ``(1) <<NOTE: Effective date.>>  In general.--Beginning
            August 1, 2009, the Secretary may award Community College and
            Career Training Grants to eligible institutions for the purpose
            of developing, offering, or improving educational or career
            training programs for workers eligible for training under
            section 236.
                ``(2) Limitations.--An eligible institution may not be
            awarded--
                        ``(A) more than one grant under this section; or
                        ``(B) a grant under this section in excess of
                    $1,000,000.

        ``(b) Definitions.--In this section:
                ``(1) Eligible institution.--The term `eligible institution'
            means an institution of higher education (as defined in section
            102 of the Higher Education Act of 1965 (20 U.S.C. 1002)),

    [[Page 123 STAT. 407]]

            but only with respect to a program offered by the institution
            that can be completed in not more than 2 years.
                ``(2) Secretary.--The term `Secretary' means the Secretary
            of Labor.

        ``(c) Grant Proposals.--
                ``(1) In general.--An eligible institution seeking to
            receive a grant under this section shall submit a grant proposal
            to the Secretary at such time, in such manner, and containing
            such information as the Secretary may require.
                ``(2) <<NOTE: Deadline.>>  Guidelines.--Not later than June
            1, 2009, the Secretary shall--
                        ``(A) promulgate guidelines for the submission of
                    grant proposals under this section; and
                        ``(B) <<NOTE: Web posting.>>  publish and maintain
                    such guidelines on the website of the Department of
                    Labor.
                ``(3) Assistance.--The Secretary shall offer assistance in
            preparing a grant proposal to any eligible institution that
            requests such assistance.
                ``(4) General requirements for grant proposals.--
                        ``(A) In general.--A grant proposal submitted to the
                    Secretary under this section shall include a detailed
                    description of--
                              ``(i) the specific project for which the grant
                          proposal is submitted, including the manner in
                          which the grant will be used to develop, offer, or
                          improve an educational or career training program
                          that is suited to workers eligible for training
                          under section 236;
                              ``(ii) the extent to which the project for
                          which the grant proposal is submitted will meet
                          the educational or career training needs of
                          workers in the community served by the eligible
                          institution who are eligible for training under
                          section 236;
                              ``(iii) the extent to which the project for
                          which the grant proposal is submitted fits within
                          any overall strategic plan developed by an
                          eligible community under section 276;
                              ``(iv) the extent to which the project for
                          which the grant proposal is submitted relates to
                          any project funded by a Sector Partnership Grant
                          awarded under section 279A; and
                              ``(v) any previous experience of the eligible
                          institution in providing educational or career
                          training programs to workers eligible for training
                          under section 236.
                        ``(B) Absence of experience.--The absence of any
                    previous experience in providing educational or career
                    training programs described in subparagraph (A)(v) shall
                    not automatically disqualify an eligible institution
                    from receiving a grant under this section.
                ``(5) Community outreach required.--In order to be
            considered by the Secretary, a grant proposal submitted by an
            eligible institution under this section shall--
                        ``(A) demonstrate that the eligible institution--
                              ``(i) reached out to employers, and other
                          entities described in section 276(a)(2)(B) to
                          identify--

    [[Page 123 STAT. 408]]

                                        ``(I) any shortcomings in existing
                                    educational and career training
                                    opportunities available to workers in
                                    the community; and
                                        ``(II) any future employment
                                    opportunities within the community and
                                    the educational and career training
                                    skills required for workers to meet the
                                    future employment demand;
                              ``(ii) reached out to other similarly situated
                          institutions in an effort to benefit from any best
                          practices that may be shared with respect to
                          providing educational or career training programs
                          to workers eligible for training under section
                          236; and
                              ``(iii) reached out to any eligible
                          partnership in the community that has sought or
                          received a Sector Partnership Grant under section
                          279A to enhance the effectiveness of each grant
                          and avoid duplication of efforts; and
                        ``(B) include a detailed description of--
                              ``(i) the extent and outcome of the outreach
                          conducted under subparagraph (A);
                              ``(ii) the extent to which the project for
                          which the grant proposal is submitted will
                          contribute to meeting any shortcomings identified
                          under subparagraph (A)(i)(I) or any educational or
                          career training needs identified under
                          subparagraph (A)(i)(II); and
                              ``(iii) the extent to which employers,
                          including small- and medium-sized firms within the
                          community, have demonstrated a commitment to
                          employing workers who would benefit from the
                          project for which the grant proposal is submitted.

        ``(d) Criteria for Award of Grants.--
                ``(1) In general.--Subject to the appropriation of funds,
            the Secretary shall award a grant under this section based on--
                        ``(A) a determination of the merits of the grant
                    proposal submitted by the eligible institution to
                    develop, offer, or improve educational or career
                    training programs to be made available to workers
                    eligible for training under section 236;
                        ``(B) an evaluation of the likely employment
                    opportunities available to workers who complete an
                    educational or career training program that the eligible
                    institution proposes to develop, offer, or improve; and
                        ``(C) an evaluation of prior demand for training
                    programs by workers eligible for training under section
                    236 in the community served by the eligible institution,
                    as well as the availability and capacity of existing
                    training programs to meet future demand for training
                    programs.
                ``(2) Priority for certain communities.--In awarding grants
            under this section, the Secretary shall give priority to an
            eligible institution that serves a community that the Secretary
            of Commerce has determined under section 273 is eligible to
            apply for assistance under subchapter A within the 5-year period
            preceding the date on which the grant proposal is submitted to
            the Secretary under this section.

    [[Page 123 STAT. 409]]

                ``(3) Matching requirements.--A grant awarded under this
            section may not be used to satisfy any private matching
            requirement under any other provision of law.

        ``(e) Annual Report.--Not later than December 15 in each of the
    calendar years 2009 through 2011, the Secretary shall submit to the
    Committee on Finance of the Senate and the Committee on Ways and Means
    of the House of Representatives a report--
                ``(1) describing each grant awarded under this section
            during the preceding fiscal year; and
                ``(2) assessing the impact of each award of a grant under
            this section in a fiscal year preceding the fiscal year referred
            to in paragraph (1) on workers receiving training under section
            236.

    ``SEC. 279. <<NOTE: 19 USC 2372a.>>  AUTHORIZATION OF APPROPRIATIONS.

        ``(a) <<NOTE: Time period.>>  Authorization of Appropriations.--
    There are authorized to be appropriated to the Secretary of Labor
    $40,000,000 for each of the fiscal years 2009 and 2010, and $10,000,000
    for the period beginning October 1, 2010, and ending December 31, 2010,
    to fund the Community College and Career Training Grant Program. Funds
    appropriated pursuant to this section shall remain available until
    expended.

        ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
    section shall be used to supplement and not supplant other Federal,
    State, and local public funds expended to support community college and
    career training programs.

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

    ``SEC. 279A. <<NOTE: 19 USC 2373.>>  INDUSTRY OR SECTOR PARTNERSHIP
                GRANT PROGRAM FOR COMMUNITIES IMPACTED BY TRADE.

        ``(a) Purpose.--The purpose of this subchapter is to facilitate
    efforts by industry or sector partnerships to strengthen and revitalize
    industries and create employment opportunities for workers in
    communities impacted by trade.
        ``(b) Definitions.--In this subchapter:
                ``(1) Community impacted by trade.--The term `community
            impacted by trade' has the meaning given that term in section
            271.
                ``(2) Dislocated worker.--The term `dislocated worker' means
            a worker who has been totally or partially separated, or is
            threatened with total or partial separation, from employment in
            an industry or sector in a community impacted by trade.
                ``(3) Eligible partnership.--The term `eligible partnership'
            means a voluntary partnership composed of public and private
            persons, firms, or other entities within a community impacted by
            trade, that shall include representatives of--
                        ``(A) an industry or sector within the community,
                    including an industry association;
                        ``(B) local, county, or State government;
                        ``(C) multiple firms in the industry or sector,
                    including small- and medium-sized firms, within the
                    community;
                        ``(D) local workforce investment boards established
                    under section 117 of the Workforce Investment Act of
                    1998 (29 U.S.C. 2832);

    [[Page 123 STAT. 410]]

                        ``(E) labor organizations, including State labor
                    federations and labor-management initiatives,
                    representing workers in the community; and
                        ``(F) educational institutions, local educational
                    agencies, or other training providers serving the
                    community.
                ``(4) Lead entity.--The term `lead entity' means--
                        ``(A) an entity designated by the eligible
                    partnership to be responsible for submitting a grant
                    proposal under subsection (e) and serving as the
                    eligible partnership's fiscal agent in expending any
                    Sector Partnership Grant awarded under this section; or
                        ``(B) a State agency designated by the Governor of
                    the State to carry out the responsibilities described in
                    subparagraph (A).
                ``(5) Secretary.--The term `Secretary' means the Secretary
            of Labor.
                ``(6) Targeted industry or sector.--The term `targeted
            industry or sector' means the industry or sector represented by
            an eligible partnership.

        ``(c) Sector Partnership Grants Authorized.--
    Beginning <<NOTE: Effective date.>>  on August 1, 2009, and subject to
    the appropriation of funds, the Secretary shall award Sector Partnership
    Grants to eligible partnerships to assist the eligible partnerships in
    carrying out projects, over periods of not more than 3 years, to
    strengthen and revitalize industries and sectors and create employment
    opportunities for dislocated workers.

        ``(d) Use of Sector Partnership Grants.--An eligible partnership may
    use a Sector Partnership Grant to carry out any project that the
    Secretary determines will further the purpose of this subchapter, which
    may include--
                ``(1) identifying the skill needs of the targeted industry
            or sector and any gaps in the available supply of skilled
            workers in the community impacted by trade, and developing
            strategies for filling the gaps, including by--
                        ``(A) developing systems to better link firms in the
                    targeted industry or sector to available skilled
                    workers;
                        ``(B) helping firms in the targeted industry or
                    sector to obtain access to new sources of qualified job
                    applicants;
                        ``(C) retraining dislocated and incumbent workers;
                    or
                        ``(D) facilitating the training of new skilled
                    workers by aligning the instruction provided by local
                    suppliers of education and training services with the
                    needs of the targeted industry or sector;
                ``(2) analyzing the skills and education levels of
            dislocated and incumbent workers and developing training to
            address skill gaps that prevent such workers from obtaining jobs
            in the targeted industry or sector;
                ``(3) helping firms, especially small- and medium-sized
            firms, in the targeted industry or sector increase their
            productivity and the productivity of their workers;
                ``(4) helping such firms retain incumbent workers;
                ``(5) developing learning consortia of small- and medium-
            sized firms in the targeted industry or sector with similar
            training needs to enable the firms to combine their purchases of
            training services, and thereby lower their training costs;
                ``(6) providing information and outreach activities to firms
            in the targeted industry or sector regarding the activities of

    [[Page 123 STAT. 411]]

            the eligible partnership and other local service suppliers that
            could assist the firms in meeting needs for skilled workers;
                ``(7) seeking, applying, and disseminating best practices
            learned from similarly situated communities impacted by trade in
            the development and implementation of economic growth and
            revitalization strategies; and
                ``(8) identifying additional public and private resources to
            support the activities described in this subsection, which may
            include the option to apply for a community grant under section
            275 or a Community College and Career Training Grant under
            section 278 (subject to meeting any additional requirements of
            those sections).

        ``(e) Grant Proposals.--
                ``(1) In general.--The lead entity of an eligible
            partnership seeking to receive a Sector Partnership Grant under
            this section shall submit a grant proposal to the Secretary at
            such time, in such manner, and containing such information as
            the Secretary may require.
                ``(2) General requirements of grant proposals.--A grant
            proposal submitted under paragraph (1) shall, at a minimum--
                        ``(A) identify the members of the eligible
                    partnership;
                        ``(B) identify the targeted industry or sector for
                    which the eligible partnership intends to carry out
                    projects using the Sector Partnership Grant;
                        ``(C) describe the goals that the eligible
                    partnership intends to achieve to promote the targeted
                    industry or sector;
                        ``(D) describe the projects that the eligible
                    partnership will undertake to achieve such goals;
                        ``(E) demonstrate that the eligible partnership has
                    the organizational capacity to carry out the projects
                    described in subparagraph (D);
                        ``(F) explain--
                              ``(i) whether--
                                        ``(I) the community impacted by
                                    trade has sought or received a community
                                    grant under section 275;
                                        ``(II) an eligible institution in
                                    the community has sought or received a
                                    Community College and Career Training
                                    Grant under section 278; or
                                        ``(III) any other entity in the
                                    community has received funds pursuant to
                                    any other federally funded training
                                    project; and
                              ``(ii) how the eligible partnership will
                          coordinate its use of a Sector Partnership Grant
                          with the use of such other grants or funds in
                          order to enhance the effectiveness of each grant
                          and any such funds and avoid duplication of
                          efforts; and
                        ``(G) include performance measures, developed based
                    on the performance measures issued by the Secretary
                    under subsection (g)(2), and a timeline for measuring
                    progress toward achieving the goals described in
                    subparagraph (C).

        ``(f) Award of Grants.--
                ``(1) In general.--Upon application by the lead entity of an
            eligible partnership, the Secretary may award a Sector
            Partnership Grant to the eligible partnership to assist the

    [[Page 123 STAT. 412]]

            partnership in carrying out any of the projects in the grant
            proposal that the Secretary determines will further the purposes
            of this subchapter.
                ``(2) Limitations.--An eligible partnership may not be
            awarded--
                        ``(A) more than one Sector Partnership Grant; or
                        ``(B) a total grant award under this subchapter in
                    excess of--
                              ``(i) except as provided in clause (ii),
                          $2,500,000; or
                              ``(ii) in the case of an eligible partnership
                          located within a community impacted by trade that
                          is not served by an institution receiving a
                          Community College and Career Training Grant under
                          section 278, $3,000,000.

        ``(g) Administration by the Secretary.--
                ``(1) Technical assistance and oversight.--
                        ``(A) In general.--The Secretary shall provide
                    technical assistance to, and oversight of, the lead
                    entity of an eligible partnership in applying for and
                    administering Sector Partnership Grants awarded under
                    this section.
                        ``(B) Technical assistance.--Technical assistance
                    provided under subparagraph (A) shall include providing
                    conferences and such other methods of collecting and
                    disseminating information on best practices developed by
                    eligible partnerships as the Secretary determines
                    appropriate.
                        ``(C) Grants or contracts for technical
                    assistance.--The Secretary may award a grant or contract
                    to one or more national or State organizations to
                    provide technical assistance to foster the planning,
                    formation, and implementation of eligible partnerships.
                ``(2) Performance measures.--The Secretary shall issue a
            range of performance measures, with quantifiable benchmarks, and
            methodologies that eligible partnerships may use to measure
            progress toward the goals described in subsection (e). In
            developing such measures, the Secretary shall consider the
            benefits of the eligible partnership and its activities for
            workers, firms, industries, and communities.

        ``(h) Reports.--
                ``(1) Progress report.--Not later than 1 year after
            receiving a Sector Partnership Grant, and 3 years thereafter,
            the lead entity shall submit to the Secretary, on behalf of the
            eligible partnership, a report containing--
                        ``(A) a detailed description of the progress made
                    toward achieving the goals described in subsection
                    (e)(2)(C), using the performance measures required under
                    subsection (e)(2)(G);
                        ``(B) a detailed evaluation of the impact of the
                    grant award on workers and employers in the community
                    impacted by trade; and
                        ``(C) a detailed description of all expenditures of
                    funds awarded to the eligible partnership under the
                    Sector Partnership Grant approved by the Secretary under
                    this subchapter.
                ``(2) Annual report.--Not later than December 15 in each of
            the calendar years 2009 through 2011, the Secretary shall submit
            to the Committee on Finance of the Senate and the

    [[Page 123 STAT. 413]]

            Committee on Ways and Means of the House of Representatives a
            report--
                        ``(A) describing each Sector Partnership Grant
                    awarded to an eligible partnership during the preceding
                    fiscal year; and
                        ``(B) assessing the impact of each Sector
                    Partnership Grant awarded in a fiscal year preceding the
                    fiscal year referred to in subparagraph (A) on workers
                    and employers in communities impacted by trade.

    ``SEC. 279B. <<NOTE: 19 USC 2373a.>>  AUTHORIZATION OF APPROPRIATIONS.

        ``(a) <<NOTE: Time period.>>  In General.--There are authorized to
    be appropriated to the Secretary of Labor $40,000,000 for each of the
    fiscal years 2009 and 2010, and $10,000,000 for the period beginning
    October 1, 2010, and ending December 31, 2010, to carry out the Sector
    Partnership Grant program under section 279A. Funds appropriated
    pursuant to this section shall remain available until expended.

        ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
    section shall be used to supplement and not supplant other Federal,
    State, and local public funds expended to support the economic
    development of local communities.
        ``(c) Administrative Costs.--The Secretary may retain not more than
    5 percent of the funds appropriated pursuant to this section for each
    fiscal year to administer the Sector Partnership Grant program under
    section 279A.

                       ``Subchapter D--General Provisions

    ``SEC. 279C. <<NOTE: 19 USC 2374.>>  RULE OF CONSTRUCTION.

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

    SEC. 1873. CONFORMING AMENDMENTS.

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

            ``Chapter 4--Trade Adjustment Assistance for Communities

           ``Subchapter A--Trade Adjustment Assistance for Communities

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

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

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

    [[Page 123 STAT. 414]]

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

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

                       ``Subchapter D--General Provisions

    ``Sec. 279C. Rule of construction.''

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

                PART IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

    SEC. 1881. DEFINITIONS.

        Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
                (1) by amending paragraph (1) to read as follows:
                ``(1) Agricultural commodity.--The term `agricultural
            commodity' includes--
                        ``(A) any agricultural commodity (including
                    livestock) in its raw or natural state;
                        ``(B) any class of goods within an agricultural
                    commodity; and
                        ``(C) in the case of an agricultural commodity
                    producer described in paragraph (2)(B), wild-caught
                    aquatic species.'';
                (2) by amending paragraph (2) to read as follows:
                ``(2) Agricultural commodity producer.--The term
            `agricultural commodity producer' means--
                        ``(A) a person that shares in the risk of producing
                    an agricultural commodity and that is entitled to a
                    share of the commodity for marketing, including an
                    operator, a sharecropper, or a person that owns or rents
                    the land on which the commodity is produced; or
                        ``(B) a person that reports gain or loss from the
                    trade or business of fishing on the person's annual
                    Federal income tax return for the taxable year that most
                    closely

    [[Page 123 STAT. 415]]

                    corresponds to the marketing year with respect to which
                    a petition is filed under section 292.''; and
                (3) by adding at the end the following:
                ``(7) Marketing year.--The term `marketing year' means--
                        ``(A) a marketing year designated by the Secretary
                    with respect to an agricultural commodity; or
                        ``(B) in the case of an agricultural commodity with
                    respect to which the Secretary does not designate a
                    marketing year, a calendar year.''.

    SEC. 1882. ELIGIBILITY.

        (a) In General.--Section 292 of the Trade Act of 1974 (19 U.S.C.
    2401a) is amended by striking subsections (c) through (e) and inserting
    the following:
        ``(c) Group Eligibility Requirements.-- <<NOTE: Certification.>> The
    Secretary shall certify a group of agricultural commodity producers as
    eligible to apply for adjustment assistance under this chapter if the
    Secretary determines that--
                ``(1)(A) the national average price of the agricultural
            commodity produced by the group during the most recent marketing
            year for which data are available is less than 85 percent of the
            average of the national average price for the commodity in the 3
            marketing years preceding such marketing year;
                ``(B) the quantity of production of the agricultural
            commodity produced by the group during such marketing year is
            less than 85 percent of the average of the quantity of
            production of the commodity produced by the group in the 3
            marketing years preceding such marketing year;
                ``(C) the value of production of the agricultural commodity
            produced by the group during such marketing year is less than 85
            percent of the average value of production of the commodity
            produced by the group in the 3 marketing years preceding such
            marketing year; or
                ``(D) the cash receipts for the agricultural commodity
            produced by the group during such marketing year are less than
            85 percent of the average of the cash receipts for the commodity
            produced by the group in the 3 marketing years preceding such
            marketing year;
                ``(2) the volume of imports of articles like or directly
            competitive with the agricultural commodity produced by the
            group in the marketing year with respect to which the group
            files the petition increased compared to the average volume of
            such imports during the 3 marketing years preceding such
            marketing year; and
                ``(3) the increase in such imports contributed importantly
            to the decrease in the national average price, quantity of
            production, or value of production of, or cash receipts for, the
            agricultural commodity, as described in paragraph (1).

        ``(d) <<NOTE: Deadline. Notice. Federal Register, publication.>>
    Eligibility of Certain Other Producers.--An agricultural commodity
    producer or group of producers that resides outside of the State or
    region identified in the petition filed under subsection (a) may file a
    request to become a party to that petition not later than 15 days after
    the date the notice is published in the Federal Register under
    subsection (a) with respect to that petition.

        ``(e) Treatment of Classes of Goods Within a Commodity.--In any case
    in which there are separate classes of goods within

    [[Page 123 STAT. 416]]

    an agricultural commodity, the Secretary shall treat each class as a
    separate commodity in determining under subsection (c)--
                ``(1) group eligibility;
                ``(2) the national average price, quantity of production, or
            value of production, or cash receipts; and
                ``(3) the volume of imports.''.

        (b) Conforming Amendments.--Section 293 of the Trade Act of 1974 (19
    U.S.C. 2401b) is amended--
                (1) in subsection (a), by striking ``section 292 (c) or (d),
            as the case may be,'' and inserting ``section 292(c)''; and
                (2) in subsection (c), by striking ``decline in price for''
            and inserting ``decrease in the national average price, quantity
            of production, or value of production of, or cash receipts
            for,''.

    SEC. 1883. BENEFITS.

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

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

        ``(a) In General.--
                ``(1) Requirements.--
                        ``(A) In general.-- <<NOTE: Deadline.>> Benefits
                    under this chapter shall be available to an agricultural
                    commodity producer covered by a certification under this
                    chapter who files an application for such benefits not
                    later than 90 days after the date on which the Secretary
                    makes a determination and issues a certification of
                    eligibility under section 293, if the producer submits
                    to the Secretary sufficient information to establish
                    that--
                              ``(i) the producer produced the agricultural
                          commodity covered by the application filed under
                          this subsection in the marketing year with respect
                          to which the petition is filed and in at least 1
                          of the 3 marketing years preceding that marketing
                          year;
                              ``(ii)(I) the quantity of the agricultural
                          commodity that was produced by the producer in the
                          marketing year with respect to which the petition
                          is filed has decreased compared to the most recent
                          marketing year preceding that marketing year for
                          which data are available; or
                              ``(II)(aa) the price received for the
                          agricultural commodity by the producer during the
                          marketing year with respect to which the petition
                          is filed has decreased compared to the average
                          price for the commodity received by the producer
                          in the 3 marketing years preceding that marketing
                          year; or
                              ``(bb) the county level price maintained by
                          the Secretary for the agricultural commodity on
                          the date on which the petition is filed has
                          decreased compared to the average county level
                          price for the commodity in the 3 marketing years
                          preceding the date on which the petition is filed;
                          and
                              ``(iii) the producer is not receiving--
                                        ``(I) cash benefits under chapter 2
                                    or 3; or
                                        ``(II) benefits based on the
                                    production of an agricultural commodity
                                    covered by another petition filed under
                                    this chapter.

    [[Page 123 STAT. 417]]

                        ``(B) Special rule with respect to crops not grown
                    every year.--For purposes of subparagraph
                    (A)(ii)(II)(aa), if a petition is filed with respect to
                    an agricultural commodity that is not produced by the
                    producer every year, an agricultural commodity producer
                    producing that commodity may establish the average price
                    received for the commodity by the producer in the 3
                    marketing years preceding the year with respect to which
                    the petition is filed by using average price data for
                    the 3 most recent marketing years in which the producer
                    produced the commodity and for which data are available.
                ``(2) Limitations based on adjusted gross income.--
                        ``(A) In general.--Notwithstanding any other
                    provision of this chapter, an agricultural commodity
                    producer shall not be eligible for assistance under this
                    chapter in any year in which the average adjusted gross
                    income (as defined in section 1001D(a) of the Food
                    Security Act of 1985 (7 U.S.C. 1308-3a(a))) of the
                    producer exceeds the level set forth in subparagraph (A)
                    or (B) of section 1001D(b)(1) of the Food Security Act
                    of 1985 (7 U.S.C. 1308-3a(b)(1)), whichever is
                    applicable.
                        ``(B) Demonstration of compliance.--An agricultural
                    commodity producer shall provide to the Secretary such
                    information as the Secretary determines necessary to
                    demonstrate that the producer is in compliance with the
                    limitation under subparagraph (A).
                        ``(C) Counter-cyclical and acre payments.--The total
                    amount of payments made to an agricultural commodity
                    producer under this chapter during any crop year may not
                    exceed the limitations on payments set forth in
                    subsections (b)(2), (b)(3), (c)(2), and (c)(3) of
                    section 1001 of the Food Security Act of 1985 (7 U.S.C.
                    1308).

        ``(b) Technical Assistance.--
                ``(1) Initial technical assistance.--
                        ``(A) In general.--An agricultural commodity
                    producer that files an application and meets the
                    requirements under subsection (a)(1) shall be entitled
                    to receive initial technical assistance designed to
                    improve the competitiveness of the production and
                    marketing of the agricultural commodity with respect to
                    which the producer was certified under this chapter.
                    Such assistance shall include information regarding--
                              ``(i) improving the yield and marketing of
                          that agricultural commodity; and
                              ``(ii) the feasibility and desirability of
                          substituting one or more alternative agricultural
                          commodities for that agricultural commodity.
                        ``(B) Transportation and subsistence expenses.--
                              ``(i) In general.--The Secretary may authorize
                          supplemental assistance necessary to defray
                          reasonable transportation and subsistence expenses
                          incurred by an agricultural commodity producer in
                          connection with initial technical assistance under
                          subparagraph (A) if such assistance is provided at
                          facilities that are not within normal commuting
                          distance of the regular place of residence of the
                          producer.

    [[Page 123 STAT. 418]]

                              ``(ii) Exceptions.--The Secretary may not
                          authorize payments to an agricultural commodity
                          producer under clause (i)--
                                        ``(I) for subsistence expenses that
                                    exceed the lesser of--
                                                ``(aa) the actual per diem
                                            expenses for subsistence
                                            incurred by the producer; or
                                                ``(bb) the prevailing per
                                            diem allowance rate authorized
                                            under Federal travel
                                            regulations; or
                                        ``(II) for travel expenses that
                                    exceed the prevailing mileage rate
                                    authorized under the Federal travel
                                    regulations.
                ``(2) Intensive technical assistance.--A producer that has
            completed initial technical assistance under paragraph (1) shall
            be eligible to participate in intensive technical assistance.
            Such assistance shall consist of--
                        ``(A) a series of courses to further assist the
                    producer in improving the competitiveness of the
                    producer in producing--
                              ``(i) the agricultural commodity with respect
                          to which the producer was certified under this
                          chapter; or
                              ``(ii) another agricultural commodity; and
                        ``(B) assistance in developing an initial business
                    plan based on the courses completed under subparagraph
                    (A).
                ``(3) Initial business plan.--
                        ``(A) Approval by secretary.--The Secretary shall
                    approve an initial business plan developed under
                    paragraph (2)(B) if the plan--
                              ``(i) reflects the skills gained by the
                          producer through the courses described in
                          paragraph (2)(A); and
                              ``(ii) demonstrates how the producer will
                          apply those skills to the circumstances of the
                          producer.
                        ``(B) Financial assistance for implementing initial
                    business plan.--Upon approval of the producer's initial
                    business plan by the Secretary under subparagraph (A), a
                    producer shall be entitled to an amount not to exceed
                    $4,000 to--
                              ``(i) implement the initial business plan; or
                              ``(ii) develop a long-term business adjustment
                          plan under paragraph (4).
                ``(4) Long-term business adjustment plan.--
                        ``(A) In general.--A producer that has completed
                    intensive technical assistance under paragraph (2) and
                    whose initial business plan has been approved under
                    paragraph (3)(A) shall be eligible for, in addition to
                    the amount under subparagraph (C), assistance in
                    developing a long-term business adjustment plan.
                        ``(B) Approval of long-term business adjustment
                    plans.--The Secretary shall approve a long-term business
                    adjustment plan developed under subparagraph (A) if the
                    Secretary determines that the plan--
                              ``(i) includes steps reasonably calculated to
                          materially contribute to the economic adjustment
                          of the producer to changing market conditions;

    [[Page 123 STAT. 419]]

                              ``(ii) takes into consideration the interests
                          of the workers employed by the producer; and
                              ``(iii) demonstrates that the producer will
                          have sufficient resources to implement the
                          business plan.
                        ``(C) Plan implementation.--Upon approval of the
                    producer's long-term business adjustment plan under
                    subparagraph (B), a producer shall be entitled to an
                    amount not to exceed $8,000 to implement the long-term
                    business adjustment plan.

        ``(c) Maximum Amount of Assistance.--An agricultural commodity
    producer may receive not more than $12,000 under paragraphs (3) and (4)
    of subsection (b) in the 36-month period following certification under
    section 293.
        ``(d) Limitations on Other Assistance.--An agricultural commodity
    producer that receives benefits under this chapter (other than initial
    technical assistance under subsection (b)(1)) shall not be eligible for
    cash benefits under chapter 2 or 3.''.
        (b) Clerical Amendment.--The table of contents of the Trade Act of
    1974 is amended by striking the item relating to section 296 and
    inserting the following:

    ``Sec. 296. Qualifying requirements and benefits for agricultural
               commodity producers.''.

    SEC. 1884. REPORT.

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

    SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.

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

    SEC. 1886. <<NOTE: 19 USC 2271 note.>> DETERMINATION OF INCREASES OF
                IMPORTS FOR CERTAIN FISHERMEN.

        For purposes of chapters 2 and 6 of title II of the Trade Act of
    1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity
    producer that--
                (1) is a fisherman or aquaculture producer, and
                (2) is otherwise eligible for adjustment assistance under
            chapter 2 or 6, as the case may be,

    [[Page 123 STAT. 420]]

    the increase in imports of articles like or directly competitive with
    the agricultural commodity produced by such producer may be based on
    imports of wild-caught seafood, farm-raised seafood, or both.

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

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

                           PART V--GENERAL PROVISIONS

    SEC. 1891. <<NOTE: 19 USC 2271 note.>> EFFECTIVE DATE.

        (a) In General.--Except as otherwise provided in this subtitle, and
    subsection (b) of this section, this subtitle and the amendments made by
    this subtitle--
                (1) shall take effect upon the expiration of the 90-day
            period beginning on the date of the enactment of this Act; and
                (2) <<NOTE: Applicability.>> shall apply to--
                        (A) petitions for certification filed under chapter
                    2, 3, or 6 of title II of the Trade Act of 1974 on or
                    after the effective date described in paragraph (1); and
                        (B) petitions for assistance and proposals for
                    grants filed under chapter 4 of title II of the Trade
                    Act of 1974 on or after such effective date.

        (b) Certifications Made Before Effective Date.--Notwithstanding
    subsection (a)--
                (1) a worker shall continue to receive (or be eligible to
            receive) trade adjustment assistance and other benefits under
            subchapter B of chapter 2 of title II of the Trade Act of 1974,
            as in effect on the day before the effective date described in
            subsection (a)(1), for any week for which the worker meets the
            eligibility requirements of such chapter 2 as in effect on the
            day before such effective date, if the worker--
                        (A) is certified as eligible for trade adjustment
                    assistance benefits under such chapter 2 pursuant to a
                    petition filed under section 221 of the Trade Act of
                    1974 on or before such effective date; and
                        (B) would otherwise be eligible to receive trade
                    adjustment assistance benefits under such chapter as in
                    effect on the day before such effective date;
                (2) a worker shall continue to receive (or be eligible to
            receive) benefits under section 246(a)(2) of the Trade Act of
            1974, as in effect on the day before the effective date
            described in subsection (a)(1), for such period for which the
            worker meets the eligibility requirements of section 246 of that
            Act as in effect on the day before such effective date, if the
            worker--
                        (A) is certified as eligible for benefits under such
                    section 246 pursuant to a petition filed under section
                    221 of the Trade Act of 1974 on or before such effective
                    date; and

    [[Page 123 STAT. 421]]

                        (B) would otherwise be eligible to receive benefits
                    under such section 246(a)(2) as in effect on the day
                    before such effective date; and
                (3) a firm shall continue to receive (or be eligible to
            receive) adjustment assistance under chapter 3 of title II of
            the Trade Act of 1974, as in effect on the day before the
            effective date described in subsection (a)(1), for such period
            for which the firm meets the eligibility requirements of such
            chapter 3 as in effect on the day before such effective date, if
            the firm--
                        (A) is certified as eligible for benefits under such
                    chapter 3 pursuant to a petition filed under section 251
                    of the Trade Act of 1974 on or before such effective
                    date; and
                        (B) would otherwise be eligible to receive benefits
                    under such chapter 3 as in effect on the day before such
                    effective date.

    SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS.

        (a) For Workers.--Section 245(a) of the Trade Act of 1974 (19 U.S.C.
    2317(a)) is amended by striking ``December 31, 2007'' and inserting
    ``December 31, 2010''.
        (b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C.
    2271 note prec.) is amended--
                (1) in subsection (a), by striking ``December 31, 2007''
            each place it appears and inserting ``December 31, 2010''; and
                (2) by amending subsection (b) to read as follows:

        ``(b) Other Assistance.--
                ``(1) Assistance for firms.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), technical assistance and grants may
                    not be provided under chapter 3 after December 31, 2010.
                        ``(B) Exception.--Notwithstanding subparagraph (A),
                    any technical assistance or grant approved under chapter
                    3 on or before December 31, 2010, may be provided--
                              ``(i) to the extent funds are available
                          pursuant to such chapter for such purpose; and
                              ``(ii) to the extent the recipient of the
                          technical assistance or grant is otherwise
                          eligible to receive such technical assistance or
                          grant, as the case may be.
                ``(2) Farmers.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), technical assistance and financial
                    assistance may not be provided under chapter 6 after
                    December 31, 2010.
                        ``(B) Exception.--Notwithstanding subparagraph (A),
                    any technical or financial assistance approved under
                    chapter 6 on or before December 31, 2010, may be
                    provided--
                              ``(i) to the extent funds are available
                          pursuant to such chapter for such purpose; and
                              ``(ii) to the extent the recipient of the
                          technical or financial assistance is otherwise
                          eligible to receive such technical or financial
                          assistance, as the case may be.
                ``(3) Assistance for communities.--

    [[Page 123 STAT. 422]]

                        ``(A) In general.--Except as provided in
                    subparagraph (B), technical assistance and grants may
                    not be provided under chapter 4 after December 31, 2010.
                        ``(B) Exception.--Notwithstanding subparagraph (A),
                    any technical assistance or grant approved under chapter
                    4 on or before December 31, 2010, may be provided--
                              ``(i) to the extent funds are available
                          pursuant to such chapter for such purpose; and
                              ``(ii) to the extent the recipient of the
                          technical assistance or grant is otherwise
                          eligible to receive such technical assistance or
                          grant, as the case may be.''.

    SEC. 1893. <<NOTE: 19 USC 2271 note prec.>> TERMINATION; RELATED
                PROVISIONS.

        (a) Sunset.--
                (1) In general.--Subject to paragraph (2), the amendments
            made by this subtitle to chapters 2, 3, 4, 5, and 6 of title II
            of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not
            apply on or after January 1, 2011.
                (2) Exception.--The amendments made by this subtitle to
            section 285 of the Trade Act of 1974 shall continue to apply on
            and after January 1, 2011, with respect to--
                        (A) workers certified as eligible for trade
                    adjustment assistance benefits under chapter 2 of title
                    II of that Act pursuant to petitions filed under section
                    221 of that Act before January 1, 2011;
                        (B) firms certified as eligible for technical
                    assistance or grants under chapter 3 of title II of that
                    Act pursuant to petitions filed under section 251 of
                    that Act before January 1, 2011;
                        (C) recipients approved for technical assistance or
                    grants under chapter 4 of title II of that Act pursuant
                    to petitions for assistance or proposals for grants (as
                    the case may be) filed pursuant to such chapter before
                    January 1, 2011; and
                        (D) agricultural commodity producers certified as
                    eligible for technical or financial assistance under
                    chapter 6 of title II of that Act pursuant to petitions
                    filed under section 292 of that Act before January 1,
                    2011.

        (b) <<NOTE: Effective date.>>  Application of Prior Law.--Chapters
    2, 3, 4, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271
    et seq.) shall be applied and administered beginning January 1, 2011, as
    if the amendments made by this subtitle (other than part VI) had never
    been enacted, except that in applying and administering such chapters--
                (1) section 245 of that Act shall be applied and
            administered by substituting ``2011'' for ``2007'';
                (2) section 246(b) of that Act shall be applied and
            administered by substituting ``December 31, 2011'' for ``the
            date that is 5 years'' and all that follows through ``State'';
                (3) section 256(b) of that Act shall be applied and
            administered by substituting ``the 1-year period beginning
            January 1, 2011'' for ``each of fiscal years 2003 through 2007,
            and $4,000,000 for the 3-month period beginning October 1,
            2007'';
                (4) section 298(a) of that Act shall be applied and
            administered by substituting ``the 1-year period beginning
            January 1, 2011'' for ``each of the fiscal years'' and all that
            follows through ``October 1, 2007''; and

    [[Page 123 STAT. 423]]

                (5) subject to subsection (a)(2), section 285 of that Act
            shall be applied and administered--
                        (A) in subsection (a), by substituting ``2011'' for
                    ``2007'' each place it appears; and
                        (B) by applying and administering subsection (b) as
                    if it read as follows:

        ``(b) Other Assistance.--
                ``(1) Assistance for firms.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), assistance may not be provided under
                    chapter 3 after December 31, 2011.
                        ``(B) Exception.--Notwithstanding subparagraph (A),
                    any assistance approved under chapter 3 on or before
                    December 31, 2011, may be provided--
                              ``(i) to the extent funds are available
                          pursuant to such chapter for such purpose; and
                              ``(ii) to the extent the recipient of the
                          assistance is otherwise eligible to receive such
                          assistance.
                ``(2) Farmers.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), assistance may not be provided under
                    chapter 6 after December 31, 2011.
                        ``(B) Exception.--Notwithstanding subparagraph (A),
                    any assistance approved under chapter 6 on or before
                    December 31, 2011, may be provided--
                              ``(i) to the extent funds are available
                          pursuant to such chapter for such purpose; and
                              ``(ii) to the extent the recipient of the
                          assistance is otherwise eligible to receive such
                          assistance.''.

    SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

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

    SEC. 1895. EMERGENCY DESIGNATION.

        Amounts appropriated pursuant to this subtitle are designated as an
    emergency requirement and necessary to meet emergency needs pursuant to
    section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2)
    of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the
    budget for fiscal years 2008 and 2009.

    PART VI-- <<NOTE: TAA Health Coverage Improvement Act of 2009.>> HEALTH
    COVERAGE IMPROVEMENT

    SEC. 1899. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

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

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

        (a) Improvement of Affordability.--
                (1) In general.--Section 35(a) of the Internal Revenue Code
            of 1986 <<NOTE: 26 USC 35.>>  (relating to credit for health
            insurance costs of eligible individuals) is amended by inserting
            ``(80 percent

    [[Page 123 STAT. 424]]

            in the case of eligible coverage months beginning before January
            1, 2011)'' after ``65 percent''.
                (2) Conforming amendment.--Section 7527(b) of such
            Code <<NOTE: 26 USC 7527.>>  (relating to advance payment of
            credit for health insurance costs of eligible individuals) is
            amended by inserting ``(80 percent in the case of eligible
            coverage months beginning before January 1, 2011)'' after ``65
            percent''.

        (b) <<NOTE: 26 USC 35 note.>>  Effective Date.--The amendments made
    by this section shall apply to coverage months beginning on or after the
    first day of the first month beginning 60 days after the date of the
    enactment of this Act.

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

        (a) Payment for Premiums Due Prior to Commencement of Advance
    Payments of Credit.--Section 7527 of the Internal Revenue Code of 1986
    (relating to advance payment of credit for health insurance costs of
    eligible individuals) is amended by adding at the end the following new
    subsection:
        ``(e) Payment for Premiums Due Prior to Commencement of Advance
    Payments.--In the case of eligible coverage months beginning before
    January 1, 2011--
                ``(1) In general.--The program established under subsection
            (a) shall provide that the Secretary shall make 1 or more
            retroactive payments on behalf of a certified individual in an
            aggregate amount equal to 80 percent of the premiums for
            coverage of the taxpayer and qualifying family members under
            qualified health insurance for eligible coverage months (as
            defined in section 35(b)) occurring prior to the first month for
            which an advance payment is made on behalf of such individual
            under subsection (a).
                ``(2) Reduction of payment for amounts received under
            national emergency grants.--The amount of any payment determined
            under paragraph (1) shall be reduced by the amount of any
            payment made to the taxpayer for the purchase of qualified
            health insurance under a national emergency grant pursuant to
            section 173(f) of the Workforce Investment Act of 1998 for a
            taxable year including the eligible coverage months described in
            paragraph (1).''.

        (b) <<NOTE: 26 USC 7527 note.>>  Effective Date.--The amendments
    made by this section shall apply to coverage months beginning after
    December 31, 2008.

        (c) <<NOTE: 26 USC 7527 note.>>  Transitional Rule.--The Secretary
    of the Treasury shall not be required to make any payments under section
    7527(e) of the Internal Revenue Code of 1986, as added by this section,
    until after the date that is 6 months after the date of the enactment of
    this Act.

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

        (a) In General.--Paragraph (2) of section 35(c) of the Internal
    Revenue Code of 1986 (defining eligible TAA recipient) is amended to
    read as follows:
                ``(2) Eligible taa recipient.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `eligible TAA recipient'
                    means, with respect to any month, any individual who is
                    receiving for any day of such month a trade readjustment
                    allowance under chapter 2 of title II of the Trade Act
                    of 1974 or who

    [[Page 123 STAT. 425]]

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

        (b) <<NOTE: 26 USC 35 note.>>  Effective Date.--The amendment made
    by this section shall apply to coverage months beginning after the date
    of the enactment of this Act.

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

        (a) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code
    of 1986 <<NOTE: 26 USC 9801.>> (relating to not counting periods before
    significant breaks in creditable coverage) is amended by adding at the
    end the following new subparagraph:
                        ``(D) TAA-eligible individuals.--In the case of plan
                    years beginning before January 1, 2011--
                              ``(i) TAA pre-certification period rule.--In
                          the case of a TAA-eligible individual, the period
                          beginning on the date the individual has a TAA-
                          related loss of coverage and ending on the date
                          which is 7 days after the date of the issuance by
                          the Secretary (or by any person or entity
                          designated by the Secretary) of a qualified health
                          insurance costs credit eligibility certificate for
                          such individual for purposes of section 7527 shall
                          not be taken into account in determining the
                          continuous period under subparagraph (A).
                              ``(ii) Definitions.--The terms `TAA-eligible
                          individual' and `TAA-related loss of coverage'
                          have the

    [[Page 123 STAT. 426]]

                          meanings given such terms in section
                          4980B(f)(5)(C)(iv).''.

        (b) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding
    at the end the following new subparagraph:
                        ``(C) TAA-eligible individuals.--In the case of plan
                    years beginning before January 1, 2011--
                              ``(i) TAA pre-certification period rule.--In
                          the case of a TAA-eligible individual, the period
                          beginning on the date the individual has a TAA-
                          related loss of coverage and ending on the date
                          that is 7 days after the date of the issuance by
                          the Secretary (or by any person or entity
                          designated by the Secretary) of a qualified health
                          insurance costs credit eligibility certificate for
                          such individual for purposes of section 7527 of
                          the Internal Revenue Code of 1986 shall not be
                          taken into account in determining the continuous
                          period under subparagraph (A).
                              ``(ii) Definitions.--The terms `TAA-eligible
                          individual' and `TAA-related loss of coverage'
                          have the meanings given such terms in section
                          605(b)(4).''.

        (c) PHSA Amendment.--Section 2701(c)(2) of the Public Health Service
    Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the
    following new subparagraph:
                        ``(C) TAA-eligible individuals.--In the case of plan
                    years beginning before January 1, 2011--
                              ``(i) TAA pre-certification period rule.--In
                          the case of a TAA-eligible individual, the period
                          beginning on the date the individual has a TAA-
                          related loss of coverage and ending on the date
                          that is 7 days after the date of the issuance by
                          the Secretary (or by any person or entity
                          designated by the Secretary) of a qualified health
                          insurance costs credit eligibility certificate for
                          such individual for purposes of section 7527 of
                          the Internal Revenue Code of 1986 shall not be
                          taken into account in determining the continuous
                          period under subparagraph (A).
                              ``(ii) Definitions.--The terms `TAA-eligible
                          individual' and `TAA-related loss of coverage'
                          have the meanings given such terms in section
                          2205(b)(4).''.

        (d) <<NOTE: 26 USC 9801 note.>>  Effective Date.--The amendments
    made by this section shall apply to plan years beginning after the date
    of the enactment of this Act.

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

        (a) In General.--Subsection (g) of section 35 <<NOTE: 26 USC
    35.>> of such Code is amended by redesignating paragraph (9) as
    paragraph (10) and inserting after paragraph (8) the following new
    paragraph:
                ``(9) Continued qualification of family members after
            certain events.--In the case of eligible coverage months
            beginning before January 1, 2011--
                        ``(A) Medicare eligibility.--In the case of any
                    month which would be an eligible coverage month with
                    respect to an eligible individual but for subsection
                    (f)(2)(A), such month shall be treated as an eligible
                    coverage month with respect to such eligible individual
                    solely for purposes of

    [[Page 123 STAT. 427]]

                    determining the amount of the credit under this section
                    with respect to any qualifying family members of such
                    individual (and any advance payment of such credit under
                    section 7527). This subparagraph shall only apply with
                    respect to the first 24 months after such eligible
                    individual is first entitled to the benefits described
                    in subsection (f)(2)(A).
                        ``(B) Divorce.--In the case of the finalization of a
                    divorce between an eligible individual and such
                    individual's spouse, such spouse shall be treated as an
                    eligible individual for purposes of this section and
                    section 7527 for a period of 24 months beginning with
                    the date of such finalization, except that the only
                    qualifying family members who may be taken into account
                    with respect to such spouse are those individuals who
                    were qualifying family members immediately before such
                    finalization.
                        ``(C) Death.--In the case of the death of an
                    eligible individual--
                              ``(i) any spouse of such individual
                          (determined at the time of such death) shall be
                          treated as an eligible individual for purposes of
                          this section and section 7527 for a period of 24
                          months beginning with the date of such death,
                          except that the only qualifying family members who
                          may be taken into account with respect to such
                          spouse are those individuals who were qualifying
                          family members immediately before such death, and
                              ``(ii) any individual who was a qualifying
                          family member of the decedent immediately before
                          such death (or, in the case of an individual to
                          whom paragraph (4) applies, the taxpayer to whom
                          the deduction under section 151 is allowable)
                          shall be treated as an eligible individual for
                          purposes of this section and section 7527 for a
                          period of 24 months beginning with the date of
                          such death, except that in determining the amount
                          of such credit only such qualifying family member
                          may be taken into account.''.

        (b) Conforming Amendment.--Section 173(f) of the Workforce
    Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the
    end the following:
                ``(8) Continued qualification of family members after
            certain events.--In the case of eligible coverage months
            beginning before January 1, 2011--
                        ``(A) Medicare eligibility.--In the case of any
                    month which would be an eligible coverage month with
                    respect to an eligible individual but for paragraph
                    (7)(B)(i), such month shall be treated as an eligible
                    coverage month with respect to such eligible individual
                    solely for purposes of determining the eligibility of
                    qualifying family members of such individual under this
                    subsection. <<NOTE: Applicability.>> This subparagraph
                    shall only apply with respect to the first 24 months
                    after such eligible individual is first entitled to the
                    benefits described in paragraph (7)(B)(i).
                        ``(B) Divorce.--In the case of the finalization of a
                    divorce between an eligible individual and such
                    individual's spouse, such spouse shall be treated as an
                    eligible individual for purposes of this subsection for
                    a period of 24

    [[Page 123 STAT. 428]]

                    months beginning with the date of such finalization,
                    except that the only qualifying family members who may
                    be taken into account with respect to such spouse are
                    those individuals who were qualifying family members
                    immediately before such finalization.
                        ``(C) Death.--In the case of the death of an
                    eligible individual--
                              ``(i) any spouse of such individual
                          (determined at the time of such death) shall be
                          treated as an eligible individual for purposes of
                          this subsection for a period of 24 months
                          beginning with the date of such death, except that
                          the only qualifying family members who may be
                          taken into account with respect to such spouse are
                          those individuals who were qualifying family
                          members immediately before such death, and
                              ``(ii) any individual who was a qualifying
                          family member of the decedent immediately before
                          such death shall be treated as an eligible
                          individual for purposes this subsection for a
                          period of 24 months beginning with the date of
                          such death, except that no qualifying family
                          members may be taken into account with respect to
                          such individual.''.

        (c) <<NOTE: 26 USC 35 note.>>  Effective Date.--The amendments made
    by this section shall apply to months beginning after December 31, 2009.

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

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

    [[Page 123 STAT. 429]]

                          but for this clause or clause (vii), otherwise
                          terminate under clause (i) or (ii)) a TAA-eligible
                          individual (as defined in section 605(b)(4)(B)),
                          the period of coverage shall not terminate by
                          reason of clause (i) or (ii), as the case may be,
                          before the later of the date specified in such
                          clause or the date on which such individual ceases
                          to be such a TAA-eligible individual. The
                          preceding sentence shall not require any period of
                          coverage to extend beyond December 31, 2010.''.

        (b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the
    Internal Revenue Code of 1986 <<NOTE: 26 USC 4980B.>>  is amended--
                (1) by striking ``In the case of a qualified beneficiary''
            and inserting the following:
                                        ``(VI) Special rule for
                                    disability.--In the case of a qualified
                                    beneficiary'', and
                (2) by redesignating subclauses (V) and (VI), as amended by
            paragraph (1), as subclauses (VII) and (VIII), respectively, and
            by inserting after clause (IV) the following new subclauses:
                                        ``(V) Special rule for pbgc
                                    recipients.--In the case of a qualifying
                                    event described in paragraph (3)(B) with
                                    respect to a covered employee who (as of
                                    such qualifying event) has a
                                    nonforfeitable right to a benefit any
                                    portion of which is to be paid by the
                                    Pension Benefit Guaranty Corporation
                                    under title IV of the Employee
                                    Retirement Income Security Act of 1974,
                                    notwithstanding subclause (I) or (II),
                                    the date of the death of the covered
                                    employee, or in the case of the
                                    surviving spouse or dependent children
                                    of the covered employee, 24 months after
                                    the date of the death of the covered
                                    employee. The preceding sentence shall
                                    not require any period of coverage to
                                    extend beyond December 31, 2010.
                                        ``(VI) Special rule for taa-eligible
                                    individuals.--In the case of a
                                    qualifying event described in paragraph
                                    (3)(B) with respect to a covered
                                    employee who is (as of the date that the
                                    period of coverage would, but for this
                                    subclause or subclause (VII), otherwise
                                    terminate under subclause (I) or (II)) a
                                    TAA-eligible individual (as defined in
                                    paragraph (5)(C)(iv)(II)), the period of
                                    coverage shall not terminate by reason
                                    of subclause (I) or (II), as the case
                                    may be, before the later of the date
                                    specified in such subclause or the date
                                    on which such individual ceases to be
                                    such a TAA-eligible individual. The
                                    preceding sentence shall not require any
                                    period of coverage to extend beyond
                                    December 31, 2010.''.

        (c) PHSA Amendments.--Section 2202(2)(A) of the Public Health
    Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
                (1) by striking ``In the case of a qualified beneficiary''
            and inserting the following:
                              ``(v) Special rule for disability.--In the
                          case of a qualified beneficiary''; and
                (2) by redesignating clauses (iv) and (v), as amended by
            paragraph (1), as clauses (v) and (vi), respectively, and by
            inserting after clause (iii) the following new clause:

    [[Page 123 STAT. 430]]

                              ``(iv) Special rule for taa-eligible
                          individuals.--In the case of a qualifying event
                          described in section 2203(2) with respect to a
                          covered employee who is (as of the date that the
                          period of coverage would, but for this clause or
                          clause (v), otherwise terminate under clause (i)
                          or (ii)) a TAA-eligible individual (as defined in
                          section 2205(b)(4)(B)), the period of coverage
                          shall not terminate by reason of clause (i) or
                          (ii), as the case may be, before the later of the
                          date specified in such clause or the date on which
                          such individual ceases to be such a TAA-eligible
                          individual. The preceding sentence shall not
                          require any period of coverage to extend beyond
                          December 31, 2010.''.

        (d) <<NOTE: 26 USC 4980B note.>>  Effective Date.--The amendments
    made by this section shall apply to periods of coverage which would
    (without regard to the amendments made by this section) end on or after
    the date of the enactment of this Act.

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

        (a) In General.--Paragraph (1) of section 35(e) of the Internal
    Revenue Code of 1986 <<NOTE: 26 USC 35.>> is amended by adding at the
    end the following new subparagraph:
                        ``(K) In the case of eligible coverage months
                    beginning before January 1, 2011, coverage under an
                    employee benefit plan funded by a voluntary employees'
                    beneficiary association (as defined in section
                    501(c)(9)) established pursuant to an order of a
                    bankruptcy court, or by agreement with an authorized
                    representative, as provided in section 1114 of title 11,
                    United States Code.''.

        (b) <<NOTE: 26 USC 35 note.>>  Effective Date.--The amendments made
    by this section shall apply to coverage months beginning after the date
    of the enactment of this Act.

    SEC. 1899H. NOTICE REQUIREMENTS.

        (a) In General.--Subsection (d) of section 7527 of the Internal
    Revenue Code of 1986 (relating to qualified health insurance costs
    credit eligibility certificate) is amended to read as follows:
        ``(d) Qualified Health Insurance Costs Eligibility Certificate.--
                ``(1) In general.--For purposes of this section, the term
            `qualified health insurance costs eligibility certificate' means
            any written statement that an individual is an eligible
            individual (as defined in section 35(c)) if such statement
            provides such information as the Secretary may require for
            purposes of this section and--
                        ``(A) in the case of an eligible TAA recipient (as
                    defined in section 35(c)(2)) or an eligible alternative
                    TAA recipient (as defined in section 35(c)(3)), is
                    certified by the Secretary of Labor (or by any other
                    person or entity designated by the Secretary), or
                        ``(B) in the case of an eligible PBGC pension
                    recipient (as defined in section 35(c)(4)), is certified
                    by the Pension Benefit Guaranty Corporation (or by any
                    other person or entity designated by the Secretary).
                ``(2) Inclusion of certain information.--In the case of any
            statement described in paragraph (1) which is issued before
            January 1, 2011, such statement shall not be treated as a

    [[Page 123 STAT. 431]]

            qualified health insurance costs credit eligibility certificate
            unless such statement includes--
                        ``(A) the name, address, and telephone number of the
                    State office or offices responsible for providing the
                    individual with assistance with enrollment in qualified
                    health insurance (as defined in section 35(e)),
                        ``(B) a list of the coverage options that are
                    treated as qualified health insurance (as so defined) by
                    the State in which the individual resides, and
                        ``(C) in the case of a TAA-eligible individual (as
                    defined in section 4980B(f)(5)(C)(iv)(II)), a statement
                    informing the individual that the individual has 63 days
                    from the date that is 7 days after the date of the
                    issuance of such certificate to enroll in such insurance
                    without a lapse in creditable coverage (as defined in
                    section 9801(c)).''.

        (b) <<NOTE: 26 USC 7527 note.>>  Effective Date.--The amendment made
    by this section shall apply to certificates issued after the date that
    is 6 months after the date of the enactment of this Act.

    SEC. 1899I. <<NOTE: 26 USC 35 note.>> SURVEY AND REPORT ON ENHANCED
                HEALTH COVERAGE TAX CREDIT PROGRAM.

        (a) Survey.--
                (1) In general.--The Secretary of the Treasury shall conduct
            a biennial survey of eligible individuals (as defined in section
            35(c) of the Internal Revenue Code of 1986) relating to the
            health coverage tax credit under section 35 of the Internal
            Revenue Code of 1986 (hereinafter in this section referred to as
            the ``health coverage tax credit'').
                (2) Information obtained.--The survey conducted under
            subsection (a) shall obtain the following information:
                        (A) HCTC participants.--In the case of eligible
                    individuals receiving the health coverage tax credit
                    (including individuals participating in the health
                    coverage tax credit program under section 7527 of such
                    Code, hereinafter in this section referred to as the
                    ``HCTC program'')--
                              (i) demographic information of such
                          individuals, including income and education
                          levels,
                              (ii) satisfaction of such individuals with the
                          enrollment process in the HCTC program,
                              (iii) satisfaction of such individuals with
                          available health coverage options under the
                          credit, including level of premiums, benefits,
                          deductibles, cost-sharing requirements, and the
                          adequacy of provider networks, and
                              (iv) any other information that the Secretary
                          determines is appropriate.
                        (B) Non-HCTC participants.--In the case of eligible
                    individuals not receiving the health coverage tax
                    credit--
                              (i) demographic information of each
                          individual, including income and education levels,
                              (ii) whether the individual was aware of the
                          health coverage tax credit or the HCTC program,
                              (iii) the reasons the individual has not
                          enrolled in the HCTC program, including whether
                          such reasons include the burden of the process of
                          enrollment and the affordability of coverage,

    [[Page 123 STAT. 432]]

                              (iv) whether the individual has health
                          insurance coverage, and, if so, the source of such
                          coverage, and
                              (v) any other information that the Secretary
                          determines is appropriate.
                (3) Report.--Not later than December 31 of each year in
            which a survey is conducted under paragraph (1) (beginning in
            2010), the Secretary of the Treasury shall report to the
            Committee on Finance and the Committee on Health, Education,
            Labor, and Pensions of the Senate and the Committee on Ways and
            Means, the Committee on Education and Labor, and the Committee
            on Energy and Commerce of the House of Representatives the
            findings of the most recent survey conducted under paragraph
            (1).

        (b) Report.--Not later than October 1 of each year (beginning in
    2010), the Secretary of the Treasury (after consultation with the
    Secretary of Health and Human Services, and, in the case of the
    information required under paragraph (7), the Secretary of Labor) shall
    report to the Committee on Finance and the Committee on Health,
    Education, Labor, and Pensions of the Senate and the Committee on Ways
    and Means, the Committee on Education and Labor, and the Committee on
    Energy and Commerce of the House of Representatives the following
    information with respect to the most recent taxable year ending before
    such date:
                (1) In each State and nationally--
                        (A) the total number of eligible individuals (as
                    defined in section 35(c) of the Internal Revenue Code of
                    1986) and the number of eligible individuals receiving
                    the health coverage tax credit,
                        (B) the total number of such eligible individuals
                    who receive an advance payment of the health coverage
                    tax credit through the HCTC program,
                        (C) the average length of the time period of the
                    participation of eligible individuals in the HCTC
                    program, and
                        (D) the total number of participating eligible
                    individuals in the HCTC program who are enrolled in each
                    category of coverage as described in section 35(e)(1) of
                    such Code,
            with respect to each category of eligible individuals described
            in section 35(c)(1) of such Code.
                (2) In each State and nationally, an analysis of--
                        (A) the range of monthly health insurance premiums,
                    for self-only coverage and for family coverage, for
                    individuals receiving the health coverage tax credit,
                    and
                        (B) the average and median monthly health insurance
                    premiums, for self-only coverage and for family
                    coverage, for individuals receiving the health coverage
                    tax credit,
            with respect to each category of coverage as described in
            section 35(e)(1) of such Code.
                (3) In each State and nationally, an analysis of the
            following information with respect to the health insurance
            coverage of individuals receiving the health coverage tax credit
            who are enrolled in coverage described in subparagraphs (B)
            through (H) of section 35(e)(1) of such Code:
                        (A) Deductible amounts.
                        (B) Other out-of-pocket cost-sharing amounts.

    [[Page 123 STAT. 433]]

                        (C) A description of any annual or lifetime limits
                    on coverage or any other significant limits on coverage
                    services, or benefits.
            The information required under this paragraph shall be reported
            with respect to each category of coverage described in such
            subparagraphs.
                (4) In each State and nationally, the gender and average age
            of eligible individuals (as defined in section 35(c) of such
            Code) who receive the health coverage tax credit, in each
            category of coverage described in section 35(e)(1) of such Code,
            with respect to each category of eligible individuals described
            in such section.
                (5) The steps taken by the Secretary of the Treasury to
            increase the participation rates in the HCTC program among
            eligible individuals, including outreach and enrollment
            activities.
                (6) The cost of administering the HCTC program by function,
            including the cost of subcontractors, and recommendations on
            ways to reduce administrative costs, including recommended
            statutory changes.
                (7) The number of States applying for and receiving national
            emergency grants under section 173(f) of the Workforce
            Investment Act of 1998 (29 U.S.C. 2918(f)), the activities
            funded by such grants on a State-by-State basis, and the time
            necessary for application approval of such grants.

    SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.

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

    SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS.

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

    [[Page 123 STAT. 434]]

                        ``(B) Additional uses.--Funds made available to a
                    State or entity under paragraph (4)(A) of subsection (a)
                    may be used by the State or entity for the following:
                              ``(i) Health insurance coverage.--To assist an
                          eligible individual and such individual's
                          qualifying family members with enrolling in health
                          insurance coverage and qualified health insurance
                          or paying premiums for such coverage or insurance.
                              ``(ii) Administrative expenses and start-up
                          expenses to establish group health plan coverage
                          options for qualified health insurance.--To pay
                          the administrative expenses related to the
                          enrollment of eligible individuals and such
                          individuals' qualifying family members in health
                          insurance coverage and qualified health insurance,
                          including--
                                        ``(I) eligibility verification
                                    activities;
                                        ``(II) the notification of eligible
                                    individuals of available health
                                    insurance and qualified health insurance
                                    options;
                                        ``(III) processing qualified health
                                    insurance costs credit eligibility
                                    certificates provided for under section
                                    7527 of the Internal Revenue Code of
                                    1986;
                                        ``(IV) providing assistance to
                                    eligible individuals in enrolling in
                                    health insurance coverage and qualified
                                    health insurance;
                                        ``(V) the development or
                                    installation of necessary data
                                    management systems; and
                                        ``(VI) any other expenses determined
                                    appropriate by the Secretary, including
                                    start-up costs and on going
                                    administrative expenses, in order for
                                    the State to treat the coverage
                                    described in subparagraphs (C) through
                                    (H) of section 35(e)(1) of the Internal
                                    Revenue Code of 1986 as qualified health
                                    insurance under that section.
                              ``(iii) Outreach.--To pay for outreach to
                          eligible individuals to inform such individuals of
                          available health insurance and qualified health
                          insurance options, including outreach consisting
                          of notice to eligible individuals of such options
                          made available after the date of enactment of this
                          clause and direct assistance to help potentially
                          eligible individuals and such individual's
                          qualifying family members qualify and remain
                          eligible for the credit established under section
                          35 of the Internal Revenue Code of 1986 and
                          advance payment of such credit under section 7527
                          of such Code.
                              ``(iv) Bridge funding.--To assist potentially
                          eligible individuals to purchase qualified health
                          insurance coverage prior to issuance of a
                          qualified health insurance costs credit
                          eligibility certificate under section 7527 of the
                          Internal Revenue Code of 1986 and commencement of
                          advance payment, and receipt of expedited payment,
                          under subsections (a) and (e), respectively, of
                          that section.
                        ``(C) Rule of construction.--The inclusion of a
                    permitted use under this paragraph shall not be
                    construed

    [[Page 123 STAT. 435]]

                    as prohibiting a similar use of funds permitted under
                    subsection (g).''; and
                (2) by striking paragraph (2) and inserting the following
            new paragraph:
                ``(2) Qualified health insurance.--For purposes of this
            subsection and subsection (g), the term `qualified health
            insurance' has the meaning given that term in section 35(e) of
            the Internal Revenue Code of 1986.''.

        (b) Funding.--Section 174(c)(1) of the Workforce Investment Act of
    1998 (29 U.S.C. 2919(c)(1)) is amended--
                (1) in the paragraph heading, by striking ``Authorization
            and appropriation for fiscal year 2002'' and inserting
            ``Appropriations''; and
                (2) by striking subparagraph (A) and inserting the following
            new subparagraph:
                        ``(A) to carry out subsection (a)(4)(A) of section
                    173--
                              ``(i) $10,000,000 for fiscal year 2002; and
                              ``(ii) $150,000,000 for the period of fiscal
                          years 2009 through 2010; and''.

    SEC. 1899L. GAO STUDY AND REPORT.

        (a) Study.--The Comptroller General of the United States shall
    conduct a study regarding the health insurance tax credit allowed under
    section 35 of the Internal Revenue Code of 1986.
        (b) Report.--Not later than March 1, 2010, the Comptroller General
    shall submit a report to Congress regarding the results of the study
    conducted under subsection (a). Such report shall include an analysis
    of--
                (1) the administrative costs--
                        (A) of the Federal Government with respect to such
                    credit and the advance payment of such credit under
                    section 7527 of such Code, and
                        (B) of providers of qualified health insurance with
                    respect to providing such insurance to eligible
                    individuals and their qualifying family members,
                (2) the health status and relative risk status of eligible
            individuals and qualifying family members covered under such
            insurance,
                (3) participation in such credit and the advance payment of
            such credit by eligible individuals and their qualifying family
            members, including the reasons why such individuals did or did
            not participate and the effect of the amendments made by this
            part on such participation, and
                (4) the extent to which eligible individuals and their
            qualifying family members--
                        (A) obtained health insurance other than qualifying
                    health insurance, or
                        (B) went without health insurance coverage.

        (c) Access to Records.--For purposes of conducting the study
    required under this section, the Comptroller General and any of his duly
    authorized representatives shall have access to, and the right to
    examine and copy, all documents, records, and other recorded
    information--
                (1) within the possession or control of providers of
            qualified health insurance, and
                (2) determined by the Comptroller General (or any such
            representative) to be relevant to the study.

    [[Page 123 STAT. 436]]

    The Comptroller General shall not disclose the identity of any provider
    of qualified health insurance or any eligible individual in making any
    information obtained under this section available to the public.
        (d) Definitions.--Any term which is defined in section 35 of the
    Internal Revenue Code of 1986 shall have the same meaning when used in
    this section.

      TITLE II-- <<NOTE: Assistance for Unemployed Workers and Struggling
        Families Act.>> ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
    FAMILIES

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

        (a) Short Title.-- <<NOTE: 26 USC 1 note.>> This title may be cited
    as the ``Assistance for Unemployed Workers and Struggling Families
    Act''.

        (b) Table of Contents of Title.--The table of contents of this title
    is as follows:

       TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

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

                       Subtitle A--Unemployment Insurance

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

                Subtitle B--Assistance for Vulnerable Individuals

    Sec. 2101. Emergency fund for TANF program.
    Sec. 2102. Extension of TANF supplemental grants.
    Sec. 2103. Clarification of authority of States to use TANF funds
               carried over from prior years to provide TANF benefits and
               services.
    Sec. 2104. Temporary resumption of prior child support law.

          Subtitle C--Economic Recovery Payments to Certain Individuals

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

                       Subtitle A--Unemployment Insurance

    SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

        (a) In General.--Section 4007 of the Supplemental Appropriations
    Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
    section 4 of the Unemployment Compensation Extension Act of 2008 (Public
    Law 110-449; 122 Stat. 5015), is amended--
                (1) by striking ``March 31, 2009'' each place it appears and
            inserting ``December 31, 2009'';
                (2) in the heading for subsection (b)(2), by striking
            ``march 31, 2009'' and inserting ``december 31, 2009''; and
                (3) in subsection (b)(3), by striking ``August 27, 2009''
            and inserting ``May 31, 2010''.

    [[Page 123 STAT. 437]]

        (b) Financing Provisions.--Section 4004 of such Act <<NOTE: 26 USC
    3304 note.>>  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. <<NOTE: 26 USC 3304 note.>> 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''). <<NOTE: Notification.>> 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

    [[Page 123 STAT. 438]]

            to the modification described in subsection (b)(1)) will be less
            than
                (2) the average weekly benefit amount of regular
            compensation which would otherwise have been payable during such
            period under the State law, as in effect on December 31, 2008.

        (d) Payments to States.--
                (1) In general.--
                        (A) Full reimbursement.--There shall be paid to each
                    State which has entered into an agreement under this
                    section an amount equal to 100 percent of--
                              (i) the total amount of additional
                          compensation (as described in subsection (b)(1))
                          paid to individuals by the State pursuant to such
                          agreement; and
                              (ii) any additional administrative expenses
                          incurred by the State by reason of such agreement
                          (as determined by the Secretary).
                        (B) Terms of payments.--Sums payable to any State by
                    reason of such State's having an agreement under this
                    section shall be payable, either in advance or by way of
                    reimbursement (as determined by the Secretary), in such
                    amounts as the Secretary estimates the State will be
                    entitled to receive under this section for each calendar
                    month, reduced or increased, as the case may be, by any
                    amount by which the Secretary finds that his estimates
                    for any prior calendar month were greater or less than
                    the amounts which should have been paid to the State.
                    Such estimates may be made on the basis of such
                    statistical, sampling, or other method as may be agreed
                    upon by the Secretary and the State agency of the State
                    involved.
                (2) Certifications.--The Secretary shall from time to time
            certify to the Secretary of the Treasury for payment to each
            State the sums payable to such State under this section.
                (3) Appropriation.--There are appropriated from the general
            fund of the Treasury, without fiscal year limitation, such sums
            as may be necessary for purposes of this subsection.

        (e) Applicability.--
                (1) <<NOTE: Time period.>>  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) <<NOTE: Applicability.>>  Fraud and Overpayments.--The
    provisions of section 4005 of the Supplemental Appropriations Act, 2008
    (Public Law 110-

    [[Page 123 STAT. 439]]

    252; 122 Stat. 2356) shall apply with respect to additional compensation
    (as described in subsection (b)(1)) to the same extent and in the same
    manner as in the case of emergency unemployment compensation.

        (g) Application to Other Unemployment Benefits.--
                (1) In general.--Each agreement under this section shall
            include provisions to provide that the purposes of the preceding
            provisions of this section shall be applied with respect to
            unemployment benefits described in subsection (i)(3) to the same
            extent and in the same manner as if those benefits were regular
            compensation.
                (2) Eligibility and termination rules.--Additional
            compensation (as described in subsection (b)(1))--
                        (A) shall not be payable, pursuant to this
                    subsection, with respect to any unemployment benefits
                    described in subsection (i)(3) for any week beginning on
                    or after the date specified in subsection (e)(1)(B),
                    except in the case of an individual who was eligible to
                    receive additional compensation (as so described) in
                    connection with any regular compensation or any
                    unemployment benefits described in subsection (i)(3) for
                    any period of unemployment ending before such date; and
                        (B) shall in no event be payable for any week
                    beginning after the date specified in subsection (e)(3).

        (h)  Disregard of Additional Compensation for Purposes of Medicaid
    and SCHIP.--The monthly equivalent of any additional compensation paid
    under this section shall be disregarded in considering the amount of
    income of an individual for any purposes under title XIX and title XXI
    of the Social Security Act.
        (i) Definitions.--For purposes of this section--
                (1) the terms ``compensation'', ``regular compensation'',
            ``benefit year'', ``State'', ``State agency'', ``State law'',
            and ``week'' have the respective meanings given such terms under
            section 205 of the Federal-State Extended Unemployment
            Compensation Act of 1970 (26 U.S.C. 3304 note);
                (2) the term ``emergency unemployment compensation'' means
            emergency unemployment compensation under title IV of the
            Supplemental Appropriations Act, 2008 (Public Law 110-252; 122
            Stat. 2353); and
                (3) any reference to unemployment benefits described in this
            paragraph shall be considered to refer to--
                        (A) extended compensation (as defined by section 205
                    of the Federal-State Extended Unemployment Compensation
                    Act of 1970); and
                        (B) unemployment compensation (as defined by section
                    85(b) of the Internal Revenue Code of 1986) provided
                    under any program administered by a State under an
                    agreement with the Secretary.

    SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION
                MODERNIZATION.

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

    [[Page 123 STAT. 440]]

          ``Special Transfers in Fiscal Years 2009, 2010, and 2011 for
                                  Modernization

        ``(f)(1)(A) In addition to any other amounts, the Secretary of Labor
    shall provide for the making of unemployment compensation modernization
    incentive payments (hereinafter `incentive payments') to the accounts of
    the States in the Unemployment Trust Fund, by transfer from amounts
    reserved for that purpose in the Federal unemployment account, in
    accordance with succeeding provisions of this subsection.
        ``(B) The maximum incentive payment allowable under this subsection
    with respect to any State shall, as determined by the Secretary of
    Labor, be equal to the amount obtained by multiplying $7,000,000,000 by
    the same ratio as would apply under subsection (a)(2)(B) for purposes of
    determining such State's share of any excess amount (as described in
    subsection (a)(1)) that would have been subject to transfer to State
    accounts, as of October 1, 2008, under the provisions of subsection (a).
        ``(C) Of the maximum incentive payment determined under subparagraph
    (B) with respect to a State--
                ``(i) one-third shall be transferred to the account of such
            State upon a certification under paragraph (4)(B) that the State
            law of such State meets the requirements of paragraph (2); and
                ``(ii) the remainder shall be transferred to the account of
            such State upon a certification under paragraph (4)(B) that the
            State law of such State meets the requirements of paragraph (3).

        ``(2) The State law of a State meets the requirements of this
    paragraph if such State law--
                ``(A) uses a base period that includes the most recently
            completed calendar quarter before the start of the benefit year
            for purposes of determining eligibility for unemployment
            compensation; or
                ``(B) provides that, in the case of an individual who would
            not otherwise be eligible for unemployment compensation under
            the State law because of the use of a base period that does not
            include the most recently completed calendar quarter before the
            start of the benefit year, eligibility shall be determined using
            a base period that includes such calendar quarter.

        ``(3) The State law of a State meets the requirements of this
    paragraph if such State law includes provisions to carry out at least 2
    of the following subparagraphs:
                ``(A) An individual shall not be denied regular unemployment
            compensation under any State law provisions relating to
            availability for work, active search for work, or refusal to
            accept work, solely because such individual is seeking only
            part-time work (as defined by the Secretary of Labor), except
            that the State law provisions carrying out this subparagraph may
            exclude an individual if a majority of the weeks of work in such
            individual's base period do not include part-time work (as so
            defined).
                ``(B) An individual shall not be disqualified from regular
            unemployment compensation for separating from employment if that
            separation is for any compelling family reason. For purposes of
            this subparagraph, the term `compelling family reason' means the
            following:

    [[Page 123 STAT. 441]]

                        ``(i) Domestic violence, verified by such reasonable
                    and confidential documentation as the State law may
                    require, which causes the individual reasonably to
                    believe that such individual's continued employment
                    would jeopardize the safety of the individual or of any
                    member of the individual's immediate family (as defined
                    by the Secretary of Labor).
                        ``(ii) The illness or disability of a member of the
                    individual's immediate family (as those terms are
                    defined by the Secretary of Labor).
                        ``(iii) The need for the individual to accompany
                    such individual's spouse--
                              ``(I) to a place from which it is impractical
                          for such individual to commute; and
                              ``(II) due to a change in location of the
                          spouse's employment.
                ``(C)(i) Weekly unemployment compensation is payable under
            this subparagraph to any individual who is unemployed (as
            determined under the State unemployment compensation law), has
            exhausted all rights to regular unemployment compensation under
            the State law, and is enrolled and making satisfactory progress
            in a State-approved training program or in a job training
            program authorized under the Workforce Investment Act of 1998,
            except that such compensation is not required to be paid to an
            individual who is receiving similar stipends or other training
            allowances for non-training costs.
                ``(ii) Each State-approved training program or job training
            program referred to in clause (i) shall prepare individuals who
            have been separated from a declining occupation, or who have
            been involuntarily and indefinitely separated from employment as
            a result of a permanent reduction of operations at the
            individual's place of employment, for entry into a high-demand
            occupation.
                ``(iii) The amount of unemployment compensation payable
            under this subparagraph to an individual for a week of
            unemployment shall be equal to--
                        ``(I) the individual's average weekly benefit amount
                    (including dependents' allowances) for the most recent
                    benefit year, less
                        ``(II) any deductible income, as determined under
                    State law.
            The total amount of unemployment compensation payable under this
            subparagraph to any individual shall be equal to at least 26
            times the individual's average weekly benefit amount (including
            dependents' allowances) for the most recent benefit year.
                ``(D) Dependents' allowances are provided, in the case of
            any individual who is entitled to receive regular unemployment
            compensation and who has any dependents (as defined by State
            law), in an amount equal to at least $15 per dependent per week,
            subject to any aggregate limitation on such allowances which the
            State law may establish (but which aggregate limitation on the
            total allowance for dependents paid to an individual may not be
            less than $50 for each week of unemployment or 50 percent of the
            individual's weekly benefit amount for the benefit year,
            whichever is less), except that a State law may provide for a
            reasonable reduction in the amount of any such allowance for a
            week of less than total unemployment.

    [[Page 123 STAT. 442]]

        ``(4)(A) <<NOTE: Application. Deadline.>> 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. <<NOTE: Deadline. Notification.>> 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) <<NOTE: Certifications.>> 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. <<NOTE: Deadline.>> The Secretary of the Treasury shall make
    the appropriate transfer within 7 days after receiving such
    certification.

        ``(ii) <<NOTE: Effective date.>> 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) <<NOTE: Deadline.>> No application under subparagraph (A)
    may be considered if submitted before the date of the enactment of this
    subsection or after the latest date necessary (as specified by the
    Secretary of Labor) to ensure that all incentive payments under this
    subsection are made before October 1, 2011.

        ``(5)(A) Except as provided in subparagraph (B), any amount
    transferred to the account of a State under this subsection may be used
    by such State only in the payment of cash benefits to individuals with
    respect to their unemployment (including for dependents' allowances and
    for unemployment compensation under paragraph (3)(C)), exclusive of
    expenses of administration.
        ``(B) A State may, subject to the same conditions as set forth in
    subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the
    reference to `subsections (a) and (b)' in subparagraph (D) thereof to
    include this subsection), use any amount transferred to the account of
    such State under this subsection for the administration of its
    unemployment compensation law and public employment offices.
        ``(6) Out of any money in the Federal unemployment account not
    otherwise appropriated, the Secretary of the Treasury shall reserve
    $7,000,000,000 for incentive payments under this subsection. Any amount
    so reserved shall not be taken into account for purposes of any
    determination under section 902, 910, or 1203

    [[Page 123 STAT. 443]]

    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) <<NOTE: Deadline.>> 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) <<NOTE: 42 USC 1103 note.>>  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) <<NOTE: Time period.>> With respect to the period
    beginning on the date of enactment of this paragraph and ending on
    December 31, 2010--
                ``(i) any interest payment otherwise due from a State under
            this subsection during such period shall be deemed to have been
            made by the State; and
                ``(ii) no interest shall accrue during such period on any
            advance or advances made under section 1201 to a State.

        ``(B) The provisions of subparagraph (A) shall have no effect on the
    requirement for interest payments under this subsection

    [[Page 123 STAT. 444]]

    after the period described in such subparagraph or on the accrual of
    interest under this subsection after such period.''.

    SEC. 2005. <<NOTE: 26 USC 3304 note.>> FULL FEDERAL FUNDING OF EXTENDED
                UNEMPLOYMENT COMPENSATION FOR A LIMITED PERIOD.

        (a) <<NOTE: Applicability.>>  In General.--In the case of sharable
    extended compensation and sharable regular compensation paid for weeks
    of unemployment beginning after the date of the enactment of this
    section and before January 1, 2010, section 204(a)(1) of the Federal-
    State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
    note) shall be applied by substituting ``100 percent of'' for ``one-half
    of''.

        (b) Special Rule.--At the option of a State, for any weeks of
    unemployment beginning after the date of the enactment of this section
    and before January 1, 2010, an individual's eligibility period (as
    described in section 203(c) of the Federal-State Extended Unemployment
    Compensation Act of 1970) shall, for purposes of any determination of
    eligibility for extended compensation under the State law of such State,
    be considered to include any week which begins--
                (1) after the date as of which such individual exhausts all
            rights to emergency unemployment compensation; and
                (2) during an extended benefit period that began on or
            before the date described in paragraph (1).

        (c) <<NOTE: Applicability.>>  Limited Extension.--In the case of an
    individual who receives extended compensation with respect to 1 or more
    weeks of unemployment beginning after the date of the enactment of this
    Act and before January 1, 2010, the provisions of subsections (a) and
    (b) shall, at the option of a State, be applied by substituting ``ending
    before June 1, 2010'' for ``before January 1, 2010''.

        (d) Extension of Temporary Federal Matching for the First Week of
    Extended Benefits for States With No Waiting Week.--
                (1) In general.--Section 5 of the Unemployment Compensation
            Extension Act of 2008 (Public Law 110-449) <<NOTE: 26 USC 3304
            note.>> is amended by striking ``December 8, 2009'' and
            inserting ``May 30, 2010''.
                (2) Effective date.--The amendment made by paragraph (1)
            shall take effect as if included in the enactment of the
            Unemployment Compensation Extension Act of 2008 (Public Law 110-
            449).

        (e) Definitions.--For purposes of this section--
                (1) the terms ``sharable extended compensation'' and
            ``sharable regular compensation'' have the respective meanings
            given such terms under section 204 of the Federal-State Extended
            Unemployment Compensation Act of 1970;
                (2) the terms ``extended compensation'', ``State'', ``State
            law'', and ``week'' have the respective meanings given such
            terms under section 205 of the Federal-State Extended
            Unemployment Compensation Act of 1970;
                (3) the term ``emergency unemployment compensation'' means
            benefits payable to individuals under title IV of the
            Supplemental Appropriations Act, 2008 with respect to their
            unemployment; and
                (4) the term ``extended benefit period'' means an extended
            benefit period as determined in accordance with applicable

    [[Page 123 STAT. 445]]

            provisions of the Federal-State Extended Unemployment
            Compensation Act of 1970.

        (f) Regulations.--The Secretary of Labor may prescribe any operating
    instructions or regulations necessary to carry out this section.

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

        (a) In General.--Section 2(c)(2) of the Railroad Unemployment
    Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the
    following:
                        ``(D) <<NOTE: Applicability.>>  Temporary increase
                    in extended unemployment benefits.--
                              ``(i) Employees with 10 or more years of
                          service.--Subject to clause (iii), in the case of
                          an employee who has 10 or more years of service
                          (as so defined), with respect to extended
                          unemployment benefits--
                                        ``(I) subparagraph (A) shall be
                                    applied by substituting `130 days of
                                    unemployment' for `65 days of
                                    unemployment'; and
                                        ``(II) subparagraph (B) shall be
                                    applied by inserting `(or, in the case
                                    of unemployment benefits, 13 consecutive
                                    14-day periods)' after `7 consecutive
                                    14-day periods'.
                              ``(ii) Employees with less than 10 years of
                          service.--Subject to clause (iii), in the case of
                          an employee who has less than 10 years of service
                          (as so defined), with respect to extended
                          unemployment benefits, this paragraph shall apply
                          to such an employee in the same manner as this
                          paragraph would apply to an employee described in
                          clause (i) if such clause had not been enacted.
                              ``(iii) Application.-- <<NOTE: Time
                          period. Deadline.>> The provisions of clauses (i)
                          and (ii) shall apply to an employee who received
                          normal benefits for days of unemployment under
                          this Act during the period beginning July 1, 2008,
                          and ending on June 30, 2009, except that no
                          extended benefit period under this paragraph shall
                          begin after December 31, 2009. Notwithstanding the
                          preceding sentence, no benefits shall be payable
                          under this subparagraph and clauses (i) and (ii)
                          shall no longer be applicable upon the exhaustion
                          of the funds appropriated under clause (iv) for
                          payment of benefits under this subparagraph.
                              ``(iv) Appropriation.--Out of any funds in the
                          Treasury not otherwise appropriated, there are
                          appropriated $20,000,000 to cover the cost of
                          additional extended unemployment benefits provided
                          under this subparagraph, to remain available until
                          expended.''.

        (b) Funding for Administration.--Out of any funds in the Treasury
    not otherwise appropriated, there are appropriated to the Railroad
    Retirement Board $80,000 to cover the administrative expenses associated
    with the payment of additional extended unemployment benefits under
    section 2(c)(2)(D) of the Railroad

    [[Page 123 STAT. 446]]

    Unemployment Insurance Act, as added by subsection (a), to remain
    available until expended.

                Subtitle B--Assistance for Vulnerable Individuals

    SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

        (a) Temporary Fund.--
                (1) In general.--Section 403 of the Social Security Act (42
            U.S.C. 603) is amended by adding at the end the following:

        ``(c) Emergency Fund.--
                ``(1) Establishment.--There is established in the Treasury
            of the United States a fund which shall be known as the
            `Emergency Contingency Fund for State Temporary Assistance for
            Needy Families Programs' (in this subsection referred to as the
            `Emergency Fund').
                ``(2) Deposits into fund.--
                        ``(A) In general.--Out of any money in the Treasury
                    of the United States not otherwise appropriated, there
                    are appropriated for fiscal year 2009, $5,000,000,000
                    for payment to the Emergency Fund.
                        ``(B) Availability and use of funds.--The amounts
                    appropriated to the Emergency Fund under subparagraph
                    (A) shall remain available through fiscal year 2010 and
                    shall be used to make grants to States in each of fiscal
                    years 2009 and 2010 in accordance with the requirements
                    of paragraph (3).
                        ``(C) Limitation.--In no case may the Secretary make
                    a grant from the Emergency Fund for a fiscal year after
                    fiscal year 2010.
                ``(3) Grants.--
                        ``(A) Grant related to caseload increases.--
                              ``(i) In general.--For each calendar quarter
                          in fiscal year 2009 or 2010, the Secretary shall
                          make a grant from the Emergency Fund to each State
                          that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                              ``(ii) Caseload increase requirement.--A State
                          meets the requirement of this clause for a quarter
                          if the average monthly assistance caseload of the
                          State for the quarter exceeds the average monthly
                          assistance caseload of the State for the
                          corresponding quarter in the emergency fund base
                          year of the State.
                              ``(iii) Amount of grant.--Subject to paragraph
                          (5), the amount of the grant to be made to a State
                          under this subparagraph for a quarter shall be an
                          amount equal to 80 percent of the amount (if any)
                          by which the total expenditures of the State for
                          basic assistance (as defined by the Secretary) in
                          the quarter, whether under the State program
                          funded under this part or as qualified State
                          expenditures, exceeds the total expenditures of
                          the State for such assistance for the
                          corresponding quarter in the emergency fund base
                          year of the State.

    [[Page 123 STAT. 447]]

                        ``(B) Grant related to increased expenditures for
                    non-recurrent short term benefits.--
                              ``(i) In general.--For each calendar quarter
                          in fiscal year 2009 or 2010, the Secretary shall
                          make a grant from the Emergency Fund to each State
                          that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                              ``(ii) Non-recurrent short term expenditure
                          requirement.--A State meets the requirement of
                          this clause for a quarter if the total
                          expenditures of the State for non-recurrent short
                          term benefits in the quarter, whether under the
                          State program funded under this part or as
                          qualified State expenditures, exceeds the total
                          expenditures of the State for non-recurrent short
                          term benefits in the corresponding quarter in the
                          emergency fund base year of the State.
                              ``(iii) Amount of grant.--Subject to paragraph
                          (5), the amount of the grant to be made to a State
                          under this subparagraph for a quarter shall be an
                          amount equal to 80 percent of the excess described
                          in clause (ii).
                        ``(C) Grant related to increased expenditures for
                    subsidized employment.--
                              ``(i) In general.--For each calendar quarter
                          in fiscal year 2009 or 2010, the Secretary shall
                          make a grant from the Emergency Fund to each State
                          that--
                                        ``(I) requests a grant under this
                                    subparagraph for the quarter; and
                                        ``(II) meets the requirement of
                                    clause (ii) for the quarter.
                              ``(ii) Subsidized employment expenditure
                          requirement.--A State meets the requirement of
                          this clause for a quarter if the total
                          expenditures of the State for subsidized
                          employment in the quarter, whether under the State
                          program funded under this part or as qualified
                          State expenditures, exceeds the total such
                          expenditures of the State in the corresponding
                          quarter in the emergency fund base year of the
                          State.
                              ``(iii) Amount of grant.--Subject to paragraph
                          (5), the amount of the grant to be made to a State
                          under this subparagraph for a quarter shall be an
                          amount equal to 80 percent of the excess described
                          in clause (ii).
                ``(4) Authority to make necessary adjustments to data and
            collect needed data.--In determining the size of the caseload of
            a State and the expenditures of a State for basic assistance,
            non-recurrent short-term benefits, and subsidized employment,
            during any period for which the State requests funds under this
            subsection, and during the emergency fund base year of the
            State, the Secretary may make appropriate adjustments to the
            data, on a State-by-State basis, to ensure that the data are
            comparable with respect to the groups of families served and the
            types of aid provided. The Secretary may develop a mechanism for
            collecting expenditure data,

    [[Page 123 STAT. 448]]

            including procedures which allow States to make reasonable
            estimates, and may set deadlines for making revisions to the
            data.
                ``(5) Limitation.--The total amount payable to a single
            State under subsection (b) and this subsection for fiscal years
            2009 and 2010 combined shall not exceed 50 percent of the annual
            State family assistance grant.
                ``(6) Limitations on use of funds.--A State to which an
            amount is paid under this subsection may use the amount only as
            authorized by section 404.
                ``(7) Timing of implementation.--The Secretary shall
            implement this subsection as quickly as reasonably possible,
            pursuant to appropriate guidance to States.
                ``(8) Application to indian tribes.--This subsection shall
            apply to an Indian tribe with an approved tribal family
            assistance plan under section 412 in the same manner as this
            subsection applies to a State.
                ``(9) Definitions.--In this subsection:
                        ``(A) Average monthly assistance caseload defined.--
                    The term `average monthly assistance caseload' means,
                    with respect to a State and a quarter, the number of
                    families receiving assistance during the quarter under
                    the State program funded under this part or as qualified
                    State expenditures, subject to adjustment under
                    paragraph (4).
                        ``(B) Emergency fund base year.--
                              ``(i) In general.--The term `emergency fund
                          base year' means, with respect to a State and a
                          category described in clause (ii), whichever of
                          fiscal year 2007 or 2008 is the fiscal year in
                          which the amount described by the category with
                          respect to the State is the lesser.
                              ``(ii) Categories described.--The categories
                          described in this clause are the following:
                                        ``(I) The average monthly assistance
                                    caseload of the State.
                                        ``(II) The total expenditures of the
                                    State for non-recurrent short term
                                    benefits, whether under the State
                                    program funded under this part or as
                                    qualified State expenditures.
                                        ``(III) The total expenditures of
                                    the State for subsidized employment,
                                    whether under the State program funded
                                    under this part or as qualified State
                                    expenditures.
                        ``(C) Qualified state expenditures.--The term
                    `qualified State expenditures' has the meaning given the
                    term in section 409(a)(7).''.
                (2) Repeal.-- <<NOTE: Effective dates.>> Effective October
            1, 2010, subsection (c) of section 403 of the Social Security
            Act (42 U.S.C. 603) (as added by paragraph (1)) is repealed,
            except that paragraph (9) of such subsection shall remain in
            effect until October 1, 2011, but only with respect to section
            407(b)(3)(A)(i) of such Act.

        (b) Temporary Modification of Caseload Reduction Credit.--Section
    407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by
    inserting ``(or if the immediately preceding fiscal year is fiscal year
    2008, 2009, or 2010, then, at State option, during the emergency fund
    base year of the State

    [[Page 123 STAT. 449]]

    with respect to the average monthly assistance caseload of the State
    (within the meaning of section 403(c)(9)), except that, if a State
    elects such option for fiscal year 2008, the emergency fund base year of
    the State with respect to such caseload shall be fiscal year 2007))''
    before ``under the State''.
        (c) Disregard From Limitation on Total Payments to Territories.--
    Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is
    amended by inserting ``403(c)(3),'' after ``403(a)(5),''.
        (d) <<NOTE: Effective dates.>> Sunset of Other Temporary
    Provisions.--
                (1) Disregard from limitation on total payments to
            territories.--Effective October 1, 2010, section 1108(a)(2) of
            the Social Security Act (42 U.S.C. 1308(a)(2)) is amended by
            striking ``403(c)(3),'' (as added by subsection (c)).
                (2) Caseload reduction credit.--Effective October 1, 2011,
            section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i))
            is amended by striking ``(or if the immediately preceding fiscal
            year is fiscal year 2008, 2009, or 2010, then, at State option,
            during the emergency fund base year of the State with respect to
            the average monthly assistance caseload of the State (within the
            meaning of section 403(c)(9)), except that, if a State elects
            such option for fiscal year 2008, the emergency fund base year
            of the State with respect to such caseload shall be fiscal year
            2007))'' (as added by subsection (b)).

    SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

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

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

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

    SEC. 2104. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

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

    [[Page 123 STAT. 450]]

          Subtitle C--Economic Recovery Payments to Certain Individuals

    SEC. 2201. <<NOTE: 26 USC 6428 note.>> ECONOMIC RECOVERY PAYMENT TO
                RECIPIENTS OF SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME,
                RAILROAD RETIREMENT BENEFITS, AND VETERANS DISABILITY
                COMPENSATION OR PENSION BENEFITS.

        (a) Authority to Make Payments.--
                (1) Eligibility.--
                        (A) In general.--Subject to paragraph (5)(B), the
                    Secretary of the Treasury shall disburse a $250 payment
                    to each individual who, for any month during the 3-month
                    period ending with the month which ends prior to the
                    month that includes the date of the enactment of this
                    Act, is entitled to a benefit payment described in
                    clause (i), (ii), or (iii) of subparagraph (B) or is
                    eligible for a SSI cash benefit described in
                    subparagraph (C).
                        (B) Benefit payment described.--For purposes of
                    subparagraph (A):
                              (i) Title ii benefit.--A benefit payment
                          described in this clause is a monthly insurance
                          benefit payable (without regard to sections
                          202(j)(1) and 223(b) of the Social Security Act
                          (42 U.S.C. 402(j)(1), 423(b)) under--
                                        (I) section 202(a) of such Act (42
                                    U.S.C. 402(a));
                                        (II) section 202(b) of such Act (42
                                    U.S.C. 402(b));
                                        (III) section 202(c) of such Act (42
                                    U.S.C. 402(c));
                                        (IV) section 202(d)(1)(B)(ii) of
                                    such Act (42 U.S.C. 402(d)(1)(B)(ii));
                                        (V) section 202(e) of such Act (42
                                    U.S.C. 402(e));
                                        (VI) section 202(f) of such Act (42
                                    U.S.C. 402(f));
                                        (VII) section 202(g) of such Act (42
                                    U.S.C. 402(g));
                                        (VIII) section 202(h) of such Act
                                    (42 U.S.C. 402(h));
                                        (IX) section 223(a) of such Act (42
                                    U.S.C. 423(a));
                                        (X) section 227 of such Act (42
                                    U.S.C. 427); or
                                        (XI) section 228 of such Act (42
                                    U.S.C. 428).
                              (ii) Railroad retirement benefit.--A benefit
                          payment described in this clause is a monthly
                          annuity or pension payment payable (without regard
                          to section 5(a)(ii) of the Railroad Retirement Act
                          of 1974 (45 U.S.C. 231d(a)(ii))) under--
                                        (I) section 2(a)(1) of such Act (45
                                    U.S.C. 231a(a)(1));
                                        (II) section 2(c) of such Act (45
                                    U.S.C. 231a(c));
                                        (III) section 2(d)(1)(i) of such Act
                                    (45 U.S.C. 231a(d)(1)(i));
                                        (IV) section 2(d)(1)(ii) of such Act
                                    (45 U.S.C. 231a(d)(1)(ii));

    [[Page 123 STAT. 451]]

                                        (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

    [[Page 123 STAT. 452]]

                    period described in paragraph (1), such individual's
                    benefit under such paragraph was not payable, or was
                    reduced, by reason of section 1505, 5313, or 5313B of
                    title 38, United States Code;
                        (C) in the case of an individual entitled to a
                    benefit specified in paragraph (1)(C) if, for such most
                    recent month, such individual's benefit under such
                    paragraph was not payable by reason of subsection
                    (e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382) or
                    section 1129A of such Act (42 U.S.C. 1320a-8a); or
                        (D) in the case of any individual whose date of
                    death occurs before the date on which the individual is
                    certified under subsection (b) to receive a payment
                    under this section.
                (5) Timing and manner of payments.--
                        (A) In general.-- <<NOTE: Deadline.>> The Secretary
                    of the Treasury shall commence disbursing payments under
                    this section at the earliest practicable date but in no
                    event later than 120 days after the date of enactment of
                    this Act. The Secretary of the Treasury may disburse any
                    payment electronically to an individual in such manner
                    as if such payment was a benefit payment or cash benefit
                    to such individual under the applicable program
                    described in subparagraph (B) or (C) of paragraph (1).
                        (B) Deadline.--No payments shall be disbursed under
                    this section after December 31, 2010, regardless of any
                    determinations of entitlement to, or eligibility for,
                    such payments made after such date.

        (b) Identification of Recipients.-- <<NOTE: Certification.>> 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.-- <<NOTE: Time period.>> 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.--
            <<NOTE: Applicability.>> 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

    [[Page 123 STAT. 453]]

            made under subsection (a) as if such payment was a benefit
            payment or cash benefit to such individual under the applicable
            program described in subparagraph (B) or (C) of subsection
            (a)(1).
                (4) Payments subject to offset.--Notwithstanding paragraph
            (3), for purposes of section 3716 of title 31, United States
            Code, any payment made under this section shall not be
            considered a benefit payment or cash benefit made under the
            applicable program described in subparagraph (B) or (C) of
            subsection (a)(1) and all amounts paid shall be subject to
            offset to collect delinquent debts.

        (d) Payment to Representative Payees and Fiduciaries.--
                (1) In general.--In any case in which an individual who is
            entitled to a payment under subsection (a) and whose benefit
            payment or cash benefit described in paragraph (1) of that
            subsection is paid to a representative payee or fiduciary, the
            payment under subsection (a) shall be made to the individual's
            representative payee or fiduciary and the entire payment shall
            be used only for the benefit of the individual who is entitled
            to the payment.
                (2) Applicability.--
                        (A) Payment on the basis of a title ii or ssi
                    benefit.--Section 1129(a)(3) of the Social Security Act
                    (42 U.S.C. 1320a-8(a)(3)) shall apply to any payment
                    made on the basis of an entitlement to a benefit
                    specified in paragraph (1)(B)(i) or (1)(C) of subsection
                    (a) in the same manner as such section applies to a
                    payment under title II or XVI of such Act.
                        (B) Payment on the basis of a railroad retirement
                    benefit.--Section 13 of the Railroad Retirement Act (45
                    U.S.C. 231l) shall apply to any payment made on the
                    basis of an entitlement to a benefit specified in
                    paragraph (1)(B)(ii) of subsection (a) in the same
                    manner as such section applies to a payment under such
                    Act.
                        (C) Payment on the basis of a veterans benefit.--
                    Sections 5502, 6106, and 6108 of title 38, United States
                    Code, shall apply to any payment made on the basis of an
                    entitlement to a benefit specified in paragraph
                    (1)(B)(iii) of subsection (a) in the same manner as
                    those sections apply to a payment under that title.

        (e) Appropriation.--Out of any sums in the Treasury of the United
    States not otherwise appropriated, the following sums are appropriated
    for the period of fiscal years 2009 through 2011, to remain available
    until expended, to carry out this section:
                (1) For the Secretary of the Treasury, $131,000,000 for
            administrative costs incurred in carrying out this section,
            section 2202, section 36A of the Internal Revenue Code of 1986
            (as added by this Act), and other provisions of this Act or the
            amendments made by this Act relating to the Internal Revenue
            Code of 1986.
                (2) For the Commissioner of Social Security--
                        (A) such sums as may be necessary for payments to
                    individuals certified by the Commissioner of Social
                    Security as entitled to receive a payment under this
                    section; and
                        (B) $90,000,000 for the Social Security
                    Administration's Limitation on Administrative Expenses
                    for costs incurred in carrying out this section.

    [[Page 123 STAT. 454]]

                (3) For the Railroad Retirement Board--
                        (A) such sums as may be necessary for payments to
                    individuals certified by the Railroad Retirement Board
                    as entitled to receive a payment under this section; and
                        (B) $1,400,000 to the Railroad Retirement Board's
                    Limitation on Administration for administrative costs
                    incurred in carrying out this section.
                (4)(A) For the Secretary of Veterans Affairs--
                              (i) such sums as may be necessary for the
                          Compensation and Pensions account, for payments to
                          individuals certified by the Secretary of Veterans
                          Affairs as entitled to receive a payment under
                          this section; and
                              (ii) $100,000 for the Information Systems
                          Technology account and $7,100,000 for the General
                          Operating Expenses account for administrative
                          costs incurred in carrying out this section.
                (B) The Department of Veterans Affairs Compensation and
            Pensions account shall hereinafter be available for payments
            authorized under subsection (a)(1)(A) to individuals entitled to
            a benefit payment described in subsection (a)(1)(B)(iii).

    SEC. 2202. <<NOTE: 26 USC 6428 note.>> SPECIAL CREDIT FOR CERTAIN
                GOVERNMENT RETIREES.

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

        (c) Treatment of Credit.--
                (1) Refundable credit.--
                        (A) In general.--The credit allowed by subsection
                    (a) shall be treated as allowed by subpart C of part IV
                    of

    [[Page 123 STAT. 455]]

                    subchapter A of chapter 1 of the Internal Revenue Code
                    of 1986.
                        (B) Appropriations.--For purposes of section
                    1324(b)(2) of title 31, United States Code, the credit
                    allowed by subsection (a) shall be treated in the same
                    manner a refund from the credit allowed under section
                    36A of the Internal Revenue Code of 1986 (as added by
                    this Act).
                (2) Deficiency rules.--For purposes of section 6211(b)(4)(A)
            of the Internal Revenue Code of 1986, the credit allowable by
            subsection (a) shall be treated in the same manner as the credit
            allowable under section 36A of the Internal Revenue Code of 1986
            (as added by this Act).

        (d) Refunds Disregarded in the Administration of Federal Programs
    and Federally Assisted Programs.-- <<NOTE: Time period.>> Any credit or
    refund allowed or made to any individual by reason of this section shall
    not be taken into account as income and shall not be taken into account
    as resources for the month of receipt and the following 2 months, for
    purposes of determining the eligibility of such individual or any other
    individual for benefits or assistance, or the amount or extent of
    benefits or assistance, under any Federal program or under any State or
    local program financed in whole or in part with Federal funds.

                TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

    SEC. 3000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

                TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

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

    SEC. 3001. <<NOTE: 26 USC 6432 note.>> PREMIUM ASSISTANCE FOR COBRA
                BENEFITS.

        (a) Premium Assistance for COBRA Continuation Coverage for
    Individuals and Their Families.--
                (1) Provision of premium assistance.--
                        (A) Reduction of premiums payable.--In the case of
                    any premium for a period of coverage beginning on or
                    after the date of the enactment of this Act for COBRA
                    continuation coverage with respect to any assistance
                    eligible individual, such individual shall be treated
                    for purposes of any COBRA continuation provision as
                    having paid the amount of such premium if such
                    individual pays (or a person other than such
                    individual's employer pays on behalf of such individual)
                    35 percent of the amount of such premium (as determined
                    without regard to this subsection).
                        (B) Plan enrollment option.--
                              (i) In general.--
                          <<NOTE: Deadline.>> Notwithstanding the COBRA
                          continuation provisions, an assistance eligible
                          individual may, not later than 90 days after the
                          date of notice of the plan enrollment option
                          described in this subparagraph, elect to enroll in
                          coverage under a plan offered by the employer
                          involved, or the employee organization involved
                          (including, for this purpose, a joint board of
                          trustees of a multiemployer trust

    [[Page 123 STAT. 456]]

                          affiliated with one or more multiemployer plans),
                          that is different than coverage under the plan in
                          which such individual was enrolled at the time the
                          qualifying event occurred, and such coverage shall
                          be treated as COBRA continuation coverage for
                          purposes of the applicable COBRA continuation
                          coverage provision.
                              (ii) Requirements.--An assistance eligible
                          individual may elect to enroll in different
                          coverage as described in clause (i) only if--
                                        (I) the employer involved has made a
                                    determination that such employer will
                                    permit assistance eligible individuals
                                    to enroll in different coverage as
                                    provided for this subparagraph;
                                        (II) the premium for such different
                                    coverage does not exceed the premium for
                                    coverage in which the individual was
                                    enrolled at the time the qualifying
                                    event occurred;
                                        (III) the different coverage in
                                    which the individual elects to enroll is
                                    coverage that is also offered to the
                                    active employees of the employer at the
                                    time at which such election is made; and
                                        (IV) the different coverage is not--
                                                (aa) coverage that provides
                                            only dental, vision, counseling,
                                            or referral services (or a
                                            combination of such services);
                                                (bb) a flexible spending
                                            arrangement (as defined in
                                            section 106(c)(2) of the
                                            Internal Revenue Code of 1986);
                                            or
                                                (cc) coverage that provides
                                            coverage for services or
                                            treatments furnished in an on-
                                            site medical facility maintained
                                            by the employer and that
                                            consists primarily of first-aid
                                            services, prevention and
                                            wellness care, or similar care
                                            (or a combination of such care).
                        (C) Premium reimbursement.--For provisions providing
                    the balance of such premium, see section 6432 of the
                    Internal Revenue Code of 1986, as added by paragraph
                    (12).
                (2) Limitation of period of premium assistance.--
                        (A) In general.--Paragraph (1)(A) shall not apply
                    with respect to any assistance eligible individual for
                    months of coverage beginning on or after the earlier
                    of--
                              (i) the first date that such individual is
                          eligible for coverage under any other group health
                          plan (other than coverage consisting of only
                          dental, vision, counseling, or referral services
                          (or a combination thereof), coverage under a
                          flexible spending arrangement (as defined in
                          section 106(c)(2) of the Internal Revenue Code of
                          1986), or coverage of treatment that is furnished
                          in an on-site medical facility maintained by the
                          employer and that consists primarily of first-aid
                          services, prevention and wellness care, or similar
                          care (or a combination thereof)) or is eligible
                          for benefits under title XVIII of the Social
                          Security Act, or
                              (ii) the earliest of--

    [[Page 123 STAT. 457]]

                                        (I) the date which is 9 months after
                                    the first day of the first month that
                                    paragraph (1)(A) applies with respect to
                                    such individual,
                                        (II) the date following the
                                    expiration of the maximum period of
                                    continuation coverage required under the
                                    applicable COBRA continuation coverage
                                    provision, or
                                        (III) the date following the
                                    expiration of the period of continuation
                                    coverage allowed under paragraph
                                    (4)(B)(ii).
                        (B) Timing of eligibility for additional coverage.--
                    For purposes of subparagraph (A)(i), an individual shall
                    not be treated as eligible for coverage under a group
                    health plan before the first date on which such
                    individual could be covered under such plan.
                        (C) Notification requirement.--An assistance
                    eligible individual shall notify in writing the group
                    health plan with respect to which paragraph (1)(A)
                    applies if such paragraph ceases to apply by reason of
                    subparagraph (A)(i). Such notice shall be provided to
                    the group health plan in such time and manner as may be
                    specified by the Secretary of Labor.
                (3) <<NOTE: Definition. Time period.>>  Assistance eligible
            individual.--For purposes of this section, the term ``assistance
            eligible individual'' means any qualified beneficiary if--
                        (A) at any time during the period that begins with
                    September 1, 2008, and ends with December 31, 2009, such
                    qualified beneficiary is eligible for COBRA continuation
                    coverage,
                        (B) such qualified beneficiary elects such coverage,
                    and
                        (C) the qualifying event with respect to the COBRA
                    continuation coverage consists of the involuntary
                    termination of the covered employee's employment and
                    occurred during such period.
                (4) Extension of election period and effect on coverage.--
                        (A) In general.--For purposes of applying section
                    605(a) of the Employee Retirement Income Security Act of
                    1974, section 4980B(f)(5)(A) of the Internal Revenue
                    Code of 1986, section 2205(a) of the Public Health
                    Service Act, and section 8905a(c)(2) of title 5, United
                    States Code, in the case of an individual who does not
                    have an election of COBRA continuation coverage in
                    effect on the date of the enactment of this Act but who
                    would be an assistance eligible individual if such
                    election were so in effect, such individual may elect
                    the COBRA continuation coverage under the COBRA
                    continuation coverage provisions containing such
                    sections during the period beginning on the date of the
                    enactment of this Act and ending 60 days after the date
                    on which the notification required under paragraph
                    (7)(C) is provided to such individual.
                        (B) Commencement of coverage; no reach-back.--Any
                    COBRA continuation coverage elected by a qualified
                    beneficiary during an extended election period under
                    subparagraph (A)--

    [[Page 123 STAT. 458]]

                              (i) shall commence with the first period of
                          coverage beginning on or after the date of the
                          enactment of this Act, and
                              (ii) shall not extend beyond the period of
                          COBRA continuation coverage that would have been
                          required under the applicable COBRA continuation
                          coverage provision if the coverage had been
                          elected as required under such provision.
                        (C) Preexisting conditions.--With respect to a
                    qualified beneficiary who elects COBRA continuation
                    coverage pursuant to subparagraph (A), the period--
                              (i) beginning on the date of the qualifying
                          event, and
                              (ii) ending with the beginning of the period
                          described in subparagraph (B)(i),
                    shall be disregarded for purposes of determining the 63-
                    day periods referred to in section 701(c)(2) of the
                    Employee Retirement Income Security Act of 1974, section
                    9801(c)(2) of the Internal Revenue Code of 1986, and
                    section 2701(c)(2) of the Public Health Service Act.
                (5) Expedited review of denials of premium assistance.--In
            any case in which an individual requests treatment as an
            assistance eligible individual and is denied such treatment by
            the group health plan, the Secretary of Labor (or the Secretary
            of Health and Human Services in connection with COBRA
            continuation coverage which is provided other than pursuant to
            part 6 of subtitle B of title I of the Employee Retirement
            Income Security Act of 1974), in consultation with the Secretary
            of the Treasury, shall provide for expedited review of such
            denial. <<NOTE: Application.>> 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. <<NOTE: Determination. Deadline.>> Such Secretary
            shall make a determination regarding such individual's
            eligibility within 15 business days after receipt of such
            individual's application for review under this paragraph. Either
            Secretary's determination upon review of the denial shall be de
            novo and shall be the final determination of such
            Secretary. <<NOTE: Courts.>> A reviewing court shall grant
            deference to such Secretary's determination. The provisions of
            this paragraph, paragraphs (1) through (4), and paragraph (7)
            shall be treated as provisions of title I of the Employee
            Retirement Income Security Act of 1974 for purposes of part 5 of
            subtitle B of such title.
                (6) Disregard of subsidies for purposes of federal and state
            programs.--Notwithstanding any other provision of law, any
            premium reduction with respect to an assistance eligible
            individual under this subsection shall not be considered income
            or resources in determining eligibility for, or the amount of
            assistance or benefits provided under, any other public benefit
            provided under Federal law or the law of any State or political
            subdivision thereof.
                (7) Notices to individuals.--
                        (A) General notice.--
                              (i) In general.--In the case of notices
                          provided under section 606(a)(4) of the Employee
                          Retirement Income Security Act of 1974 (29 U.S.C.
                          1166(4)), section 4980B(f)(6)(D) of the Internal
                          Revenue Code of 1986, section 2206(4) of the
                          Public Health Service Act (42

    [[Page 123 STAT. 459]]

                          U.S.C. 300bb-6(4)), or section 8905a(f)(2)(A) of
                          title 5, United States Code, with respect to
                          individuals who, during the period described in
                          paragraph (3)(A), become entitled to elect COBRA
                          continuation coverage, the requirements of such
                          sections shall not be treated as met unless such
                          notices include an additional notification to the
                          recipient of--
                                        (I) the availability of premium
                                    reduction with respect to such coverage
                                    under this subsection, and
                                        (II) the option to enroll in
                                    different coverage if the employer
                                    permits assistance eligible individuals
                                    to elect enrollment in different
                                    coverage (as described in paragraph
                                    (1)(B)).
                              (ii) Alternative notice.--
                          <<NOTE: Regulations.>> In the case of COBRA
                          continuation coverage to which the notice
                          provision under such sections does not apply, the
                          Secretary of Labor, in consultation with the
                          Secretary of the Treasury and the Secretary of
                          Health and Human Services, shall, in consultation
                          with administrators of the group health plans (or
                          other entities) that provide or administer the
                          COBRA continuation coverage involved, provide
                          rules requiring the provision of such notice.
                              (iii) Form.--The requirement of the additional
                          notification under this subparagraph may be met by
                          amendment of existing notice forms or by inclusion
                          of a separate document with the notice otherwise
                          required.
                        (B) Specific requirements.--Each additional
                    notification under subparagraph (A) shall include--
                              (i) the forms necessary for establishing
                          eligibility for premium reduction under this
                          subsection,
                              (ii) the name, address, and telephone number
                          necessary to contact the plan administrator and
                          any other person maintaining relevant information
                          in connection with such premium reduction,
                              (iii) a description of the extended election
                          period provided for in paragraph (4)(A),
                              (iv) a description of the obligation of the
                          qualified beneficiary under paragraph (2)(C) to
                          notify the plan providing continuation coverage of
                          eligibility for subsequent coverage under another
                          group health plan or eligibility for benefits
                          under title XVIII of the Social Security Act and
                          the penalty provided under section 6720C of the
                          Internal Revenue Code of 1986 for failure to so
                          notify the plan,
                              (v) a description, displayed in a prominent
                          manner, of the qualified beneficiary's right to a
                          reduced premium and any conditions on entitlement
                          to the reduced premium, and
                              (vi) a description of the option of the
                          qualified beneficiary to enroll in different
                          coverage if the employer permits such beneficiary
                          to elect to enroll in such different coverage
                          under paragraph (1)(B).
                        (C) Notice in connection with extended election
                    periods.-- <<NOTE: Deadline.>> In the case of any
                    assistance eligible individual

    [[Page 123 STAT. 460]]

                    (or any individual described in paragraph (4)(A)) who
                    became entitled to elect COBRA continuation coverage
                    before the date of the enactment of this Act, the
                    administrator of the group health plan (or other entity)
                    involved shall provide (within 60 days after the date of
                    enactment of this Act) for the additional notification
                    required to be provided under subparagraph (A) and
                    failure to provide such notice shall be treated as a
                    failure to meet the notice requirements under the
                    applicable COBRA continuation provision.
                        (D) Model notices.-- <<NOTE: Deadline.>> Not later
                    than 30 days after the date of enactment of this Act--
                              (i) the Secretary of the Labor, in
                          consultation with the Secretary of the Treasury
                          and the Secretary of Health and Human Services,
                          shall prescribe models for the additional
                          notification required under this paragraph (other
                          than the additional notification described in
                          clause (ii)), and
                              (ii) in the case of any additional
                          notification provided pursuant to subparagraph (A)
                          under section 8905a(f)(2)(A) of title 5, United
                          States Code, the Office of Personnel Management
                          shall prescribe a model for such additional
                          notification.
                (8) Regulations.--The Secretary of the Treasury may
            prescribe such regulations or other guidance as may be necessary
            or appropriate to carry out the provisions of this subsection,
            including the prevention of fraud and abuse under this
            subsection, except that the Secretary of Labor and the Secretary
            of Health and Human Services may prescribe such regulations
            (including interim final regulations) or other guidance as may
            be necessary or appropriate to carry out the provisions of
            paragraphs (5), (7), and (9).
                (9) Outreach.--The Secretary of Labor, in consultation with
            the Secretary of the Treasury and the Secretary of Health and
            Human Services, shall provide outreach consisting of public
            education and enrollment assistance relating to premium
            reduction provided under this subsection. Such outreach shall
            target employers, group health plan administrators, public
            assistance programs, States, insurers, and other entities as
            determined appropriate by such Secretaries. Such outreach shall
            include an initial focus on those individuals electing
            continuation coverage who are referred to in paragraph
            (7)(C). <<NOTE: Web posting.>> Information on such premium
            reduction, including enrollment, shall also be made available on
            websites of the Departments of Labor, Treasury, and Health and
            Human Services.
                (10) Definitions.--For purposes of this section--
                        (A) Administrator.--The term ``administrator'' has
                    the meaning given such term in section 3(16)(A) of the
                    Employee Retirement Income Security Act of 1974.
                        (B) COBRA continuation coverage.--The term ``COBRA
                    continuation coverage'' means continuation coverage
                    provided pursuant to part 6 of subtitle B of title I of
                    the Employee Retirement Income Security Act of 1974
                    (other than under section 609), title XXII of the Public
                    Health Service Act, section 4980B of the Internal
                    Revenue Code of 1986 (other than subsection (f)(1) of
                    such section insofar as it relates to pediatric
                    vaccines), or section 8905a

    [[Page 123 STAT. 461]]

                    of title 5, United States Code, or under a State program
                    that provides comparable continuation coverage. Such
                    term does not include coverage under a health flexible
                    spending arrangement under a cafeteria plan within the
                    meaning of section 125 of the Internal Revenue Code of
                    1986.
                        (C) COBRA continuation provision.--The term ``COBRA
                    continuation provision'' means the provisions of law
                    described in subparagraph (B).
                        (D) Covered employee.--The term ``covered employee''
                    has the meaning given such term in section 607(2) of the
                    Employee Retirement Income Security Act of 1974.
                        (E) Qualified beneficiary.--The term ``qualified
                    beneficiary'' has the meaning given such term in section
                    607(3) of the Employee Retirement Income Security Act of
                    1974.
                        (F) Group health plan.--The term ``group health
                    plan'' has the meaning given such term in section 607(1)
                    of the Employee Retirement Income Security Act of 1974.
                        (G) State.--The term ``State'' includes the District
                    of Columbia, the Commonwealth of Puerto Rico, the Virgin
                    Islands, Guam, American Samoa, and the Commonwealth of
                    the Northern Mariana Islands.
                        (H) Period of coverage.--Any reference in this
                    subsection to a period of coverage shall be treated as a
                    reference to a monthly or shorter period of coverage
                    with respect to which premiums are charged with respect
                    to such coverage.
                (11) Reports.--
                        (A) Interim report.--The Secretary of the Treasury
                    shall submit an interim report to the Committee on
                    Education and Labor, the Committee on Ways and Means,
                    and the Committee on Energy and Commerce of the House of
                    Representatives and the Committee on Health, Education,
                    Labor, and Pensions and the Committee on Finance of the
                    Senate regarding the premium reduction provided under
                    this subsection that includes--
                              (i) the number of individuals provided such
                          assistance as of the date of the report; and
                              (ii) the total amount of expenditures incurred
                          (with administrative expenditures noted
                          separately) in connection with such assistance as
                          of the date of the report.
                        (B) Final report.--As soon as practicable after the
                    last period of COBRA continuation coverage for which
                    premium reduction is provided under this section, the
                    Secretary of the Treasury shall submit a final report to
                    each Committee referred to in subparagraph (A) that
                    includes--
                              (i) the number of individuals provided premium
                          reduction under this section;
                              (ii) the average dollar amount (monthly and
                          annually) of premium reductions provided to such
                          individuals; and
                              (iii) the total amount of expenditures
                          incurred (with administrative expenditures noted
                          separately) in connection with premium reduction
                          under this section.
                (12) COBRA premium assistance.--

    [[Page 123 STAT. 462]]

                        (A) In general.--Subchapter B of chapter 65 of the
                    Internal Revenue Code of 1986, as amended by this Act,
                    is amended by adding at the end the following new
                    section:

    ``SEC. 6432. <<NOTE: 26 USC 6432.>> COBRA PREMIUM ASSISTANCE.

        ``(a) In General.--The person to whom premiums are payable under
    COBRA continuation coverage shall be reimbursed as provided in
    subsection (c) for the amount of premiums not paid by assistance
    eligible individuals by reason of section 3002(a) of the Health
    Insurance Assistance for the Unemployed Act of 2009.
        ``(b) Person Entitled to Reimbursement.--For purposes of subsection
    (a), except as otherwise provided by the Secretary, the person to whom
    premiums are payable under COBRA continuation coverage shall be treated
    as being--
                ``(1) in the case of any group health plan which is a
            multiemployer plan (as defined in section 3(37) of the Employee
            Retirement Income Security Act of 1974), the plan,
                ``(2) in the case of any group health plan not described in
            paragraph (1)--
                        ``(A) which is subject to the COBRA continuation
                    provisions contained in--
                              ``(i) the Internal Revenue Code of 1986,
                              ``(ii) the Employee Retirement Income Security
                          Act of 1974,
                              ``(iii) the Public Health Service Act, or
                              ``(iv) title 5, United States Code, or
                        ``(B) under which some or all of the coverage is not
                    provided by insurance,
            the employer maintaining the plan, and
                ``(3) in the case of any group health plan not described in
            paragraph (1) or (2), the insurer providing the coverage under
            the group health plan.

        ``(c) Method of Reimbursement.--Except as otherwise provided by the
    Secretary--
                ``(1) Treatment as payment of payroll taxes.--Each person
            entitled to reimbursement under subsection (a) (and filing a
            claim for such reimbursement at such time and in such manner as
            the Secretary may require) shall be treated for purposes of this
            title and section 1324(b)(2) of title 31, United States Code, as
            having paid to the Secretary, on the date that the assistance
            eligible individual's premium payment is received, payroll taxes
            in an amount equal to the portion of such reimbursement which
            relates to such premium. To the extent that the amount treated
            as paid under the preceding sentence exceeds the amount of such
            person's liability for such taxes, the Secretary shall credit or
            refund such excess in the same manner as if it were an
            overpayment of such taxes.
                ``(2) Overstatements.--Any overstatement of the
            reimbursement to which a person is entitled under this section
            (and any amount paid by the Secretary as a result of such
            overstatement) shall be treated as an underpayment of payroll
            taxes by such person and may be assessed and collected by the
            Secretary in the same manner as payroll taxes.
                ``(3) Reimbursement contingent on payment of remaining
            premium.--No reimbursement may be made under this section to a
            person with respect to any assistance eligible individual until
            after the reduced premium required under

    [[Page 123 STAT. 463]]

            section 3002(a)(1)(A) of such Act with respect to such
            individual has been received.

        ``(d) Definitions.--For purposes of this section--
                ``(1) Payroll taxes.--The term `payroll taxes' means--
                        ``(A) amounts required to be deducted and withheld
                    for the payroll period under section 3402 (relating to
                    wage withholding),
                        ``(B) amounts required to be deducted for the
                    payroll period under section 3102 (relating to FICA
                    employee taxes), and
                        ``(C) amounts of the taxes imposed for the payroll
                    period under section 3111 (relating to FICA employer
                    taxes).
                ``(2) Person.--The term `person' includes any governmental
            entity.

        ``(e) Reporting.--Each person entitled to reimbursement under
    subsection (a) for any period shall submit such reports (at such time
    and in such manner) as the Secretary may require, including--
                ``(1) an attestation of involuntary termination of
            employment for each covered employee on the basis of whose
            termination entitlement to reimbursement is claimed under
            subsection (a),
                ``(2) a report of the amount of payroll taxes offset under
            subsection (a) for the reporting period and the estimated
            offsets of such taxes for the subsequent reporting period in
            connection with reimbursements under subsection (a), and
                ``(3) a report containing the TINs of all covered employees,
            the amount of subsidy reimbursed with respect to each covered
            employee and qualified beneficiaries, and a designation with
            respect to each covered employee as to whether the subsidy
            reimbursement is for coverage of 1 individual or 2 or more
            individuals.

        ``(f) Regulations.--The Secretary shall issue such regulations or
    other guidance as may be necessary or appropriate to carry out this
    section, including--
                ``(1) the requirement to report information or the
            establishment of other methods for verifying the correct amounts
            of reimbursements under this section, and
                ``(2) the application of this section to group health plans
            that are multiemployer plans (as defined in section 3(37) of the
            Employee Retirement Income Security Act of 1974).''.
                        (B) Social security trust funds held harmless.--In
                    determining any amount transferred or appropriated to
                    any fund under the Social Security Act, section 6432 of
                    the Internal Revenue Code of 1986 shall not be taken
                    into account.
                        (C) Clerical amendment.--The table of sections for
                    subchapter B of chapter 65 of the Internal Revenue Code
                    of 1986 is amended by adding at the end the following
                    new item:

    ``Sec. 6432. COBRA premium assistance.''.

                        (D) Effective date.--The amendments made by this
                    paragraph shall apply to premiums to which subsection
                    (a)(1)(A) applies.
                        (E) Special rule.--
                              (i) In general.--In the case of an assistance
                          eligible individual who pays, with respect to the
                          first

    [[Page 123 STAT. 464]]

                          period of COBRA continuation coverage to which
                          subsection (a)(1)(A) applies or the immediately
                          subsequent period, the full premium amount for
                          such coverage, the person to whom such payment is
                          payable shall--
                                        (I) make a reimbursement payment to
                                    such individual for the amount of such
                                    premium paid in excess of the amount
                                    required to be paid under subsection
                                    (a)(1)(A); or
                                        (II) provide credit to the
                                    individual for such amount in a manner
                                    that reduces one or more subsequent
                                    premium payments that the individual is
                                    required to pay under such subsection
                                    for the coverage involved.
                              (ii) Reimbursing employer.--A person to which
                          clause (i) applies shall be reimbursed as provided
                          for in section 6432 of the Internal Revenue Code
                          of 1986 for any payment made, or credit provided,
                          to the employee under such clause.
                              (iii) Payment or credits.-- <<NOTE: Time
                          period. Deadlines.>> Unless it is reasonable to
                          believe that the credit for the excess payment in
                          clause (i)(II) will be used by the assistance
                          eligible individual within 180 days of the date on
                          which the person receives from the individual the
                          payment of the full premium amount, a person to
                          which clause (i) applies shall make the payment
                          required under such clause to the individual
                          within 60 days of such payment of the full premium
                          amount. If, as of any day within the 180-day
                          period, it is no longer reasonable to believe that
                          the credit will be used during that period,
                          payment equal to the remainder of the credit
                          outstanding shall be made to the individual within
                          60 days of such day.
                (13) Penalty for failure to notify health plan of cessation
            of eligibility for premium assistance.--
                        (A) In general.--Part I of subchapter B of chapter
                    68 of the Internal Revenue Code of 1986 is amended by
                    adding at the end the following new section:

    ``SEC. 6720C. <<NOTE: 26 USC 6720C.>> PENALTY FOR FAILURE TO NOTIFY
                HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR COBRA PREMIUM
                ASSISTANCE.

        ``(a) In General.--Any person required to notify a group health plan
    under section 3002(a)(2)(C)) of the Health Insurance Assistance for the
    Unemployed Act of 2009 who fails to make such a notification at such
    time and in such manner as the Secretary of Labor may require shall pay
    a penalty of 110 percent of the premium reduction provided under such
    section after termination of eligibility under such subsection.
        ``(b) Reasonable Cause Exception.--No penalty shall be imposed under
    subsection (a) with respect to any failure if it is shown that such
    failure is due to reasonable cause and not to willful neglect.''.

    [[Page 123 STAT. 465]]

                        (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 <<NOTE: 26 USC 35.>>  is
                    amended by redesignating paragraph (9) as paragraph (10)
                    and inserting after paragraph (8) the following new
                    paragraph:
                ``(9) COBRA premium assistance.--In the case of an
            assistance eligible individual who receives premium reduction
            for COBRA continuation coverage under section 3002(a) of the
            Health Insurance Assistance for the Unemployed Act of 2009 for
            any month during the taxable year, such individual shall not be
            treated as an eligible individual, a certified individual, or a
            qualifying family member for purposes of this section or section
            7527 with respect to such month.''.
                        (B) Effective date.--The amendment made by
                    subparagraph (A) shall apply to taxable years ending
                    after the date of the enactment of this Act.
                (15) Exclusion of cobra premium assistance from gross
            income.--
                        (A) In general.--Part III of subchapter B of chapter
                    1 of the Internal Revenue Code of 1986 is amended by
                    inserting after section 139B the following new section:

    ``SEC. 139C. <<NOTE: 26 USC 139C.>> COBRA PREMIUM ASSISTANCE.

        ``In the case of an assistance eligible individual (as defined in
    section 3002 of the Health Insurance Assistance for the Unemployed Act
    of 2009), gross income does not include any premium reduction provided
    under subsection (a) of such section.''.
                        (B) Clerical amendment.--The table of sections for
                    part III of subchapter B of chapter 1 of such Code is
                    amended by inserting after the item relating to section
                    139B the following new item:

    ``Sec. 139C. COBRA premium assistance.''.

                        (C) Effective date.--The amendments made by this
                    paragraph shall apply to taxable years ending after the
                    date of the enactment of this Act.

        (b) Elimination of Premium Subsidy for High-Income Individuals.--
                (1) Recapture of subsidy for high-income individuals.--If--
                        (A) premium assistance is provided under this
                    section with respect to any COBRA continuation coverage
                    which covers the taxpayer, the taxpayer's spouse, or any
                    dependent (within the meaning of section 152 of the
                    Internal Revenue Code of 1986, determined without regard
                    to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of
                    the taxpayer during any portion of the taxable year, and
                        (B) the taxpayer's modified adjusted gross income
                    for such taxable year exceeds $125,000 ($250,000 in the
                    case of a joint return),

    [[Page 123 STAT. 466]]

            then the tax imposed by chapter 1 of such Code with respect to
            the taxpayer for such taxable year shall be increased by the
            amount of such assistance.
                (2) Phase-in of recapture.--
                        (A) In general.--In the case of a taxpayer whose
                    modified adjusted gross income for the taxable year does
                    not exceed $145,000 ($290,000 in the case of a joint
                    return), the increase in the tax imposed under paragraph
                    (1) shall not exceed the phase-in percentage of such
                    increase (determined without regard to this paragraph).
                        (B) Phase-in percentage.--For purposes of this
                    subsection, the term ``phase-in percentage'' means the
                    ratio (expressed as a percentage) obtained by dividing--
                              (i) the excess of described in subparagraph
                          (B) of paragraph (1), by
                              (ii) $20,000 ($40,000 in the case of a joint
                          return).
                (3) Option for high-income individuals to waive assistance
            and avoid recapture.--Notwithstanding subsection (a)(3), an
            individual shall not be treated as an assistance eligible
            individual for purposes of this section and section 6432 of the
            Internal Revenue Code of 1986 if such individual--
                        (A) makes a permanent election (at such time and in
                    such form and manner as the Secretary of the Treasury
                    may prescribe) to waive the right to the premium
                    assistance provided under this section, and
                        (B) notifies the entity to whom premiums are
                    reimbursed under section 6432(a) of such Code of such
                    election.
                (4) Modified adjusted gross income.--For purposes of this
            subsection, the term ``modified adjusted gross income'' means
            the adjusted gross income (as defined in section 62 of the
            Internal Revenue Code of 1986) of the taxpayer for the taxable
            year increased by any amount excluded from gross income under
            section 911, 931, or 933 of such Code.
                (5) Credits not allowed against tax, etc.--For purposes
            determining regular tax liability under section 26(b) of such
            Code, the increase in tax under this subsection shall not be
            treated as a tax imposed under chapter 1 of such Code.
                (6) Regulations.--The Secretary of the Treasury shall issue
            such regulations or other guidance as are necessary or
            appropriate to carry out this subsection, including requirements
            that the entity to whom premiums are reimbursed under section
            6432(a) of the Internal Revenue Code of 1986 report to the
            Secretary, and to each assistance eligible individual, the
            amount of premium assistance provided under subsection (a) with
            respect to each such individual.
                (7) Effective date.--The provisions of this subsection shall
            apply to taxable years ending after the date of the enactment of
            this Act.

    [[Page 123 STAT. 467]]

       TITLE IV-- <<NOTE: Health Information Technology for Economic and
        Clinical Health Act.>> MEDICARE AND MEDICAID HEALTH INFORMATION
    TECHNOLOGY; MISCELLANEOUS MEDICARE PROVISIONS

    SEC. 4001. TABLE OF CONTENTS OF TITLE.

        The table of contents of this title is as follows:

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

    Sec. 4001. Table of contents of title.

                         Subtitle A--Medicare Incentives

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

                         Subtitle B--Medicaid Incentives

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

                  Subtitle C--Miscellaneous Medicare Provisions

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

                         Subtitle A--Medicare Incentives

    SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

        (a) Incentive Payments.--Section 1848 of the Social Security Act (42
    U.S.C. 1395w-4) is amended by adding at the end the following new
    subsection:
        ``(o) Incentives for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) Incentive payments.--
                        ``(A) In general.--
                              ``(i) In general.--
                          <<NOTE: Deadline.>> Subject to the succeeding
                          subparagraphs of this paragraph, with respect to
                          covered professional services furnished by an
                          eligible professional during a payment year (as
                          defined in subparagraph (E)), if the eligible
                          professional is a meaningful EHR user (as
                          determined under paragraph (2)) for the EHR
                          reporting period with respect to such year, in
                          addition to the amount otherwise paid under this
                          part, there also shall be paid to the eligible
                          professional (or to an employer or facility in the
                          cases described in clause (A) of section
                          1842(b)(6)), from the Federal Supplementary
                          Medical Insurance Trust Fund established under
                          section 1841 an amount equal to 75 percent of the
                          Secretary's estimate (based on claims submitted
                          not later than 2 months after the end of the
                          payment year) of the allowed charges under this
                          part for all such covered professional services
                          furnished by the eligible professional during such
                          year.
                              ``(ii) No incentive payments with respect to
                          years after 2016.--No incentive payments may be

    [[Page 123 STAT. 468]]

                          made under this subsection with respect to a year
                          after 2016.
                        ``(B) Limitations on amounts of incentive
                    payments.--
                              ``(i) In general.--In no case shall the amount
                          of the incentive payment provided under this
                          paragraph for an eligible professional for a
                          payment year exceed the applicable amount
                          specified under this subparagraph with respect to
                          such eligible professional and such year.
                              ``(ii) Amount.--Subject to clauses (iii)
                          through (v), the applicable amount specified in
                          this subparagraph for an eligible professional is
                          as follows:
                                        ``(I) For the first payment year for
                                    such professional, $15,000 (or, if the
                                    first payment year for such eligible
                                    professional is 2011 or 2012, $18,000).
                                        ``(II) For the second payment year
                                    for such professional, $12,000.
                                        ``(III) For the third payment year
                                    for such professional, $8,000.
                                        ``(IV) For the fourth payment year
                                    for such professional, $4,000.
                                        ``(V) For the fifth payment year for
                                    such professional, $2,000.
                                        ``(VI) For any succeeding payment
                                    year for such professional, $0.
                              ``(iii) Phase down for eligible professionals
                          first adopting ehr after 2013.--If the first
                          payment year for an eligible professional is after
                          2013, then the amount specified in this
                          subparagraph for a payment year for such
                          professional is the same as the amount specified
                          in clause (ii) for such payment year for an
                          eligible professional whose first payment year is
                          2013.
                              ``(iv) Increase for certain eligible
                          professionals.--In the case of an eligible
                          professional who predominantly furnishes services
                          under this part in an area that is designated by
                          the Secretary (under section 332(a)(1)(A) of the
                          Public Health Service Act) as a health
                          professional shortage area, the amount that would
                          otherwise apply for a payment year for such
                          professional under subclauses (I) through (V) of
                          clause (ii) shall be increased by 10 percent. In
                          implementing the preceding sentence, the Secretary
                          may, as determined appropriate, apply provisions
                          of subsections (m) and (u) of section 1833 in a
                          similar manner as such provisions apply under such
                          subsection.
                              ``(v) No incentive payment if first adopting
                          after 2014.--If the first payment year for an
                          eligible professional is after 2014 then the
                          applicable amount specified in this subparagraph
                          for such professional for such year and any
                          subsequent year shall be $0.
                        ``(C) Non-application to hospital-based eligible
                    professionals.--
                              ``(i) In general.--No incentive payment may be
                          made under this paragraph in the case of a
                          hospital-based eligible professional.

    [[Page 123 STAT. 469]]

                              ``(ii) Hospital-based eligible professional.--
                          For purposes of clause (i), the term `hospital-
                          based eligible professional' means, with respect
                          to covered professional services furnished by an
                          eligible professional during the EHR reporting
                          period for a payment year, an eligible
                          professional, such as a pathologist,
                          anesthesiologist, or emergency physician, who
                          furnishes substantially all of such services in a
                          hospital setting (whether inpatient or outpatient)
                          and through the use of the facilities and
                          equipment, including qualified electronic health
                          records, of the hospital. The determination of
                          whether an eligible professional is a hospital-
                          based eligible professional shall be made on the
                          basis of the site of service (as defined by the
                          Secretary) and without regard to any employment or
                          billing arrangement between the eligible
                          professional and any other provider.
                        ``(D) Payment.--
                              ``(i) Form of payment.--The payment under this
                          paragraph may be in the form of a single
                          consolidated payment or in the form of such
                          periodic installments as the Secretary may
                          specify.
                              ``(ii) Coordination of application of
                          limitation for professionals in different
                          practices.-- <<NOTE: Regulations.>> In the case of
                          an eligible professional furnishing covered
                          professional services in more than one practice
                          (as specified by the Secretary), the Secretary
                          shall establish rules to coordinate the incentive
                          payments, including the application of the
                          limitation on amounts of such incentive payments
                          under this paragraph, among such practices.
                              ``(iii) Coordination with medicaid.--The
                          Secretary shall seek, to the maximum extent
                          practicable, to avoid duplicative requirements
                          from Federal and State governments to demonstrate
                          meaningful use of certified EHR technology under
                          this title and title XIX. The Secretary may also
                          adjust the reporting periods under such title and
                          such subsections in order to carry out this
                          clause.
                        ``(E) Payment year defined.--
                              ``(i) In general.--For purposes of this
                          subsection, the term `payment year' means a year
                          beginning with 2011.
                              ``(ii) First, second, etc. payment year.--The
                          term `first payment year' means, with respect to
                          covered professional services furnished by an
                          eligible professional, the first year for which an
                          incentive payment is made for such services under
                          this subsection. The terms `second payment year',
                          `third payment year', `fourth payment year', and
                          `fifth payment year' mean, with respect to covered
                          professional services furnished by such eligible
                          professional, each successive year immediately
                          following the first payment year for such
                          professional.
                ``(2) Meaningful ehr user.--
                        ``(A) In general.--For purposes of paragraph (1), an
                    eligible professional shall be treated as a meaningful
                    EHR

    [[Page 123 STAT. 470]]

                    user for an EHR reporting period for a payment year (or,
                    for purposes of subsection (a)(7), for an EHR reporting
                    period under such subsection for a year) if each of the
                    following requirements is met:
                              ``(i) Meaningful use of certified ehr
                          technology.--The eligible professional
                          demonstrates to the satisfaction of the Secretary,
                          in accordance with subparagraph (C)(i), that
                          during such period the professional is using
                          certified EHR technology in a meaningful manner,
                          which shall include the use of electronic
                          prescribing as determined to be appropriate by the
                          Secretary.
                              ``(ii) Information exchange.--The eligible
                          professional demonstrates to the satisfaction of
                          the Secretary, in accordance with subparagraph
                          (C)(i), that during such period such certified EHR
                          technology is connected in a manner that provides,
                          in accordance with law and standards applicable to
                          the exchange of information, for the electronic
                          exchange of health information to improve the
                          quality of health care, such as promoting care
                          coordination.
                              ``(iii) Reporting on measures using ehr.--
                          Subject to subparagraph (B)(ii) and using such
                          certified EHR technology, the eligible
                          professional submits information for such period,
                          in a form and manner specified by the Secretary,
                          on such clinical quality measures and such other
                          measures as selected by the Secretary under
                          subparagraph (B)(i).
                    The Secretary may provide for the use of alternative
                    means for meeting the requirements of clauses (i), (ii),
                    and (iii) in the case of an eligible professional
                    furnishing covered professional services in a group
                    practice (as defined by the Secretary). The Secretary
                    shall seek to improve the use of electronic health
                    records and health care quality over time by requiring
                    more stringent measures of meaningful use selected under
                    this paragraph.
                        ``(B) Reporting on measures.--
                              ``(i) Selection.--The Secretary shall select
                          measures for purposes of subparagraph (A)(iii) but
                          only consistent with the following:
                                        ``(I) The Secretary shall provide
                                    preference to clinical quality measures
                                    that have been endorsed by the entity
                                    with a contract with the Secretary under
                                    section 1890(a).
                                        ``(II) <<NOTE: Federal Register,
                                    publication.>> 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

    [[Page 123 STAT. 471]]

                          redundant or duplicative reporting otherwise
                          required, including reporting under subsection
                          (k)(2)(C).
                        ``(C) Demonstration of meaningful use of certified
                    ehr technology and information exchange.--
                              ``(i) In general.--A professional may satisfy
                          the demonstration requirement of clauses (i) and
                          (ii) of subparagraph (A) through means specified
                          by the Secretary, which may include--
                                        ``(I) an attestation;
                                        ``(II) the submission of claims with
                                    appropriate coding (such as a code
                                    indicating that a patient encounter was
                                    documented using certified EHR
                                    technology);
                                        ``(III) a survey response;
                                        ``(IV) reporting under subparagraph
                                    (A)(iii); and
                                        ``(V) other means specified by the
                                    Secretary.
                              ``(ii) Use of part d data.--Notwithstanding
                          sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), the
                          Secretary may use data regarding drug claims
                          submitted for purposes of section 1860D-15 that
                          are necessary for purposes of subparagraph (A).
                ``(3) Application.--
                        ``(A) Physician reporting system rules.--Paragraphs
                    (5), (6), and (8) of subsection (k) shall apply for
                    purposes of this subsection in the same manner as they
                    apply for purposes of such subsection.
                        ``(B) Coordination with other payments.--The
                    provisions of this subsection shall not be taken into
                    account in applying the provisions of subsection (m) of
                    this section and of section 1833(m) and any payment
                    under such provisions shall not be taken into account in
                    computing allowable charges under this subsection.
                        ``(C) Limitations on review.--There shall be no
                    administrative or judicial review under section 1869,
                    section 1878, or otherwise, of--
                              ``(i) the methodology and standards for
                          determining payment amounts under this subsection
                          and payment adjustments under subsection
                          (a)(7)(A), including the limitation under
                          paragraph (1)(B) and coordination under clauses
                          (ii) and (iii) of paragraph (1)(D);
                              ``(ii) the methodology and standards for
                          determining a meaningful EHR user under paragraph
                          (2), including selection of measures under
                          paragraph (2)(B), specification of the means of
                          demonstrating meaningful EHR use under paragraph
                          (2)(C), and the hardship exception under
                          subsection (a)(7)(B);
                              ``(iii) the methodology and standards for
                          determining a hospital-based eligible professional
                          under paragraph (1)(C); and
                              ``(iv) the specification of reporting periods
                          under paragraph (5) and the selection of the form
                          of payment under paragraph (1)(D)(i).
                        ``(D) Posting on website.--The Secretary shall post
                    on the Internet website of the Centers for Medicare &
                    Medicaid Services, in an easily understandable format, a
                    list of the names, business addresses, and business
                    phone

    [[Page 123 STAT. 472]]

                    numbers of the eligible professionals who are meaningful
                    EHR users and, as determined appropriate by the
                    Secretary, of group practices receiving incentive
                    payments under paragraph (1).
                ``(4) Certified ehr technology defined.--For purposes of
            this section, the term `certified EHR technology' means a
            qualified electronic health record (as defined in section
            3000(13) of the Public Health Service Act) that is certified
            pursuant to section 3001(c)(5) of such Act as meeting standards
            adopted under section 3004 of such Act that are applicable to
            the type of record involved (as determined by the Secretary,
            such as an ambulatory electronic health record for office-based
            physicians or an inpatient hospital electronic health record for
            hospitals).
                ``(5) Definitions.--For purposes of this subsection:
                        ``(A) Covered professional services.--The term
                    `covered professional services' has the meaning given
                    such term in subsection (k)(3).
                        ``(B) EHR reporting period.--The term `EHR reporting
                    period' means, with respect to a payment year, any
                    period (or periods) as specified by the Secretary.
                        ``(C) Eligible professional.--The term `eligible
                    professional' means a physician, as defined in section
                    1861(r).''.

        (b) Incentive Payment Adjustment.--Section 1848(a) of the Social
    Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the
    following new paragraph:
                ``(7) Incentives for meaningful use of certified ehr
            technology.--
                        ``(A) Adjustment.--
                              ``(i) In general.--Subject to subparagraphs
                          (B) and (D), with respect to covered professional
                          services furnished by an eligible professional
                          during 2015 or any subsequent payment year, if the
                          eligible professional is not a meaningful EHR user
                          (as determined under subsection (o)(2)) for an EHR
                          reporting period for the year, the fee schedule
                          amount for such services furnished by such
                          professional during the year (including the fee
                          schedule amount for purposes of determining a
                          payment based on such amount) shall be equal to
                          the applicable percent of the fee schedule amount
                          that would otherwise apply to such services under
                          this subsection (determined after application of
                          paragraph (3) but without regard to this
                          paragraph).
                              ``(ii) Applicable percent.--Subject to clause
                          (iii), for purposes of clause (i), the term
                          `applicable percent' means--
                                        ``(I) for 2015, 99 percent (or, in
                                    the case of an eligible professional who
                                    was subject to the application of the
                                    payment adjustment under section
                                    1848(a)(5) for 2014, 98 percent);
                                        ``(II) for 2016, 98 percent; and
                                        ``(III) for 2017 and each subsequent
                                    year, 97 percent.
                              ``(iii) Authority to decrease applicable
                          percentage for 2018 and subsequent years.--For
                          2018 and each subsequent year, if the Secretary
                          finds

    [[Page 123 STAT. 473]]

                          that the proportion of eligible professionals who
                          are meaningful EHR users (as determined under
                          subsection (o)(2)) is less than 75 percent, the
                          applicable percent shall be decreased by 1
                          percentage point from the applicable percent in
                          the preceding year, but in no case shall the
                          applicable percent be less than 95 percent.
                        ``(B) Significant hardship exception.--The Secretary
                    may, on a case-by-case basis, exempt an eligible
                    professional from the application of the payment
                    adjustment under subparagraph (A) if the Secretary
                    determines, subject to annual renewal, that compliance
                    with the requirement for being a meaningful EHR user
                    would result in a significant hardship, such as in the
                    case of an eligible professional who practices in a
                    rural area without sufficient Internet access. In no
                    case may an eligible professional be granted an
                    exemption under this subparagraph for more than 5 years.
                        ``(C) Application of physician reporting system
                    rules.--Paragraphs (5), (6), and (8) of subsection (k)
                    shall apply for purposes of this paragraph in the same
                    manner as they apply for purposes of such subsection.
                        ``(D) Non-application to hospital-based eligible
                    professionals.--No payment adjustment may be made under
                    subparagraph (A) in the case of hospital-based eligible
                    professionals (as defined in subsection (o)(1)(C)(ii)).
                        ``(E) Definitions.--For purposes of this paragraph:
                              ``(i) Covered professional services.--The term
                          `covered professional services' has the meaning
                          given such term in subsection (k)(3).
                              ``(ii) EHR reporting period.--The term `EHR
                          reporting period' means, with respect to a year, a
                          period (or periods) specified by the Secretary.
                              ``(iii) Eligible professional.--The term
                          `eligible professional' means a physician, as
                          defined in section 1861(r).''.

        (c) Application to Certain MA-Affiliated Eligible Professionals.--
    Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended
    by adding at the end the following new subsection:
        ``(l) Application of Eligible Professional Incentives for Certain MA
    Organizations for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) In general.--Subject to paragraphs (3) and (4), in the
            case of a qualifying MA organization, the provisions of sections
            1848(o) and 1848(a)(7) shall apply with respect to eligible
            professionals described in paragraph (2) of the organization who
            the organization attests under paragraph (6) to be meaningful
            EHR users in a similar manner as they apply to eligible
            professionals under such sections. Incentive payments under
            paragraph (3) shall be made to and payment adjustments under
            paragraph (4) shall apply to such qualifying organizations.
                ``(2) Eligible professional described.--With respect to a
            qualifying MA organization, an eligible professional described
            in this paragraph is an eligible professional (as defined for
            purposes of section 1848(o)) who--
                        ``(A)(i) is employed by the organization; or

    [[Page 123 STAT. 474]]

                        ``(ii)(I) is employed by, or is a partner of, an
                    entity that through contract with the organization
                    furnishes at least 80 percent of the entity's Medicare
                    patient care services to enrollees of such organization;
                    and
                        ``(II) furnishes at least 80 percent of the
                    professional services of the eligible professional
                    covered under this title to enrollees of the
                    organization; and
                        ``(B) furnishes, on average, at least 20 hours per
                    week of patient care services.
                ``(3) Eligible professional incentive payments.--
                        ``(A) In general.--In applying section 1848(o) under
                    paragraph (1), instead of the additional payment amount
                    under section 1848(o)(1)(A) and subject to subparagraph
                    (B), the Secretary may substitute an amount determined
                    by the Secretary to the extent feasible and practical to
                    be similar to the estimated amount in the aggregate that
                    would be payable if payment for services furnished by
                    such professionals was payable under part B instead of
                    this part.
                        ``(B) Avoiding duplication of payments.--
                              ``(i) In general.--In the case of an eligible
                          professional described in paragraph (2)--
                                        ``(I) that is eligible for the
                                    maximum incentive payment under section
                                    1848(o)(1)(A) for the same payment
                                    period, the payment incentive shall be
                                    made only under such section and not
                                    under this subsection; and
                                        ``(II) that is eligible for less
                                    than such maximum incentive payment for
                                    the same payment period, the payment
                                    incentive shall be made only under this
                                    subsection and not under section
                                    1848(o)(1)(A).
                              ``(ii) Methods.--In the case of an eligible
                          professional described in paragraph (2) who is
                          eligible for an incentive payment under section
                          1848(o)(1)(A) but is not described in clause (i)
                          for the same payment period, the Secretary shall
                          develop a process--
                                        ``(I) to ensure that duplicate
                                    payments are not made with respect to an
                                    eligible professional both under this
                                    subsection and under section
                                    1848(o)(1)(A); and
                                        ``(II) to collect data from Medicare
                                    Advantage organizations to ensure
                                    against such duplicate payments.
                        ``(C) Fixed schedule for application of limitation
                    on incentive payments for all eligible professionals.--
                    In applying section 1848(o)(1)(B)(ii) under subparagraph
                    (A), <<NOTE: Deadline.>> in accordance with rules
                    specified by the Secretary, a qualifying MA organization
                    shall specify a year (not earlier than 2011) that shall
                    be treated as the first payment year for all eligible
                    professionals with respect to such organization.
                ``(4) Payment adjustment.--
                        ``(A) In general.--In applying section 1848(a)(7)
                    under paragraph (1), instead of the payment adjustment
                    being an applicable percent of the fee schedule amount
                    for a year under such section, subject to subparagraph
                    (D), the

    [[Page 123 STAT. 475]]

                    payment adjustment under paragraph (1) shall be equal to
                    the percent specified in subparagraph (B) for such year
                    of the payment amount otherwise provided under this
                    section for such year.
                        ``(B) Specified percent.--The percent specified
                    under this subparagraph for a year is 100 percent minus
                    a number of percentage points equal to the product of--
                              ``(i) the number of percentage points by which
                          the applicable percent (under section
                          1848(a)(7)(A)(ii)) for the year is less than 100
                          percent; and
                              ``(ii) the Medicare physician expenditure
                          proportion specified in subparagraph (C) for the
                          year.
                        ``(C) Medicare physician expenditure proportion.--
                    The Medicare physician expenditure proportion under this
                    subparagraph for a year is the Secretary's estimate of
                    the proportion, of the expenditures under parts A and B
                    that are not attributable to this part, that are
                    attributable to expenditures for physicians' services.
                        ``(D) Application of payment adjustment.--In the
                    case that a qualifying MA organization attests that not
                    all eligible professionals of the organization are
                    meaningful EHR users with respect to a year, the
                    Secretary shall apply the payment adjustment under this
                    paragraph based on the proportion of all such eligible
                    professionals of the organization that are not
                    meaningful EHR users for such year.
                ``(5) Qualifying ma organization defined.--In this
            subsection and subsection (m), the term `qualifying MA
            organization' means a Medicare Advantage organization that is
            organized as a health maintenance organization (as defined in
            section 2791(b)(3) of the Public Health Service Act).
                ``(6) Meaningful ehr user attestation.--
            <<NOTE: Attestation.>> For purposes of this subsection and
            subsection (m), a qualifying MA organization shall submit an
            attestation, in a form and manner specified by the Secretary
            which may include the submission of such attestation as part of
            submission of the initial bid under section 1854(a)(1)(A)(iv),
            identifying--
                        ``(A) whether each eligible professional described
                    in paragraph (2), with respect to such organization is a
                    meaningful EHR user (as defined in section 1848(o)(2))
                    for a year specified by the Secretary; and
                        ``(B) whether each eligible hospital described in
                    subsection (m)(1), with respect to such organization, is
                    a meaningful EHR user (as defined in section 1886(n)(3))
                    for an applicable period specified by the Secretary.
                ``(7) Posting on website.--The Secretary shall post on the
            Internet website of the Centers for Medicare & Medicaid
            Services, in an easily understandable format, a list of the
            names, business addresses, and business phone numbers of--
                        ``(A) each qualifying MA organization receiving an
                    incentive payment under this subsection for eligible
                    professionals of the organization; and
                        ``(B) the eligible professionals of such
                    organization for which such incentive payment is based.
                ``(8) Limitation on review.--There shall be no
            administrative or judicial review under section 1869, section
            1878, or otherwise, of--

    [[Page 123 STAT. 476]]

                        ``(A) the methodology and standards for determining
                    payment amounts and payment adjustments under this
                    subsection, including avoiding duplication of payments
                    under paragraph (3)(B) and the specification of rules
                    for the fixed schedule for application of limitation on
                    incentive payments for all eligible professionals under
                    paragraph (3)(C);
                        ``(B) the methodology and standards for determining
                    eligible professionals under paragraph (2); and
                        ``(C) the methodology and standards for determining
                    a meaningful EHR user under section 1848(o)(2),
                    including specification of the means of demonstrating
                    meaningful EHR use under section 1848(o)(3)(C) and
                    selection of measures under section 1848(o)(3)(B).''.

        (d) Study and Report Relating to MA Organizations.--
                (1) Study.--The Secretary of Health and Human Services shall
            conduct a study on the extent to which and manner in which
            payment incentives and adjustments (such as under sections
            1848(o) and 1848(a)(7) of the Social Security Act) could be made
            available to professionals, as defined in 1861(r), who are not
            eligible for HIT incentive payments under section 1848(o) and
            receive payments for Medicare patient services nearly-
            exclusively through contractual arrangements with one or more
            Medicare Advantage organizations, or an intermediary
            organization or organizations with contracts with Medicare
            Advantage organizations. Such study shall assess approaches for
            measuring meaningful use of qualified EHR technology among such
            professionals and mechanisms for delivering incentives and
            adjustments to those professionals, including through incentive
            payments and adjustments through Medicare Advantage
            organizations or intermediary organizations.
                (2) Report.--Not later than 120 days after the date of the
            enactment of this Act, the Secretary of Health and Human
            Services shall submit to Congress a report on the findings and
            the conclusions of the study conducted under paragraph (1),
            together with recommendations for such legislation and
            administrative action as the Secretary determines appropriate.

        (e) Conforming Amendments.--Section 1853 of the Social Security Act
    (42 U.S.C. 1395w-23) is amended--
                (1) in subsection (a)(1)(A), by striking ``and (i)'' and
            inserting ``(i), and (l)'';
                (2) in subsection (c)--
                        (A) in paragraph (1)(D)(i), by striking ``section
                    1886(h)'' and inserting ``sections 1848(o) and
                    1886(h)''; and
                        (B) in paragraph (6)(A), by inserting after ``under
                    part B,'' the following: ``excluding expenditures
                    attributable to subsections (a)(7) and (o) of section
                    1848,''; and
                (3) in subsection (f), by inserting ``and for payments under
            subsection (l)'' after ``with the organization''.

        (f) Conforming Amendments to E-Prescribing.--
                (1) Section 1848(a)(5)(A) of the Social Security Act (42
            U.S.C. 1395w-4(a)(5)(A)) is amended--
                        (A) in clause (i), by striking ``or any subsequent
                    year'' and inserting ``, 2013 or 2014''; and
                        (B) in clause (ii), by striking ``and each
                    subsequent year''.

    [[Page 123 STAT. 477]]

                (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-4(m)(2))
            is amended--
                        (A) in subparagraph (A), by striking ``For 2009''
                    and inserting ``Subject to subparagraph (D), for 2009'';
                    and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(D) Limitation with respect to ehr incentive
                    payments.--The provisions of this paragraph shall not
                    apply to an eligible professional (or, in the case of a
                    group practice under paragraph (3)(C), to the group
                    practice) if, for the EHR reporting period the eligible
                    professional (or group practice) receives an incentive
                    payment under subsection (o)(1)(A) with respect to a
                    certified EHR technology (as defined in subsection
                    (o)(4)) that has the capability of electronic
                    prescribing.''.

    SEC. 4102. INCENTIVES FOR HOSPITALS.

        (a) Incentive Payment.--
                (1) In general.--Section 1886 of the Social Security Act (42
            U.S.C. 1395ww) is amended by adding at the end the following new
            subsection:

        ``(n) Incentives for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) In general.--Subject to the succeeding provisions of
            this subsection, with respect to inpatient hospital services
            furnished by an eligible hospital during a payment year (as
            defined in paragraph (2)(G)), if the eligible hospital is a
            meaningful EHR user (as determined under paragraph (3)) for the
            EHR reporting period with respect to such year, in addition to
            the amount otherwise paid under this section, there also shall
            be paid to the eligible hospital, from the Federal Hospital
            Insurance Trust Fund established under section 1817, an amount
            equal to the applicable amount specified in paragraph (2)(A) for
            the hospital for such payment year.
                ``(2) Payment amount.--
                        ``(A) In general.--Subject to the succeeding
                    subparagraphs of this paragraph, the applicable amount
                    specified in this subparagraph for an eligible hospital
                    for a payment year is equal to the product of the
                    following:
                              ``(i) Initial amount.--The sum of--
                                        ``(I) the base amount specified in
                                    subparagraph (B); plus
                                        ``(II) the discharge related amount
                                    specified in subparagraph (C) for a 12-
                                    month period selected by the Secretary
                                    with respect to such payment year.
                              ``(ii) Medicare share.--The Medicare share as
                          specified in subparagraph (D) for the eligible
                          hospital for a period selected by the Secretary
                          with respect to such payment year.
                              ``(iii) Transition factor.--The transition
                          factor specified in subparagraph (E) for the
                          eligible hospital for the payment year.
                        ``(B) Base amount.--The base amount specified in
                    this subparagraph is $2,000,000.
                        ``(C) Discharge related amount.--The discharge
                    related amount specified in this subparagraph for a 12-

    [[Page 123 STAT. 478]]

                    month period selected by the Secretary shall be
                    determined as the sum of the amount, estimated based
                    upon total discharges for the eligible hospital
                    (regardless of any source of payment) for the period,
                    for each discharge up to the 23,000th discharge as
                    follows:
                              ``(i) For the first through 1,149th discharge,
                          $0.
                              ``(ii) For the 1,150th through the 23,000th
                          discharge, $200.
                              ``(iii) For any discharge greater than the
                          23,000th, $0.
                        ``(D) Medicare share.--The Medicare share specified
                    under this subparagraph for an eligible hospital for a
                    period selected by the Secretary for a payment year is
                    equal to the fraction--
                              ``(i) the numerator of which is the sum (for
                          such period and with respect to the eligible
                          hospital) of--
                                        ``(I) the estimated number of
                                    inpatient-bed-days (as established by
                                    the Secretary) which are attributable to
                                    individuals with respect to whom payment
                                    may be made under part A; and
                                        ``(II) the estimated number of
                                    inpatient-bed-days (as so established)
                                    which are attributable to individuals
                                    who are enrolled with a Medicare
                                    Advantage organization under part C; and
                              ``(ii) the denominator of which is the product
                          of--
                                        ``(I) the estimated total number of
                                    inpatient-bed-days with respect to the
                                    eligible hospital during such period;
                                    and
                                        ``(II) the estimated total amount of
                                    the eligible hospital's charges during
                                    such period, not including any charges
                                    that are attributable to charity care
                                    (as such term is used for purposes of
                                    hospital cost reporting under this
                                    title), divided by the estimated total
                                    amount of the hospital's charges during
                                    such period.
                    <<NOTE: Data.>> 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\.

    [[Page 123 STAT. 479]]

                                        ``(III) For the third payment year
                                    for such hospital, \1/2\.
                                        ``(IV) For the fourth payment year
                                    for such hospital, \1/4\.
                                        ``(V) For any succeeding payment
                                    year for such hospital, 0.
                              ``(ii) Phase down for eligible hospitals first
                          adopting ehr after 2013.--If the first payment
                          year for an eligible hospital is after 2013, then
                          the transition factor specified in this
                          subparagraph for a payment year for such hospital
                          is the same as the amount specified in clause (i)
                          for such payment year for an eligible hospital for
                          which the first payment year is 2013. If the first
                          payment year for an eligible hospital is after
                          2015 then the transition factor specified in this
                          subparagraph for such hospital and for such year
                          and any subsequent year shall be 0.
                        ``(F) Form of payment.--The payment under this
                    subsection for a payment year may be in the form of a
                    single consolidated payment or in the form of such
                    periodic installments as the Secretary may specify.
                        ``(G) Payment year defined.--
                              ``(i) In general.--For purposes of this
                          subsection, the term `payment year' means a fiscal
                          year beginning with fiscal year 2011.
                              ``(ii) First, second, etc. payment year.--The
                          term `first payment year' means, with respect to
                          inpatient hospital services furnished by an
                          eligible hospital, the first fiscal year for which
                          an incentive payment is made for such services
                          under this subsection. The terms `second payment
                          year', `third payment year', and `fourth payment
                          year' mean, with respect to an eligible hospital,
                          each successive year immediately following the
                          first payment year for that hospital.
                ``(3) Meaningful ehr user.--
                        ``(A) In general.--For purposes of paragraph (1), an
                    eligible hospital shall be treated as a meaningful EHR
                    user for an EHR reporting period for a payment year (or,
                    for purposes of subsection (b)(3)(B)(ix), for an EHR
                    reporting period under such subsection for a fiscal
                    year) if each of the following requirements are met:
                              ``(i) Meaningful use of certified ehr
                          technology.--The eligible hospital demonstrates to
                          the satisfaction of the Secretary, in accordance
                          with subparagraph (C)(i), that during such period
                          the hospital is using certified EHR technology in
                          a meaningful manner.
                              ``(ii) Information exchange.--The eligible
                          hospital demonstrates to the satisfaction of the
                          Secretary, in accordance with subparagraph (C)(i),
                          that during such period such certified EHR
                          technology is connected in a manner that provides,
                          in accordance with law and standards applicable to
                          the exchange of information, for the electronic
                          exchange of health information to improve the
                          quality of health care, such as promoting care
                          coordination.

    [[Page 123 STAT. 480]]

                              ``(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) <<NOTE: Federal Register,
                                    publication.>> Prior to any measure
                                    (other than a clinical quality measure
                                    that has been selected for purposes of
                                    applying subsection (b)(3)(B)(viii))
                                    being selected under this subparagraph,
                                    the Secretary shall publish in the
                                    Federal Register such measure and
                                    provide for a period of public comment
                                    on such measure.
                              ``(ii) Limitations.--The Secretary may not
                          require the electronic reporting of information on
                          clinical quality measures under subparagraph
                          (A)(iii) unless the Secretary has the capacity to
                          accept the information electronically, which may
                          be on a pilot basis.
                              ``(iii) Coordination of reporting of
                          information.--In selecting such measures, and in
                          establishing the form and manner for reporting
                          measures under subparagraph (A)(iii), the
                          Secretary shall seek to avoid redundant or
                          duplicative reporting with reporting otherwise
                          required, including reporting under subsection
                          (b)(3)(B)(viii).
                        ``(C) Demonstration of meaningful use of certified
                    ehr technology and information exchange.--
                              ``(i) In general.--An eligible hospital may
                          satisfy the demonstration requirement of clauses
                          (i) and (ii) of subparagraph (A) through means
                          specified by the Secretary, which may include--
                                        ``(I) an attestation;
                                        ``(II) the submission of claims with
                                    appropriate coding (such as a code
                                    indicating that inpatient care was
                                    documented using certified EHR
                                    technology);
                                        ``(III) a survey response;
                                        ``(IV) reporting under subparagraph
                                    (A)(iii); and
                                        ``(V) other means specified by the
                                    Secretary.

    [[Page 123 STAT. 481]]

                              ``(ii) Use of part d data.--Notwithstanding
                          sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), the
                          Secretary may use data regarding drug claims
                          submitted for purposes of section 1860D-15 that
                          are necessary for purposes of subparagraph (A).
                ``(4) Application.--
                        ``(A) Limitations on review.--There shall be no
                    administrative or judicial review under section 1869,
                    section 1878, or otherwise, of--
                              ``(i) the methodology and standards for
                          determining payment amounts under this subsection
                          and payment adjustments under subsection
                          (b)(3)(B)(ix), including selection of periods
                          under paragraph (2) for determining, and making
                          estimates or using proxies of, discharges under
                          paragraph (2)(C) and inpatient-bed-days, hospital
                          charges, charity charges, and Medicare share under
                          paragraph (2)(D);
                              ``(ii) the methodology and standards for
                          determining a meaningful EHR user under paragraph
                          (3), including selection of measures under
                          paragraph (3)(B), specification of the means of
                          demonstrating meaningful EHR use under paragraph
                          (3)(C), and the hardship exception under
                          subsection (b)(3)(B)(ix)(II); and
                              ``(iii) the specification of EHR reporting
                          periods under paragraph (6)(B) and the selection
                          of the form of payment under paragraph (2)(F).
                        ``(B) Posting on website.--The Secretary shall post
                    on the Internet website of the Centers for Medicare &
                    Medicaid Services, in an easily understandable format, a
                    list of the names of the eligible hospitals that are
                    meaningful EHR users under this subsection or subsection
                    (b)(3)(B)(ix) (and a list of the names of critical
                    access hospitals to which paragraph (3) or (4) of
                    section 1814(l) applies), and other relevant data as
                    determined appropriate by the Secretary. The Secretary
                    shall ensure that an eligible hospital (or critical
                    access hospital) has the opportunity to review the other
                    relevant data that are to be made public with respect to
                    the hospital (or critical access hospital) prior to such
                    data being made public.
                ``(5) Certified ehr technology defined.--The term `certified
            EHR technology' has the meaning given such term in section
            1848(o)(4).
                ``(6) Definitions.--For purposes of this subsection:
                        ``(A) EHR reporting period.--The term `EHR reporting
                    period' means, with respect to a payment year, any
                    period (or periods) as specified by the Secretary.
                        ``(B) Eligible hospital.--The term `eligible
                    hospital' means a subsection (d) hospital.''.
                (2) Critical access hospitals.--Section 1814(l) of the
            Social Security Act (42 U.S.C. 1395f(l)) is amended--
                        (A) in paragraph (1), by striking ``paragraph (2)''
                    and inserting ``the subsequent paragraphs of this
                    subsection''; and
                        (B) <<NOTE: Regulations. Applicability.>>  by adding
                    at the end the following new paragraph:

        ``(3)(A) The following rules shall apply in determining payment and
    reasonable costs under paragraph (1) for costs described in subparagraph
    (C) for a critical access hospital that would be a

    [[Page 123 STAT. 482]]

    meaningful EHR user (as would be determined under paragraph (3) of
    section 1886(n)) for an EHR reporting period for a cost reporting period
    beginning during a payment year if such critical access hospital was
    treated as an eligible hospital under such section:
                ``(i) The Secretary shall compute reasonable costs by
            expensing such costs in a single payment year and not
            depreciating such costs over a period of years (and shall
            include as costs with respect to cost reporting periods
            beginning during a payment year costs from previous cost
            reporting periods to the extent they have not been fully
            depreciated as of the period involved).
                ``(ii) There shall be substituted for the Medicare share
            that would otherwise be applied under paragraph (1) a percent
            (not to exceed 100 percent) equal to the sum of--
                        ``(I) the Medicare share (as would be specified
                    under paragraph (2)(D) of section 1886(n)) for such
                    critical access hospital if such critical access
                    hospital was treated as an eligible hospital under such
                    section; and
                        ``(II) 20 percentage points.

        ``(B) The payment under this paragraph with respect to a critical
    access hospital shall be paid through a prompt interim payment (subject
    to reconciliation) after submission and review of such information (as
    specified by the Secretary) necessary to make such payment, including
    information necessary to apply this paragraph. In no case may payment
    under this paragraph be made with respect to a cost reporting period
    beginning during a payment year after 2015 and in no case may a critical
    access hospital receive payment under this paragraph with respect to
    more than 4 consecutive payment years.
        ``(C) The costs described in this subparagraph are costs for the
    purchase of certified EHR technology to which purchase depreciation
    (excluding interest) would apply if payment was made under paragraph (1)
    and not under this paragraph.
        ``(D) For purposes of this paragraph, paragraph (4), and paragraph
    (5), the terms `certified EHR technology', `eligible hospital', `EHR
    reporting period', and `payment year' have the meanings given such terms
    in sections 1886(n).''.
        (b) Incentive Market Basket Adjustment.--
                (1) In general.--Section 1886(b)(3)(B) of the Social
            Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
                        (A) in clause (viii)(I), by inserting ``(or,
                    beginning with fiscal year 2015, by one-quarter)'' after
                    ``2.0 percentage points''; and
                        (B) by adding at the end the following new clause:

        ``(ix)(I) For purposes of clause (i) for fiscal year 2015 and each
    subsequent fiscal year, in the case of an eligible hospital (as defined
    in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined
    in subsection (n)(3)) for an EHR reporting period for such fiscal year,
    three-quarters of the applicable percentage increase otherwise
    applicable under clause (i) for such fiscal year shall be reduced by
    33\1/3\ percent for fiscal year 2015, 66\2/3\ percent for fiscal year
    2016, and 100 percent for fiscal year 2017 and each subsequent fiscal
    year. <<NOTE: Applicability.>> 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.

    [[Page 123 STAT. 483]]

        ``(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. <<NOTE: Reports.>> The State
    shall report to the Secretary the methodology it will use to make the
    payment adjustment under the previous sentence.

        ``(IV) For purposes of this clause, the term `EHR reporting period'
    means, with respect to a fiscal year, any period (or periods) as
    specified by the Secretary.''.
                (2) Critical access hospitals.--Section 1814(l) of the
            Social Security Act (42 U.S.C. 1395f(l)), as amended by
            subsection (a)(2), is further amended by adding at the end the
            following new paragraphs:

        ``(4)(A) <<NOTE: Applicability.>>  Subject to subparagraph (C), for
    cost reporting periods beginning in fiscal year 2015 or a subsequent
    fiscal year, in the case of a critical access hospital that is not a
    meaningful EHR user (as would be determined under paragraph (3) of
    section 1886(n) if such critical access hospital was treated as an
    eligible hospital under such section) for an EHR reporting period with
    respect to such fiscal year, paragraph (1) shall be applied by
    substituting the applicable percent under subparagraph (B) for the
    percent described in such paragraph (1).

        ``(B) <<NOTE: Applicability.>>  The percent described in this
    subparagraph is--
                ``(i) for fiscal year 2015, 100.66 percent;
                ``(ii) for fiscal year 2016, 100.33 percent; and
                ``(iii) for fiscal year 2017 and each subsequent fiscal
            year, 100 percent.

        ``(C) The provisions of subclause (II) of section 1886(b)(3)(B)(ix)
    shall apply with respect to subparagraph (A) for a critical access
    hospital with respect to a cost reporting period beginning in a fiscal
    year in the same manner as such subclause applies with respect to
    subclause (I) of such section for a subsection (d) hospital with respect
    to such fiscal year.
        ``(5) There shall be no administrative or judicial review under
    section 1869, section 1878, or otherwise, of--
                ``(A) the methodology and standards for determining the
            amount of payment and reasonable cost under paragraph (3) and
            payment adjustments under paragraph (4), including selection of
            periods under section 1886(n)(2) for determining, and making
            estimates or using proxies of, inpatient-bed-days, hospital
            charges, charity charges, and Medicare share under subparagraph
            (D) of section 1886(n)(2);

    [[Page 123 STAT. 484]]

                ``(B) the methodology and standards for determining a
            meaningful EHR user under section 1886(n)(3) as would apply if
            the hospital was treated as an eligible hospital under section
            1886(n), and the hardship exception under paragraph (4)(C);
                ``(C) the specification of EHR reporting periods under
            section 1886(n)(6)(B) as applied under paragraphs (3) and (4);
            and
                ``(D) the identification of costs for purposes of paragraph
            (3)(C).''.

        (c) Application to Certain MA-Affiliated Eligible Hospitals.--
    Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as amended
    by section 4101(c), is further amended by adding at the end the
    following new subsection:
        ``(m) Application of Eligible Hospital Incentives for Certain MA
    Organizations for Adoption and Meaningful Use of Certified EHR
    Technology.--
                ``(1) Application.--Subject to paragraphs (3) and (4), in
            the case of a qualifying MA organization, the provisions of
            sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with respect
            to eligible hospitals described in paragraph (2) of the
            organization which the organization attests under subsection
            (l)(6) to be meaningful EHR users in a similar manner as they
            apply to eligible hospitals under such sections. Incentive
            payments under paragraph (3) shall be made to and payment
            adjustments under paragraph (4) shall apply to such qualifying
            organizations.
                ``(2) Eligible hospital described.--With respect to a
            qualifying MA organization, an eligible hospital described in
            this paragraph is an eligible hospital (as defined in section
            1886(n)(6)(A)) that is under common corporate governance with
            such organization and serves individuals enrolled under an MA
            plan offered by such organization.
                ``(3) Eligible hospital incentive payments.--
                        ``(A) In general.--In applying section 1886(n)(2)
                    under paragraph (1), instead of the additional payment
                    amount under section 1886(n)(2), there shall be
                    substituted an amount determined by the Secretary to be
                    similar to the estimated amount in the aggregate that
                    would be payable if payment for services furnished by
                    such hospitals was payable under part A instead of this
                    part. In implementing the previous sentence, the
                    Secretary--
                              ``(i) shall, insofar as data to determine the
                          discharge related amount under section
                          1886(n)(2)(C) for an eligible hospital are not
                          available to the Secretary, use such alternative
                          data and methodology to estimate such discharge
                          related amount as the Secretary determines
                          appropriate; and
                              ``(ii) shall, insofar as data to determine the
                          medicare share described in section 1886(n)(2)(D)
                          for an eligible hospital are not available to the
                          Secretary, use such alternative data and
                          methodology to estimate such share, which data and
                          methodology may include use of the inpatient-bed-
                          days (or discharges) with respect to an eligible
                          hospital during the appropriate period which are
                          attributable to both individuals for

    [[Page 123 STAT. 485]]

                          whom payment may be made under part A or
                          individuals enrolled in an MA plan under a
                          Medicare Advantage organization under this part as
                          a proportion of the estimated total number of
                          patient-bed-days (or discharges) with respect to
                          such hospital during such period.
                        ``(B) Avoiding duplication of payments.--
                              ``(i) In general.--In the case of a hospital
                          that for a payment year is an eligible hospital
                          described in paragraph (2) and for which at least
                          one-third of their discharges (or bed-days) of
                          Medicare patients for the year are covered under
                          part A, payment for the payment year shall be made
                          only under section 1886(n) and not under this
                          subsection.
                              ``(ii) Methods.--In the case of a hospital
                          that is an eligible hospital described in
                          paragraph (2) and also is eligible for an
                          incentive payment under section 1886(n) but is not
                          described in clause (i) for the same payment
                          period, the Secretary shall develop a process--
                                        ``(I) to ensure that duplicate
                                    payments are not made with respect to an
                                    eligible hospital both under this
                                    subsection and under section 1886(n);
                                    and
                                        ``(II) to collect data from Medicare
                                    Advantage organizations to ensure
                                    against such duplicate payments.
                ``(4) Payment adjustment.--
                        ``(A) Subject to paragraph (3), in the case of a
                    qualifying MA organization (as defined in section
                    1853(l)(5)), if, according to the attestation of the
                    organization submitted under subsection (l)(6) for an
                    applicable period, one or more eligible hospitals (as
                    defined in section 1886(n)(6)(A)) that are under common
                    corporate governance with such organization and that
                    serve individuals enrolled under a plan offered by such
                    organization are not meaningful EHR users (as defined in
                    section 1886(n)(3)) with respect to a period, the
                    payment amount payable under this section for such
                    organization for such period shall be the percent
                    specified in subparagraph (B) for such period of the
                    payment amount otherwise provided under this section for
                    such period.
                        ``(B) Specified percent.--The percent specified
                    under this subparagraph for a year is 100 percent minus
                    a number of percentage points equal to the product of--
                              ``(i) the number of the percentage point
                          reduction effected under section
                          1886(b)(3)(B)(ix)(I) for the period; and
                              ``(ii) the Medicare hospital expenditure
                          proportion specified in subparagraph (C) for the
                          year.
                        ``(C) Medicare hospital expenditure proportion.--The
                    Medicare hospital expenditure proportion under this
                    subparagraph for a year is the Secretary's estimate of
                    the proportion, of the expenditures under parts A and B
                    that are not attributable to this part, that are
                    attributable to expenditures for inpatient hospital
                    services.

    [[Page 123 STAT. 486]]

                        ``(D) Application of payment adjustment.--In the
                    case that a qualifying MA organization attests that not
                    all eligible hospitals are meaningful EHR users with
                    respect to an applicable period, the Secretary shall
                    apply the payment adjustment under this paragraph based
                    on a methodology specified by the Secretary, taking into
                    account the proportion of such eligible hospitals, or
                    discharges from such hospitals, that are not meaningful
                    EHR users for such period.
                ``(5) Posting on website.--The Secretary shall post on the
            Internet website of the Centers for Medicare & Medicaid
            Services, in an easily understandable format--
                        ``(A) a list of the names, business addresses, and
                    business phone numbers of each qualifying MA
                    organization receiving an incentive payment under this
                    subsection for eligible hospitals described in paragraph
                    (2); and
                        ``(B) a list of the names of the eligible hospitals
                    for which such incentive payment is based.
                ``(6) Limitations on review.--There shall be no
            administrative or judicial review under section 1869, section
            1878, or otherwise, of--
                        ``(A) the methodology and standards for determining
                    payment amounts and payment adjustments under this
                    subsection, including avoiding duplication of payments
                    under paragraph (3)(B);
                        ``(B) the methodology and standards for determining
                    eligible hospitals under paragraph (2); and
                        ``(C) the methodology and standards for determining
                    a meaningful EHR user under section 1886(n)(3),
                    including specification of the means of demonstrating
                    meaningful EHR use under subparagraph (C) of such
                    section and selection of measures under subparagraph (B)
                    of such section.''.

        (d) Conforming Amendments.--
                (1) Section 1814(b) of the Social Security Act (42 U.S.C.
            1395f(b)) is amended--
                        (A) in paragraph (3), in the matter preceding
                    subparagraph (A), by inserting ``, subject to section
                    1886(d)(3)(B)(ix)(III),'' after ``then''; and
                        (B) by adding at the end the following: ``For
                    purposes of applying paragraph (3), there shall be taken
                    into account incentive payments, and payment adjustments
                    under subsection (b)(3)(B)(ix) or (n) of section
                    1886.''.
                (2) Section 1851(i)(1) of the Social Security Act (42 U.S.C.
            1395w-21(i)(1)) is amended by striking ``and 1886(h)(3)(D)'' and
            inserting ``1886(h)(3)(D), and 1853(m)''.
                (3) Section 1853 of the Social Security Act (42 U.S.C.
            1395w-23), as amended by section 4101(d), is amended--
                        (A) in subsection (c)--
                              (i) in paragraph (1)(D)(i), by striking
                          ``1848(o)'' and inserting ``, 1848(o), and
                          1886(n)''; and
                              (ii) in paragraph (6)(A), by inserting ``and
                          subsections (b)(3)(B)(ix) and (n) of section
                          1886'' after ``section 1848''; and
                        (B) in subsection (f), by inserting ``and subsection
                    (m)'' after ``under subsection (l)''.

    [[Page 123 STAT. 487]]

    SEC. 4103. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.

        (a) Premium Hold Harmless.--
                (1) In general.--Section 1839(a)(1) of the Social Security
            Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end the
            following: ``In applying this paragraph there shall not be taken
            into account additional payments under section 1848(o) and
            section 1853(l)(3) and the Government contribution under section
            1844(a)(3).''.
                (2) Payment.--Section 1844(a) of such Act (42 U.S.C.
            1395w(a)) is amended--
                        (A) in paragraph (2), by striking the period at the
                    end and inserting ``; plus''; and
                        (B) by adding at the end the following new
                    paragraph:
                ``(3) a Government contribution equal to the amount of
            payment incentives payable under sections 1848(o) and
            1853(l)(3).''.

        (b) Medicare Improvement Fund.--Section 1898 of the Social Security
    Act (42 U.S.C. 1395iii), as added by section 7002(a) of the Supplemental
    Appropriations Act, 2008 (Public Law 110-252) and as amended by section
    188(a)(2) of the Medicare Improvements for Patients and Providers Act of
    2008 (Public Law 110-275; 122 Stat. 2589) and by section 6 of the QI
    Program Supplemental Funding Act of 2008, is amended--
                (1) in subsection (a)--
                        (A) by inserting ``medicare'' before ``fee-for-
                    service''; and
                        (B) by inserting before the period at the end the
                    following: ``including, but not limited to, an increase
                    in the conversion factor under section 1848(d) to
                    address, in whole or in part, any projected shortfall in
                    the conversion factor for 2014 relative to the
                    conversion factor for 2008 and adjustments to payments
                    for items and services furnished by providers of
                    services and suppliers under such original medicare fee-
                    for-service program''; and
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking ``during fiscal
                    year 2014,'' and all that follows and inserting the
                    following: ``during--
                        ``(A) fiscal year 2014, $22,290,000,000; and
                        ``(B) fiscal year 2020 and each subsequent fiscal
                    year, the Secretary's estimate, as of July 1 of the
                    fiscal year, of the aggregate reduction in expenditures
                    under this title during the preceding fiscal year
                    directly resulting from the reduction in payment amounts
                    under sections 1848(a)(7), 1853(l)(4), 1853(m)(4), and
                    1886(b)(3)(B)(ix).''; and
                        (B) by adding at the end the following new
                    paragraph:
                ``(4) No effect on payments in subsequent years.--In the
            case that expenditures from the Fund are applied to, or
            otherwise affect, a payment rate for an item or service under
            this title for a year, the payment rate for such item or service
            shall be computed for a subsequent year as if such application
            or effect had never occurred.''.

        (c) Implementation Funding.--In addition to funds otherwise
    available, out of any funds in the Treasury not otherwise appropriated,
    there are appropriated to the Secretary of Health and Human Services for
    the Center for Medicare & Medicaid Services

    [[Page 123 STAT. 488]]

    Program Management Account, $100,000,000 for each of fiscal years 2009
    through 2015 and $45,000,000 for fiscal year 2016, which shall be
    available for purposes of carrying out the provisions of (and amendments
    made by) this subtitle. Amounts appropriated under this subsection for a
    fiscal year shall be available until expended.

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

        (a) Study and Report on Application of EHR Payment Incentives for
    Providers Not Receiving Other Incentive Payments.--
                (1) Study.--
                        (A) In general.--The Secretary of Health and Human
                    Services shall conduct a study to determine the extent
                    to which and manner in which payment incentives (such as
                    under title XVIII or XIX of the Social Security Act) and
                    other funding for purposes of implementing and using
                    certified EHR technology (as defined in section
                    1848(o)(4) of the Social Security Act, as added by
                    section 4101(a)) should be made available to health care
                    providers who are receiving minimal or no payment
                    incentives or other funding under this Act, under title
                    XIII of division A, under title XVIII or XIX of such
                    Act, or otherwise, for such purposes.
                        (B) Details of study.--Such study shall include an
                    examination of--
                              (i) the adoption rates of certified EHR
                          technology by such health care providers;
                              (ii) the clinical utility of such technology
                          by such health care providers;
                              (iii) whether the services furnished by such
                          health care providers are appropriate for or would
                          benefit from the use of such technology;
                              (iv) the extent to which such health care
                          providers work in settings that might otherwise
                          receive an incentive payment or other funding
                          under this Act, under title XIII of division A,
                          under title XVIII or XIX of the Social Security
                          Act, or otherwise;
                              (v) the potential costs and the potential
                          benefits of making payment incentives and other
                          funding available to such health care providers;
                          and
                              (vi) any other issues the Secretary deems to
                          be appropriate.
                (2) Report.--Not later than June 30, 2010, the Secretary
            shall submit to Congress a report on the findings and
            conclusions of the study conducted under paragraph (1).

        (b) Study and Report on Availability of Open Source Health
    Information Technology Systems.--
                (1) Study.--
                        (A) In general.--The Secretary of Health and Human
                    Services shall, in consultation with the Under Secretary
                    for Health of the Veterans Health Administration, the
                    Director of the Indian Health Service, the Secretary of
                    Defense, the Director of the Agency for Healthcare
                    Research and Quality, the Administrator of the Health
                    Resources and Services Administration, and the Chairman

    [[Page 123 STAT. 489]]

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

                         Subtitle B--Medicaid Incentives

    SEC. 4201. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS;
                IMPLEMENTATION FUNDING.

        (a) In General.--Section 1903 of the Social Security Act (42 U.S.C.
    1396b) is amended--
                (1) in subsection (a)(3)--
                        (A) by striking ``and'' at the end of subparagraph
                    (D);
                        (B) by striking ``plus'' at the end of subparagraph
                    (E) and inserting ``and''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(F)(i) 100 percent of so much of the sums expended
                    during such quarter as are attributable to payments to
                    Medicaid providers described in subsection (t)(1) to
                    encourage the adoption and use of certified EHR
                    technology; and
                        ``(ii) 90 percent of so much of the sums expended
                    during such quarter as are attributable to payments for
                    reasonable administrative expenses related to the
                    administration of payments described in clause (i) if
                    the State meets the condition described in subsection
                    (t)(9); plus''; and
                (2) by inserting after subsection (s) the following new
            subsection:

        ``(t)(1) For purposes of subsection (a)(3)(F), the payments
    described in this paragraph to encourage the adoption and use of
    certified EHR technology are payments made by the State in accordance
    with this subsection --

    [[Page 123 STAT. 490]]

                ``(A) to Medicaid providers described in paragraph (2)(A)
            not in excess of 85 percent of net average allowable costs (as
            defined in paragraph (3)(E)) for certified EHR technology (and
            support services including maintenance and training that is for,
            or is necessary for the adoption and operation of, such
            technology) with respect to such providers; and
                ``(B) to Medicaid providers described in paragraph (2)(B)
            not in excess of the maximum amount permitted under paragraph
            (5) for the provider involved.

        ``(2) <<NOTE: Definition.>>  In this subsection and subsection
    (a)(3)(F), the term `Medicaid provider' means--
                ``(A) an eligible professional (as defined in paragraph
            (3)(B))--
                        ``(i) who is not hospital-based and has at least 30
                    percent of the professional's patient volume (as
                    estimated in accordance with a methodology established
                    by the Secretary) attributable to individuals who are
                    receiving medical assistance under this title;
                        ``(ii) who is not described in clause (i), who is a
                    pediatrician, who is not hospital-based, and who has at
                    least 20 percent of the professional's patient volume
                    (as estimated in accordance with a methodology
                    established by the Secretary) attributable to
                    individuals who are receiving medical assistance under
                    this title; and
                        ``(iii) who practices predominantly in a Federally
                    qualified health center or rural health clinic and has
                    at least 30 percent of the professional's patient volume
                    (as estimated in accordance with a methodology
                    established by the Secretary) attributable to needy
                    individuals (as defined in paragraph (3)(F)); and
                ``(B)(i) a children's hospital, or
                ``(ii) an acute-care hospital that is not described in
            clause (i) and that has at least 10 percent of the hospital's
            patient volume (as estimated in accordance with a methodology
            established by the Secretary) attributable to individuals who
            are receiving medical assistance under this title.

    An eligible professional shall not qualify as a Medicaid provider under
    this subsection unless any right to payment under sections 1848(o) and
    1853(l) with respect to the eligible professional has been waived in a
    manner specified by the Secretary. For purposes of calculating patient
    volume under subparagraph (A)(iii), insofar as it is related to
    uncompensated care, the Secretary may require the adjustment of such
    uncompensated care data so that it would be an appropriate proxy for
    charity care, including a downward adjustment to eliminate bad debt data
    from uncompensated care. In applying subparagraphs
    (A) <<NOTE: Applicability.>> and (B)(ii), the methodology established by
    the Secretary for patient volume shall include individuals enrolled in a
    Medicaid managed care plan (under section 1903(m) or section 1932).

        ``(3) <<NOTE: Definitions.>>  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

    [[Page 123 STAT. 491]]

            ambulatory electronic health record for office-based physicians
            or an inpatient hospital electronic health record for
            hospitals).
                ``(B) The term `eligible professional' means a--
                        ``(i) physician;
                        ``(ii) dentist;
                        ``(iii) certified nurse mid-wife;
                        ``(iv) nurse practitioner; and
                        ``(v) physician assistant insofar as the assistant
                    is practicing in a rural health clinic that is led by a
                    physician assistant or is practicing in a Federally
                    qualified health center that is so led.
                ``(C) The term `average allowable costs' means, with respect
            to certified EHR technology of Medicaid providers described in
            paragraph (2)(A) for--
                        ``(i) the first year of payment with respect to such
                    a provider, the average costs for the purchase and
                    initial implementation or upgrade of such technology
                    (and support services including training that is for, or
                    is necessary for the adoption and initial operation of,
                    such technology) for such providers, as determined by
                    the Secretary based upon studies conducted under
                    paragraph (4)(C); and
                        ``(ii) a subsequent year of payment with respect to
                    such a provider, the average costs not described in
                    clause (i) relating to the operation, maintenance, and
                    use of such technology for such providers, as determined
                    by the Secretary based upon studies conducted under
                    paragraph (4)(C).
                ``(D) The term `hospital-based' means, with respect to an
            eligible professional, a professional (such as a pathologist,
            anesthesiologist, or emergency physician) who furnishes
            substantially all of the individual's professional services in a
            hospital setting (whether inpatient or outpatient) and through
            the use of the facilities and equipment, including qualified
            electronic health records, of the hospital. The determination of
            whether an eligible professional is a hospital-based eligible
            professional shall be made on the basis of the site of service
            (as defined by the Secretary) and without regard to any
            employment or billing arrangement between the eligible
            professional and any other provider.
                ``(E) The term `net average allowable costs' means, with
            respect to a Medicaid provider described in paragraph (2)(A),
            average allowable costs reduced by any payment that is made to
            such Medicaid provider from any other source (other than under
            this subsection or by a State or local government) that is
            directly attributable to payment for certified EHR technology or
            support services described in subparagraph (C).
                ``(F) The term `needy individual' means, with respect to a
            Medicaid provider, an individual--
                        ``(i) who is receiving assistance under this title;
                        ``(ii) who is receiving assistance under title XXI;
                        ``(iii) who is furnished uncompensated care by the
                    provider; or
                        ``(iv) for whom charges are reduced by the provider
                    on a sliding scale basis based on an individual's
                    ability to pay.

        ``(4)(A) With respect to a Medicaid provider described in paragraph
    (2)(A), subject to subparagraph (B), in no case shall--

    [[Page 123 STAT. 492]]

                        ``(i) the net average allowable costs under this
                    subsection for the first year of payment (which may not
                    be later than 2016), which is intended to cover the
                    costs described in paragraph (3)(C)(i), exceed $25,000
                    (or such lesser amount as the Secretary determines based
                    on studies conducted under subparagraph (C));
                        ``(ii) the net average allowable costs under this
                    subsection for a subsequent year of payment, which is
                    intended to cover costs described in paragraph
                    (3)(C)(ii), exceed $10,000; and
                        ``(iii) payments be made for costs described in
                    clause (ii) after 2021 or over a period of longer than 5
                    years.

        ``(B) In the case of Medicaid provider described in paragraph
    (2)(A)(ii), the dollar amounts specified in subparagraph (A) shall be
    \2/3\ of the dollar amounts otherwise specified.
        ``(C) <<NOTE: Study.>>  For the purposes of determining average
    allowable costs under this subsection, the Secretary shall study the
    average costs to Medicaid providers described in paragraph (2)(A) of
    purchase and initial implementation and upgrade of certified EHR
    technology described in paragraph (3)(C)(i) and the average costs to
    such providers of operations, maintenance, and use of such technology
    described in paragraph (3)(C)(ii). In determining such costs for such
    providers, the Secretary may utilize studies of such amounts submitted
    by States.

        ``(5)(A) In no case shall the payments described in paragraph (1)(B)
    with respect to a Medicaid provider described in paragraph (2)(B)
    exceed--
                ``(i) in the aggregate the product of--
                              ``(I) the overall hospital EHR amount for the
                          provider computed under subparagraph (B); and
                              ``(II) the Medicaid share for such provider
                          computed under subparagraph (C);
                ``(ii) in any year 50 percent of the product described in
            clause (i); and
                ``(iii) in any 2-year period 90 percent of such product.

        ``(B) For purposes of this paragraph, the overall hospital EHR
    amount, with respect to a Medicaid provider, is the sum of the
    applicable amounts specified in section 1886(n)(2)(A) for such provider
    for the first 4 payment years (as estimated by the Secretary) determined
    as if the Medicare share specified in clause (ii) of such section were
    1. The Secretary shall establish, in consultation with the State, the
    overall hospital EHR amount for each such Medicaid provider eligible for
    payments under paragraph (1)(B). For purposes of this subparagraph in
    computing the amounts under section 1886(n)(2)(C) for payment years
    after the first payment year, the Secretary shall assume that in
    subsequent payment years discharges increase at the average annual rate
    of growth of the most recent 3 years for which discharge data are
    available per year.
        ``(C) The Medicaid share computed under this subparagraph, for a
    Medicaid provider for a period specified by the Secretary, shall be
    calculated in the same manner as the Medicare share under section
    1886(n)(2)(D) for such a hospital and period, except that there shall be
    substituted for the numerator under clause (i) of such section the
    amount that is equal to the number of inpatient-bed-days (as established
    by the Secretary) which are attributable to individuals who are
    receiving medical assistance

    [[Page 123 STAT. 493]]

    under this title and who are not described in section 1886(n)(2)(D)(i).
    In computing inpatient-bed-days under the previous sentence, the
    Secretary shall take into account inpatient-bed-days attributable to
    inpatient-bed-days that are paid for individuals enrolled in a Medicaid
    managed care plan (under section 1903(m) or section 1932).
        ``(D) In no case may the payments described in paragraph (1)(B) with
    respect to a Medicaid provider described in paragraph (2)(B) be paid--
                ``(i) for any year beginning after 2016 unless the provider
            has been provided payment under paragraph (1)(B) for the
            previous year; and
                ``(ii) over a period of more than 6 years of payment.

        ``(6) Payments described in paragraph (1) are not in accordance with
    this subsection unless the following requirements are met:
                ``(A)(i) The State provides assurances satisfactory to the
            Secretary that amounts received under subsection (a)(3)(F) with
            respect to payments to a Medicaid provider are paid, subject to
            clause (ii), directly to such provider (or to an employer or
            facility to which such provider has assigned payments) without
            any deduction or rebate.
                ``(ii) Amounts described in clause (i) may also be paid to
            an entity promoting the adoption of certified EHR technology, as
            designated by the State, if participation in such a payment
            arrangement is voluntary for the eligible professional involved
            and if such entity does not retain more than 5 percent of such
            payments for costs not related to certified EHR technology (and
            support services including maintenance and training) that is
            for, or is necessary for the operation of, such technology.
                ``(B) A Medicaid provider described in paragraph (2)(A) is
            responsible for payment of the remaining 15 percent of the net
            average allowable cost.
                ``(C)(i) Subject to clause (ii), with respect to payments to
            a Medicaid provider--
                        ``(I) for the first year of payment to the Medicaid
                    provider under this subsection, the Medicaid provider
                    demonstrates that it is engaged in efforts to adopt,
                    implement, or upgrade certified EHR technology; and
                        ``(II) for a year of payment, other than the first
                    year of payment to the Medicaid provider under this
                    subsection, the Medicaid provider demonstrates
                    meaningful use of certified EHR technology through a
                    means that is approved by the State and acceptable to
                    the Secretary, and that may be based upon the
                    methodologies applied under section 1848(o) or 1886(n).
                ``(ii) In the case of a Medicaid provider who has completed
            adopting, implementing, or upgrading such technology prior to
            the first year of payment to the Medicaid provider under this
            subsection, clause (i)(I) shall not apply and clause (i)(II)
            shall apply to each year of payment to the Medicaid provider
            under this subsection, including the first year of payment.
                ``(D) To the extent specified by the Secretary, the
            certified EHR technology is compatible with State or Federal
            administrative management systems.

    For purposes of subparagraph (B), a Medicaid provider described in
    paragraph (2)(A) may accept payments for the costs described

    [[Page 123 STAT. 494]]

    in such subparagraph from a State or local government. For purposes of
    subparagraph (C), in establishing the means described in such
    subparagraph, which may include clinical quality reporting to the State,
    the State shall ensure that populations with unique needs, such as
    children, are appropriately addressed.
        ``(7) With respect to Medicaid providers described in paragraph
    (2)(A), the Secretary shall ensure coordination of payment with respect
    to such providers under sections 1848(o) and 1853(l) and under this
    subsection to assure no duplication of funding. Such coordination shall
    include, to the extent practicable, a data matching process between
    State Medicaid agencies and the Centers for Medicare & Medicaid Services
    using national provider identifiers. For such purposes, the Secretary
    may require the submission of such data relating to payments to such
    Medicaid providers as the Secretary may specify.
        ``(8) In carrying out paragraph (6)(C), the State and Secretary
    shall seek, to the maximum extent practicable, to avoid duplicative
    requirements from Federal and State governments to demonstrate
    meaningful use of certified EHR technology under this title and title
    XVIII. In doing so, the Secretary may deem satisfaction of requirements
    for such meaningful use for a payment year under title XVIII to be
    sufficient to qualify as meaningful use under this subsection. The
    Secretary may also specify the reporting periods under this subsection
    in order to carry out this paragraph.
        ``(9) In order to be provided Federal financial participation under
    subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction
    of the Secretary, that the State--
                ``(A) is using the funds provided for the purposes of
            administering payments under this subsection, including tracking
            of meaningful use by Medicaid providers;
                ``(B) is conducting adequate oversight of the program under
            this subsection, including routine tracking of meaningful use
            attestations and reporting mechanisms; and
                ``(C) is pursuing initiatives to encourage the adoption of
            certified EHR technology to promote health care quality and the
            exchange of health care information under this title, subject to
            applicable laws and regulations governing such exchange.

        ``(10) <<NOTE: Reports.>> The Secretary shall periodically submit
    reports to the Committee on Energy and Commerce of the House of
    Representatives and the Committee on Finance of the Senate on status,
    progress, and oversight of payments described in paragraph (1),
    including steps taken to carry out paragraph (7). Such reports shall
    also describe the extent of adoption of certified EHR technology among
    Medicaid providers resulting from the provisions of this subsection and
    any improvements in health outcomes, clinical quality, or efficiency
    resulting from such adoption.''.

        (b) Implementation Funding.--In addition to funds otherwise
    available, out of any funds in the Treasury not otherwise appropriated,
    there are appropriated to the Secretary of Health and Human Services for
    the Centers for Medicare & Medicaid Services Program Management Account,
    $40,000,000 for each of fiscal years 2009 through 2015 and $20,000,000
    for fiscal year 2016, which shall be available for purposes of carrying
    out the provisions of (and the amendments made by) this section. Amounts
    appropriated under this subsection for a fiscal year shall be available
    until expended.

    [[Page 123 STAT. 495]]

                  Subtitle C--Miscellaneous Medicare Provisions

    SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS.

        (a) Delay in Phase Out of Medicare Hospice Budget Neutrality
    Adjustment Factor During Fiscal Year 2009.--Notwithstanding any other
    provision of law, including the final rule published on August 8, 2008,
    73 Federal Register 46464 et seq., relating to Medicare Program; Hospice
    Wage Index for Fiscal Year 2009, the Secretary of Health and Human
    Services shall not phase out or eliminate the budget neutrality
    adjustment factor in the Medicare hospice wage index before October 1,
    2009, and the Secretary shall recompute and apply the final Medicare
    hospice wage index for fiscal year 2009 as if there had been no
    reduction in the budget neutrality adjustment factor.
        (b) Non-Application of Phased-Out Indirect Medical Education (IME)
    Adjustment Factor for Fiscal Year 2009.--
                (1) In general.-- <<NOTE: Applicability.>> Section 412.322
            of title 42, Code of Federal Regulations, shall be applied
            without regard to paragraph (c) of such section, and the
            Secretary of Health and Human Services shall recompute payments
            for discharges occurring on or after October 1, 2008, as if such
            paragraph had never been in effect.
                (2) No effect on subsequent years.--Nothing in paragraph (1)
            shall be construed as having any effect on the application of
            paragraph (d) of section 412.322 of title 42, Code of Federal
            Regulations.

        (c) Funding for Implementation.--In addition to funds otherwise
    available, for purposes of implementing the provisions of subsections
    (a) and (b), including costs incurred in reprocessing claims in carrying
    out such provisions, the Secretary of Health and Human Services shall
    provide for the transfer from the Federal Hospital Insurance Trust Fund
    established under section 1817 of the Social Security Act (42 U.S.C.
    1395i) to the Centers for Medicare & Medicaid Services Program
    Management Account of $2,000,000 for fiscal year 2009.

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

        (a) Payment.--Subsection (c) of section 114 of the Medicare,
    Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
    173) <<NOTE: 42 USC 1395ww note.>> is amended--
                (1) in paragraph (1)--
                        (A) by amending the heading to read as follows:
                    ``Delay in application of 25 percent patient threshold
                    payment adjustment'';
                        (B) by striking ``the date of the enactment of this
                    Act'' and inserting ``July 1, 2007,''; and
                        (C) in subparagraph (A), by inserting ``or to a
                    long-term care hospital, or satellite facility, that as
                    of December 29, 2007, was co-located with an entity that
                    is a provider-based, off-campus location of a subsection
                    (d) hospital which did not provide services payable
                    under section 1886(d) of the Social Security Act at the
                    off-campus location'' after ``freestanding long-term
                    care hospitals''; and
                (2) in paragraph (2)--

    [[Page 123 STAT. 496]]

                        (A) in subparagraph (B)(ii), by inserting ``or that
                    is described in section 412.22(h)(3)(i) of such title''
                    before the period; and
                        (B) in subparagraph (C), by striking ``the date of
                    the enactment of this Act'' and inserting ``October 1,
                    2007 (or July 1, 2007, in the case of a satellite
                    facility described in section 412.22(h)(3)(i) of title
                    42, Code of Federal Regulations)''.

        (b) Moratorium.--Subsection (d)(3)(A) of such section is amended by
    striking ``if the hospital or facility'' and inserting ``if the hospital
    or facility obtained a certificate of need for an increase in beds that
    is in a State for which such certificate of need is required and that
    was issued on or after April 1, 2005, and before December 29, 2007, or
    if the hospital or facility''.
        (c) <<NOTE: 42 USC 1395ww note.>>  Effective Date.--The amendments
    made by this section shall be effective and apply as if included in the
    enactment of the Medicare, Medicaid, and SCHIP Extension Act of 2007
    (Public Law 110-173).

                          TITLE V--STATE FISCAL RELIEF

    SEC. 5000. PURPOSES; TABLE OF CONTENTS.

        (a) <<NOTE: 42 USC 1396a note.>>  Purposes.--The purposes of this
    title are as follows:
                (1) To provide fiscal relief to States in a period of
            economic downturn.
                (2) To protect and maintain State Medicaid programs during a
            period of economic downturn, including by helping to avert cuts
            to provider payment rates and benefits or services, and to
            prevent constrictions of income eligibility requirements for
            such programs, but not to promote increases in such
            requirements.

        (b) Table of Contents.--The table of contents for this title is as
    follows:

                          TITLE V--STATE FISCAL RELIEF

    Sec. 5000. Purposes; table of contents.
    Sec. 5001. Temporary increase of Medicaid FMAP.
    Sec. 5002. Temporary increase in DSH allotments during recession.
    Sec. 5003. Extension of moratoria on certain Medicaid final regulations.
    Sec. 5004. Extension of transitional medical assistance (TMA).
    Sec. 5005. Extension of the qualifying individual (QI) program.
    Sec. 5006. Protections for Indians under Medicaid and CHIP.
    Sec. 5007. Funding for oversight and implementation.
    Sec. 5008. GAO study and report regarding State needs during periods of
               national economic downturn.

    SEC. 5001. <<NOTE: 42 USC 1396d note.>> 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

    [[Page 123 STAT. 497]]

            for the State's FMAP for fiscal year 2010, before the
            application of this section; and
                (3) fiscal year 2011 is less than the FMAP as so determined
            for fiscal year 2008, fiscal year 2009 (after the application of
            paragraph (1)), or fiscal year 2010 (after the application of
            paragraph (2)), the greatest of such FMAP for the State for
            fiscal year 2008, fiscal year 2009, or fiscal year 2010 shall be
            substituted for the State's FMAP for fiscal year 2011, before
            the application of this section, but only for the first calendar
            quarter in fiscal year 2011.

        (b) General 6.2 Percentage Point Increase.--
                (1) In general.--Subject to subsections (e), (f), and (g)
            and paragraph (2), for each State for calendar quarters during
            the recession adjustment period (as defined in subsection
            (h)(3)), the FMAP (after the application of subsection (a))
            shall be increased (without regard to any limitation otherwise
            specified in section 1905(b) of the Social Security Act (42
            U.S.C. 1396d(b))) by 6.2 percentage points.
                (2) <<NOTE: Applicability.>>  Special election for
            territories.--In the case of a State that is not one of the 50
            States or the District of Columbia, paragraph (1) shall only
            apply if the State makes a one-time election, in a form and
            manner specified by the Secretary and for the entire recession
            adjustment period, to apply the increase in FMAP under paragraph
            (1) and a 15 percent increase under subsection (d) instead of
            applying a 30 percent increase under subsection (d).

        (c) Additional Relief Based on Increase in Unemployment.--
                (1) In general.--Subject to subsections (e), (f), and (g),
            if a State is a qualifying State under paragraph (2) for a
            calendar quarter occurring during the recession adjustment
            period, the FMAP for the State shall be further increased by the
            number of percentage points equal to the product of--
                        (A) the State percentage applicable for the State
                    under section 1905(b) of the Social Security Act (42
                    U.S.C. 1396d(b)) after the application of subsection (a)
                    and after the application of \1/2\ of the increase under
                    subsection (b); and
                        (B) the applicable percent determined in paragraph
                    (3) for the calendar quarter (or, if greater, for a
                    previous such calendar quarter).
                (2) Qualifying criteria.--
                        (A) In general.--For purposes of paragraph (1), a
                    State qualifies for additional relief under this
                    subsection for a calendar quarter occurring during the
                    recession adjustment period if the State is 1 of the 50
                    States or the District of Columbia and the State
                    satisfies any of the following criteria for the quarter:
                              (i) The State unemployment increase percentage
                          (as defined in paragraph (4)) for the quarter is
                          at least 1.5 percentage points but less than 2.5
                          percentage points.
                              (ii) The State unemployment increase
                          percentage for the quarter is at least 2.5
                          percentage points but less than 3.5 percentage
                          points.
                              (iii) The State unemployment increase
                          percentage for the quarter is at least 3.5
                          percentage points.

    [[Page 123 STAT. 498]]

                        (B) Maintenance of status.--If a State qualifies for
                    additional relief under this subsection for a calendar
                    quarter, it shall be deemed to have qualified for such
                    relief for each subsequent calendar quarter ending
                    before July 1, 2010.
                (3) Applicable percent.--
                        (A) In general.--For purposes of paragraph (1),
                    subject to subparagraph (B), the applicable percent is--
                              (i) 5.5 percent, if the State satisfies the
                          criteria described in paragraph (2)(A)(i) for the
                          calendar quarter;
                              (ii) 8.5 percent if the State satisfies the
                          criteria described in paragraph (2)(A)(ii) for the
                          calendar quarter; and
                              (iii) 11.5 percent if the State satisfies the
                          criteria described in paragraph (2)(A)(iii) for
                          the calendar quarter.
                        (B) Maintenance of higher applicable percent.--
                              (i) Hold harmless period.--If the percent
                          applied to a State under subparagraph (A) for any
                          calendar quarter in the recession adjustment
                          period beginning on or after January 1, 2009, and
                          ending before July 1, 2010, (determined without
                          regard to this subparagraph) is less than the
                          percent applied for the preceding quarter (as so
                          determined), the higher applicable percent shall
                          continue in effect for each subsequent calendar
                          quarter ending before July 1, 2010.
                              (ii) <<NOTE: Deadline.>>  Notice of lower
                          applicable percent.--The Secretary shall notify a
                          State at least 60 days prior to applying any lower
                          applicable percent to the State under this
                          paragraph.
                (4) Computation of state unemployment increase percentage.--
                        (A) In general.--In this subsection, the ``State
                    unemployment increase percentage'' for a State for a
                    calendar quarter is equal to the number of percentage
                    points (if any) by which--
                              (i) the average monthly unemployment rate for
                          the State for months in the most recent previous
                          3-consecutive-month period for which data are
                          available, subject to subparagraph (C); exceeds
                              (ii) the lowest average monthly unemployment
                          rate for the State for any 3-consecutive-month
                          period preceding the period described in clause
                          (i) and beginning on or after January 1, 2006.
                        (B) Average monthly unemployment rate defined.--In
                    this paragraph, the term ``average monthly unemployment
                    rate'' means the average of the monthly number
                    unemployed, divided by the average of the monthly
                    civilian labor force, seasonally adjusted, as determined
                    based on the most recent monthly publications of the
                    Bureau of Labor Statistics of the Department of Labor.
                        (C) Special rule.--With respect to--
                              (i) the first 2 calendar quarters of the
                          recession adjustment period, the most recent
                          previous 3-consecutive-month period described in
                          subparagraph (A)(i)

    [[Page 123 STAT. 499]]

                          shall be the 3-consecutive-month period beginning
                          with October 2008; and
                              (ii) the last 2 calendar quarters of the
                          recession adjustment period, the most recent
                          previous 3-consecutive-month period described in
                          such subparagraph shall be the 3-consecutive-month
                          period beginning with December 2009, or, if it
                          results in a higher applicable percent under
                          paragraph (3), the 3-consecutive-month period
                          beginning with January 2010.

        (d) Increase in Cap on Medicaid Payments to Territories.--Subject to
    subsections (f) and (g), with respect to entire fiscal years occurring
    during the recession adjustment period and with respect to fiscal years
    only a portion of which occurs during such period (and in proportion to
    the portion of the fiscal year that occurs during such period), the
    amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam,
    the Northern Mariana Islands, and American Samoa under subsections (f)
    and (g) of section 1108 of the Social Security Act (42 6 U.S.C. 1308)
    shall each be increased by 30 percent (or, in the case of an election
    under subsection (b)(2), 15 percent). <<NOTE: Applicability.>> In the
    case of such an election by a territory, subsection (a)(1) of such
    section shall be applied without regard to any increase in payment made
    to the territory under part E of title IV of such Act that is
    attributable to the increase in FMAP effected under subsection (b) for
    the territory.

        (e) Scope of Application.--The increases in the FMAP for a State
    under this section shall apply for purposes of title XIX of the Social
    Security Act and shall not apply with respect to--
                (1) disproportionate share hospital payments described in
            section 1923 of such Act (42 U.S.C. 1396r-4);
                (2) payments under title IV of such Act (42 U.S.C. 601 et
            seq.) (except that the increases under subsections (a) and (b)
            shall apply to payments under part E of title IV of such Act (42
            U.S.C. 670 et seq.) and, for purposes of the application of this
            section to the District of Columbia, payments under such part
            shall be deemed to be made on the basis of the FMAP applied with
            respect to such District for purposes of title XIX and as
            increased under subsection (b));
                (3) payments under title XXI of such Act (42 U.S.C. 1397aa
            et seq.);
                (4) any payments under title XIX of such Act that are based
            on the enhanced FMAP described in section 2105(b) of such Act
            (42 U.S.C. 1397ee(b)); or
                (5) any payments under title XIX of such Act that are
            attributable to expenditures for medical assistance provided to
            individuals made eligible under a State plan under title XIX of
            the Social Security Act (including under any waiver under such
            title or under section 1115 of such Act (42 U.S.C. 1315))
            because of income standards (expressed as a percentage of the
            poverty line) for eligibility for medical assistance that are
            higher than the income standards (as so expressed) for such
            eligibility as in effect on July 1, 2008, (including as such
            standards were proposed to be in effect under a State law
            enacted but not effective as of such date or a State plan
            amendment or waiver request under title XIX of such Act that was
            pending approval on such date).

        (f) State Ineligibility; Limitation; Special Rules.--
                (1) Maintenance of eligibility requirements.--

    [[Page 123 STAT. 500]]

                        (A) In general.--Subject to subparagraphs (B) and
                    (C), a State is not eligible for an increase in its FMAP
                    under subsection (a), (b), or (c), or an increase in a
                    cap amount under subsection (d), if eligibility
                    standards, methodologies, or procedures under its State
                    plan under title XIX of the Social Security Act
                    (including any waiver under such title or under section
                    1115 of such Act (42 U.S.C. 1315)) are more restrictive
                    than the eligibility standards, methodologies, or
                    procedures, respectively, under such plan (or waiver) as
                    in effect on July 1, 2008.
                        (B) State reinstatement of eligibility permitted.--
                    Subject to subparagraph (C), a State that has restricted
                    eligibility standards, methodologies, or procedures
                    under its State plan under title XIX of the Social
                    Security Act (including any waiver under such title or
                    under section 1115 of such Act (42 U.S.C. 1315)) after
                    July 1, 2008, is no longer ineligible under subparagraph
                    (A) beginning with the first calendar quarter in which
                    the State has reinstated eligibility standards,
                    methodologies, or procedures that are no more
                    restrictive than the eligibility standards,
                    methodologies, or procedures, respectively, under such
                    plan (or waiver) as in effect on July 1, 2008.
                        (C) Special rules.--A State shall not be ineligible
                    under subparagraph (A)--
                              (i) for the calendar quarters before July 1,
                          2009, on the basis of a restriction that was
                          applied after July 1, 2008, and before the date of
                          the enactment of this Act, if the State prior to
                          July 1, 2009, has reinstated eligibility
                          standards, methodologies, or procedures that are
                          no more restrictive than the eligibility
                          standards, methodologies, or procedures,
                          respectively, under such plan (or waiver) as in
                          effect on July 1, 2008; or
                              (ii) on the basis of a restriction that was
                          directed to be made under State law as in effect
                          on July 1, 2008, and would have been in effect as
                          of such date, but for a delay in the effective
                          date of a waiver under section 1115 of such Act
                          with respect to such restriction.
                (2) Compliance with prompt pay requirements.--
                        (A) Application to practitioners.--
                              (i) In general.--Subject to the succeeding
                          provisions of this subparagraph, no State shall be
                          eligible for an increased FMAP rate as provided
                          under this section for any claim received by a
                          State from a practitioner subject to the terms of
                          section 1902(a)(37)(A) of the Social Security Act
                          (42 U.S.C. 1396a(a)(37)(A)) for such days during
                          any period in which that State has failed to pay
                          claims in accordance with such section as applied
                          under title XIX of such Act.
                              (ii) Reporting requirement.--Each State shall
                          report to the Secretary, on a quarterly basis, its
                          compliance with the requirements of clause (i) as
                          such requirements pertain to claims made for
                          covered services during each month of the
                          preceding quarter.
                              (iii) Waiver authority.--The Secretary may
                          waive the application of clause (i) to a State, or
                          the

    [[Page 123 STAT. 501]]

                          reporting requirement imposed under clause (ii),
                          during any period in which there are exigent
                          circumstances, including natural disasters, that
                          prevent the timely processing of claims or the
                          submission of such a report.
                              (iv) Application to claims.--Clauses (i) and
                          (ii) shall only apply to claims made for covered
                          services after the date of enactment of this Act.
                        (B) Application to nursing facilities and
                    hospitals.--
                              (i) In general.--Subject to clause (ii), the
                          provisions of subparagraph (A) shall apply with
                          respect to a nursing facility or hospital, insofar
                          as it is paid under title XIX of the Social
                          Security Act on the basis of submission of claims,
                          in the same or similar manner (but within the same
                          timeframe) as such provisions apply to
                          practitioners described in such subparagraph.
                              (ii) Grace period.--Notwithstanding clause
                          (i), no period of ineligibility shall be imposed
                          against a State prior to June 1, 2009, on the
                          basis of the State failing to pay a claim in
                          accordance with such clause.
                (3) State's application toward rainy day fund.--A State is
            not eligible for an increase in its FMAP under subsection (b) or
            (c), or an increase in a cap amount under subsection (d), if any
            amounts attributable (directly or indirectly) to such increase
            are deposited or credited into any reserve or rainy day fund of
            the State.
                (4) No waiver authority.--Except as provided in paragraph
            (2)(A)(iii), the Secretary may not waive the application of this
            subsection or subsection (g) under section 1115 of the Social
            Security Act or otherwise.
                (5) Limitation of fmap to 100 percent.--In no case shall an
            increase in FMAP under this section result in an FMAP that
            exceeds 100 percent.
                (6) Treatment of certain expenditures.-- <<NOTE: Time
            period.>> With respect to expenditures described in section
            2105(a)(1)(B) of the Social Security Act (42 U.S.C.
            1397ee(a)(1)(B)), as in effect before April 1, 2009, that are
            made during the period beginning on October 1, 2008, and ending
            on March 31, 2009, any additional Federal funds that are paid to
            a State as a result of this section that are attributable to
            such expenditures shall not be counted against any allotment
            under section 2104 of such Act (42 U.S.C. 1397dd).

        (g) Requirements.--
                (1) State reports.--Each State that is paid additional
            Federal funds as a result of this section shall, not later than
            September 30, 2011, submit a report to the Secretary, in such
            form and such manner as the Secretary shall determine, regarding
            how the additional Federal funds were expended.
                (2) Additional requirement for certain states.--In the case
            of a State that requires political subdivisions within the State
            to contribute toward the non-Federal share of expenditures under
            the State Medicaid plan required under section 1902(a)(2) of the
            Social Security Act (42 U.S.C. 1396a(a)(2)), the State is not
            eligible for an increase in its FMAP under subsection (b) or
            (c), or an increase in a cap amount under subsection (d), if it
            requires that such political subdivisions

    [[Page 123 STAT. 502]]

            pay for quarters during the recession adjustment period a
            greater percentage of the non-Federal share of such
            expenditures, or a greater percentage of the non-Federal share
            of payments under section 1923, than the respective percentage
            that would have been required by the State under such plan on
            September 30, 2008, prior to application of this section.

        (h) Definitions.--In this section, except as otherwise provided:
                (1) FMAP.--The term ``FMAP'' means the Federal medical
            assistance percentage, as defined in section 1905(b) of the
            Social Security Act (42 U.S.C. 1396d(b)), as determined without
            regard to this section except as otherwise specified.
                (2) Poverty line.--The term ``poverty line'' has the meaning
            given such term in section 673(2) of the Community Services
            Block Grant Act (42 U.S.C. 9902(2)), including any revision
            required by such section.
                (3) Recession adjustment period.--The term ``recession
            adjustment period'' means the period beginning on October 1,
            2008, and ending on December 31, 2010.
                (4) Secretary.--The term ``Secretary'' means the Secretary
            of Health and Human Services.
                (5) State.--The term ``State'' has the meaning given such
            term in section 1101(a)(1) of the Social Security Act (42 U.S.C.
            1301(a)(1)) for purposes of title XIX of the Social Security Act
            (42 U.S.C. 1396 et seq.).

        (i) Sunset.--This section shall not apply to items and services
    furnished after the end of the recession adjustment period.
        (j) Limitation on FMAP Change.--The increase in FMAP effected under
    section 614 of the Children's Health Insurance Program Reauthorization
    Act of 2009 shall not apply in the computation of the enhanced FMAP
    under title XXI or XIX of the Social Security Act for any period
    (notwithstanding subsection (i)).

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

        Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
    4(f)(3)) is amended--
                (1) in subparagraph (A), by striking ``paragraph (6)'' and
            inserting ``paragraph (6) and subparagraph (E)''; and
                (2) by adding at the end the following new subparagraph:
                        ``(E) Temporary increase in allotments during
                    recession.--
                              ``(i) In general.--Subject to clause (ii), the
                          DSH allotment for any State--
                                        ``(I) for fiscal year 2009 is equal
                                    to 102.5 percent of the DSH allotment
                                    that would be determined under this
                                    paragraph for the State for fiscal year
                                    2009 without application of this
                                    subparagraph, notwithstanding
                                    subparagraphs (B) and (C);
                                        ``(II) for fiscal year 2010 is equal
                                    to 102.5 percent of the DSH allotment
                                    for the State for fiscal year 2009, as
                                    determined under subclause (I); and
                                        ``(III) for each succeeding fiscal
                                    year is equal to the DSH allotment for
                                    the State under this paragraph
                                    determined without applying subclauses
                                    (I) and (II).

    [[Page 123 STAT. 503]]

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

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

        (a) Final Regulations Relating to Optional Case Management Services
    and Allowable Provider Taxes.--Section 7001(a)(3)(A) of the Supplemental
    Appropriations Act, 2008 (Public Law 110-252) is amended by striking
    ``April 1, 2009'' and inserting ``July 1, 2009''.
        (b) Final Regulation Relating to School-Based Administration and
    School-Based Transportation.--Section 206 of the Medicare, Medicaid, and
    SCHIP Extension Act of 2007 (Public Law 110-173), as amended by section
    7001(a)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110-
    252), is amended by inserting ``(July 1, 2009, in the case of the final
    regulation relating to school-based administration and school-based
    transportation)'' after ``April 1, 2009,''.
        (c) Final Regulation Relating to Outpatient Hospital Facility
    Services.-- <<NOTE: Time period.>> Notwithstanding any other provision
    of law, with respect to expenditures for services furnished during the
    period beginning on December 8, 2008, and ending on June 30, 2009, the
    Secretary of Health and Human Services shall not take any action
    (through promulgation of regulation, issuance of regulatory guidance,
    use of Federal payment audit procedures, or other administrative action,
    policy, or practice, including a Medical Assistance Manual transmittal
    or letter to State Medicaid directors) to implement the final regulation
    relating to clarification of the definition of outpatient hospital
    facility services under the Medicaid program published on November 7,
    2008 (73 Federal Register 66187).

        (d) Sense of Congress.--It is the sense of Congress that the
    Secretary of Health and Human Services should not promulgate as final
    regulations any of the following proposed Medicaid regulations:
                (1) Cost limits for certain providers.--The proposed
            regulation published on January 18, 2007, (72 Federal Register
            2236) (and the purported final regulation published on May 29,
            2007 (72 Federal Register 29748) and determined by the United
            States District Court for the District of Columbia to have been
            ``improperly promulgated'', Alameda County Medical Center, et
            al., v. Leavitt, et al., Civil Action No. 08-0422, Mem. at 4
            (D.D.C. May 23, 2008)).
                (2) Payments for graduate medical education.--The proposed
            regulation published on May 23, 2007 (72 Federal Register
            28930).
                (3) Rehabilitative services.--The proposed regulation
            published on August 13, 2007 (72 Federal Register 45201).

    SEC. 5004. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

        (a) 18-Month Extension.--
                (1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the
            Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are

    [[Page 123 STAT. 504]]

            each amended by striking ``September 30, 2003'' and inserting
            ``December 31, 2010''.
                (2) <<NOTE: 42 USC 1396a note.>>  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

    [[Page 123 STAT. 505]]

            to Congress annual reports concerning enrollment and
            participation rates described in such paragraph.''.

        (e) <<NOTE: 42 USC 1396r-6 note.>>  Effective Date.--The amendments
    made by subsections (b) through (d) shall take effect on July 1, 2009.

    SEC. 5005. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

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

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

        (a) Premiums and Cost Sharing Protection Under Medicaid.--
                (1) In general.--Section 1916 of the Social Security Act (42
            U.S.C. 1396o) is amended--
                        (A) in subsection (a), in the matter preceding
                    paragraph (1), by striking ``and (i)'' and inserting ``,
                    (i), and (j)''; and
                        (B) by adding at the end the following new
                    subsection:

        ``(j) No Premiums or Cost Sharing for Indians Furnished Items or
    Services Directly by Indian Health Programs or Through Referral Under
    Contract Health Services.--
                ``(1) No cost sharing for items or services furnished to
            indians through indian health programs.--
                        ``(A) In general.--No enrollment fee, premium, or
                    similar charge, and no deduction, copayment, cost
                    sharing, or similar charge shall be imposed against an
                    Indian who is furnished an item or service directly by
                    the Indian Health Service, an Indian Tribe, Tribal
                    Organization, or Urban Indian Organization or through
                    referral under contract health services for which
                    payment may be made under this title.
                        ``(B) No reduction in amount of payment to indian
                    health providers.--Payment due under this title to the
                    Indian Health Service, an Indian Tribe, Tribal
                    Organization, or Urban Indian Organization, or a health
                    care provider through referral under contract health
                    services for the furnishing of an item or service to an
                    Indian who is eligible for assistance under such title,
                    may not be reduced by the amount of any enrollment fee,
                    premium, or similar charge, or any deduction, copayment,
                    cost

    [[Page 123 STAT. 506]]

                    sharing, or similar charge that would be due from the
                    Indian but for the operation of subparagraph (A).
                ``(2) Rule of construction.--Nothing in this subsection
            shall be construed as restricting the application of any other
            limitations on the imposition of premiums or cost sharing that
            may apply to an individual receiving medical assistance under
            this title who is an Indian.''.
                (2) Conforming amendment.--Section 1916A(b)(3) of such Act
            (42 U.S.C. 1396o-1(b)(3)) is amended--
                        (A) in subparagraph (A), by adding at the end the
                    following new clause:
                              ``(vii) An Indian who is furnished an item or
                          service directly by the Indian Health Service, an
                          Indian Tribe, Tribal Organization or Urban Indian
                          Organization or through referral under contract
                          health services.''; and
                        (B) in subparagraph (B), by adding at the end the
                    following new clause:
                              ``(x) Items and services furnished to an
                          Indian directly by the Indian Health Service, an
                          Indian Tribe, Tribal Organization or Urban Indian
                          Organization or through referral under contract
                          health services.''.

        (b) Treatment of Certain Property From Resources for Medicaid and
    CHIP Eligibility.--
                (1) Medicaid.--Section 1902 of the Social Security Act (42
            U.S.C. 1396a), as amended by sections 203(c) and
            211(a)(1)(A)(ii) of the Children's Health Insurance Program
            Reauthorization Act of 2009 (Public Law 111-3), is amended by
            adding at the end the following new subsection:

        ``(ff) Notwithstanding any other requirement of this title or any
    other provision of Federal or State law, a State shall disregard the
    following property from resources for purposes of determining the
    eligibility of an individual who is an Indian for medical assistance
    under this title:
                ``(1) Property, including real property and improvements,
            that is held in trust, subject to Federal restrictions, or
            otherwise under the supervision of the Secretary of the
            Interior, located on a reservation, including any federally
            recognized Indian Tribe's reservation, pueblo, or colony,
            including former reservations in Oklahoma, Alaska Native regions
            established by the Alaska Native Claims Settlement Act, and
            Indian allotments on or near a reservation as designated and
            approved by the Bureau of Indian Affairs of the Department of
            the Interior.
                ``(2) For any federally recognized Tribe not described in
            paragraph (1), property located within the most recent
            boundaries of a prior Federal reservation.
                ``(3) Ownership interests in rents, leases, royalties, or
            usage rights related to natural resources (including extraction
            of natural resources or harvesting of timber, other plants and
            plant products, animals, fish, and shellfish) resulting from the
            exercise of federally protected rights.
                ``(4) Ownership interests in or usage rights to items not
            covered by paragraphs (1) through (3) that have unique
            religious, spiritual, traditional, or cultural significance or
            rights that support subsistence or a traditional lifestyle
            according to applicable tribal law or custom.''.
                (2) Application to chip.--Section 2107(e)(1) of such Act (42
            U.S.C. 1397gg(e)(1)), as amended by sections 203(a)(2),

    [[Page 123 STAT. 507]]

            203(d)(2), 214(b), 501(d)(2), and 503(a)(1) of the Children's
            Health Insurance Program Reauthorization Act of 2009 (Public Law
            111-3), is amended--
                        (A) by redesignating subparagraphs (C) through (I),
                    as subparagraphs (D) through (J), respectively; and
                        (B) by inserting after subparagraph (B), the
                    following new subparagraph:
                        ``(C) Section 1902(ff) (relating to disregard of
                    certain property for purposes of making eligibility
                    determinations).''.

        (c) Continuation of Current Law Protections of Certain Indian
    Property From Medicaid Estate Recovery.--Section 1917(b)(3) of the
    Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
                (1) by inserting ``(A)'' after ``(3)''; and
                (2) by adding at the end the following new subparagraph:
                        ``(B) The standards specified by the Secretary under
                    subparagraph (A) shall require that the procedures
                    established by the State agency under subparagraph (A)
                    exempt income, resources, and property that are exempt
                    from the application of this subsection as of April 1,
                    2003, under manual instructions issued to carry out this
                    subsection (as in effect on such date) because of the
                    Federal responsibility for Indian Tribes and Alaska
                    Native Villages. Nothing in this subparagraph shall be
                    construed as preventing the Secretary from providing
                    additional estate recovery exemptions under this title
                    for Indians.''.

        (d) Rules Applicable Under Medicaid and Chip to Managed Care
    Entities With Respect to Indian Enrollees and Indian Health Care
    Providers and Indian Managed Care Entities.--
                (1) In general.--Section 1932 of the Social Security Act (42
            U.S.C. 1396u-2) is amended by adding at the end the following
            new subsection:

        ``(h) Special Rules With Respect to Indian Enrollees, Indian Health
    Care Providers, and Indian Managed Care Entities.--
                ``(1) Enrollee option to select an indian health care
            provider as primary care provider.--In the case of a non-Indian
            Medicaid managed care entity that--
                        ``(A) has an Indian enrolled with the entity; and
                        ``(B) has an Indian health care provider that is
                    participating as a primary care provider within the
                    network of the entity,
            insofar as the Indian is otherwise eligible to receive services
            from such Indian health care provider and the Indian health care
            provider has the capacity to provide primary care services to
            such Indian, the contract with the entity under section 1903(m)
            or under section 1905(t)(3) shall require, as a condition of
            receiving payment under such contract, that the Indian shall be
            allowed to choose such Indian health care provider as the
            Indian's primary care provider under the entity.
                ``(2) Assurance of payment to indian health care providers
            for provision of covered services.--Each contract with a managed
            care entity under section 1903(m) or under section 1905(t)(3)
            shall require any such entity, as a condition of receiving
            payment under such contract, to satisfy the following
            requirements:

    [[Page 123 STAT. 508]]

                        ``(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.
                    <<NOTE: Procedures.>> The Secretary shall establish
                    procedures for applying the requirements of clause (i)
                    in States where there are no or few Indian health
                    providers.
                        ``(B) Prompt payment.--To agree to make prompt
                    payment (consistent with rule for prompt payment of
                    providers under section 1932(f)) to Indian health care
                    providers that are participating providers with respect
                    to such entity or, in the case of an entity to which
                    subparagraph (A)(ii) or (C) applies, that the entity is
                    required to pay in accordance with that subparagraph.
                        ``(C) Application of special payment requirements
                    for federally-qualified health centers and for services
                    provided by certain indian health care providers.--
                              ``(i) Federally-qualified health centers.--
                                        ``(I) Managed care entity payment
                                    requirement.--To agree to pay any Indian
                                    health care provider that is a
                                    federally-qualified health center under
                                    this title but not a participating
                                    provider with respect to the entity, for
                                    the provision of covered Medicaid
                                    managed care services by such provider
                                    to an Indian enrollee of the entity at a
                                    rate equal to the amount of payment that
                                    the entity would pay a federally-
                                    qualified health center that is a
                                    participating provider with respect to
                                    the entity but is not an Indian health
                                    care provider for such services.
                                        ``(II) Continued application of
                                    state requirement to make supplemental
                                    payment.--Nothing in subclause (I) or
                                    subparagraph (A) or (B) shall be
                                    construed as waiving the application of
                                    section 1902(bb)(5) regarding the State
                                    plan requirement to make any
                                    supplemental payment due under such
                                    section to a federally-qualified health
                                    center for services furnished by such
                                    center to an enrollee of a managed care
                                    entity (regardless

    [[Page 123 STAT. 509]]

                                    of whether the federally-qualified
                                    health center is or is not a
                                    participating provider with the entity).
                              ``(ii) Payment rate for services provided by
                          certain indian health care providers.--If the
                          amount paid by a managed care entity to an Indian
                          health care provider that is not a federally-
                          qualified health center for services provided by
                          the provider to an Indian enrollee with the
                          managed care entity is less than the rate that
                          applies to the provision of such services by the
                          provider under the State plan, the plan shall
                          provide for payment to the Indian health care
                          provider, whether the provider is a participating
                          or nonparticipating provider with respect to the
                          entity, of the difference between such applicable
                          rate and the amount paid by the managed care
                          entity to the provider for such services.
                        ``(D) Construction.--Nothing in this paragraph shall
                    be construed as waiving the application of section
                    1902(a)(30)(A) (relating to application of standards to
                    assure that payments are consistent with efficiency,
                    economy, and quality of care).
                ``(3) Special rule for enrollment for indian managed care
            entities.--Regarding the application of a Medicaid managed care
            program to Indian Medicaid managed care entities, an Indian
            Medicaid managed care entity may restrict enrollment under such
            program to Indians in the same manner as Indian Health Programs
            may restrict the delivery of services to Indians.
                ``(4) Definitions.--For purposes of this subsection:
                        ``(A) Indian health care provider.--The term `Indian
                    health care provider' means an Indian Health Program or
                    an Urban Indian Organization.
                        ``(B) Indian medicaid managed care entity.--The term
                    `Indian Medicaid managed care entity' means a managed
                    care entity that is controlled (within the meaning of
                    the last sentence of section 1903(m)(1)(C)) by the
                    Indian Health Service, a Tribe, Tribal Organization, or
                    Urban Indian Organization, or a consortium, which may be
                    composed of 1 or more Tribes, Tribal Organizations, or
                    Urban Indian Organizations, and which also may include
                    the Service.
                        ``(C) Non-indian medicaid managed care entity.--The
                    term `non-Indian Medicaid managed care entity' means a
                    managed care entity that is not an Indian Medicaid
                    managed care entity.
                        ``(D) Covered medicaid managed care services.--The
                    term `covered Medicaid managed care services' means,
                    with respect to an individual enrolled with a managed
                    care entity, items and services for which benefits are
                    available with respect to the individual under the
                    contract between the entity and the State involved.
                        ``(E) Medicaid managed care program.--The term
                    `Medicaid managed care program' means a program under
                    sections 1903(m), 1905(t), and 1932 and includes a
                    managed care program operating under a waiver under
                    section 1915(b) or 1115 or otherwise.''.

    [[Page 123 STAT. 510]]

                (2) Application to chip.--Section 2107(e)(1) of such Act (42
            U.S.C. 1397gg(1)), as amended by subsection (b)(2), is amended--
                        (A) by redesignating subparagraph (J) as
                    subparagraph (K); and
                        (B) by inserting after subparagraph (I) the
                    following new subparagraph:
                        ``(J) Subsections (a)(2)(C) and (h) of section
                    1932.''.

        (e) <<NOTE: 42 USC 1320b-24.>>  Consultation on Medicaid, Chip, and
    Other Health Care Programs Funded Under the Social Security Act
    Involving Indian Health Programs and Urban Indian Organizations.--
                (1) <<NOTE: Establishment.>>  Consultation with tribal
            technical advisory group (ttag).--The Secretary of Health and
            Human Services shall maintain within the Centers for Medicaid &
            Medicare Services (CMS) a Tribal Technical Advisory Group
            (TTAG), which was first established in accordance with
            requirements of the charter dated September 30, 2003, and the
            Secretary of Health and Human Services shall include in such
            Group a representative of a national urban Indian health
            organization and a representative of the Indian Health Service.
            The inclusion of a representative of a national urban Indian
            health organization in such Group shall not affect the
            nonapplication of the Federal Advisory Committee Act (5 U.S.C.
            App.) to such Group.
                (2) Solicitation of advice under medicaid and chip.--
                        (A) Medicaid state plan amendment.--Section 1902(a)
                    of the Social Security Act (42 U.S.C. 1396a(a)), as
                    amended by section 501(d)(1) of the Children's Health
                    Insurance Program Reauthorization Act of 2009 (Public
                    Law 111-3), (42 U.S.C. 1396a(a)) is amended--
                              (i) in paragraph (71), by striking ``and'' at
                          the end;
                              (ii) in paragraph (72), by striking the period
                          at the end and inserting ``; and''; and
                              (iii) by inserting after paragraph (72), the
                          following new paragraph:
                ``(73) in the case of any State in which 1 or more Indian
            Health Programs or Urban Indian Organizations furnishes health
            care services, provide for a process under which the State seeks
            advice on a regular, ongoing basis from designees of such Indian
            Health Programs and Urban Indian Organizations on matters
            relating to the application of this title that are likely to
            have a direct effect on such Indian Health Programs and Urban
            Indian Organizations and that--
                        ``(A) shall include solicitation of advice prior to
                    submission of any plan amendments, waiver requests, and
                    proposals for demonstration projects likely to have a
                    direct effect on Indians, Indian Health Programs, or
                    Urban Indian Organizations; and
                        ``(B) may include appointment of an advisory
                    committee and of a designee of such Indian Health
                    Programs and Urban Indian Organizations to the medical
                    care advisory committee advising the State on its State
                    plan under this title.''.
                        (B) Application to chip.--Section 2107(e)(1) of such
                    Act (42 U.S.C. 1397gg(1)), as amended by subsections
                    (b)(2) and (d) (2), is amended--

    [[Page 123 STAT. 511]]

                              (i) by redesignating subparagraphs (B), (C),
                          (D), (E), (F), (G), (H), (I), (J), and (K) as
                          subparagraphs (D), (F), (B), (E), (G), (I), (H),
                          (J), (K), and (L), respectively;
                              (ii) by moving such subparagraphs so as to
                          appear in alphabetical order; and
                              (iii) by inserting after subparagraph (B) (as
                          so redesiganted and moved) the following new
                          subparagraph:
                        ``(C) Section 1902(a)(73) (relating to requiring
                    certain States to seek advice from designees of Indian
                    Health Programs and Urban Indian Organizations).''.
                (3) <<NOTE: 42 USC 1396a note.>>  Rule of construction.--
            Nothing in the amendments made by this subsection shall be
            construed as superseding existing advisory committees, working
            groups, guidance, or other advisory procedures established by
            the Secretary of Health and Human Services or by any State with
            respect to the provision of health care to Indians.

        (f) <<NOTE: 42 USC 1396a note.>>  Effective Date.--The amendments
    made by this section shall take effect on July 1, 2009.

    SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION.

        (a) Oversight.--For purposes of ensuring the proper expenditure of
    Federal funds under title XIX of the Social Security Act (42 U.S.C. 1396
    et seq.), there is appropriated to the Office of the Inspector General
    of the Department of Health and Human Services, out of any money in the
    Treasury not otherwise appropriated and without further appropriation,
    $31,250,000 for fiscal year 2009, which shall remain available for
    expenditure until September 30, 2011, and shall be in addition to any
    other amounts appropriated or made available to such Office for such
    purposes.
        (b) Implementation of Increased FMAP.--For purposes of carrying out
    section 5001, there is appropriated to the Secretary of Health and Human
    Services, out of any money in the Treasury not otherwise appropriated
    and without further appropriation, $5,000,000 for fiscal year 2009,
    which shall remain available for expenditure until September 30, 2011,
    and shall be in addition to any other amounts appropriated or made
    available to such Secretary for such purposes.

    SEC. 5008. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING PERIODS OF
                NATIONAL ECONOMIC DOWNTURN.

        (a) In General.--The Comptroller General of the United States shall
    study the period of national economic downturn in effect on the date of
    enactment of this Act, as well as previous periods of national economic
    downturn since 1974, for the purpose of developing recommendations for
    addressing the needs of States during such periods. As part of such
    analysis, the Comptroller General shall study the past and projected
    effects of temporary increases in the Federal medical assistance
    percentage under the Medicaid program with respect to such periods.
        (b) Report.--Not later than April 1, 2011, the Comptroller General
    of the United States shall submit a report to the appropriate committees
    of Congress on the results of the study conducted under paragraph (1).
    Such report shall include the following:
                (1) Such recommendations as the Comptroller General
            determines appropriate for modifying the national economic
            downturn assistance formula for temporary adjustment of the

    [[Page 123 STAT. 512]]

            Federal medical assistance percentage under Medicaid (also
            referred to as a ``countercyclical FMAP'') described in GAO
            report number GAO-07-97 to improve the effectiveness of the
            application of such percentage in addressing the needs of States
            during periods of national economic downturn, including
            recommendations for--
                        (A) improvements to the factors that would begin and
                    end the application of such percentage;
                        (B) how the determination of the amount of such
                    percentage could be adjusted to address State and
                    regional economic variations during such periods; and
                        (C) how the determination of the amount of such
                    percentage could be adjusted to be more responsive to
                    actual Medicaid costs incurred by States during such
                    periods.
                (2) An analysis of the impact on States during such periods
            of--
                        (A) declines in private health benefits coverage;
                        (B) declines in State revenues; and
                        (C) caseload maintenance and growth under Medicaid,
                    the Children's Health Insurance Program, or any other
                    publicly-funded programs to provide health benefits
                    coverage for State residents.
                (3) Identification of, and recommendations for addressing,
            the effects on States of any other specific economic indicators
            that the Comptroller General determines appropriate.

              TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

    SEC. 6000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

              TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

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

    SEC. 6001. <<NOTE: 47 USC 1305.>> BROADBAND TECHNOLOGY OPPORTUNITIES
                PROGRAM.

        (a) The Assistant Secretary of Commerce for Communications and
    Information (Assistant Secretary), in consultation with the Federal
    Communications Commission (Commission), shall establish a national
    broadband service development and expansion program in conjunction with
    the technology opportunities program, which shall be referred to as the
    Broadband Technology Opportunities Program. The Assistant Secretary
    shall ensure that the program complements and enhances and does not
    conflict with other Federal broadband initiatives and programs.
        (b) The purposes of the program are to--
                (1) provide access to broadband service to consumers
            residing in unserved areas of the United States;
                (2) provide improved access to broadband service to
            consumers residing in underserved areas of the United States;
                (3) provide broadband education, awareness, training,
            access, equipment, and support to--
                        (A) schools, libraries, medical and healthcare
                    providers, community colleges and other institutions of
                    higher education, and other community support
                    organizations and

    [[Page 123 STAT. 513]]

                    entities to facilitate greater use of broadband service
                    by or through these organizations;
                        (B) organizations and agencies that provide
                    outreach, access, equipment, and support services to
                    facilitate greater use of broadband service by low-
                    income, unemployed, aged, and otherwise vulnerable
                    populations; and
                        (C) job-creating strategic facilities located within
                    a State-designated economic zone, Economic Development
                    District designated by the Department of Commerce,
                    Renewal Community or Empowerment Zone designated by the
                    Department of Housing and Urban Development, or
                    Enterprise Community designated by the Department of
                    Agriculture;
                (4) improve access to, and use of, broadband service by
            public safety agencies; and
                (5) stimulate the demand for broadband, economic growth, and
            job creation.

        (c) The Assistant Secretary may consult a State, the District of
    Columbia, or territory or possession of the United States with respect
    to--
                (1) the identification of areas described in subsection
            (b)(1) or (2) located in that State; and
                (2) the allocation of grant funds within that State for
            projects in or affecting the State.

        (d) The Assistant Secretary shall--
                (1) <<NOTE: Grants.>> establish and implement the grant
            program as expeditiously as practicable;
                (2) <<NOTE: Deadline.>> ensure that all awards are made
            before the end of fiscal year 2010;
                (3) seek such assurances as may be necessary or appropriate
            from grantees under the program that they will substantially
            complete projects supported by the program in accordance with
            project timelines, not to exceed 2 years following an award; and
                (4) <<NOTE: Reports. Deadlines.>> report on the status of
            the program to the Committees on Appropriations of the House of
            Representatives and the Senate, the Committee on Energy and
            Commerce of the House of Representatives, and the Committee on
            Commerce, Science, and Transportation of the Senate, every 90
            days.

        (e) To be eligible for a grant under the program, an applicant
    shall--
                (1)(A) be a State or political subdivision thereof, the
            District of Columbia, a territory or possession of the United
            States, an Indian tribe (as defined in section 4 of the Indian
            Self-Determination and Education Assistance Act (25 U.S.C.
            450(b)) or native Hawaiian organization;
                        (B) a nonprofit--
                              (i) foundation,
                              (ii) corporation,
                              (iii) institution, or
                              (iv) association; or
                        (C) any other entity, including a broadband service
                    or infrastructure provider, that the Assistant Secretary
                    finds by rule to be in the public interest. In
                    establishing such rule, the Assistant Secretary shall to
                    the extent practicable promote the purposes of this
                    section in a technologically neutral manner;

    [[Page 123 STAT. 514]]

                (2) submit an application, at such time, in such form, and
            containing such information as the Assistant Secretary may
            require;
                (3) provide a detailed explanation of how any amount
            received under the program will be used to carry out the
            purposes of this section in an efficient and expeditious manner,
            including a showing that the project would not have been
            implemented during the grant period without Federal grant
            assistance;
                (4) demonstrate, to the satisfaction of the Assistant
            Secretary, that it is capable of carrying out the project or
            function to which the application relates in a competent manner
            in compliance with all applicable Federal, State, and local
            laws;
                (5) demonstrate, to the satisfaction of the Assistant
            Secretary, that it will appropriate (if the applicant is a State
            or local government agency) or otherwise unconditionally
            obligate, from non-Federal sources, funds required to meet the
            requirements of subsection (f);
                (6) disclose to the Assistant Secretary the source and
            amount of other Federal or State funding sources from which the
            applicant receives, or has applied for, funding for activities
            or projects to which the application relates; and
                (7) provide such assurances and procedures as the Assistant
            Secretary may require to ensure that grant funds are used and
            accounted for in an appropriate manner.

        (f) The Federal share of any project may not exceed 80 percent,
    except that the Assistant Secretary may increase the Federal share of a
    project above 80 percent if--
                (1) the applicant petitions the Assistant Secretary for a
            waiver; and
                (2) the Assistant Secretary determines that the petition
            demonstrates financial need.

        (g) The Assistant Secretary may make competitive grants under the
    program to--
                (1) acquire equipment, instrumentation, networking
            capability, hardware and software, digital network technology,
            and infrastructure for broadband services;
                (2) construct and deploy broadband service related
            infrastructure;
                (3) ensure access to broadband service by community anchor
            institutions;
                (4) facilitate access to broadband service by low-income,
            unemployed, aged, and otherwise vulnerable populations in order
            to provide educational and employment opportunities to members
            of such populations;
                (5) construct and deploy broadband facilities that improve
            public safety broadband communications services; and
                (6) undertake such other projects and activities as the
            Assistant Secretary finds to be consistent with the purposes for
            which the program is established.

        (h) The Assistant Secretary, in awarding grants under this section,
    shall, to the extent practical--
                (1) award not less than 1 grant in each State;
                (2) consider whether an application to deploy infrastructure
            in an area--

    [[Page 123 STAT. 515]]

                        (A) will, if approved, increase the affordability
                    of, and subscribership to, service to the greatest
                    population of users in the area;
                        (B) will, if approved, provide the greatest
                    broadband speed possible to the greatest population of
                    users in the area;
                        (C) will, if approved, enhance service for health
                    care delivery, education, or children to the greatest
                    population of users in the area; and
                        (D) will, if approved, not result in unjust
                    enrichment as a result of support for non-recurring
                    costs through another Federal program for service in the
                    area; and
                (3) consider whether the applicant is a socially and
            economically disadvantaged small business concern as defined
            under section 8(a) of the Small Business Act (15 U.S.C. 637).

        (i) The Assistant Secretary--
                (1) <<NOTE: Reports. Deadlines. Public information.>> shall
            require any entity receiving a grant pursuant to this section to
            report quarterly, in a format specified by the Assistant
            Secretary, on such entity's use of the assistance and progress
            fulfilling the objectives for which such funds were granted, and
            the Assistant Secretary shall make these reports available to
            the public;
                (2) may establish additional reporting and information
            requirements for any recipient of any assistance made available
            pursuant to this section;
                (3) shall establish appropriate mechanisms to ensure
            appropriate use and compliance with all terms of any use of
            funds made available pursuant to this section;
                (4) may, in addition to other authority under applicable
            law, deobligate awards to grantees that demonstrate an
            insufficient level of performance, or wasteful or fraudulent
            spending, as defined in advance by the Assistant Secretary, and
            award these funds competitively to new or existing applicants
            consistent with this section; and
                (5) <<NOTE: Database. Web site. Records.>> shall create and
            maintain a fully searchable database, accessible on the Internet
            at no cost to the public, that contains at least a list of each
            entity that has applied for a grant under this section, a
            description of each application, the status of each such
            application, the name of each entity receiving funds made
            available pursuant to this section, the purpose for which such
            entity is receiving such funds, each quarterly report submitted
            by the entity pursuant to this section, and such other
            information sufficient to allow the public to understand and
            monitor grants awarded under the program.

        (j) <<NOTE: Publication.>> Concurrent with the issuance of the
    Request for Proposal for grant applications pursuant to this section,
    the Assistant Secretary shall, in coordination with the Commission,
    publish the non-discrimination and network interconnection obligations
    that shall be contractual conditions of grants awarded under this
    section, including, at a minimum, adherence to the principles contained
    in the Commission's broadband policy statement (FCC 05-15, adopted
    August 5, 2005).

        (k)(1) <<NOTE: Deadline. Reports. Broadband plan.>> Not later than 1
    year after the date of enactment of this section, the Commission shall
    submit to the Committee on Energy and Commerce of the House of
    Representatives and the Committee on Commerce, Science, and
    Transportation of the Senate, a report containing a national broadband
    plan.

    [[Page 123 STAT. 516]]

                (2) The national broadband plan required by this section
            shall seek to ensure that all people of the United States have
            access to broadband capability and shall establish benchmarks
            for meeting that goal. The plan shall also include--
                        (A) an analysis of the most effective and efficient
                    mechanisms for ensuring broadband access by all people
                    of the United States;
                        (B) a detailed strategy for achieving affordability
                    of such service and maximum utilization of broadband
                    infrastructure and service by the public;
                        (C) an evaluation of the status of deployment of
                    broadband service, including progress of projects
                    supported by the grants made pursuant to this section;
                    and
                        (D) a plan for use of broadband infrastructure and
                    services in advancing consumer welfare, civic
                    participation, public safety and homeland security,
                    community development, health care delivery, energy
                    independence and efficiency, education, worker training,
                    private sector investment, entrepreneurial activity, job
                    creation and economic growth, and other national
                    purposes.
                (3) In developing the plan, the Commission shall have access
            to data provided to other Government agencies under the
            Broadband Data Improvement Act (47 U.S.C. 1301 note).

        (l) <<NOTE: Broadband map.>> The Assistant Secretary shall develop
    and maintain a comprehensive nationwide inventory map of existing
    broadband service capability and availability in the United States that
    depicts the geographic extent to which broadband service capability is
    deployed and available from a commercial provider or public provider
    throughout each State. <<NOTE: Deadline. Web posting. Public
    information.>> Not later than 2 years after the date of the enactment of
    this Act, the Assistant Secretary shall make the broadband inventory map
    developed and maintained pursuant to this section accessible by the
    public on a World Wide Web site of the National Telecommunications and
    Information Administration in a form that is interactive and searchable.

        (m) <<NOTE: Regulations.>> The Assistant Secretary shall have the
    authority to prescribe such rules as are necessary to carry out the
    purposes of this section.

                   TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

    SEC. 7000. TABLE OF CONTENTS.

        The table of contents of this title is as follows:

                   TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

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

    SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

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

    [[Page 123 STAT. 517]]

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

        ``(a) Definitions.--For purposes of this section, the following
    definitions shall apply:
                ``(1) Senior executive officer.--The term `senior executive
            officer' means an individual who is 1 of the top 5 most highly
            paid executives of a public company, whose compensation is
            required to be disclosed pursuant to the Securities Exchange Act
            of 1934, and any regulations issued thereunder, and non-public
            company counterparts.
                ``(2) Golden parachute payment.--The term `golden parachute
            payment' means any payment to a senior executive officer for
            departure from a company for any reason, except for payments for
            services performed or benefits accrued.
                ``(3) TARP recipient.--The term `TARP recipient' means any
            entity that has received or will receive financial assistance
            under the financial assistance provided under the TARP.
                ``(4) Commission.--The term `Commission' means the
            Securities and Exchange Commission.
                ``(5) Period in which obligation is outstanding; rule of
            construction.--For purposes of this section, the period in which
            any obligation arising from financial assistance provided under
            the TARP remains outstanding does not include any period during
            which the Federal Government only holds warrants to purchase
            common stock of the TARP recipient.

        ``(b) Executive Compensation and Corporate Governance.--
                ``(1) Establishment of standards.--During the period in
            which any obligation arising from financial assistance provided
            under the TARP remains outstanding, each TARP recipient shall be
            subject to--
                        ``(A) the standards established by the Secretary
                    under this section; and
                        ``(B) the provisions of section 162(m)(5) of the
                    Internal Revenue Code of 1986, as applicable.
                ``(2) Standards required.--The Secretary shall require each
            TARP recipient to meet appropriate standards for executive
            compensation and corporate governance.
                ``(3) Specific requirements.--The standards established
            under paragraph (2) shall include the following:
                        ``(A) Limits on compensation that exclude incentives
                    for senior executive officers of the TARP recipient to
                    take unnecessary and excessive risks that threaten the
                    value of such recipient during the period in which any
                    obligation arising from financial assistance provided
                    under the TARP remains outstanding.
                        ``(B) A provision for the recovery by such TARP
                    recipient of any bonus, retention award, or incentive
                    compensation paid to a senior executive officer and any
                    of the next 20 most highly-compensated employees of the
                    TARP recipient based on statements of earnings,
                    revenues, gains, or other criteria that are later found
                    to be materially inaccurate.
                        ``(C) A prohibition on such TARP recipient making
                    any golden parachute payment to a senior executive
                    officer or any of the next 5 most highly-compensated
                    employees of the TARP recipient during the period in
                    which any

    [[Page 123 STAT. 518]]

                    obligation arising from financial assistance provided
                    under the TARP remains outstanding.
                        ``(D)(i) A prohibition on such TARP recipient paying
                    or accruing any bonus, retention award, or incentive
                    compensation during the period in which any obligation
                    arising from financial assistance provided under the
                    TARP remains outstanding, except that any prohibition
                    developed under this paragraph shall not apply to the
                    payment of long-term restricted stock by such TARP
                    recipient, provided that such long-term restricted
                    stock--
                              ``(I) does not fully vest during the period in
                          which any obligation arising from financial
                          assistance provided to that TARP recipient remains
                          outstanding;
                              ``(II) has a value in an amount that is not
                          greater than \1/3\ of the total amount of annual
                          compensation of the employee receiving the stock;
                          and
                              ``(III) is subject to such other terms and
                          conditions as the Secretary may determine is in
                          the public interest.
                        ``(ii) <<NOTE: Applicability.>> The prohibition
                    required under clause (i) shall apply as follows:
                              ``(I) For any financial institution that
                          received financial assistance provided under the
                          TARP equal to less than $25,000,000, the
                          prohibition shall apply only to the most highly
                          compensated employee of the financial institution.
                              ``(II) For any financial institution that
                          received financial assistance provided under the
                          TARP equal to at least $25,000,000, but less than
                          $250,000,000, the prohibition shall apply to at
                          least the 5 most highly-compensated employees of
                          the financial institution, or such higher number
                          as the Secretary may determine is in the public
                          interest with respect to any TARP recipient.
                              ``(III) For any financial institution that
                          received financial assistance provided under the
                          TARP equal to at least$250,000,000, but less than
                          $500,000,000, the prohibition shall apply to the
                          senior executive officers and at least the 10 next
                          most highly-compensated employees, or such higher
                          number as the Secretary may determine is in the
                          public interest with respect to any TARP
                          recipient.
                              ``(IV) For any financial institution that
                          received financial assistance provided under the
                          TARP equal to $500,000,000 or more, the
                          prohibition shall apply to the senior executive
                          officers and at least the 20 next most highly-
                          compensated employees, or such higher number as
                          the Secretary may determine is in the public
                          interest with respect to any TARP recipient.
                        ``(iii) The prohibition required under clause (i)
                    shall not be construed to prohibit any bonus payment
                    required to be paid pursuant to a written employment
                    contract executed on or before February 11, 2009, as
                    such valid employment contracts are determined by the
                    Secretary or the designee of the Secretary.
                        ``(E) A prohibition on any compensation plan that
                    would encourage manipulation of the reported earnings of
                    such

    [[Page 123 STAT. 519]]

                    TARP recipient to enhance the compensation of any of its
                    employees.
                        ``(F) A requirement for the establishment of a Board
                    Compensation Committee that meets the requirements of
                    subsection (c).
                ``(4) Certification of compliance.--The chief executive
            officer and chief financial officer (or the equivalents thereof)
            of each TARP recipient shall provide a written certification of
            compliance by the TARP recipient with the requirements of this
            section--
                        ``(A) in the case of a TARP recipient, the
                    securities of which are publicly traded, to the
                    Securities and Exchange Commission, together with annual
                    filings required under the securities laws; and
                        ``(B) in the case of a TARP recipient that is not a
                    publicly traded company, to the Secretary.

        ``(c) Board Compensation Committee.--
                ``(1) Establishment of board required.--Each TARP recipient
            shall establish a Board Compensation Committee, comprised
            entirely of independent directors, for the purpose of reviewing
            employee compensation plans.
                ``(2) Meetings.--The Board Compensation Committee of each
            TARP recipient shall meet at least semiannually to discuss and
            evaluate employee compensation plans in light of an assessment
            of any risk posed to the TARP recipient from such plans.
                ``(3) Compliance by non-sec registrants.--In the case of any
            TARP recipient, the common or preferred stock of which is not
            registered pursuant to the Securities Exchange Act of 1934, and
            that has received $25,000,000 or less of TARP assistance, the
            duties of the Board Compensation Committee under this subsection
            shall be carried out by the board of directors of such TARP
            recipient.

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

        ``(e) Shareholder Approval of Executive Compensation.--
                ``(1) Annual shareholder approval of executive
            compensation.--Any proxy or consent or authorization for an
            annual or other meeting of the shareholders of any TARP
            recipient during the period in which any obligation arising from
            financial assistance provided under the TARP remains outstanding
            shall permit a separate shareholder vote to approve the
            compensation of executives, as disclosed pursuant to the
            compensation disclosure rules of the Commission (which
            disclosure shall include the compensation discussion and
            analysis, the compensation tables, and any related material).
                ``(2) Nonbinding vote.--A shareholder vote described in
            paragraph (1) shall not be binding on the board of directors of
            a TARP recipient, and may not be construed as overruling

    [[Page 123 STAT. 520]]

            a decision by such board, nor to create or imply any additional
            fiduciary duty by such board, nor shall such vote be construed
            to restrict or limit the ability of shareholders to make
            proposals for inclusion in proxy materials related to executive
            compensation.
                ``(3) Deadline for rulemaking.--Not later than 1 year after
            the date of enactment of the American Recovery and Reinvestment
            Act of 2009, the Commission shall issue any final rules and
            regulations required by this subsection.

        ``(f) Review of Prior Payments to Executives.--
                ``(1) In general.--The Secretary shall review bonuses,
            retention awards, and other compensation paid to the senior
            executive officers and the next 20 most highly-compensated
            employees of each entity receiving TARP assistance before the
            date of enactment of the American Recovery and Reinvestment Act
            of 2009, to determine whether any such payments were
            inconsistent with the purposes of this section or the TARP or
            were otherwise contrary to the public interest.
                ``(2) Negotiations for reimbursement.--If the Secretary
            makes a determination described in paragraph (1), the Secretary
            shall seek to negotiate with the TARP recipient and the subject
            employee for appropriate reimbursements to the Federal
            Government with respect to compensation or bonuses.

        ``(g) No Impediment to Withdrawal by TARP Recipients.--Subject to
    consultation with the appropriate Federal banking agency (as that term
    is defined in section 3 of the Federal Deposit Insurance Act), if any,
    the Secretary shall permit a TARP recipient to repay any assistance
    previously provided under the TARP to such financial institution,
    without regard to whether the financial institution has replaced such
    funds from any other source or to any waiting period, and when such
    assistance is repaid, the Secretary shall liquidate warrants associated
    with such assistance at the current market price.
        ``(h) Regulations.--The Secretary shall promulgate regulations to
    implement this section.''.

    [[Page 123 STAT. 521]]

    SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS.

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

        Approved February 17, 2009.

    LEGISLATIVE HISTORY--H.R. 1 (S. 336) (S. 350):
    ---------------------------------------------------------------------------

    SENATE REPORTS: No. 111-3 accompanying S. 336 (Comm. on Appropriations).
    CONGRESSIONAL RECORD, Vol. 155 (2009):
                Jan. 27, 28, considered and passed House.
                Feb. 2-7, 9, 10, considered and passed Senate, amended.
                Feb. 13, House and Senate agreed to conference report.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
                Feb. 17, Presidential remarks and statement.

                                      <all>