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

[[Page 123 STAT. 117]]

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

[[Page 123 STAT. 118]]

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

[[Page 123 STAT. 119]]

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

[[Page 123 STAT. 121]]

        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

[[Page 123 STAT. 122]]

                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'.

[[Page 123 STAT. 123]]

                    ``(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.

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