PUBLIC LAW 111–5—FEB. 17, 2009 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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘American Recovery and Reinvestment Act of 2009’’. 

SEC. 2. TABLE OF CONTENTS. 

The table of contents for this Act is as follows: 

DIVISION A—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. PURPOSES AND PRINCIPLES. 

(a) STATEMENT OF PURPOSES.—The purposes of this Act include 

the following: 

26 USC 1 note. 

26 USC 1 note. 

American 

Recovery and 

Reinvestment 

Act of 2009. 

Feb. 17, 2009 

[H.R. 1] 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 116 PUBLIC LAW 111–5—FEB. 17, 2009 

(1) To preserve and create jobs and promote economic 

recovery. 

(2) To assist those most impacted by the recession. 

(3) To provide investments needed to increase economic 

efficiency by spurring technological advances in science and 

health. 

(4) To invest in transportation, environmental protection, 

and other infrastructure that will provide long-term economic 

benefits. 

(5) To stabilize State and local government budgets, in 

order to minimize and avoid reductions in essential services 

and counterproductive state and local tax increases. 

(b) GENERAL PRINCIPLES CONCERNING USE OF FUNDS.—The 

President and the heads of Federal departments and agencies shall 

manage and expend the funds made available in this Act so as 

to achieve the purposes specified in subsection (a), including commencing expenditures and activities as quickly as possible consistent with prudent management. 

SEC. 4. REFERENCES. 

Except as expressly provided otherwise, any reference to ‘‘this 

Act’’ contained in any division of this Act shall be treated as 

referring only to the provisions of that division. 

SEC. 5. EMERGENCY DESIGNATIONS. 

(a) IN GENERAL.—Each amount in this Act is designated as 

an emergency requirement and necessary to meet emergency needs 

pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) 

and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the 

concurrent resolutions on the budget for fiscal years 2008 and 

2009. 

(b) PAY-AS-YOU-GO.—All applicable provisions in this Act are 

designated as an emergency for purposes of pay-as-you-go principles. 

DIVISION A—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 

1 USC 1 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 118 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 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 

Grants. 

Loans. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, 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: 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. 

Grants. 

Reports. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 120 PUBLIC LAW 111–5—FEB. 17, 2009 

GENERAL PROVISIONS—THIS TITLE 

SEC. 101. TEMPORARY INCREASE IN BENEFITS UNDER THE

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM. (a) MAXIMUM

BENEFIT INCREASE.— 

(1) IN GENERAL.—Beginning the first month that begins 

not less than 25 days after the date of enactment of this 

Act, the value of benefits determined under section 8(a) of 

the Food and Nutrition Act of 2008 and consolidated block 

grants for Puerto Rico and American Samoa determined under 

section 19(a) of such Act shall be calculated using 113.6 percent 

of the June 2008 value of the thrifty food plan as specified 

under section 3(o) of such Act. 

(2) TERMINATION.— 

(A) The authority provided by this subsection shall 

terminate after September 30, 2009. 

(B) Notwithstanding subparagraph (A), the Secretary 

of Agriculture may not reduce the value of the maximum 

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 later than 60 days 

after the date of enactment of this Act, the Secretary shall 

make available to States amounts for fiscal year 2009 under 

paragraph (1). 

(3) ALLOCATION OF FUNDS.—Except as provided for management and oversight, funds described in paragraph (1) shall 

Grants. 

Deadline. 

Effective date. 

Puerto Rico. 

American Samoa. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 

Effective dates. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 122 PUBLIC LAW 111–5—FEB. 17, 2009 

in accordance with subparagraph (B) if the eligible producers on the farm— 

‘‘(i) pay the appropriate fee described in paragraph 

(4)(A) not later than 90 days after the date of enactment of this paragraph; and 

‘‘(ii)(I) in the case of each insurable commodity 

of the eligible producers on the farm, excluding grazing 

land, agree to obtain a policy or plan of insurance 

under subtitle A (excluding a crop insurance pilot program under that subtitle) for the next insurance year 

for which crop insurance is available to the eligible 

producers on the farm at a level of coverage equal 

to 70 percent or more of the recorded or appraised 

average yield indemnified at 100 percent of the 

expected market price, or an equivalent coverage; and 

‘‘(II) in the case of each noninsurable commodity 

of the eligible producers on the farm, agree to file 

the required paperwork, and pay the administrative 

fee by the applicable State filing deadline, for the noninsured crop assistance program for the 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’. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 124 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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.— 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 126 PUBLIC LAW 111–5—FEB. 17, 2009 

(i) IN GENERAL.—The Secretary shall make grants 

to States under this subsection on a pro rata basis 

based on the amount of aquaculture feed used in each 

State during the 2007 calendar year, as determined 

by the Secretary. 

(ii) TIMING.—Not later than 120 days after the 

date of enactment of this Act, the Secretary shall make 

grants to States to provide assistance under this subsection. 

(D) REQUIREMENTS.—The Secretary shall make grants 

under this subsection only to States that demonstrate to 

the satisfaction of the Secretary that the State will— 

(i) use grant funds to assist eligible aquaculture 

producers; 

(ii) provide assistance to eligible aquaculture producers not later than 60 days after the date on which 

the State receives grant funds; and 

(iii) not later than 30 days after the date on which 

the State provides assistance to eligible aquaculture 

producers, submit to the Secretary a report that 

describes— 

(I) the manner in which the State provided 

assistance; 

(II) the amounts of assistance provided per 

species of aquaculture; and 

(III) the process by which the State determined the levels of assistance to eligible aquaculture producers. 

(3) REDUCTION IN PAYMENTS.—An eligible aquaculture producer that receives assistance under this subsection shall not 

be eligible to receive any other assistance under the supplemental agricultural disaster assistance program established 

under section 531 of the Federal Crop Insurance Act (7 U.S.C. 

1531) and section 901 of the Trade Act of 1974 (19 U.S.C. 

2497) for any losses in 2008 relating to the same species of 

aquaculture. 

(4) REPORT TO CONGRESS.—Not later than 180 days after 

the date of enactment of this Act, the Secretary shall submit 

to the appropriate committees of Congress a report that— 

(A) describes in detail the manner in which this subsection has been carried out; and 

(B) includes the information reported to the Secretary 

under paragraph (2)(D)(iii). 

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 

Reports. 

Deadlines. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Definition. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 128 PUBLIC LAW 111–5—FEB. 17, 2009 

NATIONAL TELECOMMUNICATIONS AND INFORMATION

ADMINISTRATION

BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

For an amount for ‘‘Broadband Technology Opportunities Program’’, $4,700,000,000: 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: 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: 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: 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. 

Notification. 

Deadline. 

Applicability. 

Notification. 

Deadline. 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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). 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 130 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 132 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 134 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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 

Deadlines. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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 

Deadlines. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 136 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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: 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 any: Provided further, That the Secretary of the Army shall 

submit a quarterly report to the Committees on Appropriations 

Deadlines. 

Reports. 

Deadlines. 

Reports. 

Deadlines. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Deadlines. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 138 PUBLIC LAW 111–5—FEB. 17, 2009 

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): 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 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 140 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. WESTERN AREA POWER ADMINISTRATION BORROWING 

AUTHORITY. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 

Administrator of the Western Area Power Administration. 

‘‘(2) SECRETARY.—The term ‘Secretary’ means the Secretary 

of the Treasury. 

‘‘(b) AUTHORITY.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

law, subject to paragraphs (2) through (5)— 

‘‘(A) the Western Area Power Administration may borrow funds from the Treasury; and 

‘‘(B) the Secretary shall, without further appropriation 

and without fiscal year limitation, loan to the Western 

Area Power Administration, on such terms as may be fixed 

by the Administrator and the Secretary, such sums (not 

to exceed, in the aggregate (including deferred interest), 

$3,250,000,000 in outstanding repayable balances at any 

one time) as, in the judgment of the Administrator, are 

from time to time required for the purpose of— 

‘‘(i) constructing, financing, facilitating, planning, 

operating, maintaining, or studying construction of new 

or upgraded electric power transmission lines and 

related facilities with at least one terminus within 

the area served by the Western Area Power Administration; and 

‘‘(ii) delivering or facilitating the delivery of power 

generated by renewable energy resources constructed 

or reasonably expected to be constructed after the date 

of enactment of this section. 

‘‘(2) INTEREST.—The rate of interest to be charged in 

connection with any loan made pursuant to this subsection 

shall be fixed by the Secretary, taking into consideration market 

yields on outstanding marketable obligations of the United 

States of comparable maturities as of the date of the loan. 

‘‘(3) REFINANCING.—The Western Area Power Administration may refinance loans taken pursuant to this section within 

the Treasury. 

‘‘(4) PARTICIPATION.—The Administrator may permit other 

entities to participate in the financing, construction and ownership projects financed under this section. 

‘‘(5) CONGRESSIONAL REVIEW OF DISBURSEMENT.—Effective 

upon the date of enactment of this section, the Administrator 

shall have the authority to have utilized $1,750,000,000 at 

any one time. If the Administrator seeks to borrow funds above 

$1,750,000,000, the funds will be disbursed unless there is 

enacted, within 90 calendar days of the first such request, 

a joint resolution that rescinds the remainder of the balance 

of the borrowing authority provided in this section. 

‘‘(c) TRANSMISSION LINE AND RELATED FACILITY PROJECTS.— 

Deadline. 

Effective date. 

42 USC 16421a. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 142 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 143 

process to develop practices and policies that implement the 

authority granted by this section. 

‘‘(2) REQUESTS FOR INTEREST.—In the course of selecting 

potential projects to be funded under this section, the Administrator shall seek Requests For Interest from entities interested 

in identifying potential projects through one or more notices 

published in the Federal Register.’’ 

SEC. 403. 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: 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 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.’’. 

42 USC 17384. 

Reports. 

Deadline. 

Notice. 

Federal Register, 

publication. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 144 PUBLIC LAW 111–5—FEB. 17, 2009 

(3) By inserting after section 1304(b)(3)(D) the following 

new subparagraphs: 

‘‘(E) AVAILABILITY OF DATA.—The Secretary shall establish and maintain a smart grid information clearinghouse 

in a timely manner which will make data from smart 

grid demonstration projects and other sources available 

to the public. As a condition of receiving financial assistance 

under this subsection, a utility or other participant in 

a smart grid demonstration project shall provide such 

information as the Secretary may require to become available through the smart grid information clearinghouse in 

the form and within the timeframes as directed by the 

Secretary. The Secretary shall assure that business proprietary information and individual customer information is 

not included in the information made available through 

the clearinghouse. 

‘‘(F) OPEN 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 section 1304(c) to read 

as follows: 

‘‘(2) to carry out subsection (b), such sums as may be 

necessary.’’. 

(5) By amending subsection (a) of section 1306 by striking 

‘‘reimbursement of one-fifth (20 percent)’’ and inserting ‘‘grants 

of up to one-half (50 percent)’’. 

(6) By striking the last sentence of subsection (b)(9) of 

section 1306. 

(7) By striking ‘‘are eligible for’’ in subsection (c)(1) of 

section 1306 and inserting ‘‘utilize’’. 

(8) By amending subsection (e) of section 1306 to read 

as follows: 

‘‘(e) PROCEDURES AND RULES.—(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.’’. 

Deadline. 

Notice. 

42 USC 17386. 

42 USC 17384. 

Clearinghouse. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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’’. 

42 USC 16516. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 146 PUBLIC LAW 111–5—FEB. 17, 2009 

(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.). The Secretary 

shall make grants under this section in excess of the base allocation 

established for a State under regulations issued pursuant to the 

Notification. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 148 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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. 

Deadline. 

Expenditure 

plan. 

Waiver. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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: 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: 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): Provided further, 

That amounts provided under this heading that are savings or 

cannot be used for the activity for which originally obligated may 

Deadline. 

Notification. 

Reports. 

Deadlines. 

Plans. 

Deadlines. 

Notification. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 150 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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: 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: 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. 

Deadline. 

Expenditure 

plan. 

Reports. 

Deadlines. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 152 PUBLIC LAW 111–5—FEB. 17, 2009 

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— 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 154 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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) 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 thirdparty 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 thirdparty 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 Administrator shall submit a report to 

Congress not later than the third business day of each month 

setting forth each of the following: 

Reports. 

Deadlines. 

Regulations. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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; 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 156 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) SIM- PLIFIED 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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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. 

Effective date. 

Certification. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 158 PUBLIC LAW 111–5—FEB. 17, 2009 

(k) EMERGENCY RULEMAKING AUTHORITY.—The 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 brokerdealers 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 SEC- ONDARY 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 BrokerDealers. 

(2) ESTABLISHMENT OF SBA SECONDARY MARKET LENDING

AUTHORITY.— 

15 USC 694a 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 160 PUBLIC LAW 111–5—FEB. 17, 2009 

(A) ORGANIZATION.— 

(i) The Administrator shall establish within the 

SBA an office to provide loans to Systemically Important Secondary Market Broker-dealers to be used for 

the purpose of financing the inventory of the government guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or 

pools of such loans. 

(ii) The Administrator shall appoint a Director of 

the Authority who shall report to the Administrator. 

(iii) The Administrator is authorized to hire such 

personnel as are necessary to operate the Authority. 

(iv) The Administrator may contract such 

Authority operations as he determines necessary to 

qualified third-party companies or individuals. 

(v) The Administrator is authorized to contract 

with private sector fiduciary and custodial agents as 

necessary to operate the Authority. 

(B) LOANS.— 

(i) The Administrator shall establish by rule a 

process under which Systemically Important SBA Secondary Market Broker-Dealers designated under paragraph (1) may apply to the Administrator for loans 

under this section. 

(ii) The rule under clause (i) shall provide a process 

for the Administrator to consider and make decisions 

regarding whether or not to extend a loan applied 

for under this section. Such rule shall include provisions to assure each of the following: 

(I) That loans made under this section are 

for the sole purpose of financing the inventory 

of the 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. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 162 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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: 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, Infra- structure, and Technology’’, $100,000,000 for expedited development 

and deployment of border security technology on the Southwest 

border: Provided, That no later than 45 days after the date of 

enactment of this Act, the Secretary of Homeland Security shall 

submit to the Committees on Appropriations of the Senate and 

the House of Representatives a plan for expenditure of these funds. 

CONSTRUCTION

For an additional amount for ‘‘Construction’’, $420,000,000 

solely for planning, management, design, alteration, and construction of U.S. Customs and Border Protection owned land border 

ports of entry: Provided, That no later than 45 days after the 

date of enactment of this Act, the Secretary of Homeland Security 

shall submit to the Committees on Appropriations of the Senate 

and the House of Representatives a plan for expenditure of these 

funds. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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: 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: 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: 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. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 164 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 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 

President. 

Panel. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. (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 

6 USC 453b. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 166 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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.— 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. 

Applicability. 

Internet posting. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 168 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 170 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 172 PUBLIC LAW 111–5—FEB. 17, 2009 

the current economic downturn: Provided, That 40 percent of such 

funds shall be distributed to State arts agencies and regional arts 

organizations in a manner similar to the agency’s current practice 

and 60 percent of such funds shall be for competitively selected 

arts projects and activities according to sections 2 and 5(c) of 

the National Foundation on the Arts and Humanities Act of 1965 

(20 U.S.C. 951, 954(c)): Provided further, That matching requirements under section 5(e) of such Act shall be waived. 

GENERAL PROVISIONS—THIS TITLE 

SEC. 701. (a) Within 30 days of enactment of this Act, each 

agency receiving funds under this title shall submit a general 

plan for the expenditure of such funds to the House and Senate 

Committees on Appropriations. 

(b) Within 90 days of enactment of this Act, each agency 

receiving funds under this title shall submit to the Committees 

a report containing detailed project level information associated 

with the general plan submitted pursuant to subsection (a). 

SEC. 702. In carrying out the work for which funds in this 

title are being made available, the Secretary of the Interior and 

the Secretary of Agriculture 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. 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 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 

Grants. 

Notification. 

Deadline. 

Reports. 

Deadlines. 

Expenditure 

plan. 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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 highdemand 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, 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 

Deadline. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 174 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 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, 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: 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. 

Operating plan. 

Reports. 

Deadlines. 

Operating plan. 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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: 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 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 

Grants. 

Contracts. 

Reports. 

Deadlines. 

Operating plan. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 176 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 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 

Reports. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 para- graph, $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, 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: Provided further, That the Secretary shall publish 

information on grants and contracts awarded with the funds provided under this heading within a reasonable time of the obligation 

of funds for such grants and contracts and shall disseminate 

research findings from such grants and contracts to clinicians, 

patients, and the general public, as appropriate: Provided further, 

That, to the extent feasible, the Secretary shall ensure that the 

recipients of the funds provided by this paragraph offer an opportunity for public comment on the research: Provided further, That 

research conducted with funds appropriated under this paragraph 

Research and 

development. 

Public comment. 

Publication. 

Contracts. 

Reports. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 178 PUBLIC LAW 111–5—FEB. 17, 2009 

shall be consistent with Departmental policies relating to the inclusion of women and minorities in research: Provided further, That 

the Secretary shall provide the Committees on Appropriations of 

the House of Representatives and the Senate, the Committee on 

Energy and Commerce and the Committee on Ways and Means 

of the House of Representatives, and the Committee on Health, 

Education, Labor, and Pensions and the Committee on Finance 

of the Senate with an annual report on the research conducted 

or supported through the funds provided under this heading: 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, 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 

Reports. 

Deadlines. 

Operating plans. 

Deadlines. 

Reports. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: Provided further, That funds available under this heading shall become available for obligation only 

upon submission of an annual operating plan by the Secretary 

Operating plan. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 180 PUBLIC LAW 111–5—FEB. 17, 2009 

to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That the fiscal year 2009 

operating plan shall be provided not later than 90 days after enactment of this Act and that subsequent annual operating plans shall 

be provided not later than November 1 of each year: Provided 

further, That these operating plans shall describe how expenditures 

are aligned with the specific objectives, milestones, and metrics 

of the Federal Health Information Technology Strategic Plan, 

including any subsequent updates to the Plan; the allocation of 

resources within the Department of Health and Human Services 

and other Federal agencies; and the identification of programs 

and activities that are supported: Provided further, That the Secretary shall provide to the Committees on Appropriations of the 

House of Representatives and the Senate a report on the actual 

obligations, expenditures, and unobligated balances for each major 

set of activities not later than November 1, 2009, and every 6 

months thereafter as long as funding provided under this heading 

is available for obligation or expenditure. 

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 

Contracts. and Human Services administering the funds: Provided further, Evaluations. 

Deadline. 

Reports. 

Deadlines. 

Operating plans. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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, 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: 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 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: 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: 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. 

Reports. 

Deadline. 

Deadline. 

Expenditures. 

Grants. 

Reports. 

Deadlines. 

Operating plan. 

Deadline. 

Reports. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 182 PUBLIC LAW 111–5—FEB. 17, 2009 

SCHOOL IMPROVEMENT PROGRAMS

For an additional amount for ‘‘School Improvement Programs’’ 

to carry out subpart 1, part D of title II of the Elementary and 

Secondary Education Act of 1965 (‘‘ESEA’’), and subtitle B of title 

VII of the McKinney-Vento Homeless Assistance Act, $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, That the Secretary shall 

distribute the McKinney-Vento funds to the States not later than 

60 days after the date of the enactment of this Act: Provided 

further, That each State shall subgrant the McKinney-Vento funds 

to local educational agencies not later than 120 days after receiving 

its grant from the Secretary. 

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, 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: 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, 

Deadline. 

Grants. 

Evaluation. 

Deadline. 

Deadline. 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 

20 USC 1070a 

note. 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 184 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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 

Operating plans. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 185 

November 1, 2009, that detail the allocation of resources and the 

increased number of members supported by the AmeriCorps programs: Provided further, That the CEO shall provide to the Committees on Appropriations of the House of Representatives and the 

Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not 

later than November 1, 2009, and 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: 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: 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 governmentoperated 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 

Notification. 

Deadline. 

Notification. 

Reports. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 186 PUBLIC LAW 111–5—FEB. 17, 2009 

$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) 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. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM 

WAGE INCREASES. 

‘‘(a) STUDY.—Beginning on the date that is 60 days after the 

date of enactment of this Act, and every year thereafter until 

the minimum wage in the respective territory is $7.25 per hour, 

the Government Accountability Office shall conduct a study to— 

‘‘(1) assess the impact of the minimum wage increases 

that occurred in American Samoa and the Commonwealth of 

the Northern Mariana Islands in 2007 and 2008, as required 

under Public Law 110–28, on the rates of employment and 

the living standards of workers, with full consideration of the 

other factors that impact rates of employment and the living 

standards of workers such as inflation in the cost of food, 

energy, and other commodities; and 

‘‘(2) estimate the impact of any further wage increases 

on rates of employment and the living standards of workers 

in American Samoa and the Commonwealth of the Northern 

Mariana Islands, with full consideration of the other factors 

that may impact the rates of employment and the living standards of workers, including assessing how the profitability of 

major private sector firms may be impacted by wage increases 

in comparison to other factors such as energy costs and the 

value of tax benefits. 

‘‘(b) REPORT.—No earlier than March 15, 2010, and not later 

than April 15, 2010, the Government Accountability Office shall 

transmit its first report to Congress concerning the findings of 

Effective date. 

29 USC 206 note. 

Deadline. 

Operating plan. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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. 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.— 

42 USC 299b–8. 

29 USC 206 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 188 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 healthrelated programs, appointed by the President, acting through 

the Secretary of Health and Human Services (in this section 

referred to as the ‘‘Secretary’’). Members shall first be appointed 

to the Council not later than 30 days after the date of the 

enactment of this Act. 

(2) MEMBERS.— (A) IN GENERAL.—The members of the Council shall 

include one senior officer or employee from each of the 

following agencies: 

(i) The Agency for Healthcare Research and 

Quality. 

(ii) The Centers for Medicare and Medicaid Services. 

(iii) The National Institutes of Health. 

(iv) The Office of the National Coordinator for 

Health Information Technology. 

(v) The Food and Drug Administration. 

(vi) The Veterans Health Administration within 

the Department of Veterans Affairs. 

(vii) The office within the Department of Defense 

responsible for management of the Department of 

Defense Military Health Care System. 

(B) QUALIFICATIONS.—At least half of the members 

of the Council shall be physicians or other experts with 

clinical expertise. 

(3) CHAIRMAN; VICE CHAIRMAN.—The Secretary shall serve 

as Chairman of the Council and shall designate a member 

to serve as Vice Chairman. 

(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. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 189 

SEC. 805. GRANTS FOR IMPACT AID CONSTRUCTION. (a) RESERVA- TION 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 190 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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. 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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 

Internet posting. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 192 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 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, 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: 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, DefenseWide’’, $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, 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. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, 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, 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, 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, That within 

30 days of enactment of this Act, the Secretary of Defense shall 

submit to the Committees on Appropriations of both Houses of 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 194 PUBLIC LAW 111–5—FEB. 17, 2009 

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, 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 ASSIST- ANCE 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; 

Reports. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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; 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 196 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 198 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 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. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 

Deadline. 

Expenditure 

plan. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 200 PUBLIC LAW 111–5—FEB. 17, 2009 

ADMINISTRATIVE PROVISION

SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS WHO SERVED IN

THE UNITED STATES ARMED FORCES IN THE FAR EAST DURING

WORLD WAR II. (a) FINDINGS.—Congress makes the following 

findings: 

(1) The Philippine islands became a United States possession in 1898 when they were ceded from Spain following the 

Spanish-American War. 

(2) During World War II, Filipinos served in a variety 

of units, some of which came under the direct control of the 

United States Armed Forces. 

(3) The regular Philippine Scouts, the new Philippine 

Scouts, the Guerrilla Services, and more than 100,000 members 

of the Philippine Commonwealth Army were called into the 

service of the United States Armed Forces of the Far East 

on July 26, 1941, by an executive order of President Franklin 

D. Roosevelt. 

(4) Even after hostilities had ceased, wartime service of 

the new Philippine Scouts continued as a matter of law until 

the end of 1946, and the force gradually disbanded and was 

disestablished in 1950. 

(5) Filipino veterans who were granted benefits prior to 

the enactment of the so-called Rescissions Acts of 1946 (Public 

Laws 79–301 and 79–391) currently receive full benefits under 

laws administered by the Secretary of Veterans Affairs, but 

under section 107 of title 38, United States Code, the service 

of certain other Filipino veterans is deemed not to be active 

service for purposes of such laws. 

(6) These other Filipino veterans only receive certain benefits under title 38, United States Code, and, depending on 

where they legally reside, are paid such benefit amounts at 

reduced rates. 

(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.— 

38 USC 107 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 202 PUBLIC LAW 111–5—FEB. 17, 2009 

and shall constitute a complete release of any claim against 

the United States by reason of any service described in subsection (d). 

(2) PAYMENT OF PRIOR ELIGIBILITY STATUS.—Nothing in 

this section shall prohibit a person from receiving any benefit 

(including health care, survivor, or burial benefits) which the 

person would have been eligible to receive based on laws in 

effect as of the day before the date of the enactment of this 

Act. 

(i) RECOGNITION OF SERVICE.—The service of a person as 

described in subsection (d) is hereby recognized as active military 

service in the Armed Forces for purposes of, and to the extent 

provided in, this section. 

(j) ADMINISTRATION.— 

(1) The Secretary shall promptly issue application forms 

and instructions to ensure the prompt and efficient administration of the provisions of this section. 

(2) The Secretary shall administer the provisions of this 

section in a manner consistent with applicable provisions of 

title 38, United States Code, and other provisions of law, and 

shall apply the definitions in section 101 of such title in the 

administration of such provisions, except to the extent otherwise provided in this section. 

(k) REPORTS.—The Secretary shall include, in documents submitted to Congress by the Secretary in support of the President’s 

budget for each fiscal year, detailed information on the operation 

of the compensation fund, including the number of applicants, the 

number of eligible persons receiving benefits, the amounts paid 

out of the compensation fund, and the administration of the compensation fund for the most recent fiscal year for which such data 

is available. 

(l) AUTHORIZATION OF APPROPRIATION.—There is authorized to 

be appropriated to the compensation fund $198,000,000, to remain 

available until expended, to make payments under this section. 

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: 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. 

Deadline. 

Spending plan. 

Applications. 

Instructions. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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’’: 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, 

Deadline. 

Spending plan. 

Deadline. 

Spending plan. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 204 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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 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: 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. 

Applications. 

Deadlines. 

Publication. 

Criteria. 

Deadline. 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 program: Provided further, That not 

more than 60 days after enactment of this Act, the Administrator 

shall establish a process for applying, reviewing and awarding 

grants and cooperative and other transaction agreements, including 

the form and content of an application, and requirements for the 

maintenance of records that are necessary to facilitate an effective 

audit of the use of the funding provided: Provided further, That 

section 50101 of title 49, United States Code, shall apply to funds 

provided under this heading. 

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 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 Grantsin-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 

Deadlines. 

Applicability. 

Deadline. 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 206 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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, 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, 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 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 

Submission. 

Effective date. 

Effective date. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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)): 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: 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 

Effective date. 

Redistribution 

authority. 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 208 PUBLIC LAW 111–5—FEB. 17, 2009 

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 ‘‘Federalaid Highways’’ in any other Act: Provided further, That the amount 

made available under this heading shall not be subject to any 

limitation on obligations for Federal-aid highways or highway safety 

construction programs set forth in any Act: Provided further, That 

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 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: 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: 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: 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: Provided further, That projects conducted using 

funds provided under this heading must comply with the requirements of subchapter IV of chapter 31 of title 40, United States 

Code: Provided further, That section 24405 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. 

Applicability. 

Compliance. 

Waiver authority. 

Deadline. 

Guidance. 

Deadline. 

Strategic plan. 

Grants. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, That funds provided under this heading 

shall be awarded not later than 30 days after the date of enactment 

of this Act: Provided further, 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: 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 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: 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, 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 

Effective date. 

Deadline. 

Grants. 

Certification. 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 210 PUBLIC LAW 111–5—FEB. 17, 2009 

redistributed under this proviso shall be utilized promptly: 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: 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 energyrelated investments, priority shall be given to projects based on 

the total energy savings that are projected to result from the investment, and projected energy savings as a percentage of the total 

energy usage of the public transit agency: Provided further, That 

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: 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 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: Provided further, That 180 

days following the date of such apportionment, the Secretary shall 

Effective date. 

Deadline. 

Applicability. 

Applicability. 

Submission. 

Effective date. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 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: 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 applicable 

chapter 53 requirements shall apply except that the Federal share 

of the costs for which a grant is made under this heading shall 

be, at the option of the recipient, up to 100 percent: Provided 

further, That the provisions of section 1101(b) of Public Law 109– 

59 shall apply to funds made available under this heading: Provided 

further, That notwithstanding any other provision of law, up to 

1 percent of the funds under this heading shall be available for 

administrative expenses and program management oversight and 

shall remain available for obligation until September 30, 2012. 

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 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: 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. 

Applicability. 

Applicability. 

Applicability. 

Applicability. 

Submission. 

Effective date. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 212 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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, 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, 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 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. 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.— 

Submission. 

Time period. 

Deadline. 

Certification. 

Fraud. 

Audits. 

Investigations. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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’’ 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 214 PUBLIC LAW 111–5—FEB. 17, 2009 

to the Office of the Secretary of Transportation, for ‘‘Supplemental Funding for Facilities and Equipment’’ and ‘‘Grantsin-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: 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 avail- able $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 further, That the Secretary shall obligate competitive funding by September 30, 2009: Provided further, That public 

housing authorities shall give priority to capital projects that can 

award contracts based on bids within 120 days from the date 

the funds are made available to the public housing authorities: 

Provided further, That public housing agencies shall give priority 

consideration to the rehabilitation of vacant rental units: Provided 

further, That 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 

Contracts. 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 215 

shall serve to supplement and not supplant expenditures from 

other Federal, State, or local sources or funds independently generated by the grantee: Provided further, That notwithstanding section 9(j), public housing agencies shall obligate 100 percent of 

the funds within 1 year of the date 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 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 

Waiver authority. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 216 PUBLIC LAW 111–5—FEB. 17, 2009 

U.S.C. 4111 et seq.), $510,000,000 to remain available until September 30, 2011: Provided, That $255,000,000 of the amount provided under this heading shall be distributed according to the 

same funding formula used in fiscal year 2008: Provided further, 

That 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 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 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.): 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 

Waiver authority. 

Deadlines. 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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: 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, That additional award 

criteria for such competitions shall include demonstrated grantee 

Award criteria. 

Deadlines. 

Waiver authority. 

Requirements. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 218 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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 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 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 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 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 

Foreclosure. 

Notice. 

42 USC 5301 

note. 

Waiver authority. 

42 USC 5301 

note. 

42 USC 5301 

note. 

Deadline. 

Publication. 

Criteria. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 armslength transaction; and (3) the lease or tenancy requires the receipt 

of rent that is not substantially less than fair market rent for 

the property: Provided further, That the recipient of any grant 

or loan from amounts made available under this heading 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, 

42 USC 5301 

note. 

Contracts. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 220 PUBLIC LAW 111–5—FEB. 17, 2009 

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: 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 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 221 

credit agency with respect to an award of low income housing 

credits under section 42 of the IRC of 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 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 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, That grantees shall expend at least 60 percent Deadlines. 

Waiver authority. 

Web site. 

Contracts. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 222 PUBLIC LAW 111–5—FEB. 17, 2009 

of funds within 2 years of the date that funds became available 

to them for obligation, and 100 percent of funds within 3 years 

of such date, and the Secretary may recapture unexpended funds 

in violation of the 2-year expenditure requirement and reallocate 

such funds to grantees in compliance with that requirement: Provided further, That the Secretary may waive statutory or regulatory 

provisions (except provisions for fair housing, nondiscrimination, 

labor standards, and the environment) necessary to facilitate the 

timely expenditure of funds: Provided further, That the Secretary 

shall publish a notice to establish such requirements as may be 

necessary to carry out the provisions of this section within 30 

days of enactment of 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 

Publication. 

Notice. 

Deadline. 

Effective date. 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 nonpersonnel 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 LeadBased Paint Hazard Reduction Act of 1992, and by sections 501 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 224 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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 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 

Waiver authority. 

Deadlines. 

Plans. 

Strategy. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 226 PUBLIC LAW 111–5—FEB. 17, 2009 

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 INFORMATION 

TECHNOLOGY 

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

(a) SHORT TITLE.—This 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. 

42 USC 201 note. 

Health 

Information 

Technology for 

Economic and 

Clinical Health 

Act. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 228 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 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, 

42 USC 300jj. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 230 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘Subtitle A—Promotion of Health 

Information Technology 

‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH 

INFORMATION TECHNOLOGY. 

‘‘(a) ESTABLISHMENT.—There is established within the Department of Health and Human Services an Office of the National 

Coordinator for Health Information Technology (referred to in this 

section as the ‘Office’). The Office shall be headed by a National 

Coordinator who shall be appointed by the Secretary and shall 

report directly to the Secretary. 

‘‘(b) PURPOSE.—The National Coordinator shall perform the 

duties under subsection (c) in a manner consistent with the development of a nationwide health information technology infrastructure 

that allows for the electronic use and exchange of information 

and that— 

‘‘(1) ensures that each patient’s health information is secure 

and protected, in accordance with applicable law; 

‘‘(2) improves health care quality, reduces medical errors, 

reduces health disparities, and advances the delivery of patientcentered medical care; 

‘‘(3) reduces health care costs resulting from inefficiency, 

medical errors, inappropriate care, duplicative care, and incomplete information; 

‘‘(4) provides appropriate information to help guide medical 

decisions at the time and place of care; 

‘‘(5) ensures the inclusion of meaningful public input in 

such development of such infrastructure; 

‘‘(6) improves the coordination of care and information 

among hospitals, laboratories, physician offices, and other entities through an effective infrastructure for the secure and 

authorized exchange of health care information; 

‘‘(7) improves public health activities and facilitates the 

early identification and rapid response to public health threats 

and emergencies, including bioterror events and infectious disease outbreaks; 

‘‘(8) facilitates health and clinical research and health care 

quality; 

‘‘(9) promotes early detection, prevention, and management 

of chronic diseases; 

‘‘(10) promotes a more effective marketplace, greater competition, greater systems analysis, increased consumer choice, 

and improved outcomes in health care services; and 

‘‘(11) improves efforts to reduce health disparities. 

‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— ‘‘(1) STANDARDS.—The National Coordinator shall— 

‘‘(A) review and determine whether to endorse each 

standard, implementation specification, and certification 

criterion for the electronic exchange and use of health 

information that is recommended by the HIT Standards 

Committee under section 3003 for purposes of adoption 

under section 3004; 

‘‘(B) make such determinations under subparagraph 

(A), and report to the Secretary such determinations, not 

later than 45 days after the date the recommendation 

is received by the Coordinator; and 

Reports. 

Deadline. 

42 USC 300jj–11. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 232 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 ELEC- TRONIC 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-forprofit entities that work in the public interest for purposes 

of defraying the cost to such groups and entities to participate 

under, whether in whole or in part, the National Technology 

Transfer Act of 1995 (15 U.S.C. 272 note). 

‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH INFORMATION

NETWORK.—The National Coordinator shall establish a governance mechanism for the nationwide health information network. 

‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

‘‘(1) IN GENERAL.—Upon the request of the National Coordinator, the head of any Federal agency is authorized to detail, 

with or without reimbursement from the Office, any of the 

personnel of such agency to the Office to assist it in carrying 

out its duties under this section. 

‘‘(2) EFFECT OF DETAIL.—Any detail of personnel under 

paragraph (1) shall— 

‘‘(A) not interrupt or otherwise affect the civil service 

status or privileges of the Federal employee; and 

‘‘(B) be in addition to any other staff of the Department 

employed by the National Coordinator. 

‘‘(3) ACCEPTANCE OF DETAILEES.—Notwithstanding any 

other provision of law, the Office may accept detailed personnel 

from other Federal agencies without regard to whether the 

agency described under paragraph (1) is reimbursed. 

‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE OF THE NATIONAL

COORDINATOR.—Not later than 12 months after the date of the 

enactment of this title, the Secretary shall appoint a Chief Privacy 

Officer of the Office of the National Coordinator, whose duty it 

Deadline. 

Establishment. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 234 PUBLIC LAW 111–5—FEB. 17, 2009 

shall be to advise the National Coordinator on privacy, security, 

and data stewardship of electronic health information and to coordinate with other Federal agencies (and similar privacy officers in 

such agencies), with State and regional efforts, and with foreign 

countries with regard to the privacy, security, and data stewardship 

of electronic individually identifiable health information. 

‘‘SEC. 3002. HIT POLICY COMMITTEE. 

‘‘(a) ESTABLISHMENT.—There is established a HIT Policy Committee to make policy recommendations to the National Coordinator 

relating to the implementation of a nationwide health information 

technology infrastructure, including implementation of the strategic 

plan described in section 3001(c)(3). 

‘‘(b) DUTIES.— 

‘‘(1) RECOMMENDATIONS ON HEALTH INFORMATION TECHNOLOGY INFRASTRUCTURE.—The HIT Policy Committee shall 

recommend a policy framework for the development and adoption of a nationwide health information technology infrastructure that permits the electronic exchange and use of health 

information as is consistent with the strategic plan under section 3001(c)(3) and that includes the recommendations under 

paragraph (2). The Committee shall update such recommendations and make new recommendations as appropriate. 

‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOPMENT.— 

‘‘(A) IN GENERAL.—The HIT Policy Committee shall 

recommend the areas in which standards, implementation 

specifications, and certification criteria are needed for the 

electronic exchange and use of health information for purposes of adoption under section 3004 and shall recommend 

an order of priority for the development, harmonization, 

and recognition of such standards, specifications, and certification criteria among the areas so recommended. Such 

standards and implementation specifications shall include 

named standards, architectures, and software schemes for 

the authentication and security of individually identifiable 

health information and other information as needed to 

ensure the reproducible development of common solutions 

across disparate entities. 

‘‘(B) AREAS REQUIRED FOR CONSIDERATION.—For purposes of subparagraph (A), the HIT Policy Committee shall 

make recommendations for at least the following areas: 

‘‘(i) Technologies that protect the privacy of health 

information and promote security in a qualified electronic health record, including for the segmentation 

and protection from disclosure of specific and sensitive 

individually identifiable health information with the 

goal of minimizing the reluctance of patients to seek 

care (or disclose information about a condition) because 

of privacy concerns, in accordance with applicable law, 

and for the use and disclosure of limited data sets 

of such information. 

‘‘(ii) A nationwide health information technology 

infrastructure that allows for the electronic use and 

accurate exchange of health information. 

‘‘(iii) The utilization of a certified electronic health 

record for each person in the United States by 2014. 

Recommendations. 

42 USC 300jj–12. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 236 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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; 

President. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 

Federal Register, 

publication. 

Web posting. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 238 PUBLIC LAW 111–5—FEB. 17, 2009 

Technology of all policy recommendations made by the HIT Policy 

Committee under this section. 

‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

‘‘(a) ESTABLISHMENT.—There is established a committee to be 

known as the HIT Standards Committee to recommend to the 

National Coordinator standards, implementation specifications, and 

certification criteria for the electronic exchange and use of health 

information for purposes of adoption under section 3004, consistent 

with the implementation of the strategic plan described in section 

3001(c)(3) and beginning with the areas listed in section 

3002(b)(2)(B) in accordance with policies developed by the HIT 

Policy Committee. 

‘‘(b) DUTIES.— ‘‘(1) STANDARDS DEVELOPMENT.— ‘‘(A) IN GENERAL.—The HIT Standards Committee shall 

recommend to the National Coordinator standards, 

implementation specifications, and certification criteria 

described in subsection (a) that have been developed, harmonized, or recognized by the HIT Standards Committee. 

The HIT Standards Committee shall update such recommendations and make new recommendations as appropriate, including in response to a notification sent under 

section 3004(a)(2)(B). Such recommendations shall be consistent with the latest recommendations made by the HIT 

Policy Committee. 

‘‘(B) 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 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 

Deadline. 

Recommendations. 

42 USC 300jj–13. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 239 

section 3002. The HIT Standards Committee shall update such 

schedule annually. The Secretary shall publish such schedule 

in the Federal Register. 

‘‘(4) PUBLIC INPUT.—The HIT Standards Committee shall 

conduct open public meetings and develop a process to allow 

for public comment on the schedule described in paragraph 

(3) and recommendations described in this subsection. Under 

such process comments shall be submitted in a timely manner 

after the date of publication of a recommendation under this 

subsection. 

‘‘(5) CONSIDERATION.—The National Coordinator shall 

ensure that the relevant 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 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. 

Federal Register, 

publication. 

Web posting. 

Federal Register, 

publication. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 240 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS; ADOPTION OF INITIAL SET OF STANDARDS, 

IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION CRITERIA. 

‘‘(a) PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS.— 

‘‘(1) REVIEW OF ENDORSED STANDARDS, IMPLEMENTATION

SPECIFICATIONS, AND CERTIFICATION CRITERIA.—Not later than 

90 days after the date of receipt of standards, implementation 

specifications, or certification criteria endorsed under section 

3001(c), the Secretary, in consultation with representatives of 

other relevant Federal agencies, shall jointly review such standards, implementation specifications, or certification criteria and 

shall determine whether or not to propose adoption of such 

standards, implementation specifications, or certification criteria. 

‘‘(2) DETERMINATION TO ADOPT STANDARDS, IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION CRITERIA.—If the Secretary determines— 

‘‘(A) to propose adoption of any grouping of such standards, implementation specifications, or certification criteria, 

the Secretary shall, by regulation 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) not to propose adoption of any grouping of standards, implementation specifications, or certification criteria, 

the Secretary shall notify the National Coordinator and 

the HIT Standards Committee in writing of such determination and the reasons for not proposing the adoption 

of such recommendation. 

‘‘(3) PUBLICATION.—The Secretary shall provide for publication in the Federal Register of all determinations made by 

the Secretary under paragraph (1). 

‘‘(b) ADOPTION OF STANDARDS, IMPLEMENTATION SPECIFICATIONS, AND CERTIFICATION CRITERIA.— 

‘‘(1) IN GENERAL.—Not later than December 31, 2009, the 

Secretary shall, through the rulemaking process 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). 

Deadline. 

Federal Register, 

publication. 

Notification. 

Deadline. 

42 USC 300jj–14. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 241 

‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND 

IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGENCIES. 

‘‘For requirements relating to the application and use by Federal agencies of the standards and implementation specifications 

adopted under section 3004, see section 13111 of the Health 

Information Technology for Economic and Clinical Health Act. 

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

‘‘(a) IN GENERAL.—Except as provided under section 13112 

of the 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 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. 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 

42 USC 300jj–18. 

42 USC 300jj–17. 

42 USC 300jj–16. 

42 USC 300jj–15. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 242 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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 

42 USC 17901. 

42 USC 300jj–19. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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.— 

42 USC 17903. 

42 USC 17902. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 244 PUBLIC LAW 111–5—FEB. 17, 2009 

(1) IN GENERAL.—The Secretary of Health and Human 

Services shall carry out, or contract with a private entity to 

carry out, a study of matters relating to the potential use 

of new aging services technology to assist seniors, individuals 

with disabilities, and their caregivers throughout the aging 

process. 

(2) MATTERS TO BE STUDIED.—The study under paragraph 

(1) shall include— 

(A) an evaluation of— 

(i) methods for identifying current, emerging, and 

future health technology that can be used to meet 

the needs of seniors and individuals with disabilities 

and their caregivers across all aging services settings, 

as specified by the Secretary; 

(ii) methods for fostering scientific innovation with 

respect to aging services technology within the business 

and academic communities; and 

(iii) developments in aging services technology in 

other countries that may be applied in the United 

States; and 

(B) identification of— 

(i) barriers to innovation in aging services technology and devising strategies for removing such barriers; and 

(ii) barriers to the adoption of aging services technology by health care providers and consumers and 

devising strategies to removing such barriers. 

(3) REPORT.—Not later than 24 months after the date of 

the enactment of this Act, the Secretary shall submit to the 

appropriate committees of jurisdiction of the House of Representatives and of the Senate a report on the study carried 

out under paragraph (1). 

(4) DEFINITIONS.—For purposes of this subsection: 

(A) AGING SERVICES TECHNOLOGY.—The term ‘‘aging 

services technology’’ means health technology that meets 

the health care needs of seniors, individuals with disabilities, and the caregivers of such seniors and individuals. 

(B) SENIOR.—The term ‘‘senior’’ has such meaning as 

specified by the Secretary. 

Subtitle B—Testing of Health Information 

Technology 

SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY 

TESTING. 

(a) PILOT TESTING OF STANDARDS AND IMPLEMENTATION SPECI- FICATIONS.—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 

42 USC 17911. 

Contracts. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 AND DEVELOPMENT PROGRAMS. 

(a) HEALTH CARE INFORMATION ENTERPRISE INTEGRATION

RESEARCH CENTERS.— 

(1) IN GENERAL.—The Director of the National Institute 

of Standards and Technology, in consultation with the Director 

of the National Science Foundation and other appropriate Federal agencies, shall establish a program of assistance to institutions of higher education (or consortia thereof which may 

include nonprofit entities and Federal Government laboratories) 

to establish multidisciplinary Centers for Health Care Information Enterprise Integration. 

(2) REVIEW; COMPETITION.—Grants shall be awarded under 

this subsection on a merit-reviewed, competitive basis. 

(3) PURPOSE.—The purposes of the Centers described in 

paragraph (1) shall be— 

(A) to generate innovative approaches to health care 

information enterprise integration by conducting cuttingedge, 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; 

Grants. 

Establishment. 

42 USC 17912. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 246 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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 

42 USC 300jj–31. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 INFORMATION TECHNOLOGY IMPLEMENTATION 

ASSISTANCE. 

‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTENSION PROGRAM.—To assist health care providers to adopt, implement, and 

effectively use certified EHR technology that allows for the electronic exchange and use of health information, the Secretary, acting 

through the Office of the National Coordinator, shall establish 

a health information technology extension program to provide 

health information technology assistance services to be carried out 

through the Department of Health and Human Services. The 

National Coordinator shall consult with other Federal agencies 

with demonstrated experience and expertise in information technology services, such as the National Institute of Standards and 

Technology, in developing and implementing this program. 

‘‘(b) HEALTH INFORMATION TECHNOLOGY RESEARCH CENTER.— 

‘‘(1) IN GENERAL.—The Secretary shall create a Health 

Information Technology Research Center (in this section 

referred to as the ‘Center’) to provide technical assistance and 

develop or recognize best practices to support and accelerate 

Establishment. 

Consultation. 

42 USC 300jj–32. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 248 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Federal Register, 

publication. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 250 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(B) Procedures to be followed by the applicants. 

‘‘(C) Criteria for determining qualified applicants. 

‘‘(D) Maximum support levels expected to be available 

to centers under the program. 

‘‘(7) APPLICATION REVIEW.—The Secretary shall subject each 

application under this subsection to merit review. In making 

a decision whether to approve such application and provide 

financial support, the Secretary shall consider at a minimum 

the merits of the application, including those portions of the 

application regarding— 

‘‘(A) the ability of the applicant to provide assistance 

under this subsection and utilization of health information 

technology appropriate to the needs of particular categories 

of health care providers; 

‘‘(B) the types of service to be provided to health care 

providers; 

‘‘(C) geographical diversity and extent of service area; 

and 

‘‘(D) the percentage of funding and amount of in-kind 

commitment from other sources. 

‘‘(8) BIENNIAL EVALUATION.—Each regional center which 

receives financial assistance under this subsection shall be 

evaluated biennially by an evaluation panel appointed by the 

Secretary. Each evaluation panel shall be composed of private 

experts, none of whom shall be connected with the center 

involved, and of Federal officials. Each evaluation panel shall 

measure the involved center’s performance against the objective 

specified in paragraph (3). The Secretary shall not continue 

to provide funding to a regional center unless its evaluation 

is overall positive. 

‘‘(9) CONTINUING SUPPORT.—After the second year of assistance under this subsection, a regional center may receive additional support under this subsection if it has received positive 

evaluations and a finding by the Secretary that continuation 

of Federal funding to the center was in the best interest of 

provision of health information technology extension services. 

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

‘‘(a) IN GENERAL.—The Secretary, acting through the National 

Coordinator, shall establish a program in accordance with this 

section to facilitate and expand the electronic movement and use 

of health information among organizations according to nationally 

recognized standards. 

‘‘(b) PLANNING GRANTS.—The Secretary may award a grant 

to a State or qualified State-designated entity (as described in 

subsection (f)) that submits an application to the Secretary at 

such time, in such manner, and containing such information as 

the Secretary may specify, for the purpose of planning activities 

described in subsection (d). 

‘‘(c) IMPLEMENTATION GRANTS.—The Secretary may award a 

grant to a State or qualified State designated entity that— 

‘‘(1) has submitted, and the Secretary has approved, a 

plan described in subsection (e) (regardless of whether such 

plan was prepared using amounts awarded under subsection 

(b); and 

42 USC 300jj–33. 

Criteria. 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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; 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 252 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 Statedesignated entity shall consult with and consider the recommendations of— 

‘‘(1) health care providers (including providers that provide 

services to low income and underserved populations); 

‘‘(2) health plans; 

‘‘(3) patient or consumer organizations that represent the 

population to be served; 

‘‘(4) health information technology vendors; 

‘‘(5) health care purchasers and employers; 

‘‘(6) public health agencies; 

‘‘(7) health professions schools, universities and colleges; 

‘‘(8) clinical researchers; 

‘‘(9) other users of health information technology such as 

the support and clerical staff of providers and others involved 

in the care and care coordination of patients; and 

‘‘(10) such other entities, as may be determined appropriate 

by the Secretary. 

‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary shall annually 

evaluate the activities conducted under this section and shall, in 

awarding grants under this section, implement the lessons learned 

from such evaluation in a manner so that awards made subsequent 

to each such evaluation are made in a manner that, in the determination of the Secretary, will lead towards the greatest improvement in quality of care, decrease in costs, and the most effective 

authorized and secure electronic exchange of health information. 

‘‘(i) REQUIRED MATCH.— 

‘‘(1) IN GENERAL.—For a fiscal year (beginning with fiscal 

year 2011), the Secretary may not make a grant under this 

section to a State unless the State agrees to make available 

non-Federal contributions (which may include in-kind contributions) toward the costs of a grant awarded under subsection 

(c) in an amount equal to— 

‘‘(A) for fiscal year 2011, not less than $1 for each 

$10 of Federal funds provided under the grant; 

‘‘(B) for fiscal year 2012, not less than $1 for each 

$7 of Federal funds provided under the grant; and 

‘‘(C) for fiscal year 2013 and each subsequent fiscal 

year, not less than $1 for each $3 of Federal funds provided 

under the grant. 

‘‘(2) AUTHORITY TO REQUIRE STATE MATCH FOR FISCAL YEARS

BEFORE FISCAL YEAR 2011.—For any fiscal year during the grant 

program under this section before fiscal year 2011, the Secretary may determine the extent to which there shall be 

required a non-Federal contribution from a State receiving 

a grant under this section. 

Deadline. 

Evaluation. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 253 

‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES 

FOR THE DEVELOPMENT OF LOAN PROGRAMS TO FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED EHR 

TECHNOLOGY. 

‘‘(a) IN GENERAL.—The National Coordinator may award 

competitive grants to eligible entities for the establishment of programs for loans to health care providers to conduct the activities 

described in subsection (e). 

‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of this subsection, the term ‘eligible entity’ means a State or Indian tribe 

(as defined in the Indian Self-Determination and Education Assistance Act) that— 

‘‘(1) submits to the National Coordinator an application 

at such time, in such manner, and containing such information 

as the National Coordinator may require; 

‘‘(2) submits to the National Coordinator a strategic plan 

in accordance with subsection (d) and provides to the National 

Coordinator assurances that the entity will update such plan 

annually in accordance with such subsection; 

‘‘(3) provides assurances to the National Coordinator that 

the entity will establish a Loan Fund in accordance with subsection (c); 

‘‘(4) provides assurances to the National Coordinator that 

the entity will not provide a loan from the Loan Fund to 

a health care provider unless the provider agrees to— 

‘‘(A) submit reports on quality measures adopted by 

the Federal Government (by not later than 90 days after 

the date on which such measures are adopted), to— 

‘‘(i) the Administrator of the Centers for Medicare 

& Medicaid Services (or his or her designee), in the 

case of an entity participating in the Medicare program 

under title XVIII of the Social Security Act or the 

Medicaid program under title XIX of such Act; or 

‘‘(ii) the Secretary in the case of other entities; 

‘‘(B) demonstrate to the satisfaction of the Secretary 

(through criteria established by the Secretary) that any 

certified EHR technology purchased, improved, or otherwise 

financially supported under a loan under this section is 

used to exchange health information in a manner that, 

in accordance with law and standards (as adopted under 

section 3004) applicable to the exchange of information, 

improves the quality of health care, such as promoting 

care coordination; and 

‘‘(C) comply with such other requirements as the entity 

or the Secretary may require; 

‘‘(D) include a plan on how health care providers 

involved intend to maintain and support the certified EHR 

technology over time; 

‘‘(E) include a plan on how the health care providers 

involved intend to maintain and support the certified EHR 

technology that would be purchased with such loan, 

including the type of resources expected to be involved 

and any such other information as the State or Indian 

Tribe, respectively, may require; and 

‘‘(5) agrees to provide matching funds in accordance with 

subsection (h). 

Reports. 

Deadline. 

42 USC 300jj–34. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 254 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 

Publication. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 256 PUBLIC LAW 111–5—FEB. 17, 2009 

grant is awarded in an amount equal to not less than $1 

for each $5 of Federal funds provided under the grant. 

‘‘(2) DETERMINATION OF AMOUNT OF NON-FEDERAL CONTRIBUTION.—In determining the amount of non-Federal contributions that an eligible entity has provided pursuant to 

subparagraph (A), the National Coordinator may not include 

any amounts provided to the entity by the Federal Government. 

‘‘(i) EFFECTIVE DATE.—The Secretary may not make an award 

under this section prior to January 1, 2010. 

‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION 

TECHNOLOGY INTO CLINICAL EDUCATION. 

‘‘(a) IN GENERAL.—The Secretary may award grants under this 

section to carry out demonstration projects to develop academic 

curricula integrating certified EHR technology in the clinical education of health professionals. Such awards shall be made on a 

competitive basis and pursuant to peer review. 

‘‘(b) ELIGIBILITY.—To be eligible to receive a grant under subsection (a), an entity shall— 

‘‘(1) submit to the Secretary an application at such time, 

in such manner, and containing such information as the Secretary may require; 

‘‘(2) submit to the Secretary a strategic plan for integrating 

certified EHR technology in the clinical education of health 

professionals to reduce medical errors, increase access to 

prevention, reduce chronic diseases, and enhance health care 

quality; 

‘‘(3) be— 

‘‘(A) a school of medicine, osteopathic medicine, dentistry, or pharmacy, a graduate program in behavioral or 

mental health, or any other graduate health professions 

school; 

‘‘(B) a graduate school of nursing or physician assistant 

studies; 

‘‘(C) a consortium of two or more schools described 

in subparagraph (A) or (B); or 

‘‘(D) an institution with a graduate medical education 

program in medicine, osteopathic medicine, dentistry, pharmacy, nursing, or physician assistance studies; 

‘‘(4) provide for the collection of data regarding the effectiveness of the demonstration project to be funded under the grant 

in improving the safety of patients, the efficiency of health 

care delivery, and in increasing the likelihood that graduates 

of the grantee will adopt and incorporate certified EHR technology, in the delivery of health care services; and 

‘‘(5) provide matching funds in accordance with subsection 

(d). 

‘‘(c) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—With respect to a grant under subsection 

(a), an eligible entity shall— 

‘‘(A) use grant funds in collaboration with 2 or more 

disciplines; and 

‘‘(B) use grant funds to integrate certified EHR technology into community-based clinical education. 

‘‘(2) LIMITATION.—An eligible entity shall not use amounts 

received under a grant under subsection (a) to purchase hardware, software, or services. 

Strategic plan. 

42 USC 300jj–35. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 Secretary shall take such action as may 

be necessary to evaluate the projects funded under this section 

and publish, make available, and disseminate the results of such 

evaluations on as wide a basis as is practicable. 

‘‘(f) REPORTS.—Not later than 1 year after the date of enactment 

of this title, and annually thereafter, the Secretary shall submit 

to the Committee on Health, Education, Labor, and Pensions and 

the Committee on Finance of the Senate, and the Committee on 

Energy and Commerce of the House of Representatives a report 

that— 

‘‘(1) describes the specific projects established under this 

section; and 

‘‘(2) contains recommendations for Congress based on the 

evaluation conducted under subsection (e). 

‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 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 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— 

42 USC 300jj–37. 

42 USC 300jj–36. 

Publication. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 258 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(1) an analysis of the effectiveness of the activities for 

which the entity receives such assistance, as compared to the 

goals for such activities; and 

‘‘(2) an analysis of the impact of the project on health 

care quality and safety. 

‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE AND DECREASE

IN COSTS.—The National Coordinator shall annually evaluate the 

activities conducted under this subtitle and shall, in awarding 

grants, implement the lessons learned from such evaluation in 

a manner so that awards made subsequent to each such evaluation 

are made in a manner that, in the determination of the National 

Coordinator, will result in the greatest improvement in the quality 

and efficiency of health care. 

‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

‘‘For the purposes of carrying out this subtitle, there is authorized to be appropriated such sums as may be necessary for each 

of the fiscal years 2009 through 2013.’’. 

Subtitle D—Privacy 

SEC. 13400. 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. 

42 USC 17921. 

42 USC 300jj–38. 

Evaluation. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 260 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 

(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 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 ASSO- CIATE.—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 

42 USC 17932. 

42 USC 17931. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 to subsection (g), all notifications 

required under this section shall be made without unreasonable 

delay and in no case later than 60 calendar days after the 

discovery of a breach by the covered entity involved (or business 

associate involved in the case of a notification required under 

subsection (b)). 

(2) BURDEN OF PROOF.—The covered entity involved (or 

business associate involved in the case of a notification required 

under subsection (b)), shall have the burden of demonstrating 

that all notifications were made as required under this part, 

including evidence demonstrating the necessity of any delay. 

(e) METHODS OF NOTICE.— 

(1) INDIVIDUAL NOTICE.—Notice required under this section 

to be provided to an individual, with respect to a breach, 

shall be provided promptly and in the following form: 

(A) Written notification by first-class mail to the individual (or the next of kin of the individual if the individual 

is deceased) at the last known address of the individual 

or the next of kin, respectively, or, if specified as a preference by the individual, by electronic mail. The notification 

may be provided in one or more mailings as information 

is available. 

(B) In the case in which there is insufficient, or outof-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. 

Web posting. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 262 PUBLIC LAW 111–5—FEB. 17, 2009 

(3) NOTICE TO SECRETARY.—Notice shall be provided to 

the Secretary by covered entities of unsecured protected health 

information that has been acquired or disclosed in a breach. 

If the breach was with respect to 500 or more individuals 

than such notice must be provided immediately. If the breach 

was with respect to less than 500 individuals, the covered 

entity may maintain a log of any such breach occurring and 

annually submit such a log to the Secretary documenting such 

breaches occurring during the year involved. 

(4) POSTING ON HHS PUBLIC WEBSITE.—The Secretary shall 

make available to the public on the Internet website of the 

Department of Health and Human Services a list that identifies 

each covered entity involved in a breach described in subsection 

(a) in which the unsecured protected health information of 

more than 500 individuals is acquired or disclosed. 

(f) CONTENT OF NOTIFICATION.—Regardless of the method by 

which notice is provided to individuals under this section, notice 

of a breach shall include, to the extent possible, the following: 

(1) A brief description of what happened, including the 

date of the breach and the date of the discovery of the breach, 

if known. 

(2) A description of the types of unsecured protected health 

information that were involved in the breach (such as full 

name, Social Security number, date of birth, home address, 

account number, or disability code). 

(3) The steps individuals should take to protect themselves 

from potential harm resulting from the breach. 

(4) A brief description of what the covered entity involved 

is doing to investigate the breach, to mitigate losses, and to 

protect against any further breaches. 

(5) Contact procedures for individuals to ask questions 

or learn additional information, which shall include a tollfree telephone number, an e-mail address, Web site, or postal 

address. 

(g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW ENFORCE- MENT 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, 

List. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. The provisions 

of this section shall apply to breaches that are discovered on or 

after the date that is 30 days after the date of publication of 

such interim final regulations. 

SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY. 

(a) REGIONAL OFFICE PRIVACY ADVISORS.—Not later than 6 

months after the date of the enactment of this Act, the Secretary 

shall designate an individual in each regional office of the Department of Health and Human Services to offer guidance and education 

to covered entities, business associates, and individuals on their 

rights and responsibilities related to Federal privacy and security 

requirements for protected health information. 

(b) EDUCATION INITIATIVE ON USES OF HEALTH INFORMATION.— 

Not later than 12 months after the date of the enactment of this 

Act, the Office for Civil Rights within the Department of Health 

and Human Services shall develop and maintain a multi-faceted 

national education initiative to enhance public transparency 

regarding the uses of protected health information, including programs to educate individuals about the potential uses of their 

protected health information, the effects of such uses, and the 

rights of individuals with respect to such uses. Such programs 

shall be conducted in a variety of languages and present information 

in a clear and understandable manner. 

Deadline. 

Deadline. 

Designation. 

42 USC 17933. 

Applicability. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 264 PUBLIC LAW 111–5—FEB. 17, 2009 

SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES 

TO BUSINESS ASSOCIATES OF COVERED ENTITIES. 

(a) APPLICATION OF CONTRACT REQUIREMENTS.—In the case 

of a business associate of a covered entity that obtains or creates 

protected health information pursuant to a written contract (or 

other written arrangement) described in section 164.502(e)(2) of 

title 45, Code of Federal Regulations, with such covered entity, 

the business associate may use and disclose such protected health 

information only if such use or disclosure, respectively, is in compliance with each applicable requirement of section 164.504(e) of such 

title. The additional requirements of this subtitle that relate to 

privacy and that are made applicable with respect to covered entities shall also be applicable to such a business associate and shall 

be incorporated into the business associate agreement between the 

business associate and the covered entity. 

(b) APPLICATION OF KNOWLEDGE ELEMENTS ASSOCIATED WITH

CONTRACTS.—Section 164.504(e)(1)(ii) of title 45, Code of Federal 

Regulations, shall apply to a business associate described in subsection (a), with respect to compliance with such subsection, in 

the same manner that such section applies to a covered entity, 

with respect to compliance with the standards in sections 164.502(e) 

and 164.504(e) of such title, except that in applying such section 

164.504(e)(1)(ii) each reference to the business associate, with 

respect to a contract, shall be treated as a reference to the covered 

entity involved in such contract. 

(c) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.—In the 

case of a business associate that violates any provision of subsection 

(a) or (b), the provisions of sections 1176 and 1177 of the Social 

Security Act (42 U.S.C. 1320d–5, 1320d–6) shall apply to the business associate with respect to such violation in the same manner 

as such provisions apply to a person who violates a provision 

of part C of title XI of such Act. 

SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF 

HEALTH INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH INFORMATION DISCLOSURES; ACCESS 

TO CERTAIN INFORMATION IN ELECTRONIC FORMAT. 

(a) REQUESTED RESTRICTIONS ON CERTAIN DISCLOSURES OF

HEALTH INFORMATION.—In the case that an individual requests 

under paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code 

of Federal Regulations, that a covered entity restrict the disclosure 

of the protected health information of the individual, notwithstanding paragraph (a)(1)(ii) of such section, the covered entity 

must comply with the requested restriction if— 

(1) except as otherwise required by law, the disclosure 

is to a health plan for purposes of carrying out payment or 

health care operations (and is not for purposes of carrying 

out treatment); and 

(2) the protected health information pertains solely to a 

health care item or service for which the health care provider 

involved has been paid out of pocket in full. 

(b) DISCLOSURES REQUIRED TO BE LIMITED TO THE LIMITED

DATA SET OR THE MINIMUM NECESSARY.— 

(1) IN GENERAL.— 

(A) IN GENERAL.—Subject to subparagraph (B), a covered entity shall be treated as being in compliance with 

42 USC 17935. 

42 USC 17934. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 266 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 268 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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— 

42 USC 17936. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 

42 USC 17937. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 270 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 271 

after the date of the enactment of this section. The provisions 

of this section shall apply to breaches of security that are 

discovered on or after the date that is 30 days after the date 

of publication of such interim final regulations. 

(2) SUNSET.—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 ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES. 

Each organization, with respect to a covered entity, that provides data transmission of protected health information to such 

entity (or its business associate) and that requires access on a 

routine basis to such protected health information, such as a Health 

Information Exchange Organization, Regional Health Information 

Organization, E-prescribing Gateway, or each vendor that contracts 

with a covered entity to allow that covered entity to offer a personal 

health record to patients as part of its electronic health record, 

is required to enter into a written contract (or other written arrangement) described in section 164.502(e)(2) of title 45, Code of Federal 

Regulations and a written contract (or other arrangement) described 

in section 164.308(b) of such title, with such entity and shall be 

treated as a business associate of the covered entity for purposes 

of the provisions of this subtitle and subparts C and E of part 

164 of title 45, Code of Federal Regulations, as such provisions 

are in effect as of the date of enactment of this title. 

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

Section 1177(a) of the Social Security Act (42 U.S.C. 1320d– 

6(a)) is amended by adding at the end the following new sentence: 

‘‘For purposes of the previous sentence, a person (including an 

employee or other individual) shall be considered to have obtained 

or disclosed individually identifiable health information in violation 

of this part if the information is maintained by a covered entity 

(as defined in the HIPAA privacy regulation described in section 

1180(b)(3)) and the individual obtained or disclosed such information without authorization.’’. 

SEC. 13410. IMPROVED ENFORCEMENT. 

(a) IN GENERAL.— 

(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 

42 USC 17939. 

42 USC 17938. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 272 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 COL- LECTED.— 

(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 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 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 274 PUBLIC LAW 111–5—FEB. 17, 2009 

(B) in paragraph (2), as so redesignated— 

(i) in subparagraph (A), by striking ‘‘in subparagraph (B), a penalty may not be imposed under subsection (a) if’’ and all that follows through ‘‘the failure 

to comply is corrected’’ and inserting ‘‘in subparagraph 

(B) or subsection (a)(1)(C), a penalty may not be 

imposed under subsection (a) if the failure to comply 

is corrected’’; and 

(ii) in subparagraph (B), by striking ‘‘(A)(ii)’’ and 

inserting ‘‘(A)’’ each place it appears. 

(4) EFFECTIVE DATE.—The amendments made by this subsection shall apply to violations occurring after the date of 

the enactment of this title. 

(e) ENFORCEMENT THROUGH STATE ATTORNEYS GENERAL.— (1) IN GENERAL.—Section 1176 of the Social Security Act 

(42 U.S.C. 1320d–5) is amended by adding at the end the 

following new subsection: 

‘‘(d) ENFORCEMENT BY STATE ATTORNEYS GENERAL.— 

‘‘(1) CIVIL ACTION.—Except as provided in subsection (b), 

in any case in which the attorney general of a State has 

reason to believe that an interest of one or more of the residents 

of that State has been or is threatened or adversely affected 

by any person who violates a provision of this part, the attorney 

general of the State, as parens patriae, may bring a civil 

action on behalf of such residents of the State in a district 

court of the United States of appropriate jurisdiction— 

‘‘(A) to enjoin further such violation by the defendant; 

or 

‘‘(B) to obtain damages on behalf of such residents 

of the State, in an amount equal to the amount determined 

under paragraph (2). 

‘‘(2) STATUTORY DAMAGES.— 

‘‘(A) IN GENERAL.—For purposes of paragraph (1)(B), 

the amount determined under this paragraph is the amount 

calculated by multiplying the number of violations by up 

to $100. For purposes of the preceding sentence, in the 

case of a continuing violation, the number of violations 

shall be determined consistent with the HIPAA privacy 

regulations (as defined in section 1180(b)(3)) for violations 

of subsection (a). 

‘‘(B) LIMITATION.—The total amount of damages 

imposed on the person for all violations of an identical 

requirement or prohibition during a calendar year may 

not exceed $25,000. 

‘‘(C) REDUCTION OF DAMAGES.—In assessing damages 

under subparagraph (A), the court may consider the factors 

the Secretary may consider in determining the amount 

of a civil money penalty under subsection (a) under the 

HIPAA privacy regulations. 

‘‘(3) ATTORNEY FEES.—In the case of any successful action 

under paragraph (1), the court, in its discretion, may award 

the costs of the action and reasonable attorney fees to the 

State. 

‘‘(4) NOTICE TO SECRETARY.—The State shall serve prior 

written notice of any action under paragraph (1) upon the 

Secretary and provide the Secretary with a copy of its complaint, except in any case in which such prior notice is not 

Records. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 276 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 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 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 REFERENCES. 

Each reference in this subtitle to a provision of the Code of 

Federal Regulations refers to such provision as in effect on the 

date of the enactment of this title (or to the most recent update 

of such provision). 

SEC. 13423. EFFECTIVE DATE. 

Except as otherwise specifically provided, the provisions of part 

I shall take effect on the date that is 12 months after the date 

of the enactment of this title. 

SEC. 13424. STUDIES, REPORTS, GUIDANCE. 

(a) REPORT ON COMPLIANCE.— 

42 USC 17954. 

42 USC 17953. 

42 USC 17952. 

42 USC 17951. 

42 USC 17940. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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; 

Web posting. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 278 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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.— 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 280 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 281 

(2) AVAILABILITY TO ALL INSTITUTIONS OF HIGHER EDU- CATION.—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— 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 282 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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). 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 284 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 inState 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 the purpose of relieving fiscal burdens 

on States and local educational agencies that have experienced 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 286 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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; 

Jobs 

Accountability 

Act. 

Web posting. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 288 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 REPORT.—The last report required to be submitted 

under subsection (a) shall apply to the quarter in which the 

Board terminates under section 1530. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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) 

President. 

Web posting. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 290 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 

Audits. 

Web posting. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 292 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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. 

Contracts. 

Grants. 

Deadline. 

Public 

information. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 294 PUBLIC LAW 111–5—FEB. 17, 2009 

(11) The 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 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. 

Deadline. 

Reports. 

Plan. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 Panel shall be composed of 5 members 

who shall be appointed by the President. 

(c) QUALIFICATIONS.—Members shall be appointed on the basis 

of expertise in economics, public finance, contracting, accounting, 

or any other relevant field. 

(d) INITIAL MEETING.—Not later than 30 days after the date 

on which all members of the Panel have been appointed, the Panel 

shall hold its first meeting. 

(e) MEETINGS.—The Panel shall meet at the call of the Chairperson of the Panel. 

(f) QUORUM.—A majority of the members of the Panel shall 

constitute a quorum, but a lesser number of members may hold 

hearings. 

(g) CHAIRPERSON AND VICE CHAIRPERSON.—The Panel shall 

select a Chairperson and Vice Chairperson from among its members. 

SEC. 1542. DUTIES OF THE PANEL. 

The Panel shall make recommendations to the Board on actions 

the Board could take to prevent fraud, waste, and abuse relating 

to covered funds. 

SEC. 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. 

Recommendations. 

Deadline. 

President. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 296 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 this Act provides supplemental appropriations for 

programs, projects, and activities in existing Treasury accounts, 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 as provided under subparagraph (B), the inspector general shall, not later than 180 

days after receiving a complaint under paragraph (1)— 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 298 PUBLIC LAW 111–5—FEB. 17, 2009 

(i) make 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 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 

Reports. 

Determination. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 nonFederal employer would have taken the action constituting 

the reprisal in the absence of the disclosure. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 300 PUBLIC LAW 111–5—FEB. 17, 2009 

(2) AGENCY ACTION.—Not later than 30 days after receiving 

an inspector general report under subsection (b), the head 

of the agency concerned shall determine whether there is sufficient basis to conclude that the non-Federal employer has subjected the complainant to a reprisal prohibited by subsection 

(a) and shall either issue an order denying relief 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 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 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. 

Deadline. 

Deadlines. 

Deadline. 

Determination. 

Relief orders. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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, 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 302 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 section shall be applied in a manner consistent with 

United States obligations under international agreements. 

WAGE RATE REQUIREMENTS

SEC. 1606. Notwithstanding any other provision of law and 

in a manner consistent with other provisions in this Act, all laborers 

and mechanics employed by contractors and subcontractors on 

projects funded directly by or assisted in whole or in part by 

and through the Federal Government pursuant to this Act shall 

be paid wages at rates not less than those prevailing on projects 

of a character similar in the locality as determined by the Secretary 

of Labor in accordance with subchapter IV of chapter 31 of title 

40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority 

and functions set forth in Reorganization Plan Numbered 14 of 

1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 

United States Code. 

ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF

APPROPRIATE USE OF FUNDS

SEC. 1607. (a) CERTIFICATION 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. 

Deadline. 

Contracts. 

Applicability. 

Federal Register, 

publication. 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 304 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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 

President. 

Reports. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 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 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. 

Notification. 

Web posting. 

Deadline. 

Notification. 

Deadline. 

Employ 

American 

Workers Act. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 306 PUBLIC LAW 111–5—FEB. 17, 2009 

DIVISION B—TAX, UNEMPLOYMENT, 

HEALTH, STATE FISCAL RELIEF, AND 

OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

SEC. 1000. SHORT TITLE, ETC. 

(a) SHORT TITLE.—This title may be cited as the ‘‘American 

Recovery and Reinvestment Tax Act of 2009’’. 

(b) REFERENCE.—Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms 

of an amendment to, or repeal of, a section or other provision, 

the reference shall be considered to be made to a section or other 

provision of the Internal Revenue Code of 1986. 

(c) TABLE OF CONTENTS.—The table of contents for this title 

is as follows: 

TITLE I—TAX PROVISIONS 

Sec. 1000. Short title, etc. 

Subtitle A—Tax Relief for Individuals and Families 

PART I—GENERAL TAX RELIEF

Sec. 1001. Making work pay credit. 

Sec. 1002. Temporary increase in earned income tax credit. 

Sec. 1003. Temporary increase of refundable portion of child credit. 

Sec. 1004. American opportunity tax credit. 

Sec. 1005. Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010. 

Sec. 1006. 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. 

26 USC 1 et seq. 

26 USC 1 note. 

American 

Recovery and 

Reinvestment 

Tax Act of 2009. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 taxexempt 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 308 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 310 PUBLIC LAW 111–5—FEB. 17, 2009 

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 OF POSSESSIONS.— 

(1) PAYMENTS TO POSSESSIONS.— 

26 USC 36A note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 311 

(A) MIRROR CODE POSSESSION.—The Secretary of the 

Treasury shall pay to each possession of the United States 

with a mirror code tax system amounts equal to the loss 

to that possession by reason of the amendments made 

by this section with respect to taxable years beginning 

in 2009 and 2010. Such amounts shall be determined by 

the Secretary of the Treasury based on information provided by the government of the respective possession. 

(B) OTHER POSSESSIONS.—The Secretary of the 

Treasury shall pay to each possession of the United States 

which does not have a mirror code tax system amounts 

estimated by the Secretary of the Treasury as being equal 

to the aggregate benefits that would have been provided 

to residents of such possession by reason of the amendments made by this section for taxable years beginning 

in 2009 and 2010 if a mirror code tax system had been 

in effect in such possession. The preceding sentence shall 

not apply with respect to any possession of the United 

States unless such possession has a plan, which has been 

approved by the Secretary of the Treasury, under which 

such possession will promptly distribute such payments 

to the residents of such possession. 

(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED

STATES INCOME TAXES.—No credit shall be allowed against 

United States income taxes for any taxable year under section 

36A of the Internal Revenue Code of 1986 (as added by this 

section) to any person— 

(A) to whom a credit is allowed against taxes imposed 

by the possession by reason of the amendments made by 

this section for such taxable year, or 

(B) who is eligible for a payment under a plan described 

in paragraph (1)(B) with respect to such taxable year. 

(3) DEFINITIONS AND SPECIAL RULES.— 

(A) POSSESSION OF THE UNITED STATES.—For purposes 

of this subsection, the term ‘‘possession of the United 

States’’ includes the Commonwealth of Puerto Rico and 

the Commonwealth of the Northern Mariana Islands. 

(B) MIRROR CODE TAX SYSTEM.—For purposes of this 

subsection, the term ‘‘mirror code tax system’’ means, with 

respect to any possession of the United States, the income 

tax system of such possession if the income tax liability 

of the residents of such possession under such system is 

determined by reference to the income tax laws of the 

United States as if such possession were the United States. 

(C) TREATMENT OF PAYMENTS.—For purposes of section 

1324(b)(2) of title 31, United States Code, the payments 

under this subsection shall be treated in the same manner 

as a refund due from the credit allowed under section 

36A of the Internal Revenue Code of 1986 (as added by 

this section). 

(c) REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL

PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.—Any credit or 

refund allowed or made to any individual by reason of section 

36A of the Internal Revenue Code of 1986 (as added by this section) 

or by reason of subsection (b) of this section shall not be taken 

into account as income and shall not be taken into account as 

resources for the month of receipt and the following 2 months, 

26 USC 36A note. 

Effective dates. 

Effective dates. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 312 PUBLIC LAW 111–5—FEB. 17, 2009 

for purposes of determining the eligibility of such individual or 

any other individual for benefits or assistance, or the amount or 

extent of benefits or assistance, under any Federal program or 

under any State or local program financed in whole or in part 

with Federal funds. 

(d) AUTHORITY RELATING TO CLERICAL ERRORS.—Section 

6213(g)(2) is amended by striking ‘‘and’’ at the end of subparagraph 

(L)(ii), by striking the period at the end of subparagraph (M) and 

inserting ‘‘, and’’, and by adding at the end the following new 

subparagraph: 

‘‘(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 

36A or an omission of the correct 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 DATE.—This section, and the amendments made 

by this section, shall apply to taxable years beginning after 

December 31, 2008. 

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

(a) IN GENERAL.—Subsection (b) of section 32 is amended by 

adding at the end the following new paragraph: 

‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In the case of 

any taxable year beginning in 2009 or 2010— 

‘‘(A) INCREASED CREDIT PERCENTAGE FOR 3 OR MORE

QUALIFYING CHILDREN.—In the case of a taxpayer with 

3 or more qualifying children, the credit percentage is 

45 percent. 

‘‘(B) REDUCTION OF MARRIAGE PENALTY.— 

‘‘(i) IN GENERAL.—The dollar amount in effect 

under paragraph (2)(B) shall be $5,000. 

‘‘(ii) INFLATION ADJUSTMENT.—In the case of any 

taxable year beginning in 2010, the $5,000 amount 

in clause (i) shall be increased by an amount equal 

to— 

‘‘(I) such dollar amount, multiplied by 

‘‘(II) the cost of living adjustment determined 

under section 1(f)(3) for the calendar year in which 

the taxable year begins determined by substituting 

‘calendar year 2008’ for ‘calendar year 1992’ in 

subparagraph (B) thereof. 

‘‘(iii) ROUNDING.—Subparagraph (A) of subsection 

(j)(2) shall apply after taking into account any increase 

under clause (ii).’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

26 USC 32 note. 

Applicability. 

26 USC 32. 

26 USC 36A note. 

26 USC 6213. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 313 

SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF 

CHILD CREDIT. 

(a) IN GENERAL.—Paragraph (4) of section 24(d) is amended 

to read as follows: 

‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Notwithstanding 

paragraph (3), in the case of any taxable year beginning in 

2009 or 2010, the dollar amount in effect for such taxable 

year under paragraph (1)(B)(i) shall be $3,000.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 

(a) IN GENERAL.—Section 25A (relating to Hope scholarship 

credit) is amended by redesignating subsection (i) as subsection 

(j) and by inserting after subsection (h) the following new subsection: 

‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the case of any 

taxable year beginning in 2009 or 2010— 

‘‘(1) INCREASE IN CREDIT.—The Hope Scholarship Credit 

shall be an amount equal to the sum of— 

‘‘(A) 100 percent of so much of the qualified tuition 

and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student 

during any academic period beginning in such taxable year) 

as does not exceed $2,000, plus 

‘‘(B) 25 percent of such expenses so paid as exceeds 

$2,000 but does not exceed $4,000. 

‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF POST-SECONDARY EDUCATION.—Subparagraphs (A) and (C) of subsection 

(b)(2) shall be applied by substituting ‘4’ for ‘2’. 

‘‘(3) QUALIFIED TUITION AND RELATED EXPENSES TO INCLUDE

REQUIRED COURSE MATERIALS.—Subsection (f)(1)(A) shall be 

applied by substituting ‘tuition, fees, and course materials’ for 

‘tuition and fees’. 

‘‘(4) INCREASE IN AGI LIMITS FOR HOPE SCHOLARSHIP

CREDIT.—In lieu of applying subsection (d) with respect to the 

Hope Scholarship Credit, such credit (determined without 

regard to this paragraph) shall be reduced (but not below 

zero) by the amount which bears the same ratio to such credit 

(as so determined) as— 

‘‘(A) the excess of— 

‘‘(i) the taxpayer’s modified adjusted gross income 

(as defined in subsection (d)(3)) for such taxable year, 

over 

‘‘(ii) $80,000 ($160,000 in the case of a joint return), 

bears to 

‘‘(B) $10,000 ($20,000 in the case of a joint return). 

‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM

TAX.—In the case of a taxable year to which section 26(a)(2) 

does not apply, so much of the credit allowed under subsection 

(a) as is attributable to the Hope Scholarship Credit shall 

not exceed the excess of— 

‘‘(A) the sum of the regular tax liability (as defined 

in section 26(b)) plus the tax imposed by section 55, over 

‘‘(B) the sum of the credits allowable under this subpart 

(other than this subsection and sections 23, 25D, and 30D) 

and section 27 for the taxable year. 

Applicability. 

26 USC 24 note. 

26 USC 24. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 314 PUBLIC LAW 111–5—FEB. 17, 2009 

Any reference in this section or section 24, 25, 26, 25B, 904, 

or 1400C to a credit allowable under this subsection shall 

be treated as a reference to so much of the credit allowable 

under subsection (a) as is attributable to the Hope Scholarship 

Credit. 

‘‘(6) PORTION OF CREDIT MADE REFUNDABLE.—40 percent 

of so much of the credit allowed under subsection (a) as is 

attributable to the Hope Scholarship Credit (determined after 

application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may 

be) shall be treated as a credit allowable under subpart C 

(and not allowed under subsection (a)). The preceding sentence 

shall not apply to any taxpayer for any taxable year if such 

taxpayer is a child to whom subsection (g) of section 1 applies 

for such taxable year. 

‘‘(7) COORDINATION WITH MIDWESTERN DISASTER AREA BENEFITS.—In the case of a taxpayer with respect to whom section 

702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 

applies for any taxable year, such taxpayer may elect to waive 

the application of this subsection to such taxpayer for such 

taxable year.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 24(b)(3)(B) is amended by inserting ‘‘25A(i),’’ 

after ‘‘23,’’. 

(2) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘25A(i),’’ 

after ‘‘24,’’. 

(3) Section 26(a)(1) is amended by inserting ‘‘25A(i),’’ after 

‘‘24,’’. 

(4) Section 25B(g)(2) is amended by inserting ‘‘25A(i),’’ after 

‘‘23,’’. 

(5) Section 904(i) is amended by inserting ‘‘25A(i),’’ after 

‘‘24,’’. 

(6) Section 1400C(d)(2) is amended by inserting ‘‘25A(i),’’ 

after ‘‘24,’’. 

(7) Section 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 OF POSSESSIONS.— 

(1) PAYMENTS TO POSSESSIONS.— 

(A) MIRROR CODE POSSESSION.—The Secretary of the 

Treasury shall pay to each possession of the United States 

with a mirror code tax system amounts equal to the loss 

to that possession by reason of the 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 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 

Effective dates. 

Effective dates. 

26 USC 25A note. 

26 USC 24. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

(e) 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. 

26 USC 24 note. 

26 USC 24 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 316 PUBLIC LAW 111–5—FEB. 17, 2009 

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS 

A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010. 

(a) IN GENERAL.—Section 529(e)(3)(A) is amended by striking 

‘‘and’’ at the end of clause (i), by striking the period at the end 

of clause (ii), and by adding at the end the following: 

‘‘(iii) expenses paid or incurred in 2009 or 2010 

for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet 

access and related services, if such technology, equipment, or services are to be used by the beneficiary 

and the beneficiary’s family during any of the years 

the beneficiary is enrolled at an eligible educational 

institution. 

Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the 

software is predominantly educational in nature.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to expenses paid or incurred after December 31, 2008. 

SEC. 1006. 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 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) 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 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 

Time period. 

Applicability. 

Time period. 

26 USC 529 note. 

26 USC 529. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) is amended 

by striking paragraph (1). 

(e) REMOVAL OF PROHIBITION ON FINANCING BY MORTGAGE REV- ENUE 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) 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) 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). 

26 USC 85 note. 

26 USC 36 note. 

26 USC 36. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 318 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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. 

26 USC 56 note. 

26 USC 63. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) (relating to 

special rule for taxable years 2000 through 2008) is amended— 

(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, or 2009’’, 

and 

(2) by striking ‘‘2008’’ in the heading thereof and inserting ‘‘2009’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 

EXEMPTION AMOUNT. 

(a) IN GENERAL.—Paragraph (1) of section 55(d) (relating to 

exemption amount) is amended— (1) by striking ‘‘($69,950 in the case of taxable years begin- ning 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 begin- ning in 2008)’’ in subparagraph (B) and inserting ‘‘($46,700 

in the case of taxable years beginning in 2009)’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

Subtitle B—Energy Incentives 

PART I—RENEWABLE ENERGY INCENTIVES 

SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 

CERTAIN RENEWABLE RESOURCES. 

(a) IN GENERAL.—Subsection (d) of section 45 is amended— 

(1) by striking ‘‘2010’’ in paragraph (1) and inserting ‘‘2013’’, 

(2) by striking ‘‘2011’’ each place it appears in paragraphs 

(2), (3), (4), (6), (7) and (9) and inserting ‘‘2014’’, and 

(3) by striking ‘‘2012’’ in paragraph (11)(B) and inserting 

‘‘2014’’. 

(b) TECHNICAL AMENDMENT.—Paragraph (5) of section 45(d) 

is amended by striking ‘‘and before’’ and all that follows and 

inserting ‘‘ and before October 3, 2008.’’. 

(c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by subsection 

(a) shall apply to property placed in service after the date 

of the enactment of this Act. 

(2) TECHNICAL AMENDMENT.—The amendment made by 

subsection (b) shall take effect as if included in section 102 

of the Energy Improvement and Extension Act of 2008. 

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

(a) IN GENERAL.—Subsection (a) of section 48 is amended by 

adding at the end the following new paragraph: 

‘‘(5) ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY

PROPERTY.— 

‘‘(A) IN GENERAL.—In the case of any qualified property 

which is part of a qualified investment credit facility— 

26 USC 45 note. 

26 USC 55 note. 

26 USC 26 note. 

26 USC 26. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 320 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) EFFECTIVE DATE.—The amendments made by this section 

shall apply to facilities placed in service after December 31, 2008. 

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

(a) REPEAL OF LIMITATION ON CREDIT FOR QUALIFIED SMALL

WIND ENERGY PROPERTY.—Paragraph (4) of section 48(c) is 

amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). 

(b) REPEAL OF LIMITATION ON PROPERTY FINANCED BY SUBSIDIZED ENERGY FINANCING.— 

(1) IN GENERAL.—Section 48(a)(4) is amended by adding 

at the end the following new subparagraph: 

‘‘(D) TERMINATION.—This paragraph shall not apply 

to periods after December 31, 2008, under rules similar 

to the rules of section 48(m) (as in effect on the day before 

the date of the enactment of the Revenue Reconciliation 

Act of 1990).’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Section 25C(e)(1) is amended by striking ‘‘(8), and 

(9)’’ and inserting ‘‘and (8)’’. 

(B) Section 25D(e) is amended by striking paragraph 

(9). 

26 USC 48. 

26 USC 48 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 321 

(C) Section 48A(b)(2) is amended by inserting ‘‘(without 

regard to subparagraph (D) thereof)’’ after ‘‘section 

48(a)(4)’’. 

(D) Section 48B(b)(2) is amended by inserting ‘‘(without 

regard to subparagraph (D) thereof)’’ after ‘‘section 

48(a)(4)’’. 

(c) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendment made by this 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).’’. 

Applicability. 

26 USC 25C. 

26 USC 48A. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 322 PUBLIC LAW 111–5—FEB. 17, 2009 

PART II—INCREASED ALLOCATIONS OF NEW 

CLEAN RENEWABLE ENERGY BONDS AND 

QUALIFIED ENERGY CONSERVATION BONDS 

SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN 

RENEWABLE ENERGY BONDS. 

Subsection (c) of section 54C is amended by adding at the 

end the following new paragraph: 

‘‘(4) ADDITIONAL LIMITATION.—The national new clean 

renewable energy bond limitation shall be increased by 

$1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).’’. 

SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED 

ENERGY CONSERVATION BONDS. 

(a) IN GENERAL.—Section 54D(d) is amended by striking 

‘‘$800,000,000’’ and inserting ‘‘$3,200,000,000’’. 

(b) CLARIFICATION WITH RESPECT TO GREEN COMMUNITY PROGRAMS.— 

(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.— 

26 USC 54C. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 323 

(1) ELECTRIC HEAT PUMPS.—Subparagraph (B) of section 

25C(d)(3) is amended to read as follows: 

‘‘(B) an electric heat pump which achieves the highest 

efficiency tier established by the Consortium for Energy 

Efficiency, as in effect on January 1, 2009.’’. 

(2) CENTRAL AIR CONDITIONERS.—Subparagraph (C) of section 25C(d)(3) is amended by striking ‘‘2006’’ and inserting 

‘‘2009’’. 

(3) WATER HEATERS.—Subparagraph (D) of section 

25C(d)(3) is amended to read as follows: 

‘‘(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: 

26 USC 25C. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 324 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(4) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND

SKYLIGHTS.—Such term shall not include any component 

described in subparagraph (B) or (C) of paragraph (2) unless 

such component is equal to or below a U factor of 0.30 and 

SHGC of 0.30.’’. 

(2) ADDITIONAL QUALIFICATION FOR INSULATION.—Subparagraph (A) of section 25C(c)(2) is amended by inserting ‘‘and 

meets the prescriptive criteria for such material or system 

established by the 2009 International Energy Conservation 

Code, as such Code (including supplements) is in effect on 

the date of the enactment of the American Recovery and 

Reinvestment Tax Act of 2009’’ after ‘‘such dwelling unit’’. 

(e) EXTENSION.—Section 25C(g)(2) is amended by striking 

‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. 

(f) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to taxable years 

beginning after December 31, 2008. 

(2) EFFICIENCY STANDARDS.—The amendments made by 

paragraphs (1), (2), and (3) of subsection (b) and subsections 

(c) and (d) shall apply to property placed in service after 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) FUEL CELL EXPENDITURE LIMITATIONS IN CASE OF JOINT

OCCUPANCY.—In the case of any dwelling unit with respect 

to which qualified fuel cell property expenditures are made 

and which is jointly occupied and used during any calendar 

year as a residence by two or more individuals, the following 

rules shall apply: 

‘‘(A) MAXIMUM EXPENDITURES FOR FUEL CELLS.—The 

maximum amount of such expenditures which may be 

taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt 

of capacity of qualified fuel cell property (as defined in 

section 48(c)(1)) with respect to which such expenditures 

relate.’’, and 

(B) by striking subparagraph (C). 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

26 USC 25D 

note. 

Regulations. 

Applicability. 

Applicability. 

26 USC 25C note. 

26 USC 25C. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 325 

SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL 

VEHICLE REFUELING PROPERTY. 

(a) IN GENERAL.—Section 30C(e) is amended by adding at the 

end the following new paragraph: 

‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN SERVICE DURING

2009 AND 2010.—In the case of property placed in service in 

taxable years beginning after December 31, 2008, and before 

January 1, 2011— 

‘‘(A) in the case of any such property which does not 

relate to hydrogen— 

‘‘(i) subsection (a) shall be applied by substituting 

‘50 percent’ for ‘30 percent’, 

‘‘(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and 

‘‘(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and 

‘‘(B) in the case of any such property which relates 

to hydrogen, subsection (b)(1) shall be applied by substituting ‘$200,000’ for ‘$30,000’.’’. 

(b) 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) EFFECTIVE DATE.—The amendments made by this section 

shall apply to carbon dioxide captured after the date of the enactment of this Act. 

26 USC 45Q 

note. 

26 USC 30C note. 

Applicability. 

26 USC 30C. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 326 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 BUSI- NESS 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— 

26 USC 30D. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 plugin 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 plugin 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) 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 

Regulations. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 328 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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) 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) 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 plugin electric vehicle placed in service by the taxpayer during the 

taxable year. 

26 USC 30B note. 

26 USC 30B. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 330 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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 

26 USC 24. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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 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) 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 plugin 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 plugin 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. 

26 USC 24 note. 

Time period. 

26 USC 30 note. 

26 USC 24 note. 

26 USC 30C. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 332 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) is amended by striking ‘‘and’’ at the end 

of paragraph (3), by striking the period at the end of paragraph 

(4) and inserting ‘‘, and’’, and by adding at the end the following 

new paragraph: 

‘‘(5) the plug-in conversion credit determined under subsection (i).’’. 

(c) NO RECAPTURE FOR VEHICLES CONVERTED TO QUALIFIED

PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.—Paragraph (8) of section 30B(h) is amended by adding at the end the following: ‘‘, 

except that no benefit shall be recaptured if such property ceases 

to be eligible for such credit by reason of conversion to a qualified 

plug-in electric drive motor vehicle.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property placed in service after 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),’’. 

26 USC 30B note. 

26 USC 30B. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 333 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

(d) APPLICATION OF EGTRRA SUNSET.—The amendment made 

by subsection (b)(1)(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) is amended 

by adding at the end the following flush sentence: 

‘‘In the case of any month beginning on or after the date 

of the enactment of this sentence and before January 1, 2011, 

subparagraph (A) shall be applied as if the dollar amount 

therein were the same as the dollar amount in effect for such 

month under subparagraph (B).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to months beginning on or after the date of the enactment of this section. 

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— 

26 USC 132 note. 

Applicability. 

26 USC 132. 

26 USC 24 note. 

26 USC 24 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 334 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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),’’. 

Applicability. (c) EFFECTIVE DATES.— 26 USC 168 note. 

26 USC 6211. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) is amended— 

(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 2009’’, and 

(2) by striking ‘‘2008’’ in the heading thereof and inserting ‘‘2008, AND 2009’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

PART II—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) 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) ELIGIBLE SMALL BUSINESS.—For purposes of 

this subparagraph, the term ‘eligible small business’ 

has the meaning given such term by subparagraph 

Applicability. 

Applicability. 

26 USC 179 note. 

26 USC 179. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 336 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 is amended by 

striking subsection (k) and by redesignating subsection (l) as subsection (k). 

(c) 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) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

net operating losses arising in taxable years ending after 

December 31, 2007. 

(2) 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 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) 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) 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. 

Certification. 

Applicability. 

Definition. 

Applicability. 

26 USC 172 note. 

26 USC 172 note. 

26 USC 172. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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.’’. 

26 USC 51. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 338 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 (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 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 

Time periods. 

26 USC 108. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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 

Regulations. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 340 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) (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 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) 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. 

26 USC 163 note. 

Time period. 

26 USC 163. 

26 USC 108 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 342 PUBLIC LAW 111–5—FEB. 17, 2009 

PART V—QUALIFIED SMALL BUSINESS STOCK 

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

(a) IN GENERAL.—Section 1202(a) is amended by adding at 

the end the following new paragraph: 

‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In the case of 

qualified small business stock acquired after the date of the 

enactment of this paragraph and before January 1, 2011— 

‘‘(A) paragraph (1) shall be applied by substituting 

‘75 percent’ for ‘50 percent’, and 

‘‘(B) paragraph (2) shall not apply.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to stock acquired after the date of the enactment of 

this Act. 

PART VI—S CORPORATIONS 

SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 

BUILT-IN GAINS TAX. 

(a) IN GENERAL.—Paragraph (7) of section 1374(d) (relating 

to definitions and special rules) is amended to read as follows: 

‘‘(7) RECOGNITION PERIOD.— ‘‘(A) IN GENERAL.—The term ‘recognition period’ means 

the 10-year period beginning with the 1st day of the 1st 

taxable year for which the corporation was an S corporation. 

‘‘(B) SPECIAL RULE FOR 2009 AND 2010.—In the case 

of any taxable year beginning in 2009 or 2010, no tax 

shall be imposed on the net recognized built-in gain of 

an S corporation if the 7th taxable year in the recognition 

period preceded such taxable year. The preceding sentence 

shall be applied separately with respect to any asset to 

which paragraph (8) applies. 

‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS TO SHARE- HOLDERS.—For purposes of applying this section to any 

amount includible in income by reason of distributions 

to shareholders pursuant to section 593(e)— 

‘‘(i) subparagraph (A) shall be applied without 

regard to the phrase ‘10-year’, and 

‘‘(ii) subparagraph (B) shall not apply.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after December 31, 2008. 

PART VII—RULES RELATING TO OWNERSHIP 

CHANGES 

SEC. 1261. 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. 

26 USC 382 note. 

26 USC 1374 

note. 

Applicability. 

Applicability. 

26 USC 1374. 

26 USC 1202 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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.— 

26 USC 382. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 344 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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 

26 USC 144. 

26 USC 382 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 (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 hybridelectric 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, 

26 USC 46. 

26 USC 144 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 346 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 plugin 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 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) 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) PERIOD OF ISSUANCE.—An applicant which receives 

a certification shall have 3 years from the date of issuance 

Deadline. 

Deadline. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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: 

26 USC 49. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 348 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(v) the basis of any property which is part of 

a qualifying advanced energy project under section 

48C.’’. 

(2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item 

relating to section 48B the following new item: 

‘‘48C. Qualifying advanced energy project credit.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to periods after the date of the enactment of this 

Act, under rules similar to the rules of section 48(m) of the Internal 

Revenue Code of 1986 (as in effect on the day before the date 

of the enactment of the Revenue Reconciliation Act of 1990). 

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 

Waiver authority. and municipalities in such State. A county or municipality 

26 USC 46 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 350 PUBLIC LAW 111–5—FEB. 17, 2009 

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

Applicability. SALE-LEASEBACK.—Rules similar to the rules of subsections 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 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)). 

26 USC 7871. 

26 USC 1400U–1 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 352 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(C) LIMITATION ON AMOUNT OF BONDS DESIGNATED.— 

The maximum aggregate face amount of bonds which may 

be designated by any Indian tribal government under 

subparagraph (A) shall not exceed the amount of national 

tribal economic development bond limitation allocated to 

such government under paragraph (1).’’. 

(b) STUDY.—The Secretary of the Treasury, or the Secretary’s 

delegate, shall conduct a study of the effects of the amendment 

made by subsection (a). Not later than 1 year after the date of 

the enactment of this Act, the Secretary of the Treasury, or the 

Secretary’s delegate, shall report to Congress on the results of 

the study conducted under this paragraph, including the Secretary’s 

recommendations regarding such amendment. 

(c) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply to obligations issued after the date of the enactment 

of this Act. 

SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. 

(a) IN GENERAL.—Section 45D(f)(1) 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) 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).’’. 

26 USC 45D 

note. 

26 USC 45. 

26 USC 7871 

note. 

Deadline. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 353 

Subtitle F—Infrastructure Financing Tools 

PART I—IMPROVED MARKETABILITY FOR TAXEXEMPT BONDS 

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT 

INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. 

(a) IN GENERAL.—Subsection (b) of section 265 is amended 

by adding at the end the following new paragraph: 

‘‘(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED DURING 2009

OR 2010.— 

‘‘(A) IN GENERAL.—In applying paragraph (2)(A), there 

shall not be taken into account tax-exempt obligations 

issued during 2009 or 2010. 

‘‘(B) LIMITATION.—The amount of tax-exempt obligations not taken into account by reason of subparagraph 

(A) shall not exceed 2 percent of the amount determined 

under paragraph (2)(B). 

‘‘(C) REFUNDINGS.—For purposes of this paragraph, a 

refunding bond (whether a current or advance refunding) 

shall be treated as issued on the date of the issuance 

of the refunded bond (or in the case of a series of 

refundings, the original bond).’’. 

(b) TREATMENT AS FINANCIAL INSTITUTION PREFERENCE ITEM.— 

Clause (iv) of section 291(e)(1)(B) is amended by adding at the 

end the following: ‘‘That portion of any obligation not taken into 

account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this 

section as having been acquired on August 7, 1986.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after December 31, 2008. 

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAXEXEMPT INTEREST EXPENSE ALLOCATION RULES FOR 

FINANCIAL INSTITUTIONS. 

(a) IN GENERAL.—Paragraph (3) of section 265(b) (relating to 

exception for certain tax-exempt obligations) is amended by adding 

at the end the following new subparagraph: 

‘‘(G) SPECIAL RULES FOR OBLIGATIONS ISSUED DURING

2009 AND 2010.— 

‘‘(i) INCREASE IN LIMITATION.—In the case of obligations issued during 2009 or 2010, subparagraphs (C)(i), 

(D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. 

‘‘(ii) QUALIFIED 501(C)(3) BONDS TREATED AS ISSUED

BY EXEMPT ORGANIZATION.—In the case of a qualified 

501(c)(3) bond (as defined in section 145) issued during 

2009 or 2010, this paragraph shall be applied by 

treating the 501(c)(3) organization for whose benefit 

such bond was issued as the issuer. 

‘‘(iii) SPECIAL RULE FOR QUALIFIED FINANCINGS.— 

In the case of a qualified financing issue issued during 

2009 or 2010— 

‘‘(I) subparagraph (F) shall not apply, and 

‘‘(II) any obligation issued as a part of such 

issue shall be treated as a qualified tax-exempt 

Applicability. 

Applicability. 

26 USC 265 note. 

26 USC 265. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 354 PUBLIC LAW 111–5—FEB. 17, 2009 

obligation if the requirements of this paragraph 

are met with respect to each qualified portion of 

the issue (determined by treating each qualified 

portion as a separate issue which is issued by 

the qualified borrower with respect to which such 

portion relates). 

‘‘(iv) QUALIFIED FINANCING ISSUE.—For purposes 

of this subparagraph, the term ‘qualified financing 

issue’ means any composite, pooled, or other conduit 

financing issue the proceeds of which are used directly 

or indirectly to make or finance loans to 1 or more 

ultimate borrowers each of whom is a qualified borrower. 

‘‘(v) QUALIFIED PORTION.—For purposes of this 

subparagraph, the term ‘qualified portion’ means that 

portion of the proceeds which are used with respect 

to each qualified borrower under the issue. 

‘‘(vi) QUALIFIED BORROWER.—For purposes of this 

subparagraph, the term ‘qualified borrower’ means a 

borrower which is a State or political subdivision 

thereof or an organization described in section 501(c)(3) 

and exempt from taxation under section 501(a).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to obligations issued after December 31, 2008. 

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM 

TAX LIMITATIONS ON TAX-EXEMPT BONDS. 

(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED DURING 2009 

AND 2010 NOT TREATED AS TAX PREFERENCE ITEM.—Subparagraph 

(C) of section 57(a)(5) is amended by adding at the end a new 

clause: 

‘‘(vi) EXCEPTION FOR BONDS ISSUED IN 2009 AND

2010.— 

‘‘(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. 

26 USC 57. 

26 USC 265 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after December 31, 2008. 

SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY 

BONDS. 

(a) IN GENERAL.—Paragraph (1) of section 142(i) is amended 

by striking ‘‘operate at speeds in excess of’’ and inserting ‘‘be capable 

of attaining a maximum speed in excess of’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to obligations issued after the date of the enactment 

of this Act. 

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

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

Subsection (b) of section 511 of the Tax Increase Prevention 

and Reconciliation Act of 2005 is amended by striking ‘‘December 

31, 2010’’ and inserting ‘‘December 31, 2011’’. 

PART III—TAX CREDIT BONDS FOR SCHOOLS 

SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

(a) IN GENERAL.—Subpart I of part IV of subchapter A of 

chapter 1 is amended by adding at the end the following new 

section: 

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

‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—For purposes 

of this subchapter, the term ‘qualified school construction bond’ 

means any bond issued as part of an issue if— 

‘‘(1) 100 percent of the available project proceeds of such 

issue are to be used for the construction, rehabilitation, or 

repair of a public school facility or for the acquisition of land 

on which such a facility is to be constructed with part of 

the proceeds of such issue, 

‘‘(2) the bond is issued by a State or local government 

within the jurisdiction of which such school is located, and 

‘‘(3) the issuer designates such bond for purposes of this 

section. 

‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The maximum aggregate face amount of bonds issued during any calendar 

year which may be designated under subsection (a) by any issuer 

26 USC 3402. 

26 USC 3402 

note. 

26 USC 142 note. 

26 USC 142. 

26 USC 56 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 356 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. A similar rule shall apply to the amounts allocated 

under subsection (d)(4).’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Paragraph (1) of section 54A(d) is amended by striking 

‘‘or’’ at the end of subparagraph (C), by inserting ‘‘or’’ at the 

end of subparagraph (D), and by inserting after subparagraph 

(D) the following new subparagraph: 

‘‘(E) a qualified school construction bond,’’. 

(2) Subparagraph (C) of section 54A(d)(2) is amended by 

striking ‘‘and’’ at the end of clause (iii), by striking the period 

at the end of clause (iv) and inserting ‘‘, and’’, and by adding 

at the end the following new clause: 

‘‘(v) in the case of a qualified school construction 

bond, a purpose specified in section 54F(a)(1).’’. 

(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the 

following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment 

of this Act. 

26 USC 54A note. 

26 USC 54. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 358 PUBLIC LAW 111–5—FEB. 17, 2009 

SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY 

BONDS. 

(a) IN GENERAL.—Section 54E(c)(1) is amended by striking ‘‘and 

2009’’ and inserting ‘‘and $1,400,000,000 for 2009 and 2010’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to obligations issued after December 31, 2008. 

PART IV—BUILD AMERICA BONDS 

SEC. 1531. BUILD AMERICA BONDS. 

(a) IN GENERAL.—Part IV of subchapter A of chapter 1 is 

amended by adding at the end the following new subpart: 

‘‘Subpart J—Build America Bonds 

‘‘Sec. 54AA. Build America bonds. 

‘‘SEC. 54AA. BUILD AMERICA BONDS. 

‘‘(a) IN GENERAL.—If a taxpayer holds a build America bond 

on one or more interest payment dates of the bond during any 

taxable year, there shall be allowed as a credit against the tax 

imposed by this chapter for the taxable year an amount equal 

to the sum of the credits determined under subsection (b) with 

respect to such dates. 

‘‘(b) AMOUNT OF CREDIT.—The amount of the credit determined 

under this subsection with respect to any interest payment date 

for a build America bond is 35 percent of the amount of interest 

payable by the issuer with respect to such date . 

‘‘(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)— 

26 USC 54E note. 

26 USC 54. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 360 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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) TRANSITIONAL COORDINATION WITH STATE LAW.—Except as 

otherwise provided by a State after the date of the enactment 

of this Act, the interest on any build America bond (as defined 

in section 54AA of the Internal Revenue Code of 1986, as added 

by this section) and the amount of any credit determined under 

such section with respect to such bond shall be treated for purposes 

of the income tax laws of such State as being exempt from Federal 

income tax. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to obligations issued after the date of the enactment 

of this Act. 

PART V—REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT 

BOND CREDITS 

SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASSTHRU 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 

26 USC 54 note. 

26 USC 54AA 

note. 

26 USC 54. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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 

Applicability. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 362 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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) 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) 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. 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. 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 

26 USC 42 note. 

26 USC 54C note. 

26 USC 54 note. 

Procedures. 

26 USC 54. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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 LOWINCOME 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 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 364 PUBLIC LAW 111–5—FEB. 17, 2009 

of liens or such other methods as the Secretary of the Treasury 

determines appropriate. 

(d) RETURN OF UNUSED GRANT FUNDS.—Any grant funds not 

used to make subawards under this section before January 1, 2011, 

shall be returned to the Secretary of the Treasury on such date. 

Any subawards returned to the State housing credit agency on 

or after such date shall be promptly returned to the Secretary 

of the Treasury. Any amounts returned to the Secretary of the 

Treasury under this subsection shall be deposited in the general 

fund of the Treasury. 

(e) DEFINITIONS.—Any term used in this section which is also 

used in section 42 of the Internal Revenue Code of 1986 shall 

have the same meaning for purposes of this section as when used 

in such section 42. Any reference in this section to the Secretary 

of the Treasury shall be treated as including the Secretary’s delegate. 

(f) APPROPRIATIONS.—There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry 

out this section. 

SEC. 1603. 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: 

26 USC 48 note. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 366 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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. 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. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS 

MADE UNDER THE CONTINUED DUMPING AND SUBSIDY 

OFFSET ACT OF 2000. 

(a) IN GENERAL.—Notwithstanding any other provision of law, 

neither the Secretary of Homeland Security nor any other person 

may— 

(1) require repayment of, or attempt in any other way 

to recoup, any payments described in subsection (b); or 

(2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to 

imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b). 

(b) PAYMENTS DESCRIBED.—Payments described in this subsection are payments of antidumping or countervailing duties made 

pursuant to the Continued Dumping and Subsidy Offset Act of 

2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed 

by subtitle F of title VII of the Deficit Reduction Act of 2005 

(Public Law 109–171; 120 Stat. 154))) that were— 

(1) assessed and paid on imports of goods from countries 

that are parties to the North American Free Trade Agreement; 

and 

(2) distributed on or after January 1, 2001, and before 

January 1, 2006. 

(c) PAYMENT OF FUNDS COLLECTED OR WITHHELD.—Not later 

than the date that is 60 days after the date of the enactment 

of this Act, the Secretary of Homeland Security shall— 

(1) refund any repayments, or any other recoupment, of 

payments described in subsection (b); and 

Deadline. 

19 USC 1675c 

note. 

31 USC 3101. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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: 

Trade and 

Globalization 

Adjustment 

Assistance Act 

of 2009. 

19 USC 2101 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 368 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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. 

Certification. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 370 PUBLIC LAW 111–5—FEB. 17, 2009 

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). 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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).’’. 

Time period. 

Notice. 

Federal Register, 

publication. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 372 PUBLIC LAW 111–5—FEB. 17, 2009 

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 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 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 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 

System. 

Deadline. 

Criteria. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 373 

cause of the dislocation of each worker, as identified in the 

certification. 

‘‘(2) 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) 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 

19 USC 2393 

note. 

Study. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 374 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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)— 

Certification. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 376 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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; 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 parttime 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 378 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 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, 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 

Applicability. 

Waiver authority. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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); 

Contracts. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 380 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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. 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.’’. 

19 USC 2295a. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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) 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) 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. 

Procedures. 

Deadline. 

Time period. 

19 USC 2295a 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 382 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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: 

19 USC 2296 

note. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 384 PUBLIC LAW 111–5—FEB. 17, 2009 

(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.— 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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-thejob 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 onthe-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)’’. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 386 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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: 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 388 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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 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— 

Applicability. 

Effective date. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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; 

19 USC 2322. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 390 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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.’’. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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; 

Requirements. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 392 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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. 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. COLLECTION AND PUBLICATION OF DATA AND REPORTS; 

INFORMATION TO WORKERS. 

‘‘(a) IN GENERAL.—Not later 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. 

System. 

19 USC 2323. 

Immigration. 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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— 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 394 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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 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 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. 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 

19 USC 2397a. 

19 USC 2323 

note. 

Deadline. 

Web posting. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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.’’. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 396 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 257; 

(2) by redesignating sections 258, 259, 260, 261, 262, 264, 

and 265, as sections 256, 257, 258, 259, 260, 261, and 262, 

respectively; and 

(3) by inserting after section 253 the following: 

‘‘SEC. 254. OVERSIGHT AND ADMINISTRATION. 

‘‘(a) IN GENERAL.—The Secretary 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. 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 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 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 

Criteria. 

Deadline. 

Methodology. 

Deadline. 

Contracts. 

Grants. 

19 USC 2344. 

19 USC 

2348–2352, 2354, 

2355. 

19 USC 

2344–2347. 

Certification. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 398 PUBLIC LAW 111–5—FEB. 17, 2009 

described in section 1866 of the Trade and Globalization Adjustment Assistance Act of 2009. 

‘‘(c) REQUIREMENTS FOR CONTRACTS.—An agreement 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) 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. AUTHORIZATION OF APPROPRIATIONS. 

‘‘(a) IN GENERAL.—There are 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 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. 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) 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, is amended by striking subsection (d). 

(2) Section 258 of the Trade Act of 1974, as redesignated 

19 USC 2350. by subsection (a) of this section, is amended— 

19 USC 2348. 

19 USC 2344 

note. 

Establishment. 

Deadline. 

Time period. 

19 USC 2345. 

Deadlines. 

Guidelines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 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. 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. 

19 USC 2356. 

19 USC 2349. 

19 USC 2344 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 400 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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’’. 

Federal Register, 

publication. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 401 

PART III—TRADE ADJUSTMENT ASSISTANCE 

FOR COMMUNITIES 

SEC. 1871. 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. 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. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR 

COMMUNITIES PROGRAM. 

‘‘Not 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) award grants to communities impacted by trade to 

carry out strategic plans developed under section 276. 

‘‘SEC. 273. ELIGIBILITY; NOTIFICATION. 

‘‘(a) 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— 

Deadlines. 

19 USC 2371b. 

Grants. 

Deadline. 

19 USC 2371a. 

19 USC 2371. 

19 USC 2371 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 402 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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; 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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 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. 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 

19 USC 2371d. 

Establishment. 

19 USC 2371c. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 404 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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. 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; 

19 USC 2371e. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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. GENERAL PROVISIONS. 

‘‘(a) REGULATIONS.— 

19 USC 2371f. 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 406 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM. 

‘‘(a) GRANTS AUTHORIZED.— 

‘‘(1) 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)), 

Effective date. 

19 USC 2372. 

Designation. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) GUIDELINES.—Not later than June 1, 2009, the Secretary shall— 

‘‘(A) promulgate guidelines for the submission of grant 

proposals under this section; and 

‘‘(B) 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— 

Web posting. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 408 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. AUTHORIZATION OF APPROPRIATIONS. 

‘‘(a) 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. 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); 

19 USC 2373. 

Time period. 

19 USC 2372a. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 410 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 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 mediumsized 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 

Effective date. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 412 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. AUTHORIZATION OF APPROPRIATIONS. 

‘‘(a) 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. 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. 

19 USC 2374. 

Time period. 

19 USC 2373a. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 414 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.—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) 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 

Deadline. 

Notice. 

Federal Register, 

publication. 

Certification. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 416 PUBLIC LAW 111–5—FEB. 17, 2009 

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.—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. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 418 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 longterm 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; 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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, 

19 USC 2271 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 420 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 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) 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 

Applicability. 

19 USC 2271 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.— 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 422 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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. 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) 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 

Effective date. 

19 USC 2271 

note prec. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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—HEALTH COVERAGE IMPROVEMENT 

SEC. 1899. 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 (relating to credit for health insurance costs 

of eligible individuals) is amended by inserting ‘‘(80 percent 

26 USC 35. 

26 USC 1 note. 

TAA Health 

Coverage 

Improvement Act 

of 2009. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 424 PUBLIC LAW 111–5—FEB. 17, 2009 

in the case of eligible coverage months beginning before 

January 1, 2011)’’ after ‘‘65 percent’’. 

(2) CONFORMING AMENDMENT.—Section 7527(b) of such 

Code (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) 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) EFFECTIVE DATE.—The amendments made by this section 

shall apply to coverage months beginning after December 31, 2008. 

(c) 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 

26 USC 7527 

note. 

26 USC 7527 

note. 

26 USC 35 note. 

26 USC 7527. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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 (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 

26 USC 9801. 

26 USC 35 note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 426 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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 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 

26 USC 35. 

26 USC 9801 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 428 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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 TAAELIGIBLE 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, 

26 USC 35 note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 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 TAAeligible 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: 

26 USC 4980B. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 430 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(iv) SPECIAL RULE FOR TAA-ELIGIBLE INDIVID- UALS.—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) 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 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) 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 CERTIFI- CATE.— ‘‘(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 

26 USC 35 note. 

26 USC 35. 

26 USC 4980B 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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. 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, 

26 USC 35 note. 

26 USC 7527 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 432 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 INSUR- ANCE 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). 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 434 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 436 PUBLIC LAW 111–5—FEB. 17, 2009 

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—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING 

FAMILIES 

SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.‘ 

(a) SHORT TITLE.—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’’. 

26 USC 1 note. 

Assistance for 

Unemployed 

Workers and 

Struggling 

Families Act. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 437 

(b) FINANCING PROVISIONS.—Section 4004 of such Act is 

amended by adding at the end the following: 

‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any other provision 

of law, the Secretary of the Treasury shall transfer from the general 

fund of the Treasury (from funds not otherwise appropriated)— 

‘‘(1) to the extended unemployment compensation account 

(as established by section 905 of the Social Security Act) such 

sums as the Secretary of Labor estimates to be necessary 

to make payments to States under this title by reason of the 

amendments made by section 2001(a) of the Assistance for 

Unemployed Workers and Struggling Families Act; and 

‘‘(2) to the employment security administration account 

(as established by section 901 of the Social Security Act) such 

sums as the Secretary of Labor estimates to be necessary 

for purposes of assisting States in meeting administrative costs 

by reason of the amendments referred to in paragraph (1). 

There are appropriated from the general fund of the Treasury, 

without fiscal year limitation, the sums referred to in the preceding 

sentence and such sums shall not be required to be repaid.’’. 

SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS. 

(a) FEDERAL-STATE AGREEMENTS.—Any State which desires to 

do so may enter into and participate in an agreement under this 

section with the Secretary of Labor (hereinafter in this section 

referred to as the ‘‘Secretary’’). Any State which is a party to 

an agreement under this section may, upon providing 30 days’ 

written notice to the Secretary, terminate such agreement. 

(b) PROVISIONS OF AGREEMENT.— 

(1) ADDITIONAL COMPENSATION.—Any agreement under this 

section shall provide that the State agency of the State will 

make payments of regular compensation to individuals in 

amounts and to the extent that they would be determined 

if the State law of the State were applied, with respect to 

any week for which the individual is (disregarding this section) 

otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a manner 

such that the amount of regular compensation (including 

dependents’ allowances) payable for any week shall be equal 

to the amount determined under the State law (before the 

application of this paragraph) plus an additional $25. 

(2) ALLOWABLE METHODS OF PAYMENT.—Any additional 

compensation provided for in accordance with paragraph (1) 

shall be payable either— 

(A) as an amount which is paid at the same time 

and in the same manner as any regular compensation 

otherwise payable for the week involved; or 

(B) at the option of the State, by payments which 

are made separately from, but on the same weekly basis 

as, any regular compensation otherwise payable. 

(c) NONREDUCTION RULE.—An agreement under this section 

shall not apply (or shall cease to apply) with respect to a State 

upon a determination by the Secretary that the method governing 

the computation of regular compensation under the State law of 

that State has been modified in a manner such that— 

(1) the average weekly benefit amount of regular compensation which will be payable during the period of the agreement 

(determined disregarding any additional amounts attributable 

Notification. 

26 USC 3304 

note. 

26 USC 3304 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 438 PUBLIC LAW 111–5—FEB. 17, 2009 

to the modification described in subsection (b)(1)) will be less 

than 

(2) the average weekly benefit amount of regular compensation which would otherwise have been payable during such 

period under the State law, as in effect on December 31, 2008. 

(d) PAYMENTS TO STATES.— (1) IN GENERAL.— (A) FULL REIMBURSEMENT.—There shall be paid to each 

State which has entered into an agreement under this 

section an amount equal to 100 percent of— 

(i) the total amount of additional compensation 

(as described in subsection (b)(1)) paid to individuals 

by the State pursuant to such agreement; and 

(ii) any additional administrative expenses 

incurred by the State by reason of such agreement 

(as determined by the Secretary). 

(B) TERMS OF PAYMENTS.—Sums payable to any State 

by reason of such State’s having an agreement under this 

section shall be payable, either in advance or by way of 

reimbursement (as determined by the Secretary), in such 

amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, 

reduced or increased, as the case may be, by any amount 

by which the Secretary finds that his estimates for any 

prior calendar month were greater or less than the amounts 

which should have been paid to the State. Such estimates 

may be made on the basis of such statistical, sampling, 

or other method as may be agreed upon by the Secretary 

and the State agency of the State involved. 

(2) CERTIFICATIONS.—The Secretary shall from time to time 

certify to the Secretary of the Treasury for payment to each 

State the sums payable to such State under this section. 

(3) APPROPRIATION.—There are appropriated from the general fund of the Treasury, without fiscal year limitation, such 

sums as may be necessary for purposes of this subsection. 

(e) APPLICABILITY.— 

(1) IN GENERAL.—An agreement entered into under this 

section shall apply to weeks of unemployment— 

(A) beginning after the date on which such agreement 

is entered into; and 

(B) ending before January 1, 2010. 

(2) TRANSITION RULE FOR INDIVIDUALS REMAINING ENTITLED

TO REGULAR COMPENSATION AS OF JANUARY 1, 2010.—In the 

case of any individual who, as of the date specified in paragraph 

(1)(B), has not yet exhausted all rights to regular compensation 

under the State law of a State with respect to a benefit year 

that began before such date, additional compensation (as 

described in subsection (b)(1)) shall continue to be payable 

to such individual for any week beginning on or after such 

date for which the individual is otherwise eligible for regular 

compensation with respect to such benefit year. 

(3) TERMINATION.—Notwithstanding any other provision of 

this subsection, no additional compensation (as described in 

subsection (b)(1)) shall be payable for any week beginning after 

June 30, 2010. 

(f) FRAUD AND OVERPAYMENTS.—The provisions of section 4005 

of the Supplemental Appropriations Act, 2008 (Public Law 110– 

Applicability. 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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: 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 440 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘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: 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 442 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(4)(A) Any State seeking an incentive payment under this 

subsection shall submit an application therefor at such time, in 

such manner, and complete with such information as the Secretary 

of Labor may within 60 days after the date of the enactment 

of this subsection prescribe (whether by regulation or otherwise), 

including information relating to compliance with the requirements 

of paragraph (2) or (3), as well as how the State intends to use 

the incentive payment to improve or strengthen the State’s 

unemployment compensation program. The Secretary of Labor shall, 

within 30 days after receiving a complete application, notify the 

State agency of the State of the Secretary’s findings with respect 

to the requirements of paragraph (2) or (3) (or both). 

‘‘(B)(i) If the Secretary of Labor finds that the State law provisions (disregarding any State law provisions which are not then 

currently in effect as permanent law or which are subject to discontinuation) meet the requirements of paragraph (2) or (3), as 

the case may be, the Secretary of Labor shall thereupon make 

a certification to that effect to the Secretary of the Treasury, 

together with a certification as to the amount of the incentive 

payment to be transferred to the State account pursuant to that 

finding. The Secretary of the Treasury shall make the appropriate 

transfer within 7 days after receiving such certification. 

‘‘(ii) For purposes of clause (i), State law provisions which 

are to take effect within 12 months after the date of their certification under this subparagraph shall be considered to be in effect 

as of the date of such certification. 

‘‘(C)(i) No certification of compliance with the requirements 

of paragraph (2) or (3) may be made with respect to any State 

whose State law is not otherwise eligible for certification under 

section 303 or approvable under section 3304 of the Federal 

Unemployment Tax Act. 

‘‘(ii) No certification of compliance with the requirements of 

paragraph (3) may be made with respect to any State whose State 

law is not in compliance with the requirements of paragraph (2). 

‘‘(iii) No application under subparagraph (A) may be considered 

if submitted before the date of the enactment of this subsection 

or after the latest date necessary (as specified by the Secretary 

of Labor) to ensure that all incentive payments under this subsection are made before October 1, 2011. 

‘‘(5)(A) Except as provided in subparagraph (B), any amount 

transferred to the account of a State under this subsection may 

be used by such State only in the payment of cash benefits to 

individuals with respect to their unemployment (including for 

dependents’ allowances and for unemployment compensation under 

paragraph (3)(C)), exclusive of expenses of administration. 

‘‘(B) A State may, subject to the same conditions as set forth 

in subsection (c)(2) (excluding subparagraph (B) thereof, and 

deeming the reference to ‘subsections (a) and (b)’ in subparagraph 

(D) thereof to include this subsection), use any amount transferred 

to the account of such State under this subsection for the administration of its unemployment compensation law and public employment offices. 

‘‘(6) Out of any money in the Federal unemployment account 

not otherwise appropriated, the Secretary of the Treasury shall 

reserve $7,000,000,000 for incentive payments under this subsection. Any amount so reserved shall not be taken into account 

for purposes of any determination under section 902, 910, or 1203 

Deadline. 

Effective date. 

Deadline. 

Certifications. 

Deadline. 

Notification. 

Application. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) In addition to any other amounts, the Secretary of the 

Treasury shall transfer from the employment security administration account to the account of each State in the Unemployment 

Trust Fund, within 30 days after the date of the enactment of 

this subsection, the amount determined with respect to such State 

under paragraph (2). 

‘‘(2) The amount to be transferred under this subsection to 

a State account shall (as determined by the Secretary of Labor 

and certified by such Secretary to the Secretary of the Treasury) 

be equal to the amount obtained by multiplying $500,000,000 by 

the same ratio as determined under subsection (f)(1)(B) with respect 

to such State. 

‘‘(3) Any amount transferred to the account of a State as a 

result of the enactment of this subsection may be used by the 

State agency of such State only in the payment of expenses incurred 

by it for— 

‘‘(A) the administration of the provisions of its State law 

carrying out the purposes of subsection (f)(2) or any subparagraph of subsection (f)(3); 

‘‘(B) improved outreach to individuals who might be eligible 

for regular unemployment compensation by virtue of any provisions of the State law which are described in subparagraph 

(A); 

‘‘(C) the improvement of unemployment benefit and 

unemployment tax operations, including responding to 

increased demand for unemployment compensation; and 

‘‘(D) staff-assisted reemployment services for unemployment compensation claimants.’’. 

(b) REGULATIONS.—The Secretary of Labor may prescribe any 

regulations, operating instructions, or other guidance necessary to 

carry out the amendment made by subsection (a). 

SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES. 

Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) 

is amended by adding at the end the following new paragraph: 

‘‘(10)(A) With respect to the period beginning on the date of 

enactment of this paragraph and ending on December 31, 2010— 

‘‘(i) any interest payment otherwise due from a State under 

this subsection during such period shall be deemed to have 

been made by the State; and 

‘‘(ii) no interest shall accrue 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 

Time period. 

42 USC 1103 

note. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 444 PUBLIC LAW 111–5—FEB. 17, 2009 

after the period described in such subparagraph or on the accrual 

of interest under this subsection after such period.’’. 

SEC. 2005. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT 

COMPENSATION FOR A LIMITED PERIOD. 

(a) 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) 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) 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 

26 USC 3304 

note. 

Applicability. 

Applicability. 

26 USC 3304 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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.—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 

Time period. 

Deadline. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 446 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 nonrecurrent 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, 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 448 PUBLIC LAW 111–5—FEB. 17, 2009 

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.—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 

Effective dates. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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. 

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. 

Time period. 

Applicability. 

42 USC 655 note. 

Effective dates. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 450 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 

(a) AUTHORITY TO MAKE PAYMENTS.— (1) ELIGIBILITY.— (A) IN GENERAL.—Subject to paragraph (5)(B), the Sec- retary 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)); 

26 USC 6428 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 452 PUBLIC LAW 111–5—FEB. 17, 2009 

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.—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.—The Commissioner of 

Social Security, the Railroad Retirement Board, and the Secretary 

of Veterans Affairs shall certify the individuals entitled to receive 

payments under this section and provide the Secretary of the 

Treasury with the information needed to disburse such payments. 

A certification of an individual shall be unaffected by any subsequent determination or redetermination of the individual’s entitlement to, or eligibility for, a benefit specified in subparagraph (B) 

or (C) of subsection (a)(1). 

(c) TREATMENT OF PAYMENTS.— 

(1) PAYMENT TO BE DISREGARDED FOR PURPOSES OF ALL

FEDERAL AND FEDERALLY ASSISTED PROGRAMS.—A payment 

under subsection (a) shall not be regarded as income and shall 

not be regarded as a resource for the month of receipt and 

the following 9 months, for purposes of determining the eligibility of the recipient (or the recipient’s spouse or family) for 

benefits or assistance, or the amount or extent of benefits 

or assistance, under any Federal program or under any State 

or local program financed in whole or in part with Federal 

funds. 

(2) PAYMENT NOT CONSIDERED INCOME FOR PURPOSES OF

TAXATION.—A payment under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue 

Code of 1986. 

(3) PAYMENTS PROTECTED FROM ASSIGNMENT.—The provisions of sections 207 and 1631(d)(1) of the Social Security 

Act (42 U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad 

Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 

of title 38, United States Code, shall apply to any payment 

Applicability. 

Time period. 

Certification. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 454 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 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 

26 USC 6428 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.—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. 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.—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 

Deadline. 

26 USC 6432 

note. 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 456 PUBLIC LAW 111–5—FEB. 17, 2009 

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— 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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)— 

Definition. 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 458 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. An individual shall be entitled to such review 

upon application to such Secretary in such form and manner 

as shall be provided by such Secretary. Such Secretary shall 

make a determination regarding such individual’s eligibility 

within 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. 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 

Courts. 

Determination. 

Deadline. 

Application. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.—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.—In the case of any assistance eligible individual Deadline. 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 460 PUBLIC LAW 111–5—FEB. 17, 2009 

(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.—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). 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 

Web posting. 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.— 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 462 PUBLIC LAW 111–5—FEB. 17, 2009 

(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. 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 

26 USC 6432. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 464 PUBLIC LAW 111–5—FEB. 17, 2009 

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.—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. 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.’’. 

26 USC 6720C. 

Time period. 

Deadlines. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 is amended by redesignating 

paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: 

‘‘(9) COBRA PREMIUM ASSISTANCE.—In the case of an assistance eligible individual who receives premium reduction for 

COBRA continuation coverage under section 3002(a) of the 

Health Insurance Assistance for the Unemployed Act of 2009 

for any month during the taxable year, such individual shall 

not be treated as an eligible individual, a certified individual, 

or a qualifying family member for purposes of this section 

or section 7527 with respect to such month.’’. 

(B) EFFECTIVE DATE.—The amendment made by 

subparagraph (A) shall apply to taxable years ending after 

the date of the enactment of this Act. 

(15) EXCLUSION OF COBRA PREMIUM ASSISTANCE FROM GROSS

INCOME.— 

(A) IN GENERAL.—Part III of subchapter B of chapter 

1 of the Internal Revenue Code of 1986 is amended by 

inserting after section 139B the following new section: 

‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 

‘‘In the case of an assistance eligible individual (as defined 

in section 3002 of the Health Insurance Assistance for the 

Unemployed Act of 2009), gross income does not include any premium reduction provided under subsection (a) of such section.’’. 

(B) CLERICAL AMENDMENT.—The table of sections for 

part III of subchapter B of chapter 1 of such Code is 

amended by inserting after the item relating to section 

139B the following new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

(C) EFFECTIVE DATE.—The amendments made by this 

paragraph shall apply to taxable years ending after the 

date of the enactment of this Act. 

(b) 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), 

26 USC 139C. 

26 USC 35. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 466 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 467 

TITLE IV—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.—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 

Deadline. 

Health 

Information 

Technology for 

Economic 

and Clinical 

Health Act. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 468 PUBLIC LAW 111–5—FEB. 17, 2009 

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 profes- sional, $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 profes- sional, $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 PROFES- SIONALS.—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 hospitalbased eligible professional. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 hospitalbased 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.—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 

Regulations. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 470 PUBLIC LAW 111–5—FEB. 17, 2009 

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 TECH- NOLOGY.—The eligible professional demonstrates to the 

satisfaction of the Secretary, in accordance with 

subparagraph (C)(i), that during such period the professional is using certified EHR technology in a meaningful manner, which shall include the use of electronic 

prescribing as determined to be appropriate by the 

Secretary. 

‘‘(ii) INFORMATION EXCHANGE.—The eligible professional demonstrates to the satisfaction of the Secretary, 

in accordance with subparagraph (C)(i), that during 

such period such certified EHR technology is connected 

in a manner that provides, in accordance with law 

and standards applicable to the exchange of information, for the electronic exchange of health information 

to improve the quality of health care, such as promoting care coordination. 

‘‘(iii) REPORTING ON MEASURES USING EHR.—Subject to subparagraph (B)(ii) and using such certified 

EHR technology, the eligible professional submits 

information for such period, in a form and manner 

specified by the Secretary, on such clinical quality 

measures and such other measures as selected by the 

Secretary under subparagraph (B)(i). 

The Secretary may provide for the use of alternative means 

for meeting the requirements of clauses (i), (ii), and (iii) 

in the case of an eligible professional furnishing covered 

professional services in a group practice (as defined by 

the Secretary). The Secretary shall seek to improve the 

use of electronic health records and health care quality 

over time by requiring more stringent measures of meaningful use selected under this paragraph. 

‘‘(B) REPORTING ON MEASURES.— 

‘‘(i) SELECTION.—The Secretary shall select measures for purposes of subparagraph (A)(iii) but only 

consistent with the following: 

‘‘(I) The Secretary shall provide preference to 

clinical quality measures that have been endorsed 

by the entity with a contract with the Secretary 

under section 1890(a). 

‘‘(II) Prior to any measure being selected under 

this subparagraph, the Secretary shall publish in 

the Federal Register such measure and provide 

for a period of public comment on such measure. 

‘‘(ii) LIMITATION.—The Secretary may not require 

the electronic reporting of information on clinical 

quality measures under subparagraph (A)(iii) unless 

the Secretary has the capacity to accept the information electronically, which may be on a pilot basis. 

‘‘(iii) COORDINATION OF REPORTING OF INFORMATION.—In selecting such measures, and in establishing 

the form and manner for reporting measures under 

subparagraph (A)(iii), the Secretary shall seek to avoid 

Federal Register, 

publication. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 472 PUBLIC LAW 111–5—FEB. 17, 2009 

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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 474 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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), 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 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.—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— 

Attestation. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 476 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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’’. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 PAY- MENTS.—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- 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 478 PUBLIC LAW 111–5—FEB. 17, 2009 

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-beddays (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-beddays (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 inpatientbed-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. 

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. 

Data. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 480 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(iii) REPORTING ON MEASURES USING EHR.—Subject to subparagraph (B)(ii) and using such certified 

EHR technology, the eligible hospital submits information for such period, in a form and manner specified 

by the Secretary, on such clinical quality measures 

and such other measures as selected by the Secretary 

under subparagraph (B)(i). 

The Secretary shall seek to improve the use of electronic 

health records and health care quality over time by 

requiring more stringent measures of meaningful use 

selected under this paragraph. 

‘‘(B) REPORTING ON MEASURES.— 

‘‘(i) SELECTION.—The Secretary shall select measures for purposes of subparagraph (A)(iii) but only 

consistent with the following: 

‘‘(I) The Secretary shall provide preference to 

clinical quality measures that have been selected 

for purposes of applying subsection (b)(3)(B)(viii) 

or that have been endorsed by the entity with 

a contract with the Secretary under section 

1890(a). 

‘‘(II) Prior to any measure (other than a clinical quality measure that has been selected for 

purposes of applying subsection (b)(3)(B)(viii)) 

being selected under this subparagraph, the Secretary shall publish in the Federal Register such 

measure and provide for a period of public comment on such measure. 

‘‘(ii) LIMITATIONS.—The Secretary may not require 

the electronic reporting of information on clinical 

quality measures under subparagraph (A)(iii) unless 

the Secretary has the capacity to accept the information electronically, which may be on a pilot basis. 

‘‘(iii) COORDINATION OF REPORTING OF INFORMATION.—In selecting such measures, and in establishing 

the form and manner for reporting measures under 

subparagraph (A)(iii), the Secretary shall seek to avoid 

redundant or duplicative reporting with reporting 

otherwise required, including reporting under subsection (b)(3)(B)(viii). 

‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED

EHR TECHNOLOGY AND INFORMATION EXCHANGE.— 

‘‘(i) IN GENERAL.—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. 

Federal Register, 

publication. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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-beddays, 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) 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 

Regulations. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 482 PUBLIC LAW 111–5—FEB. 17, 2009 

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 331⁄3 percent for fiscal year 2015, 662⁄3 percent 

for fiscal year 2016, and 100 percent for fiscal year 2017 and 

each subsequent fiscal year. Such reduction shall apply only with 

respect to the fiscal year involved and the Secretary shall not 

take into account such reduction in computing the applicable 

percentage increase under clause (i) for a subsequent fiscal year. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 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) 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) 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); 

Applicability. 

Applicability. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 484 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 486 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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)’’. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 488 PUBLIC LAW 111–5—FEB. 17, 2009 

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 PAY- MENTS.— 

(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 — 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 490 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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) 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) 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 

Definitions. 

Applicability. 

Definition. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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— 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 492 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(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) 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 

Study. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 494 PUBLIC LAW 111–5—FEB. 17, 2009 

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) 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. 

Reports. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 495 

Subtitle C—Miscellaneous Medicare 

Provisions 

SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS. 

(a) DELAY IN PHASE OUT OF MEDICARE HOSPICE BUDGET NEU- TRALITY ADJUSTMENT FACTOR DURING FISCAL YEAR 2009.—Notwithstanding any other provision of law, including the final rule published on August 8, 2008, 73 Federal Register 46464 et seq., relating 

to Medicare Program; Hospice Wage Index for Fiscal Year 2009, 

the Secretary of Health and Human Services shall not phase out 

or eliminate the budget neutrality adjustment factor in the Medicare 

hospice wage index before October 1, 2009, and the Secretary shall 

recompute and apply the final Medicare hospice wage index for 

fiscal year 2009 as if there had been no reduction in the budget 

neutrality adjustment factor. 

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

(1) IN GENERAL.—Section 412.322 of title 42, Code of Federal Regulations, shall be applied without regard to paragraph 

(c) of such section, and the Secretary of Health and Human 

Services shall recompute payments for discharges occurring 

on or after October 1, 2008, as if such paragraph had never 

been in effect. 

(2) NO EFFECT ON SUBSEQUENT YEARS.—Nothing in paragraph (1) shall be construed as having any effect on the application of paragraph (d) of section 412.322 of title 42, Code of 

Federal Regulations. 

(c) FUNDING FOR IMPLEMENTATION.—In addition to funds otherwise available, for purposes of implementing the provisions of subsections (a) and (b), including costs incurred in reprocessing claims 

in carrying out such provisions, the Secretary of Health and Human 

Services shall provide for the transfer from the Federal Hospital 

Insurance Trust Fund established under section 1817 of the Social 

Security Act (42 U.S.C. 1395i) to the Centers for Medicare & Medicaid Services Program Management Account of $2,000,000 for fiscal 

year 2009. 

SEC. 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) 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 longterm care hospital, or satellite facility, that as of December 

29, 2007, was co-located with an entity that is a providerbased, 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)— 

42 USC 1395ww 

note. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 496 PUBLIC LAW 111–5—FEB. 17, 2009 

(A) in subparagraph (B)(ii), by inserting ‘‘or that is 

described in section 412.22(h)(3)(i) of such title’’ before the 

period; and 

(B) in subparagraph (C), by striking ‘‘the date of the 

enactment of this Act’’ and inserting ‘‘October 1, 2007 (or 

July 1, 2007, in the case of a satellite facility described 

in section 412.22(h)(3)(i) of title 42, Code of Federal Regulations)’’. 

(b) MORATORIUM.—Subsection (d)(3)(A) of such section is 

amended by striking ‘‘if the hospital or facility’’ and inserting ‘‘if 

the hospital or facility obtained a certificate of need for an increase 

in beds that is in a State for which such certificate of need is 

required and that was issued on or after April 1, 2005, and before 

December 29, 2007, or if the hospital or facility’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective and apply as if included in the enactment of 

the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 

Law 110–173). 

TITLE V—STATE FISCAL RELIEF 

SEC. 5000. PURPOSES; TABLE OF CONTENTS. 

(a) PURPOSES.—The purposes of this title are as follows: 

(1) To provide fiscal relief to States in a period of economic 

downturn. 

(2) To protect and maintain State Medicaid programs 

during a period of economic downturn, including by helping 

to avert cuts to provider payment rates and benefits or services, 

and to prevent constrictions of income eligibility requirements 

for such programs, but not to promote increases in such requirements. 

(b) TABLE OF CONTENTS.—The table of contents for this title 

is as follows: 

TITLE V—STATE FISCAL RELIEF 

Sec. 5000. Purposes; table of contents. 

Sec. 5001. Temporary increase of Medicaid FMAP. 

Sec. 5002. 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. 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 

42 USC 1396d 

note. 

42 USC 1396a 

note. 

42 USC 1395ww 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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. 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 498 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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) 

Deadline. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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). 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.— 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 500 PUBLIC LAW 111–5—FEB. 17, 2009 

(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 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 HOS- PITALS.— 

(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.—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 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 502 PUBLIC LAW 111–5—FEB. 17, 2009 

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). 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 MANAGE- MENT 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 ADMINIS- TRATION 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.—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 

Time period. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 504 PUBLIC LAW 111–5—FEB. 17, 2009 

each amended by striking ‘‘September 30, 2003’’ and inserting 

‘‘December 31, 2010’’. 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on July 1, 2009. 

(b) STATE OPTION OF INITIAL 12-MONTH ELIGIBILITY.—Section 

1925 of the Social Security Act (42 U.S.C. 1396r–6) is amended— 

(1) in subsection (a)(1), by inserting ‘‘but subject to paragraph (5)’’ after ‘‘Notwithstanding any other provision of this 

title’’; 

(2) by adding at the end of subsection (a) the following: 

‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY PERIOD.—A 

State may elect to treat any reference in this subsection to 

a 6-month period (or 6 months) as a reference to a 12-month 

period (or 12 months). In the case of such an election, subsection 

(b) shall not apply.’’; and 

(3) in subsection (b)(1), by inserting ‘‘but subject to subsection (a)(5)’’ after ‘‘Notwithstanding any other provision of 

this title’’. 

(c) REMOVAL OF REQUIREMENT FOR PREVIOUS RECEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of such Act (42 U.S.C. 1396r– 

6(a)(1)), as amended by subsection (b)(1), is further amended— 

(1) by inserting ‘‘subparagraph (B) and’’ before ‘‘paragraph 

(5)’’; 

(2) by redesignating the matter after ‘‘REQUIREMENT.—’’ 

as a subparagraph (A) with the heading ‘‘IN GENERAL.—’’ and 

with the same indentation as subparagraph (B) (as added by 

paragraph (3)); and 

(3) by adding at the end the following: 

‘‘(B) STATE OPTION TO WAIVE REQUIREMENT FOR 3

MONTHS BEFORE RECEIPT OF MEDICAL ASSISTANCE.—A State 

may, at its option, elect also to apply subparagraph (A) 

in the case of a family that was receiving such aid for 

fewer than three months or that had applied for and was 

eligible for such aid for fewer than 3 months during the 

6 immediately preceding months described in such subparagraph.’’. 

(d) CMS REPORT ON ENROLLMENT AND PARTICIPATION RATES

UNDER TMA.—Section 1925 of such Act (42 U.S.C. 1396r–6), as 

amended by this section, is further amended by adding at the 

end the following new subsection: 

‘‘(g) COLLECTION AND REPORTING OF PARTICIPATION INFORMATION.— 

‘‘(1) COLLECTION OF INFORMATION FROM STATES.—Each 

State shall collect and submit to the Secretary (and make 

publicly available), in a format specified by the Secretary, 

information on average monthly enrollment and average 

monthly participation rates for adults and children under this 

section and of the number and percentage of children who 

become ineligible for medical assistance under this section 

whose medical assistance is continued under another eligibility 

category or who are enrolled under the State’s child health 

plan under title XXI. Such information shall be submitted 

at the same time and frequency in which other enrollment 

information under this title is submitted to the Secretary. 

‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using the information 

submitted under paragraph (1), the Secretary shall submit 

42 USC 1396a 

note. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 505 

to Congress annual reports concerning enrollment and participation rates described in such paragraph.’’. 

(e) EFFECTIVE DATE.—The amendments made by subsections 

(b) through (d) shall take effect on July 1, 2009. 

SEC. 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) for the period that begins on January 1, 2010, 

and ends on September 30, 2010, the total allocation 

amount is $412,500,000; and 

‘‘(N) for the period that begins on October 1, 2010, 

and ends on December 31, 2010, the total allocation amount 

is $150,000,000.’’; and 

(2) in paragraph (3), in the matter preceding subparagraph 

(A), by striking ‘‘or (L)’’ and inserting ‘‘(L), or (N)’’. 

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 

Time period. 

Time period. 

42 USC 1396r–6 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 506 PUBLIC LAW 111–5—FEB. 17, 2009 

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), 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 ENTI- TIES.— 

‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN HEALTH CARE

PROVIDER AS PRIMARY CARE PROVIDER.—In the case of a nonIndian 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: 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 508 PUBLIC LAW 111–5—FEB. 17, 2009 

‘‘(A) DEMONSTRATION OF ACCESS TO INDIAN HEALTH

CARE PROVIDERS AND APPLICATION OF ALTERNATIVE PAY- MENT 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. 

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 

Procedures. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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.’’. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 510 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH

CARE PROGRAMS FUNDED UNDER THE SOCIAL SECURITY ACT

INVOLVING INDIAN HEALTH PROGRAMS AND URBAN INDIAN

ORGANIZATIONS.— (1) 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— 

Establishment. 

42 USC 

1320b–24. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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 

42 USC 1396a 

note. 

42 USC 1396a 

note. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 512 PUBLIC LAW 111–5—FEB. 17, 2009 

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. 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 

47 USC 1305. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) establish and implement the grant program as expeditiously as practicable; 

(2) 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) 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 SelfDetermination 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; 

Reports. 

Deadlines. 

Deadline. 

Grants. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 514 PUBLIC LAW 111–5—FEB. 17, 2009 

(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— 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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) 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) 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) 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) 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. 

Deadline. 

Reports. 

Broadband plan. 

Publication. 

Database. 

Web site. 

Records. 

Reports. 

Deadlines. 

Public 

information. 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 516 PUBLIC LAW 111–5—FEB. 17, 2009 

(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) 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. 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) 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: 

Regulations. 

Deadline. 

Web posting. 

Public 

information. 

Broadband map. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 nonpublic 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 518 PUBLIC LAW 111–5—FEB. 17, 2009 

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 longterm 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) 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 highlycompensated 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 

Applicability. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 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 companywide 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 


ebenthall on POQ96SHH1 with PUBLAW
123 STAT. 520 PUBLIC LAW 111–5—FEB. 17, 2009 

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.’’. 


ebenthall on POQ96SHH1 with PUBLAW
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 521 

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. 

Æ 

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. 


ebenthall on POQ96SHH1 with PUBLAW